Nov 142016
 

Difference between Industrial Dearness Allowance IDA and Central Dearness Allowances CDA Pay Scale

A pay scale that is also known as a salary structure is a system that finds out how much a worker will be paid for his work which he had done during the month. Every worker have different salary, its depends upon the work of the employee and their position at work place. There are also many other criteria which decide the salary of the worker. It also based on one or more other factors like the worker’s level, rank or position within the employer’s organization, the experience of the worker in that particular company and also the total experience. Salary also divided into many types like Central Dearness Allowances, Industrial Dearness Allowance.

The Dearness Allowance is a cost of living change payment salaried to Government employees, Public sector employees) and pensioners. This Dearness Allowance is followed in Pakistan, Bangladesh and India. Dearness Allowance is planned as a percentage of an Indian citizen’s basic salary to lessen the force of inflation on people.

DA Dearness Allowance
DA directly Related to Cost of Living
DA gets differed based on employees living in which sectors ·         Urban

·         Semi-Urban

·         Rural

When was DA component Introduced After Second World War

These are two different kind of allowance which is generally used in the industry. Also salary packages are different in private and govt sector. Here are the explainations about Central Dearness Allowances, Industrial Dearness Allowance.

Industrial Dearness Allowance

Industrial Dearness Allowance for workers of different Central Public Sector Enterprises is modifying frequently on a quarterly basis. This is the basic kind of salary which is commonly used in India. Govt give a rapid raise in this salary to give more and more benefits to their employee. This kind of Allowance is for the Industrial worker of the govt sector. Industrial Dearness Allowance is the allowance applicable to employees of the public sector enterprises
Central Dearness Allowances

this type of Allowance is for the Central govt employee. This is given to the workers who are working for the Central govt. The Government of India has hiked the Central Dearness Allowances (CDA) for the central government workers by 2% from 0 % to 2 % of the of basic salary with effect from July 01, 2016. This will advantage about 50 lakh central government workers. No doubt govt raise this salary to give more and more benefit to their employee.

Difference between Industrial Dearness Allowance and Central Dearness Allowances Pay Scale

Even though both Industrial Dearness Allowance and Central Dearness Allowances are calculated with respect to Average AICPI, there is difference between Industrial Dearness Allowance and Central Dearness Allowances. It occurs because of difference in date of completion of revised pay scales.

  • Industrial Dearness Allowance is calculated quarterly with respect to average of AICPI of Last 3 months, whereas Central Dearness Allowances is calculated 2 times a year
  • Industrial Dearness Allowance and Central Dearness Allowances are different for the employee and pensions holders in the Pakistan, Bangladesh and India
  • IDA is for the public sector enterprises employee while the Central Dearness Allowances are for the Central govt employee

Even though both salaries are for the benefit of employee but there are some differences which are benefits differently for the employee

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