Bank employees are set to receive a boost in their Dearness Allowance (DA) for the months of May, June, and July 2024.
According to a circular from the Indian Banks Association (IBA) dated June 10, 2024, employees across all public sector banks in the country will enjoy a 15.97% increase in their DA, as stipulated in clause 13 of the 12th Bipartite Agreement.
Calculating DA for Bank Employees
The rationale behind the new dearness allowances is explained through the All-India Consumer Price Index (Base 2016 = 100) for Industrial Labour for the quarter ending March 2024. Here are the CPI figures:
1) January 2024: 138.9
2) February 2024: 139.2
3) March 2024: 138.9
Hike in Bank Employees’ Salaries
The hike in salaries for bank employees is directly linked to the average CPI, which stands at 139 for this quarter.
Comparing it with the previous quarter’s average of 123.03, there’s a significant difference of 15.97 points (139 – 123.03). This results in a salary increase of 0.24 points for May, June, and July 2024.
Furthermore, it’s worth noting that public sector bank employees received a substantial salary hike of 17% in March 2024.
As per the 9th Joint Note on Pay Revision of Officers, this hike amounts to more than Rs 8,284 crore.
Anticipated Salary Increase
Looking ahead, the salary of officers and employees in public sector banks is slated to increase annually by 17%.
This decision, reached between the Indian Banks Association (IBA) and bank employee organizations on March 8, will come into effect from November 2022.
Approximately 8 lakh bank employees stand to benefit from this agreement, albeit with an additional burden of Rs 8,284 crore annually on public sector banks.
The IBA periodically revises the annual salary through negotiations with bank officer and employee organizations.
