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How to calculate DA for Bank Staff and Officers

New DA Calculation and Formula 2023 for Bank Employees

The process of calculating the Dearness Allowance for bank employees involves a series of intricate steps and considerations. It takes into account various factors such as the current cost of the Consumer Price index, inflation rates, and the basic salary of the employees. This calculation is crucial in ensuring that the bank employees receive a fair and adequate adjustment to their salaries to keep up with the rising expenses and maintain their standard of living. The Dearness Allowance calculation is a meticulous process that requires accurate data and precise calculations to ensure equitable compensation for bank employees.

Contents
DA Calculation as per 11th BPS
How to Calculate DA in Salary for Bank Employees?
Bank DA Table 2023
Expected Bank DA from Nov 2023 Calculator

DA Calculation as per 11th BPS

We here explain how to calculate Dearness Allowance in Salary for Bank employees and officers!

In replacement of Clause 7 of the Bipartite Settlement dated May 25, 2015, effective from November 1, 2017, the Dearness Allowance will be paid according to the following rates: Clerical and Subordinate Staff: 0.07% of ‘pay’ per slab of four points. Dearness Allowance will be paid based on a rise or fall of 4 points over 6352 points in the quarterly average of the All India Average Working-Class Consumer Price Index (General) Base 1960=100. It is important to note that there will be no limit on Dearness Allowance.
Dearness Allowance will be calculated and paid based on the following components:
– Basic Pay, including Stagnation increments,
– Special Pay,
– Graduation Pay/ Professional Qualification Pay,
– Special Allowance,
– Transport Allowance, and
– Officiating Pay.

How to Calculate DA in Salary for Bank Employees?

Step 1: The Labour Bureau publishes the monthly Consumer Price Index (Industrial Workers) Base Year 2016 on its official portal.

Step 2: The calculation of Bank DA is based on the 1960 CPI. To convert the index, use the linking factor of 4.63, 4.93, and 2.88.

Step 3: Add up the Consumer Price Index values for the past three months.

Step 4: Calculate the average of the Consumer Price Index values for the past three months.

Step 5: If the quarterly average of the Converted Consumer Price Index exceeds 6352 points, proceed to the next step.

Step 6: Subtract 6352 from the average of the Consumer Price Index values for the past three months.

Step 7: For every increase of 4 points, divide 1 slab into 4.

Step 8: Multiply the result obtained in step 7 by 0.07%.

Step 9: Round off the final result to a whole number with two decimal points to determine the Dearness Allowance (DA) percentage.

Bank DA Table 2023

DA Period Average CPI No. of slabs DA %
Nov, Dec 2023 & Jan 2024 – – –
Aug, Sep, Oct 2023 8881.00 632 44.24
May, Jun, Jul 2023 8738.00 596 41.72
Feb, Mar, Apr 2023 8705.00 588 41.16
Nov, Dec 2023 & Jan 2022 8576.69 556 38.92

Bank DA Table from 2016

Bank DR Table from 2016

Expected Bank DA from Nov 2023 Calculator

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