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.
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
February 2024: 139.2
March 2024: 138.9
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.
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.
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.
