DA for Bank Employees from May 2017 (Notification)

CPI data for February, 2017 has been released today by labour bureau, which is 274 i.e., at same level as that of January 2017. That means, our calculations for expected DA for May 2017 to July 2017 does not change and the Dearness Allowance for bankers is estimated to be decreased by 1.50%.

Dearness Allowance for the period February 2017 to April 2017 had decreased by 0.90% and with the release of CPI data for the month of January 2017, DA for bankers is expected to decrease further.  Actual DA payable for Feb to Apr 17 is 46.90%. See DA Chart for Officer Staff and Workman Staff.

If Consume Price Index (CPI) for the next two months i.e., February and March 2017 does not increase and be assumed at the same level (274) as that for the month of January 2017, DA slabs for the next quarter, May 2017 to July 2017 will be 454 i.e., 45.40%. This will be below the level of DA slabs of 455 i.e., 45.50% for the quarter August to October 2016. For the first time since 2006, there will be decline in Dearness Allowance for bankers for two consecutive quarters.

CPI for the month of January 2017 is 274.  Converting the CPI by multiplying with conversion factor (4.63 x 4.93) , it works out to 6254.30 (average will be same assuming that CPI will remain constant).  

By deducting 4440 slabs (which were merged in basic pay in 10th bipartite settlement), it works out to 453.57 rounded off to 454).

We’ll update the Final DA for May 2017 to July 2017, next month on the release of CPI data for the month of March 2017. Just hope that index number increases at least for next month and DA payable for next quarter do not decrease.