Dearness Allowance (DA)

DA as per 11th BPS w.e.f. 01.11.2017

Update on 01.11.2023- DA w.e.f. 01.11.2023 for November , December 2023 and January 2024 will be 48.51%. For detail Click Here

Update on 31.07.2023

 

Original Post

Dearness Allowance is paid to an employee as a percentage of his basic salary. In order to mitigate the effect of inflation DA is paid as a part of salary. 

In banking industry DA is calculated as on the basis of All India Consumer Price Index Number (ACPIN) released by the Ministry of Labour, Govt. of India. Since the Bank DA is based on ACPIN, it may increase or decrease on the basis of CPI numbers released by the department.

Bank DA is released every quarter but here the quarters are different from the accounting quarters. DA is changed every February, May, August & November on the basis of average change in Slabs.

Present DA is calculated at 0.10% per slab on the basis of 10th Bipartite Settlement. There is a fixed formula to calculate the banking DA but I am skipping this calculation. Let the HR person do their Job :-) 

Banking DA from November 2014 to till date is given below for your ready reference.

Payable for the months	Average CPI	No. of slabs	% of pay	% Difference
May,June,July 2020	7486.9	761	76.1	0.2
February,March,April 2020	7479.29	759	75.9	4.2
November,December 2019 & January 2020	7311.0	717	71.7	3.6
August,September,October 2019	7167.33	681	68.1	3.6
May,June,July 2019	7023.0	645	64.5	3.4
February,March,April 2019	6885.0	611	61.1	0.4
November,December 2018 & January 2019	6871.0	607	60.7	6.6
August,September,October 2018	6604.0	541	54.1	1.2
May,June,July 2018	6559.0	529	52.9	0.2
February,March,April 2018	6551.0	527	52.7	1.1
November,December 2017 & January 2018	6505.0	516	51.6	3.8
August,September,October 2017	6353.21	478	47.8	2.2
May,June,July 2017	626191	456	45.6	(1.3 )*
February,March,April 2017	6315.0	469	46.9	1.3
November,December 2016 & January 2017	6353.0	456	45.6	0.1
August,September,October 2016	6261.9	455	45.5	3.5
May,June,July 2016	6117.0	420	42.0	(0.6 )*
February,March,April 2016	6147.0	426	42.6	2.8
November,December 2015 & January 2016	6033.0	398	39.8	3.4
August,September,October 2015	5896.0	364	36.4	(74.3 )$
May,June,July 2015	5790.17	738	110.7	0.6
February,March,April 2015	5774.95	734	110.1	0.3
November,December 2014 & January 2015	5767.0	732	109.8	-

* Decrease in DA

$ merger of DA with Basic in terms of 10th BPS

Source: Indian Banking Association (IBA)Website and 10th & 11th BPS/Joint Note