The Indian Banks’ Association (IBA) has announced an increase in dearness allowance (DA) to 15.97% for May, June and July 2024. The June 10th notification detailed the new DA rates, following the agreements set out in the 12th Bipartite Settlement and Joint Note, both dated March 8, 2024.
The latest notification stated: “In terms of clause 13 of the 12th Bipartite Settlement dated 08.03.2024 and clause 2 (i) of the Joint Note dated 08.03.2024, the rate of Dearness Allowance payable to Workmen and Officer employees for the months of May, June & July 2024 shall be 15.97% ‘of ‘pay’ (0.01 % change in DA on ‘pay’ for change in every second decimal place of CPI 2016 over 123.03 points).”
What Is DA?
DA in India for employees stands for Dearness Allowance. It’s a component of the salary paid by the government and some public sector companies to their employees to help them cope with inflation.
DA For Bank Employees From May 2024
The average CPI for this period is 139, showing an increase from the previous quarter’s average of 138.76.
The DA adjustment is based on the confirmed All India Average Consumer Price Index for Industrial Workers (Base 2016=100) for the quarter ending March 2024.
Consequently, the number of points over the base index of 123.03 is calculated to be 15.97 (139 – 123.03), leading to a corresponding DA hike.
The index values are recorded as follows:
- January 2024: 138.9
- February 2024: 139.2
- March 2024: 138.9
Salary Hike For Bank Employees
This rise in dearness allowance is a component of the comprehensive wage revision established in March 2024. During this agreement, the IBA and bank employee unions reached a consensus on an annual wage increase of 17%.
Effective from November 2022, this wage pact is anticipated to incur an extra Rs 8,284 crore annually for public sector banks and will provide advantages to around 8 lakh bank employees.
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