DA for Bank Employees 2026: Aug 27.83% Confirmed | Nov Estimate ~31% (30.80%–31.37%)
DA for bank employees from August 2026 is confirmed at 27.83% under the 12th Bipartite Settlement — with April (149.9), May (150.8), and now June 2026 CPI-IW confirmed at 151.9 (Labour Bureau, 31 July 2026), all three data points needed for the quarter are in. This is a rise of 2.13 percentage points over the previous quarter. May–July 2026 DA was 25.70% (effective 1 May 2026; January–March 2026 quarterly average: 148.73). The quarter before that (February–April 2026) DA was 25.00%.
Aug 2026 DA — Confirmed
27.83%
Your exact monthly DA based on Basic Pay, SA, PQP — 12th BPS formula, updated for Aug–Oct 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 • Aug–Oct 2026 Confirmed: 27.83% • Up from 25.70%
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DA for Bank Employees from August 2026
DA for bank employees from August to October 2026 is confirmed at 27.83% — calculated from the April–June 2026 CPI-IW average of 150.86 (Labour Bureau, 31 July 2026). IBA notified this rate by circular CIR/HR&IR/77/D/2026-27/3434 dated 3 August 2026. Under the 12th Bipartite Settlement (XII BPS) and 9th Joint Note dated 8 March 2024, DA rates applicable are:
- 27.83% of pay for workmen and officer employees under 12th BPS (effective 1 August 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 2.13 percentage points over the previous quarter (May–July 2026), when DA stood at 25.70%. Over the past four quarters, DA has risen by 6.70 percentage points (from 21.13% in Aug–Oct 2025 to 27.83% now).
CPI-IW Data That Determines August 2026 DA
DA for the August–October 2026 quarter is calculated using the CPI-IW (Base 2016=100) for April, May, and June 2026. All three figures are now officially released by the Labour Bureau:
| Month | CPI-IW Index | Month-over-Month |
|---|---|---|
| April 2026 | 149.90 | +0.80 |
| May 2026 | 150.80 | +0.90 |
| June 2026 | 151.90 | +1.10 |
| 3-Month Average | 150.86 | +2.13 vs prev. avg |
Source: Labour Bureau, Ministry of Labour and Employment, Government of India (Press Releases dated May, June, and July 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 August 2026:
150.86 − 123.03 = 27.83%
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 27.83% 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 @ 27.83% | Per Month (Rs) |
|---|---|---|---|
| Sub-Staff | Rs 15,000 | 27.83% | Rs 4,175 |
| Clerk (Workman) | Rs 17,900 | 27.83% | Rs 4,982 |
| Officer Scale I (JMG) | Rs 36,000 | 27.83% | Rs 10,019 |
| Officer Scale IV (MMG) | Rs 76,010 | 27.83% | Rs 21,156 |
| Officer Scale VII (TEG) | Rs 1,02,300 | 27.83% | Rs 28,470 |
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 nine 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% |
| Aug – Oct 2026 ✔ | Apr – Jun 2026 | 150.86 | 27.83% | +2.13% |
DA Trend: May 2024 to August 2026
The chart below shows how DA has moved over the past nine 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 (Aug–Oct 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 = 27.83%
- 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 August 2026 — Confirmed at 27.83%
The Labour Bureau released the June 2026 CPI-IW on 31 July 2026. With all three months now available, the DA for the August to October 2026 quarter is confirmed:
| Month | CPI-IW Index | Month-over-Month |
|---|---|---|
| April 2026 | 149.90 | +0.80 |
| May 2026 | 150.80 | +0.90 |
| June 2026 New | 151.90 | +1.10 |
| 3-Month Average | 150.86 | DA = 150.86 − 123.03 = 27.83% |
✔ Confirmed — 31 July 2026
27.83% DA from August to October 2026
Calculation: (149.90 + 150.80 + 151.90) ÷ 3 − 123.03 = 150.86 − 123.03 = 27.83% • Source: Labour Bureau Press Release, 31 July 2026
This is an increase of 2.13 percentage points over the May–Jul 2026 rate of 25.70%. IBA confirmed it by circular dated 3 August 2026 (CIR/HR&IR/77/D/2026-27/3434).
Expected DA from November 2026 — August CPI-IW Confirmed at 154.4
The DA for the November 2026 to January 2027 quarter is determined by the average CPI-IW for July, August, and September 2026. Two of the three are now in: July 2026 CPI-IW was 153.2 points (released 31 August 2026), and the Labour Bureau released the August 2026 CPI-IW at 154.4 points on 30 September 2026 — up 1.2 points from July, with year-on-year CPI-IW inflation at 4.96%. Only September remains. It is due on the last working day of October 2026, and the IBA circular for November 2026 DA typically follows in the first week of November.
✔ August 2026 CPI-IW Confirmed — 30 September 2026
154.4 points, up 1.2 from July (153.2)
Two of three months needed for Nov 2026 DA are now confirmed (Jul 153.2, Aug 154.4). Only September 2026 CPI-IW is pending — due from the Labour Bureau on the last working day of October 2026.
