Dearness Allowances, DA for Bank employees from 1st February 2021, as per 11th and 10th BPS

11th bipartite settlement DA for Feb, March and April 2021: IBA has issued the order of DA for bank employees, workmen and officers on 1st Feb 2021, which is 26.18 %, hike of 2.31% from last quarter in DA for Bank employees from 1st February 2021.

Dearness Allowance (DA) rate hike for workmen and officer employees in banks from 01.02.2021, as per 11th bipartite settlement:

As per 11th bipartite settlement, the DA for bank employees, workmen and officers from 1st February 2021 will increase to 26.18 %, increment of 2.31 % from last quarter.

Dearness Allowance (DA) for workmen and officer employees in banks from 01.02.2021, as per 11th bipartite settlement
Dearness Allowance (DA) for workmen and officer employees in banks from 01.02.2021, as per 11th bipartite settlement

Dearness Allowance (DA) for workmen and officer employees in banks from 01.02.2021, as per 10th bipartite settlement:

As per 10th bipartite settlement, the DA for bank employees, workmen and officers from 1st February 2021 will increase from 3.33 %.

Calculated Dearness Allowance (DA) for workmen and officer employees in banks from 01.02.2021, as per 10th bipartite settlement
Calculated Dearness Allowance (DA) for workmen and officer employees in banks from 01.02.2021, as per 10th bipartite settlement

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IBA DA order (01.02.21) for Bank employees for Feb’21, Mar’21 and Apr’21 months:

Government of India had released average AICPIN for the quarter October 2020, November 2020, December 2020. With these average AICPIN numbers, the Dearness Allowances for Bank employees has been increased to 26.18 % of ‘pay’, an increment of 2.3 % from last quarter.

This increase in Dearness Allowance (DA) are for workmen and officer employees in Banks for the months of February, March & April 2021 under X BPS / Joint Note dated 11.11.2020.

IBA Bank DA order from 1st Feb 2021
DA order for Bank workmen and Ofiicer employees

IBA’s official order of Dearness Allowances rate for Bank Employees:

IBA official order of DA for Bank employees from Feb 21 to Apr 21 – Click Here.

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The AICPI – IW (All-India Consumer Price Index – Industrial Workers) is released by Labour Bureau, under Ministry of Labour and Employment, on the last working day of every month for previous month. And based on the consecutive 3 months, means 1 quarter, calculation of average is done to find slabs, and then DA percentage rate, which may be more or less than the previous quarter DA rate.

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AICPIN-IW (Industrial workers) declared for the last months:

  1. 26.02.2021 – January 2021 AICPIN – 340 (Click Here to download) (118.2 x 2.88 = 340)
  2. 29.01.2021 – December 2020 AICPIN – 342(118.8 x 2.88 = 342)
  3. 31.12.2020 – November 2020 AICPIN – 345 (119.9 x 2.88 = 345)
  4. 27.11.2020 – October 2020 AICPIN – 344 (119.5 x 2.88 = 344)
  5. 22.10.2020 – September 2020 AICPIN – 340 (118.1 x 2.88 = 340)
  6. 30.09.2020 – August 2020 AICPIN – 338

As per 11th BPS, how to calculate slabs and DA of bank employees? What is the formula of slab and DA calculation of bank workmen and officers?

AICPIN calculation for slabs and DA rate of bankers:

  1. 22.10.2020 – Sep 2020 AICPIN = 118.1 x 2.88 x 4.63 x 4.93 = 7763.73
  2. 30.09.2020 – Aug 2020 AICPIN = 338 x 4.63 x 4.93 = 7715.15
  3. 31.08.2020 – Jul 2020 AICPIN = 336 x 4.63 x 4.93 = 7669.50

In terms of 11th bipartite settlement BPS/Joint Notes, 6352 points of DA was merged with the ‘pay’ and DA rate was fixed at 0.07 % per DA slab. So, the calculation of Bank DA is:

  • Average of the quarter (Jul, Aug, Sep) = 7713.93 [(7669.50+7715.15+7763.73) / 3 = 7716.13 ]
  • Number of DA slabs = 7716.13 – 6352 = 1364.13 / 4 = 341.03 slabs
  • DA rate effective from 01.11.2020 = 23.87 % (0.07 % of 341.03)

As per 10th BPS, how to calculate slabs and DA of bank employees? What is the formula of slab and DA calculation of bank workmen and officers?

