Dearness Relief, DR hike of Bank Pensioners from Aug’23 to Jan’24

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The AICPIN – IW (All-India Consumer Price Index Number – Industrial Workers) for June 2023 has been released on 31.07.2023, the last working day of July month, by Labour Bureau, under Ministry of Labour and Employment.

Based on the AICPIN of April, May, June 2023, Dearness Relief (DR) hike from August’23 to Jan’24 are calculated. IBA has also declared the DR hike circular for Bank Pensioners on 2nd August’23.

हिंदी में पढ़े: 1 अगस्त 2023 से महंगाई राहत (DR) बैंक पेंशनरों के लिए

Major Contents in the Post: (Jump to the Section)

  1. DR payable to Bank Pensioners from August’23 to Jan’24
  2. DR payable to Bank Pensioners for period Aug’23 to Jan’24
  3. Slab Calculation or formula of DR payable to Bank Pensioners
  4. DR for Bank Pensioners retired on or after 01.11.2017
  5. DR for Bank Pensioners retired between 01.11.2012 to 31.10.2017
  6. DR for Bank Pensioners retired between 01.11.2007 to 31.10.2012
  7. DR for Bank Pensioners retired between 01.11.2002 to 31.10.2007
  8. DR for Bank Pensioners retired between 01.04.1998 to 31.10.2002
  9. DR for Bank Pensioners retired between 01.11.1992 / 01.07.1993 to 31.03.1998
  10. DR for Bank Pensioners retired between 01.01.1986 to 31.10.1992 / 30.06.1993
  11. DR for Bank Pensioners, who has survived pre-01.01.1986 retirees of banks

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DR hike of Bank Pensioners for duration from August 2023 to January 2024:

DR slab and rate of Dearness Relief for Bank Pensioners are shown below for all kinds of retirement date range, for the period from August 2023 to January 2024. The AICPIN-IW of April, May, June 2023 have come. So, accordingly the slab and DR are calculated.

DR from August 2023 to January 2024 for all Bank pensioners, retired between 01.11.2002 to 01.11.2017
DR from August 2023 to January 2024 for all Bank pensioners, retired between 01.11.2002 to 01.11.2017
DR from August 2023 to January 2024 for all Bank pensioners, retired between 01.01.1986 to 31.10.2002
DR from August 2023 to January 2024 for all Bank pensioners, retired between 01.01.1986 to 31.10.2002

Bank pensioners’ DR rate hike payable from Aug’23 to Jan’24 by IBA

  1. DR rate for the period Aug’23 to Jan’24 of bank pensioners will increase to 44.24%, hike of 3.08%, who retired after 01.11.2017.
  2. DR rate for the period Aug’23 to Jan’24 of bank pensioners will increase to 111%, hike of 4.4%, who retired between 01.11.2012 to 31.12.2017.
  3. DR rate for the period Aug’23 to Jan’24 of bank pensioners will increase to 226.65%, hike of 6.60%, who retired between 01.11.2007 to 31.12.2012.
  4. DR rate for the period Aug’23 to Jan’24 of bank pensioners will increase to 296.64%, hike of 7.92%, who retired between 01.11.2002 to 31.12.2007.
  5. DR rate for the period Aug’23 to Jan’24 of bank pensioners will be hiked to 431.76/359.80/215.88/107.94 % as per their basic scale, who retired between 01.11.1998 to 31.12.2002.
  6. DR rate for the period Aug’23 to Jan’24 of bank pensioners will be hiked to 676.55/560.57/328.61/173.97 % as per their basic scale, who retired between 01.11.1992 / 01.07.1993 to 31.03.1998.
  7. DR rate for the period Aug’23 to Jan’24 of bank pensioners will be hiked to 1386.90/1138.50/683.10/351.90 % as per their basic scale, who retired between 01.01.1986 to 31.10.1992 / 30.06.1993.

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Dearness Relief, DR of Bank Pensioners for period Aug’23 to Jan’24 by IBA:

Government of India had released average AICPIN for April 2023, May 2023, June 2023. With these ‘All India Average Consumer Price Index Number for Industrial Workers’ (AICPIN-IW), the Dearness Relief for Bank Pensioners has been declared for the period from Aug’23 to Jan’24 by Indian Banks Association (IBA) in addition to DA for bank’s working employees.

The Rate of Dearness Relief (DR) on pension has been declared 44.24% for Bank Pensioners, who retired on or after 01.11.2017. This increase in Dearness Relief (DR) are payable to pensioners of IBA’s member banks under regulation 37 of Bank Employees’ Pension Regulations.

IBA has also advised banks to pay on ad hoc basis the DR to the pensioners for period Aug’23 to Jan’24, due to pending amendments in Pension Regulations.

