DA for Bank Employees Aug 2026 — Expected ~27.47% | May–Jul 2026: 25.70% Confirmed
DA for bank employees from August 2026 is estimated at ~27.47% under the 12th Bipartite Settlement — with April 2026 CPI-IW confirmed at 149.9 and May 2026 CPI-IW now also confirmed at 150.8 (Labour Bureau, 30 June 2026), only one data point (June 2026 CPI, due 31 July 2026) remains to lock in the final figure. May–July 2026 DA is confirmed at 25.70% (effective 1 May 2026; January–March 2026 quarterly average: 148.73; March CPI 149.10). The previous quarter (February–April 2026) DA was 25.00%.
Aug 2026 DA — Expected
~27.47%
Your exact monthly DA based on Basic Pay, SA, PQP — 12th BPS formula, updated for May–Jul 2026.
Calculate DA →Full 12th BPS salary slip — Basic, DA, HRA, PQP, gross and take-home for all scales and cadres.
Calculate Salary →Under 12th Bipartite Settlement • May–Jul 2026 Confirmed: 25.70%
DA for Bank Employees from May 2026
DA for bank employees from May to July 2026 is confirmed at 25.70% — calculated from the January–March 2026 CPI-IW average of 148.73 (Labour Bureau, 30 April 2026). The IBA circular for May 2026 DA is expected in the first week of May 2026, following the same process as the February 2026 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 rates applicable are:
- 25.70% of pay for workmen and officer employees under 12th BPS (effective 1 May 2026)
- ~59.78% of pay for employees still covered under 11th BPS / 8th Joint Note dated 11 November 2020 (to be confirmed by IBA circular)
This represents an increase of 0.70 percentage points over the previous quarter (February–April 2026), when DA stood at 25.00%. Over the past four quarters, DA has risen by 5.73 percentage points (from 19.97% in May–Jul 2025 to 25.70% now).
CPI-IW Data That Determines May 2026 DA
DA for the May–July 2026 quarter is calculated using the CPI-IW (Base 2016=100) for January, February, and March 2026. All three figures are now officially released by the Labour Bureau:
| Month | CPI-IW Index | Month-over-Month |
|---|---|---|
| January 2026 | 148.60 | +0.40 |
| February 2026 | 148.50 | −0.10 |
| March 2026 | 149.10 | +0.60 |
| 3-Month Average | 148.73 | +0.70 vs prev. avg |
Source: Labour Bureau, Ministry of Labour and Employment, Government of India (Press Releases dated February, March, and April 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% |
| May – Jul 2026 ✔ | Jan – Mar 2026 | 148.73 | 25.70% | +0.70% |
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 (May–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 = 25.70%
- 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.
DA from May 2026 — Confirmed at 25.70%
The Labour Bureau released the March 2026 CPI-IW on 30 April 2026. With all three months now available, the DA for the May to July 2026 quarter is confirmed:
| Month | CPI-IW Index | Month-over-Month |
|---|---|---|
| January 2026 | 148.60 | +0.40 |
| February 2026 | 148.50 | −0.10 |
| March 2026 New | 149.10 | +0.60 |
| 3-Month Average | 148.73 | DA = 148.73 − 123.03 = 25.70% |
✔ Confirmed — 30 April 2026
25.70% DA from May to July 2026
Calculation: (148.60 + 148.50 + 149.10) ÷ 3 − 123.03 = 148.73 − 123.03 = 25.70% • Source: Labour Bureau Press Release, 30 April 2026
This is an increase of 0.70 percentage points over the current Feb–Apr 2026 rate of 25.00%. The official IBA circular for May 2026 DA is expected in the first week of May 2026.
Estimated DA from August 2026 — What to Expect
The DA for the August to October 2026 quarter will be determined by the average CPI-IW for April, May, and June 2026 — data that the Labour Bureau will release in May, June, and July 2026 respectively. The official IBA circular for August 2026 DA is expected in late July or early August 2026.
May 2026 CPI-IW is now confirmed at 150.8 points (Labour Bureau, 30 June 2026) — up 0.9 from April (149.9). With both April and May now fixed, the August 2026 DA estimate narrows further. Scenarios below assume different trajectories for June 2026 only (to be released 31 July 2026):
| CPI Scenario (Apr–May confirmed 149.9, 150.8; Jun 2026 est.) | Estimated Avg CPI | Estimated Aug 2026 DA |
|---|---|---|
| Flat — Jun = 150.8 (same as May) | 150.50 | ~27.47% |
| Moderate rise — Jun 151.3 | 150.67 | ~27.64% |
| Higher inflation — Jun 151.7 (same pace as Apr→May) | 150.80 | ~27.77% |
| Central Estimate | 150.50–150.80 | ~27.47%–27.77% |
Key point: May 2026 CPI is confirmed at 150.8 — 2.07 points above the entire May–Jul 2026 reference average (148.73). Even in the flat scenario, August 2026 DA (~27.47%) will exceed May 2026 DA (25.70%) by nearly 1.8 percentage points. Only June 2026 CPI-IW (due 31 July 2026) remains to lock in the final rate. Watch this page — it will be updated the moment June data is released by the Labour Bureau.
Repo Rate note: The RBI repo rate as of April 2026 is 5.25%. While the repo rate and bank DA are calculated independently, a lower repo rate environment keeps general inflation subdued, which may moderate CPI growth in the coming quarters.
Quick Reference: Key DA Facts for 2026
- Current DA (May-Jul 2026): 25.70% 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: 25.70% confirmed (March CPI: 149.10, Avg: 148.73, released 30 Apr 2026)
- Aug-Oct 2026 DA: ~27.47%–27.77% estimated (Apr–May 2026 confirmed: 149.9, 150.8; Jun 2026 pending)
- May 2026 CPI-IW: 150.8 (Base 2016=100), released 30 June 2026, up 0.9 from April
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 DA for bank employees from May 2026?
The DA for bank employees from 1 May 2026 is confirmed at 25.70% under the 12th Bipartite Settlement. This was calculated using the CPI-IW quarterly average for January to March 2026: Jan 148.60 + Feb 148.50 + Mar 149.10 = average 148.73. DA = 148.73 minus 123.03 = 25.70%. The March 2026 CPI-IW was released by the Labour Bureau on 30 April 2026. The IBA circular confirming this rate is expected in the first week of May 2026. This represents an increase of 0.70 percentage points over the Feb-Apr 2026 rate of 25.00%.
What is the expected DA for bank employees from August 2026?
Based on the April 2026 CPI-IW of 149.9 and May 2026 CPI-IW of 150.8 (both confirmed by Labour Bureau, released 30 May and 30 June 2026 respectively), the DA from August to October 2026 is estimated at approximately 27.47% if June 2026 CPI also holds at 150.8 (flat scenario). If inflation edges up in June, the DA could reach 27.64%–27.77%. The exact rate will be confirmed once June 2026 CPI-IW data is published (due 31 July 2026). The IBA circular for August 2026 DA is expected in late July or early August 2026.
What is the CPI-IW for May 2026?
The All India CPI-IW (Consumer Price Index for Industrial Workers, Base 2016=100) for May 2026 is confirmed at 150.8 points, released by the Labour Bureau on 30 June 2026. This is an increase of 0.9 points over April 2026 (149.9). Along with April and the upcoming June 2026 figure, this data point determines the DA for bank employees for the August–October 2026 quarter.