AICPIN calculation for slabs and DA rate of bankers:

  1. 22.10.2020 – Sep 2020 AICPIN = 118.1 x 2.88 x 4.63 x 4.93 = 7763.73
  2. 30.09.2020 – Aug 2020 AICPIN = 338 x 4.63 x 4.93 = 7715.15
  3. 31.08.2020 – Jul 2020 AICPIN = 336 x 4.63 x 4.93 = 7669.50

In terms of X BPS/Joint Notes, 4440 points of DA was merged with the ‘pay’ and DA rate was fixed at 0.1 % per DA slab. So, the calculation of Bank DA is:

  • Average of the quarter (Jul, Aug, Sep) = 7713.93 [(7669.50+7715.15+7763.73) / 3 = 7716.13 ]
  • Number of DA slabs = 7716 – 4440 = 3276 / 4 = 819 slabs
  • DA rate effective from 01.11.2020 = 81.9 % (0.1 % of 819)

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Based on the AIACPI-IW (All India Average Consumer Price Index – Industrial Workers) data, the HR & Industrial Relations department of Indian Banks Association (IBA) calculates the new DA rate and issues the press note indicating the change in DA rate.

Similarly, after the release of AIACPI-IW data of January, February and March 2021 by the Ministry of labour and employment, the DA for bank employees from 1st May 2021 will be decided.

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Past or historic data of DA rate for bank workmen and officer employees as per 11th BPS:

DA payable months or periodAverage CPI (AICPIN-IW)No. of Slabs% of PayDifference from last Quarter (%)
01.02.2021 to 30.04.20217819.4637426.182.31
01.11.2020 to 31.01.20217716.1334123.874.40
Past or historic data of DA rate for bankers as per 11th BPS:

Past or historic data of DA rate for bank workmen and officer employees as per 10th BPS:

DA payable months or periodAverage CPI (AICPIN-IW)No. of Slabs% of PayDifference from last Quarter (%)
01.02.2021 to 30.04.20217819.4685285.23.3
01.11.2020 to 31.01.20217716.1381981.94.4
01.08.2020 to 31.10.2020754077577.51.4 
01.05.2020 to 31.07.20207486.976176.10.2 
01.02.2020 to 30.04.20207479.2975975.94.2 
01.11.2019 to 31.01.2020731171771.73.6 
01.08.2019 to 31.10.20197167.3368168.13.6 
01.05.2019 to 31.07.2019702364564.53.4 
01.02.2019 to 30.04.2019688561161.10.4 
01.11.2018 to 31.01.2019687160760.76.6 
01.08.2018 to 31.10.2018660454154.11.2 
01.05.2018 to 31.07.2018655952952.90.2 
01.02.2018 to 30.04.2018655152752.71.1 
01.11.2017 to 31.01.2018650551651.63.8 
01.08.2017 to 31.10.20176353.2147847.82.2 
01.05.2017 to 31.07.20176261.9145645.61.3 
01.02.2017 to 30.04.2017631546946.91.3 
01.11.2016 to 31.01.2017635345645.60.1 
01.08.2016 to 31.10.20166261.945545.53.5 
01.05.2016 to 31.07.20166117420420.6 
01.02.2016 to 30.04.2016614742642.62.8 
01.11.2015 to 31.01.2016603339839.83.4 
01.08.2015 to 31.10.2015589636436.474.3 
01.05.2015 to 31.07.20155790.17738110.70.6 
01.02.2015 to 30.04.20155774.95734110.10.3 
Past or historic data of DA rate for bankers as per 10th BPS:

11th bipartite settlement – Joint circular wage negotiation 11.11.2020, between IBA and Officers association:

11th bipartite settlement – Joint Note dated 11th November 2020 of conclusion of discussions between Indian Banks Association and Officers Association is here in PDF to download.

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Disclaimer: Kindly refer dpe.gov.in for any inconsistencies in rules, understandings and clarification.

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