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DA Increase of Bankers from August,2023
Dearness Allowance Increase of Bankers from August,2023 :
Increase of 36 slab i.e. 2.52%.
Total slab: @ 632 i.e. 44.24% w.e.f. August, 2023.
Expected DA for Bank Employees from August 2023
The Dearness allowance to bank employees and dearness relief to bank pensioners is paid under the 11th bipartite settlement between bank unions and IBA (Indian Bank’s Association) signed on 11th November 2020. The settlement is effective from November 1, 2017. The dearness allowance is paid based on the Consumer Price Index (CPI) number published by the Labor Bureau of India.
The Dearness Allowance (DA) for bankers for the period from August 2023 shall be based on CPI(IW) numbers from April 2023 to June 2023. The latest CPI(IW) data with the base year 2016 is as under.
Month AICPIN/CPI(IW)
April 2023 134.20
May 2023 134.70
June 2023 yet to be declared
If CPI(IW) remains at the same level during June 2023 as in May 2023, the DA to bank employees shall be payable for 623 DA slabs as against the existing 596 DA slabs i.e. an increase of 27 DA slabs.
Hence, the Expected DA for bank employees from August 2023 is 43.61%. The existing DA rate for the period of May 2023 to July 2023 is 41.72%. Hence there shall be an increase of 1.89% in dearness allowance for the period from August 2023 to October 2023.
DA increased for Bankers from Nov 2022
DA for Bankers has increased for the quarter November 2022 to January 2022.
CPI data for the month of July, August and September 2022 has been released, which is as under:
| July 2022 | 129.90 |
| August 2022 | 130.20 |
| September 2022 | 131.30 |
DA for bank employees is linked to CPI data. Based on the CPI data for last 3 months (July 2022 to September 2022), DA payable to bankers will be 556 slabs for the quarter Nov 22 to Jan 23. This is 30 slabs from the previous quarter, which was 526.
As such, the Dearness Allowance for bankers will be 38.92% from the next quarter starting from November 2022. DA for the last quarter was 36.82%. Accordingly, there is an increase of 2.10% in the DA for the upcoming quarter.
DA increased for bankers & bank pensioners from August-2022
The Dearness Allowance of Bank employees announced quarterly based on All India Consumer Price Index Numbers (AICPIN) and effective from February, May, August and November months of every year.
Bank employee Dearness Allowance in salary is a calculation of allowance paid to employees based on their work scale to compensate for the inflation, and this is calculated from a percentage of basic salary to mitigate the inflation on people.
As per current updates, the new total Dearness Allowance for Bank employees is 36.8% which calculated on the basis of Bank employee basic salary, wherein this quarter, the DA for public sector bank employees do hold an expecting increase by 3.76% Dearness Allowance in their salary from Aug 22 to October 2022 which increase their total salary.
Let’s check the Dearness Allowance for workmen and officer employees in public sector banks and some private banks are considered as per the below DA rate.
The allowance added in the salary is apart from basic salary and it is calculated on a defined percentage, where every bank has their pay grade defined for employees based on their location and type of work they are assigned.
Thus this increases the basic salary and the Dearness Allowance is a percentage from basic salary, and anyone who has got a higher basic salary will surely have a higher slab of Dearness Allowance, which does give them a good total NET salary.
This part of the salary is always increased and in Banks, it is estimated to have an increase in DA for every one year based on their performance, and we can update the new DA rates of bank employees for the next quarter from November 2022 after announcing price index numbers from July to Sep 2022.
Expected DA for bank employees from August-2022
The Dearness allowance to bank employees is paid under the 11th bipartite settlement between bank unions and IBA (Indian Bank’s Association) signed on 11th November 2020. The settlement is effective from November 1, 2017. The dearness allowance is paid based on the Consumer Price Index (CPI) number published by the Labor Bureau of India.
The Dearness Allowance (DA) for bankers for the period from August 2022 shall be based on CPI(IW) numbers from April 2022 to June 2022. The latest CPI(IW) data with the base year 2016 is as under.
April 2022- 127.70
May 2022- 129
June 2022- to be declared
If CPI (IW) remains at the same level during June 2022 as in May 2022, the DA to bank employees shall be payable for 525 DA slabs as against the existing 472 DA slabs i.e. an increase of 53 DA slabs.
Based on the above, the Expected DA from August 2022 is 36.75%. The existing DA rate for the period of May 2022 to July 2022 is 33.04% Hence there shall be an increase of 3.71% in dearness allowance for the period from August 2022 to October 2022.
