Bank Employees Set to Receive 15.97% DA Hike for May-July 2024

Bank employees across the country have reason to celebrate as the Indian Banks Association (IBA) has announced a Dearness Allowance (DA) hike of 15.97% for May, June, and July 2024.

This hike, as per clause 13 of the 12th Bipartite Agreement, applies to both workmen and office employees in all public sector banks.

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Calculating Dearness Allowance

The IBA has provided insights into how the new dearness allowances were calculated. Based on the All-India Consumer Price Index (Base 2016 = 100) for Industrial Labour, the average CPI for the quarter ending March 2024 stood at:

January 2024: 138.9

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February 2024: 139.2

March 2024: 138.9

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With an average CPI of 139, higher than the previous quarter’s 123.03, there is a difference of 15.97 points (139 – 123.03), resulting in a 0.24-point increase for May, June, and July 2024.

Salary Hike Details

In addition to the DA hike, public sector bank employees witnessed a salary hike of 17% in March 2024.

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This increase, as per the 9th Joint Note on Pay Revision of Officers, translates to a total salary revision hike exceeding Rs 8,284 crore.

Future Salary Prospects

The annual salary hike of 17% agreed upon by the IBA and bank employee organizations, effective from November 2022, is poised to benefit approximately 8 lakh bank employees.

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However, this decision will impose an additional burden of Rs 8,284 crore annually on public sector banks.

The negotiation process between the IBA and bank employee organizations plays a crucial role in revising annual salaries, ensuring fair compensation for bank employees nationwide.

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