DA for Bank Employees 2026 — February to April Rate at 25%: Formula, History & Calculator
Current DA — February to April 2026
25.00%
Under 12th Bipartite Settlement • Effective 1 February 2026
DA for Bank Employees from February 2026
The Indian Banks’ Association (IBA) announced the revised Dearness Allowance for bank employees vide Circular No. CIR/HREIR/76/D/2025-26/2909 dated 6 February 2026. Under the 12th Bipartite Settlement (XII BPS) and 9th Joint Note dated 8 March 2024, DA for the February-April 2026 quarter is fixed at:
- 25.00% of pay for workmen and officer employees under 12th BPS
- 59.08% of pay for employees still covered under 11th BPS / 8th Joint Note dated 11 November 2020
This represents an increase of 1.07 percentage points compared to the previous quarter (November 2025 to January 2026), when DA stood at 23.93%.
CPI-IW Data That Determines February 2026 DA
DA for the February-April quarter is always calculated using the All India Consumer Price Index for Industrial Workers (CPI-IW, Base 2016=100) for October, November, and December of the previous year. Here are the official Labour Bureau figures:
| Month | CPI-IW Index | Month-over-Month |
|---|---|---|
| October 2025 | 147.70 | +0.40 |
| November 2025 | 148.20 | +0.50 |
| December 2025 | 148.20 | 0.00 |
| 3-Month Average | 148.03 | +1.07 vs prev. avg |
Source: Labour Bureau, Ministry of Labour and Employment, Government of India (Press Releases dated November and December 2025, January 2026)
How Is Bank Employee DA Calculated?
Under the 12th Bipartite Settlement, the DA formula is refreshingly simple:
DA Formula — 12th Bipartite Settlement
DA% = Average CPI-IW − 123.03
For February 2026:
148.03 − 123.03 = 25.00%
Base Index: 123.03 (CPI 2016=100 series, per 9th Joint Note dated 8 March 2024) • DA revised quarterly: February, May, August, November
The technical specification in the 9th Joint Note reads: “Dearness Allowance shall be paid for every variation of rise or fall over 123.03 points in the quarterly average of the All India Consumer Price Index for Industrial Workers Base 2016=100, resulting in 0.01% change in DA on pay for change in every second decimal place of CPI 2016 over 123.03 points.” In plain terms: every 0.01 point of CPI movement above 123.03 = 0.01% change in DA.
What Does 25% DA Mean in Rupees?
Unlike older settlements that used fixed rupee slabs, the 12th BPS expresses DA purely as a percentage of basic pay. The rupee amount therefore depends on your pay scale:
| Employee Category | Approx. Basic Pay | DA @ 25% | Per Month (Rs) |
|---|---|---|---|
| Sub-Staff | Rs 15,000 | 25% | Rs 3,750 |
| Clerk (Workman) | Rs 17,900 | 25% | Rs 4,475 |
| Officer Scale I (JMG) | Rs 36,000 | 25% | Rs 9,000 |
| Officer Scale IV (MMG) | Rs 76,010 | 25% | Rs 19,003 |
| Officer Scale VII (TEG) | Rs 1,02,300 | 25% | Rs 25,575 |
Basic pay figures are illustrative. Actual DA depends on your last drawn basic pay including increments.
Complete DA History Under 12th Bipartite Settlement
The 12th Bipartite Settlement (9th Joint Note) took effect from 8 March 2024. Below is the complete DA history for all eight quarters from inception to the current quarter:
| Quarter | CPI Months | Avg CPI-IW | DA% | Change |
|---|---|---|---|---|
| May – Jul 2024 | Jan – Mar 2024 | 139.00 | 15.97% | — |
| Aug – Oct 2024 | Apr – Jun 2024 | 140.23 | 17.20% | +1.23% |
| Nov 2024 – Jan 2025 | Jul – Sep 2024 | 142.86 | 19.83% | +2.63% |
| Feb – Apr 2025 | Oct – Dec 2024 | 144.23 | 21.20% | +1.37% |
| May – Jul 2025 | Jan – Mar 2025 | 143.00 | 19.97% | -1.23% |
| Aug – Oct 2025 | Apr – Jun 2025 | 144.16 | 21.13% | +1.16% |
| Nov 2025 – Jan 2026 | Jul – Sep 2025 | 146.96 | 23.93% | +2.80% |
| Feb – Apr 2026 ★ | Oct – Dec 2025 | 148.03 | 25.00% | +1.07% |
DA Trend: May 2024 to February 2026
The chart below shows how DA has moved over the past eight quarters under the 12th BPS:
11th BPS vs 12th BPS: What Is the Difference?
