Bank Employees' Dearness Allowance (DA) Increased to 27.83% from August 2026 – Check Latest DA Rate

There is good news for lakhs of bank employees across India. The Dearness Allowance (DA) has been increased by 2.13%, taking the DA rate from 25.70% to 27.83% for the quarter August 2026 to October 2026.

The revised DA will be effective from 1 August 2026 and will be payable to employees covered under the 12th Bipartite Settlement.

New DA Rate Effective from 1 August 2026

The latest Dearness Allowance has been calculated based on the average Consumer Price Index (CPI-IW) for the three-month period of April, May, and June 2026.

CPI-IW Data Used for DA Calculation

Month	CPI-IW
April 2026	149.9
May 2026	150.8
June 2026	151.9
Average CPI-IW	150.86

Based on this average CPI of 150.86, the Dearness Allowance has been revised to 27.83%.

DA Increased by 2.13%

The latest revision results in an increase of 2.13 percentage points over the existing DA.

Particulars	DA Rate
Existing DA (May–July 2026)	25.70%
Revised DA (August–October 2026)	27.83%
Increase	2.13%

This increase will enhance the monthly salary of bank employees by increasing the DA component of their pay.

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Expected DA for Bank Employees from August 2026

DA for bank employees from August 2026 is estimated at ~27.47% under the 12th Bipartite Settlement — with April 2026 CPI-IW confirmed at 149.9 and May 2026 

CPI-IW now also confirmed at 150.8 (Labour Bureau, 30 June 2026), only one data point (June 2026 CPI, due 31 July 2026) remains to lock in the final figure. 

May–July 2026 DA is confirmed at 25.70% (effective 1 May 2026; January–March 2026 quarterly average: 148.73; March CPI 149.10). The previous quarter (February–April 2026) DA was 25.00%.

Aug 2026 DA: ~27.47% estimated (Apr 149.9 ✓ · May 150.8 ✓ · Jun pending) · May–Jul 2026 DA: 25.70% ✓ Confirmed (effective 1 May 2026 · Mar CPI 149.10 · Avg 148.73) · Payable on: Basic + SA + PQP + stagnation increment · Formula: Quarterly avg CPI (2016=100) − 123.03

Aug 2026 DA — Expected

~27.47%

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DA hike for Bank Employees from May -2026

 

The Government of India has increased Dearness Allowance (DA) for Bank Employees from May 2026 to July 2026.

Index for Months	Index as per 2016 series
Jan 26	148.60
Feb 26	148.50
Mar 26	149.10
Average	148.73
New DA Rate (over 123.03)	25.70%
DA Rate for Previous Quarter	25.00%
Increase	0.70%

Accordingly, Dearness Allowance is payable to Officers is 25.70% slabs with effect from 01.05.2026. A few days ago, the Government of India had increased DA for Central government employees by 2%. Dearness Allowance (DA) of central government employees has been hiked by 2 per cent, taking the total DA from 58 per cent to 60 per cent of basic pay.

Complete Chart:

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DA increase for Bank Employees from Nov-2025

 Dearness Allowance(DA) has been hiked for bank employees from November 2025. The DA has been hiked by 2.80%.

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DA hike for Bankers from August,2025

The AICPI(IW) for the month of June'25 increases by 1%. & stood at 145. Increase of DA by 1.16% of Pay fm August'25. Total DA 21.13%.Pensioners to also get 781 DA Slabs. Decrease by one(1) DA Slab. 

 

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DA decrease for Bank Employees from May 2025

The Dearness Allowance (DA) for bank employees for the period of May 2025 to July 2025 is expected to be 19.90% based on the average CPI-IW index of 142.93 for the current quarter. This is a slight decrease compared to the 21.20% paid in the previous quarter. The calculation is based on the 12th BPS, and the DA is expected to be 20.17% from May 2025. 

Here's a more detailed breakdown:

Expected DA: 19.90%
CPI-IW Index (Base 2016=100): 142.93
Average Index for Current Quarter: 142.93
Index above 123.03 points: 19.90
DA for Previous Quarter: 21.20% 

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Expected Bank DA from May, 2025

Expected DA calculation updated on 01-04-25 on the basis of CPI announced by the GOI for the month of Feb.'25 and with the assumptions of CPI for the month of Mar.'25 as mentioned hereunder.

The CPI for the month of February, 2025 announced on 01-04-2025 as 142.80 points decreased by 0.40 points only from 143.20 points in January, 2025.

1. On assumptions if there is a decrease of 0.40 points of CPI in the month of Mar.'25, on this assumption, we may expect that there would be a decrease of 1.43% DA only and the total tentatively revised DA would be 19.77% from May'25 in terms of 12th BPS.

2. On assumptions if there is no increase/decrease of any points of CPI in the month of Mar.'25, on this assumption, we may expect that there would be a decrease of 1.30% DA only and the total tentatively revised DA would be 19.90% from May'25 in terms of 12th BPS.

3. On assumptions if there is an increase of 0.40 points of CPI in the month of Mar.'25, on this assumption, we may expect that there would be a decrease of 1.16% DA only and the total tentatively revised DA would be 20.04% from May'25 in terms of 12th BPS.

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DA increased for Bank Employees and Pensioners from Feb-2025, Complete Chart

On the basis of CPI data announced by the Govt for the months of Oct'24 to Dec'254 DA payable for the period Feb'25 to Apr'25 is 21.20% as per 12th BPS.

 

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