Information on the Expected IDA Increase from July 2026 and EPF Interest Rate for FY 2025–26.

It has come to our notice that the Industrial Dearness Allowance (IDA) is expected to increase by 3.5% with effect from 1st July 2026. Although the enhancement has not yet been officially notified by the Government through the Department of Public Enterprises (DPE), the calculation based on the Consumer Price Index (CPI) numbers released by the Labour Bureau on 30.06.2026 indicates that the IDA for employees and pensioners covered under the 2007 Pay Scale is likely to be revised upward by 3.5% from 01.07.2026. The official notification from the DPE is awaited, and the exact rate will be confirmed once the Government issues the formal order. 

Meanwhile, the Employees' Provident Fund Organisation (EPFO) has issued orders regarding the rate of interest on Employees' Provident Fund (EPF) accumulations for the financial year 2025–26. As per EPFO Letter No. INV-11/2/2021-INV/E-41960/2519 dated 01.07.2026, the Ministry of Labour & Employment has approved an interest rate of 8.25% on EPF deposits for the financial year 2025–26. The interest will be credited to the accounts of EPF members in accordance with the provisions of Paragraph 60 of the Employees' Provident Fund Scheme, 1952. 

The confirmation of the expected IDA increase and the declaration of the EPF interest rate are encouraging developments for BSNL employees and pensioners. BSNLEU will keep its members informed as soon as the DPE issues the official notification regarding the IDA revision.