With July and August fixed, the November DA now depends only on where September lands. Every 0.3-point move in September’s index shifts the DA by about 0.1 percentage point:
| September 2026 CPI-IW Scenario (Jul 153.2 ✓ · Aug 154.4 ✓) | Estimated Avg CPI | Estimated Nov 2026 DA |
|---|---|---|
| Dip — Sep falls 0.5 to 153.9 | 153.83 | ~30.80% |
| Flat — Sep holds at 154.4 | 154.00 | ~30.97% |
| Slight rise — Sep up 0.5 to 154.9 | 154.17 | ~31.14% |
| Trend continues — Sep up 1.2 to 155.6 (matching Aug’s rise) | 154.40 | ~31.37% |
| Estimated Range (most likely ~31%) | 153.83–154.40 | ~30.80%–31.37% |
Key point: November 2026 DA is now all but certain to land around 31% — roughly 3 percentage points above the current 27.83%, and the biggest quarterly jump under the 12th BPS so far (the previous high was +2.80% in November 2025). Even if September’s index fell by half a point, DA would still be ~30.80%. To move the final figure outside the 30.8%–31.4% band, September CPI-IW would have to drop below 153.9 or rise above 155.6 — a swing larger than any single month this year. This page will be updated with the confirmed rate as soon as the Labour Bureau releases September 2026 CPI-IW (expected 30 October 2026).
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 (Aug-Oct 2026): 27.83% under 12th BPS
- IBA Circular (Aug 2026): CIR/HR&IR/77/D/2026-27/3434 dated 3 August 2026
- CPI-IW average used: 150.86 (Apr-Jun 2026)
- 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: 27.83% confirmed (June CPI: 151.9, Avg: 150.86, released 31 Jul 2026)
- May 2026 CPI-IW: 150.8 (Base 2016=100), released 30 June 2026, up 0.9 from April
- June 2026 CPI-IW: 151.9 (Base 2016=100), released 31 July 2026, up 1.1 from May
- July 2026 CPI-IW: 153.2 (Base 2016=100), released 31 August 2026, up 1.3 from June
- August 2026 CPI-IW: 154.4 (Base 2016=100), released 30 September 2026, up 1.2 from July
- Nov 2026 DA (estimated): 30.80%–31.37% (most likely ~31%), based on confirmed July and August CPI-IW; only September 2026 pending
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 DA for bank employees from August 2026?
The DA for bank employees from 1 August 2026 is confirmed at 27.83% under the 12th Bipartite Settlement. This was calculated using the CPI-IW quarterly average for April to June 2026: Apr 149.9 + May 150.8 + Jun 151.9 = average 150.86. DA = 150.86 minus 123.03 = 27.83%. The June 2026 CPI-IW was released by the Labour Bureau on 31 July 2026. IBA confirmed this rate by circular dated 3 August 2026. This represents an increase of 2.13 percentage points over the May-Jul 2026 rate of 25.70%.
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 June 2026, this data point determined the DA for bank employees for the August–October 2026 quarter, confirmed at 27.83%.
What is the CPI-IW for June 2026?
The All India CPI-IW (Consumer Price Index for Industrial Workers, Base 2016=100) for June 2026 is confirmed at 151.9 points, released by the Labour Bureau on 31 July 2026. This is an increase of 1.1 points over May 2026 (150.8) and the largest single-month rise of the quarter. This was the final data point needed to confirm the DA for bank employees for the August–October 2026 quarter at 27.83%.
What is the CPI-IW for July 2026?
The All India CPI-IW (Consumer Price Index for Industrial Workers, Base 2016=100) for July 2026 is confirmed at 153.2 points, released by the Labour Bureau on 31 August 2026. This is an increase of 1.3 points over June 2026 (151.9), the largest single-month rise since the current quarter began. July is the first of three months (July, August, September 2026) whose average determines the DA for bank employees for the November 2026–January 2027 quarter.
What is the CPI-IW for August 2026?
The All India CPI-IW (Consumer Price Index for Industrial Workers, Base 2016=100) for August 2026 is 154.4 points, released by the Labour Bureau on 30 September 2026. This is an increase of 1.2 points over July 2026 (153.2), and year-on-year CPI-IW inflation stood at 4.96% against 3.16% in August 2025. August is the second of three months (July, August, September 2026) whose average determines the DA for bank employees for the November 2026–January 2027 quarter.
What is the expected DA for bank employees from November 2026?
DA for bank employees from 1 November 2026 is estimated at 30.80%–31.37%, most likely around 31%. Two of the three months are confirmed: July 2026 CPI-IW at 153.2 and August 2026 at 154.4 (released 30 September 2026). Only September is pending: if it holds flat at 154.4, DA works out to ~30.97%; a 0.5-point dip gives ~30.80%; a 0.5-point rise gives ~31.14%; and a 1.2-point rise (matching August) gives ~31.37%. That is an increase of about 3 percentage points over the current 27.83%. The rate will be confirmed once the September 2026 CPI-IW is released by the Labour Bureau (expected 30 October 2026), with the IBA circular typically following in early November.
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