Bank Employees’ Salary to Increase this Month as DA Hiked. Know how much Raise you’ll Get
he salary of bank employees is all set to increase, starting from this month. The Dearness Allowance (DA) for bank employees has been hiked to 27.79%, up by 2.1 per cent over the last quarter. The increment will be effective from August to October and applicable for bankers following 11th BPS salary structure. DA for bank employees and workmen for 10th BPS has been increased by 3 per cent, compared to the last quarter. The raise in DA will be in place for the next three months, beginning from August. Over 8 lakh employees will be benefited from this decision. A hike in DA will increase the net salary drawn by the bank employees every month as it is directly linked to the basic salary.
Dearness Allowance is a component of salary of government and bank employees, aimed at soothing the impact of inflation. DA is calculated based on Consumer Price Index and revised in every quarter for bank employees. As DA is related to cost of living, it varies from employee to employee based on whether they work in urban sector, semi-urban sector or the rural sector. DA has been included to compensate for price rise or inflation in a particular financial year.
The central government had earlier released average All India Consumer Price Index Numbers (AICPIN) for Industrial Workers for the quarter April, May, and June 2021. With these average AICPIN data, the Dearness Allowances for bank employees is calculated.
How Dearness Allowance hike for bank employees is Calculated
The All-India Consumer Price Index — Industrial Workers is released by the ministry of labour and employment, on the last working day of every month for previous month. Based on the consecutive three months or one quarter, the average is calculated. DA of the bank employees depends on that average rate of AICPI
“We have to advise that the confirmed All India Average Consumer Price Index Numbers for Industrial Workers (Base 1960=100) for the quarter ended June 2021 as published by Govt. of India in its website Labour Bureau are as follows: April 2021 7895.20, May 2021 7928.07, June 2021 8000.39,” said Indian Bank’s Association (IBA) in a circular.
The average of the above is 7941.22 and accordingly the number of DA slabs works out to 397 (7941.22–6352= 1589.22= 397 Slabs) The payment of DA for the months May , June and July 2021 was at 367 Slabs. Hence, there is a increase of 30 slabs of DA i.e. 397 -367 Slabs for payment of DA for the months August, September and October 2021, it further added.
Accordingly, in terms of clause 7 of the 11th Bipartite Settlement dated 11.11.2020 and clause 3 of the Joint Note dated 11.11.2020, the rate of Dearness Allowance payable to Workmen and Officer employees for the months of August, September and October 2021 shall be 27.79 % of ‘pay’, it further added.
“While arriving at dearness allowance payable, decimals from third place may please be ignored,” the association said.
Similarly, the dearness allowance for bank pensioners has also been raised. Those who retired after 1.11.2017, will get a Dearness Relief of 27.79 per cent on pension. DR is payable to pensioners of IBA’s member banks under regulation 37 of Bank Employees’ Pension Regulations.