DA for Bank Employees is expected to increase by 6 slabs from May 2018 to July 2018. (Read: How DA for Bank Employees is calculated).

Comprehensive guide to Credit Appraisal Process in Banks

DA slabs for the next quarter, May 2018 to July 2018 will be 533 i.e., 53.30 %. That means an expected increase in DA by 0.60% from the existing 52.70% for the quarter Feb 18 to Apr 18.

Read : Charter of Demand for 11th Bipartite Settlement

Consumer Price Index (CPI) for the month of January 2018 has also been published by Labour Bureau, which is also 288 i.e., 2 points increase from December’s level of 286. Assuming that the CPI will remain at the same level of 288 for the month of Feb and Mar 2018, expected DA for bankers will increase by 6 slabs.

Dearness Allowance for bankers increased by 1.10% for the quarter Feb 18 to Apr 18 and by 3.80% during the previous quarter (Nov 17 to Jan 18) and the increase trend now continues.

Read: Merger of Public Sector Banks – Disadvantages for Bank Employees

Also Read: Why merger of public sector banks is not easy

Lets see the calculations:

CPI for the month of January is 288. Converting the CPI by multiplying with conversion factor (4.63 x 4.93) , it works out to 6573.86 (average will be same as we have assumed CPI to be constant).

READ  9 Useful Excel Tips for Bankers

By deducting 4440 slabs (which were merged in basic pay in 10th bipartite settlement), works out to 533.46 for the quarter (rounded off to 533).

We’ll update the update about the change in Expected increase in Dearness Allowance for May 2018 to July 2018, next month on the release of CPI data for the month of February 2018.

Read: Finacle 10 Commands