Many employees and officers, especially those who joined banks before 2017, may still have their DA calculated under the 11th Bipartite Settlement structure. Here is a quick comparison:
| Parameter | 11th BPS (8th Joint Note) | 12th BPS (9th Joint Note) |
|---|---|---|
| Signed | 11 November 2020 | 8 March 2024 |
| DA Base Index | 6352 pts (CPI 2001=100) | 123.03 pts (CPI 2016=100) |
| DA Feb–Apr 2026 | 59.08% of pay | 25.00% of pay |
| DA increase (this quarter) | +1.19% | +1.07% |
| Structure | Percentage of pay (4-point CPI slab basis) | Percentage of pay (0.01% per 0.01 CPI point) |
The higher DA% under 11th BPS (59.08%) does not mean employees earn more. Under the 12th BPS, 8,088 points of DA were merged into the basic pay (DA neutralisation), making the base pay higher. The 25% DA is applied to this higher base, so the net DA in rupees is comparable.
Dearness Relief for Bank Pensioners (Feb–Jul 2026)
IBA also issued revised Dearness Relief (DR) rates for bank pensioners and family pensioners. DR is the pensioners’ equivalent of DA and is revised quarterly on the same schedule. The rate applicable to you depends on when you retired:
- Pensioners who retired after November 2022 (under 12th BPS): DR = 25.00%
- Pensioners who retired between 2010 and November 2022 (under 10th/11th BPS): DR rates range from approximately 50% to 59%, depending on exact retirement date and settlement applicable
- Pensioners who retired between 1986 and 2000 (under older settlements): DR rates are significantly higher — in some categories exceeding 1,000% — to compensate for the much lower nominal pension drawn at retirement
Bank pensioners should refer to the official IBA circular or their pension-paying branch for the exact DR applicable to their individual case.
Expected DA from May 2026
The DA for the May to July 2026 quarter will be based on the average CPI-IW for January, February, and March 2026 — data that will be released by the Labour Bureau over April-May 2026. Based on the current CPI trend:
Projection (Unofficial)
~26.37% expected for May–Jul 2026
Based on projected CPI-IW average for Jan–Mar 2026. Subject to change once official Labour Bureau data is released. Watch for IBA circular in May 2026.
This page will be updated as soon as the official IBA circular for May 2026 DA is released.
Quick Reference: Key DA Facts for 2026
- Current DA (Feb-Apr 2026): 25.00% under 12th BPS
- IBA Circular: No. CIR/HREIR/76/D/2025-26/2909 dated 6 February 2026
- CPI-IW average used: 148.03 (Oct-Dec 2025)
- Base index (12th BPS): 123.03 (CPI 2016=100)
- Formula: DA% = Avg CPI-IW minus 123.03
- DA revision dates: 1 February, 1 May, 1 August, 1 November (annually)
- Settlement governing: 12th Bipartite Settlement / 9th Joint Note dated 8 March 2024
- May-Jul 2026 DA: Not yet announced (expected ~26.37%)
What is the DA for bank employees from February 2026?
The Dearness Allowance (DA) for bank employees from 1 February 2026 is 25.00% of basic pay under the 12th Bipartite Settlement (12th BPS). For employees still covered under the 11th BPS, DA for the same period is 59.08% of pay. The IBA issued the official circular on 6 February 2026 (No. CIR/HREIR/76/D/2025-26/2909).
How is bank employee DA calculated?
Under the 12th Bipartite Settlement, the DA formula is: DA% = (Quarterly average CPI-IW) minus 123.03. The CPI-IW used is the All India Consumer Price Index for Industrial Workers on base 2016=100, published by the Labour Bureau. Every 0.01 point change in the average CPI above the base of 123.03 results in a 0.01% change in DA. For February 2026, the average CPI was 148.03, giving DA = 148.03 minus 123.03 = 25.00%.
Which months CPI-IW determines the February 2026 DA?
The DA payable from February to April 2026 is based on the average CPI-IW for the three months of October, November, and December 2025. The individual index values were: October 2025 — 147.70; November 2025 — 148.20; December 2025 — 148.20. The simple average works out to 148.03, which is used in the DA formula.
When is bank employee DA revised?
Bank employee DA is revised four times a year, effective from the 1st of February, May, August, and November each year. Each revision is based on the average CPI-IW for the three preceding months — for example, February DA uses October-December CPI, May DA uses January-March CPI, August DA uses April-June CPI, and November DA uses July-September CPI. The IBA issues an official circular before each revision.
What is the expected DA for bank employees from May 2026?
The DA for May-July 2026 has not been officially announced yet (as of April 2026). It will be determined by the average CPI-IW for January, February, and March 2026, which the Labour Bureau will publish over the coming months. Based on the current CPI trend, the expected DA for May 2026 is approximately 26.37% under the 12th BPS — but this is a projection, not an official figure. Watch for the IBA circular in April-May 2026 for the confirmed rate.
