DA Hike News: The government has decided to increase the dearness allowance (DA) of bank employees from 25% to 25.70% for the quarter from May to July 2026.

The government increased the dearness allowance (DA) of bank employees.

DA Hike News: If you work in a bank or know a bank employee, this news is for you. The government has announced a slight increase in dearness allowance (DA) for bank employees.

How much was DA increased?

The government has decided to increase the dearness allowance (DA) of bank employees from 25 percent to 25.70 percent for the quarter from May to July 2026. However, this increase of 0.70 percent has been described as "too low" by bank employees and unions.

How much will the salary increase?

This 0.70 percent increase will only increase the monthly salary of employees in different pay scales by between ₹435 and ₹1,050. For employees with a basic salary between ₹48,000 and ₹117,000, this revised DA means an increase of between ₹435 and ₹1,050. While this increase may not be significant, it ensures that employee allowances remain in line with inflationary trends.

Whose salary will increase by how much?

Stage 1- Only Rs 435 per annum increase on basic pay of Rs 48,480

Stage 10- Only Rs 601 per increment on Basic Pay of Rs 67,160

Stage 20- Increase of only Rs 838 per month on basic pay of Rs 93,960

Stage 25- Increase of Rs 965 per month on the maximum basic salary of Rs 1,08,260

On what basis was the calculation done?

According to a notification by the Indian Banks' Association (IBA) dated May 2, the updated DA figures are based on the All India Average Consumer Price Index for Industrial Workers (AIACPI-IW) for the quarter ending March 2026. This index remains the benchmark for periodic revisions in DA.

The CPI data for the first quarter of 2026 is as follows: DA was 148.6 in January 2026, fell slightly to 148.5 in February 2026, and then increased to 149.1 in March 2026. The three-month average CPI is 148.73. Compared to the base index of 123.03 (CPI 2016), the difference is 25.70. Accordingly, the DA increase for the May-July period is set at 0.70 points.