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DR hike from Aug 2023 to Jan 2024 for all Bank pensioners - IBA official order

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IBA order regarding DR of Bank Pensioners for period Aug’23 to Jan’24 : (DR Official order – IBA website)

DR hike from Aug 2023 to Jan 2024 for all Bank pensioners – IBA official orderDownload

Dearness Relief (DR) for Bank Pensioners, who retired on or after 01.11.2017, Part – VII:

DR for Bank Pensioners during period Aug’23 to Jan’24:

  • Average Quarterly AICPIN Index : 8881,
  • Slabs = (8881-6352)/4 = 632,
  • DR Rate per slab = 0.07 % of Slab = 632 x 0.07 % = 44.24%
Dearness Relief (DR) payable to Bank Pensioners for period Aug’23 to Jan’2444.24% of Basic Pension
DR for Bank Pensioners, who retired on or after 01.11.2017

Dearness Relief (DR) for Bank Pensioners, who retired on or after 01.11.2012 and up to 31.10.2017, Part – VI:

DR for Bank Pensioners during period Aug’23 to Jan’24:

  • Average Quarterly AICPIN Index : 8881,
  • Slabs = (8881-4440)/4 = 1110,
  • DR Rate per slab = 0.1 % of Slab = 1110 x 0.1 % = 111.0%
Dearness Relief (DR) payable to Bank Pensioners for period Aug’23 to Jan’24111.0% of Basic Pension
DR for Bank Pensioners, who retired on or after 01.11.2012 and up to 31.10.2017

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Dearness Relief (DR) for Bank Pensioners, who retired on or after 01.11.2007 and up to 31.10.2012, Part – V:

DR for Bank Pensioners during period Aug’23 to Jan’24:

  • Average Quarterly AICPIN Index : 8881,
  • Slabs = (8881-2836)/4 = 1511,
  • DR Rate per slab = 0.15 % of Slab = 1511 x 0.15 % = 226.65%
Dearness Relief (DR) payable to Bank Pensioners for period Aug’23 to Jan’24226.65% of Basic Pension
DR for Bank Pensioners, who retired on or after 01.11.2007 and up to 31.10.2012

Dearness Relief (DR) for Bank Pensioners, who retired on or after 01.11.2002 and up to 31.10.2007, Part – IV:

DR for Bank Pensioners during period Aug’23 to Jan’24:

  • Average Quarterly AICPIN Index : 8881,
  • Slabs = (8881-2288)/4 = 1648,
  • DR Rate per slab = 0.18 % of Slab = 1648 x 0.18 % = 296.64%
Dearness Relief (DR) for period Aug’23 to Jan’24296.64% of Basic Pension
DR for Bank Pensioners, who retired on or after 01.11.2002 and up to 31.10.2007

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Dearness Relief (DR) for Bank Pensioners, who retired on or after 01.04.1998 and up to 31.10.2002, Part – III:

DR for Bank Pensioners during period Aug’23 to Jan’24:

  • Average Quarterly AICPIN Index : 8881,
  • Slabs = (8881-1685)/4 = 1799
  • DR Rate per slab (respectively in order) =
    1. 0.24 % of Slab = 1799 x 0.24 % = 431.76%
    2. 0.20 % of Slab = 1799 x 0.20 % = 359.80%
    3. 0.12 % of Slab = 1799 x 0.12 % = 215.88%
    4. 0.06 % of Slab = 1799 x 0.06 % = 107.94%
Basic PensionDearness Relief (DR) for period Aug’23 to Jan’24
Up to ₹ 3,550431.76%
₹ 3,551 to ₹ 5,650₹ 15327.48 + 359.80% (of basic pension in excess of ₹ 3,550)
₹ 5,651 to ₹ 6,010₹ 22883.28 + 215.88% (of basic pension in excess of ₹ 5,650)
Above ₹ 6,010₹ 23660.44 + 107.94% (of basic pension in excess of ₹ 6,010)
DR for Bank Pensioners, who retired on or after 01.04.1998 and up to 31.10.2002

Dearness Relief (DR) for Bank Pensioners, who retired on or after 01.11.1992 / 01.07.1993 and up to 31.03.1998, Part – II:

DR for Bank Pensioners during period Aug’23 to Jan’24:

  • Average Quarterly AICPIN Index : 8881,
  • Slabs = (8881-1148) / 4 = 1933,
  • DR Rate per slab (respectively in order) =
    1. 0.24 % of Slab = 1933 x 0.35 % = 676.55%
    2. 0.20 % of Slab = 1933 x 0.29 % = 560.57%
    3. 0.12 % of Slab = 1933 x 0.17 % = 328.61%
    4. 0.06 % of Slab = 1933 x 0.09 % = 173.97%
Basic PensionDearness Relief (DR) for period Aug’23 to Jan’24
Up to ₹ 2,400676.55%
₹ 2,401 to ₹ 3,850 ₹ 16327.60 + 560.57% (of basic pension in excess of ₹ 2,400)
₹ 3,850 to ₹ 4,100₹ 24365.46 + 328.61% (of basic pension in excess of ₹ 3,850)
Above ₹ 4,100₹ 25186.98+ 173.97% (of basic pension in excess of ₹ 4,100)
DR for Bank Pensioners, who retired on or after 01.11.1992 / 01.07.1993 and up to 31.03.1988

Dearness Relief (DR) for Bank Pensioners, who retired on or after 01.01.1986 and up to 31.10.1992 / 30.06.1993, Part-I:

DR for Bank Pensioners during period Aug’23 to Jan’24:

  • Average Quarterly AICPIN Index : 8881,
  • Slabs = (8881-600)/4 = 2070,
  • DR Rate per slab (respectively in order) =
    1. 0.24 % of Slab = 2070 x 0.67 % = 1386.90%
    2. 0.20 % of Slab = 2070 x 0.55 % = 1138.50%
    3. 0.12 % of Slab = 2070 x 0.33 % = 683.10%
    4. 0.06 % of Slab = 2070 x 0.17 % = 351.90%
Basic PensionDearness Relief (DR) for period Aug’23 to Jan’24
Up to ₹ 1,2501386.90%
₹ 1,251 to ₹ 2,000 ₹ 17336.25 + 1138.50% (of basic pension in excess of ₹ 1,250)
₹ 2,000 to ₹ 2,130₹ 25875 + 683.10% (of basic pension in excess of ₹ 2,000)
Above ₹ 2,130₹ 26763.03 + 351.90% (of basic pension in excess of ₹ 2,130)
DR for Bank Pensioners, who retired on or after 01.01.1986 and up to 31.10.1992 / 30.06.1993

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Dearness Relief (DR) for Bank Pensioner, who has survived pre-01.01.1986 retirees of banks and surviving spouses of pre-01.01.1986 retirees:

DR order by IBA for Bank pensioners (pre-01.01.86 Retirees)
DR order by IBA for Bank pensioners (pre-01.01.86 Retirees)

DR payable for period Aug’23 to Jan’24 are given below : Average Index : 8881

  1. Surviving pre-01.01.1986 retirees of banks
  2. Surviving spouses of pre-01.01.1986 retirees who are in receipt of Ex-gratia.
PensionersAmount of Ex-gratia per month (A)Rate of Dearness ReliefAmount of Dearness Relief per month (B)Total Ex-gratia amount including Dearness Relief per month (A+B)
pre-01.01.1986 retirees₹ 3501386.90%₹ 4854.15₹ 5204
Surviving spouses of pre-01.01.1986 retirees₹ 1751386.90%₹ 2427.08₹ 2602
DR for surviving pre-01.01.1986 retirees of banks and surviving spouses of pre-01.01.1986 retirees

DR Official order surviving pre-01.01.1986 – IBA website

DR for bank pensioners for pre-1986 and surviving spouses from 1st Aug 2023 – IBA official orderDownload

DR hike history of bank pensioners:

Period of DR hikeRetired after 01.11.2017 Retired between 01.11.12 to 31.10.17Retired between 01.11.07 to 31.10.12Retired between 01.11.02 to 31.10.07
Feb’24 to July’24
Aug’23 to Jan’24 44.24 (+3.08%) 111.0 (+4.40%) 226.65 (+6.60%) 296.64 (+7.92%)
Feb’23 to July’23 41.16 (+4.34%) 106.6 (+6.2%) 220.05 (+9.3%) 288.72 (+11.16%)
Aug’22 to Jan’23 36.82 (+3.85%) 100.4 (+5.5%) 210.75 (+8.25%) 277.56 (+9.9%)
Feb’22 to Jul’22 32.97(+5.18%) 94.90(+7.40%) 202.50(+11.10%) 267.66(+13.32%)
Aug’21 to Jan’22 27.79(+1.61%) 87.50(+2.30%) 191.40 (+3.45%) 254.34 (+4.14%)
Feb’21 to Jul’2126.18(+5.39%)85.20 (+ 7.70 %)187.95 (+ 11.55%)250.20 (+ 13.86%)
Aug’20 to Jan’21 20.7977.5176.4236.34
DR hike history table of bank pensioners

How to calculate DR of bank pensioners? What is the formula of DR calculation of bank pensioners? Example:

Slab and rate calculation for DR of bank pensioners from Aug 2023 to Jan 2024:

  1. Jun 2023 AICPIN – 136.4 x 2.88 x 4.63 x 4.93 = 8966.74
  2. May 2023 AICPIN – 134.7 x 2.88 x 4.63 x 4.93 = 8854.99
  3. Apr 2023 AICPIN – 134.2 x 2.88 x 4.63 x 4.93 = 8822.12

For those pensioners, who retired after 01.11.2017, 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 DR is:

  • Average of the quarter (Apr, May, Jun) = 8881
  • Number of DA slabs = (8881 – 6352) / 4 = 631 slabs
  • DA, DR rate effective from 01.08.2023 = 44.24% (0.07 % of 632), formula applicable for those pensioners, who retired on or after 01.11.2017.
DA, DR hike of all states and UTs of IndiaDA hike of Central Govt. Employees of 7th cpc, 6th cpc, 5th cpc
DA, DR hike of Indian Army, Navy and Air ForceDR hike of Central Govt. Pensioners and Family Pensioners
DA hike of Bank EmployeesDR hike of Bank Pensioners or Bank Retirees of all types
IDA hike for CPSE or PSU employees of 3rd prc, 2nd prc, 1997 pay scaleAICPI-IW of current month – To calculate DA, DR

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

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