DA for Bank Employees Aug 2026 — Expected ~26.87% | May–Jul 2026: 25.70% Confirmed
DA for bank employees from August 2026 is estimated at ~26.87% under the 12th Bipartite Settlement — with April 2026 CPI-IW confirmed at 149.9, one more data point (May 2026 CPI, due end-June 2026) is needed 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
~26.87%
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.
April 2026 CPI-IW is now confirmed at 149.9 points (Labour Bureau, 30 May 2026) — up 0.8 from March. With April fixed, the August 2026 DA estimate narrows. Scenarios below assume different trajectories for May and June 2026 (to be released end-June and end-July respectively):
| CPI Scenario (Apr confirmed 149.9; May–Jun 2026 est.) | Estimated Avg CPI | Estimated Aug 2026 DA |
|---|---|---|
| Flat — May = Jun = 149.9 (Apr confirmed) | 149.90 | ~26.87% |
| Moderate rise — May 150.3, Jun 150.7 | 150.30 | ~27.27% |
| Higher inflation — May 150.7, Jun 151.5 | 150.70 | ~27.67% |
| Central Estimate | 150.00–150.40 | ~26.97%–27.37% |
Key point: April 2026 CPI is confirmed at 149.9 — already above the entire May 2026 reference average (148.73). Even in the flat scenario, August 2026 DA (~26.87%) will exceed May 2026 DA (25.70%) by over 1 percentage point. Watch this page — it will be updated when May and June 2026 CPI-IW data are 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: ~26.87%–27.37% estimated (Apr 149.9 confirmed; May–Jun 2026 pending)