How DA is calculated for Bank employees?

Last updated by BankersClub on March 13, 2018

DA calculation for bank employees is explained in this article. [For latest DA for Banks (expected for Nov 16-Jan 17, read this article)]


DA for Bank employees is revised every quarter, which increases or decreases based on the CPI (Consumer Price Index. Consumer Price Index is released by Ministry of Labour, Govt. of India on monthly basis based on year 2001.

Here is how to calculated DA for bank employees:

  • Collect the month wise CPI data for last quarter (Jan-Mar, Apr-Jun or Jul-Dec).
  • The CPI is converted using conversion factor 4.63 and 4.93 to link the same to base year 1960.

For example CPI for April, May and June 2016 was 271,  275 and 277.

By applying conversion factor

Apr May Jun
271 x 4.63 x 4.93 275 x 4.63 x 4.93 277 x 4.63 x 4.93
             6,185.82               6,277.12        6322.28
  • Average CPI works our to 6261.91
  • Deduct 4440 slabs from average CPI (calculated in step 2). 4440 DA slabs have been merged in 11th bipartite settlement. [6262-4440 = 1822.]
  • Divide 1822 by 4 to convert to quarterly DA slabs [1822/4 = 455] as the figure is annual.
  • According DA slab for next quarter will be 455 on which 0.10% is payable as DA.
  • So DA payable for next quarter (Aug to Oct 16) will be 45.50%.
  • By deducting the same from previous quarter DA, increase in DA can be calculated.
  • Calculate average of CPI data for last quarter (3 months).

You may like : 11th bipartite settlement – Charter of Demand for wage revision


DA is calculated based on CPI data of quarter ending one month before the quarter for which DA is payable becuase CPI data is released by Ministry of Labour on the last day of next month.

DA is revised for bankers every quarter i.e., Feb-Apr, May-Jul, Aug-Oct and Nov-Jan.


1 Comment

Comments are closed.