WHY CDA AND IDA – WHAT IS THE DIFFERENCE? MANY COMRADES ASK THIS QUESTION.

CDA (Central Dearness Allowance) is for the central government employees and pensioners.

IDA (Industrial Dearness Allowance) is applicable for the public sector employees and pensioners as well.

Increase in DA/DR is based on the increase in the consumer price index.For the central government employees the pay revision was with effect from01-01-2006 and pay was fixed considering the price index of 115.7%. Further grant of DA/DR depends upon the average increase of consumer price index twice in a year.

In the case of IDA, pay revision for the public sector employees was on 01-01-2007 and the price index at that time,126.33 was merged. Subsequent IDA is granted quarterly depending on average increase in the CPI over and above 126.33..