Expected DA for Bankers from February 2018

DA for bankers from Feb 2018 is expected to increase by 17 DA slabs for the month of Feb, March and April 2018 calculated on the basis of Consumer Price Index (CPI) data.

All India Consumer Price Index Numbers for Industrial Workers – CPI(IW) is 287 for October 2017 as announced by the Government. Also the Consumer Price Index (CPI) increased by 1 point from 287 to 288 points.

Expected DA increase for bank employees from Feb 2018 to April 2018

On the basis of CPI data as announced by Government there is increase of 17 DA slabs payable for the month of Feb 2018 to April 2018.

DA payable on DA slabs is 0.10 percent so percentage increase in DA comes out to be 1.7 percent.

Expected DA increase for bank employees calculation :

CPI Data published by Labour Bureau with 2001 as base year

October 2017 – 287 

November 2017 – 288 

December 2017 – 289 

After Multiplying it with conversion factor (4.63 x 4.93)

Consumer Price Index (CPI) for October 2017 = (287 x 4.63 x 4.93) = 6551.03

Consumer Price Index (CPI) for November 2017 = (288 x 4.63 x 4.93) = 6573.85

Consumer Price Index (CPI) for December 2017 = (289 x 4.63 x 4.93) = 6596.68

Average CPI = (6551.03+6573.85+6596.68)/3 = 6573.85

Deducting 4440 slabs which are merged in basic pay as per 10th BPS  = (6573.85-4440) = 2133.85

Divide 2133.85 by 4 to calculate DA slabs for Quarter = (2133.85/4)=533.46 or 533.

So DA slabs for next quarter i.e, February 2018 to April 2018 will be 533 on which 0.10 percent DA is payable.

So DA slabs for February 2018 , March 2018 and April 2018 will be 53.30 percent.

Increase in DA slabs = 533-516(previous quarter) = 17 slabs

So Expected DA percentage increase for Feb, March and April 2018 will be 1.7 percent.

Now, Considering recent hike in fuel price if we expect Consumer Price Index (CPI) for December to increase by 2 points to 290.

In this case, DA slabs for Feb, March and April 2018 = 535

Increase in DA slabs = 535-516(last quarter) = 19 slabs, So expected percentage increase in DA will be 1.9 percent.