DA Hike News: If you work in a bank or you know someone who is a bank employee, then this news is for you. Actually, the government has announced a slight increase in Dearness Allowance (DA) for bank employees.

How much was DA increased?

The government has decided to increase the dearness allowance (DA) of bank employees from 25 percent to Rs 25.70 for the quarter from May to July 2026. However, this increase of 0.70 percent has been described as ‘very low’ by bank employees and unions.

How much will the salary increase?

With this increase of 0.70 percent, the monthly salary of employees of different pay scales will increase only by Rs 435 to Rs 1,050. For employees whose basic salary is between Rs 48,000 to Rs 1,17,000, this revised DA means that their salary will increase by Rs 435 to Rs 1,050. This increase may not be huge, but it ensures that the allowances received by employees remain in line with inflation trends.

Whose salary will increase by how much?

Stage 1- Increase of only Rs 435 per basic pay of Rs 48,480

Stage 10- Increase of only Rs 601 per basic pay of Rs 67,160

Stage 20- Increase of only Rs 838 per month on basic pay of Rs 93,960

Stage 25- Increase of Rs 965 per month on maximum basic salary of Rs 1,08,260

On what basis was the calculation done?

According to a May 2 notification from the Indian Banks Association (IBA), the updated DA figures are based on the All India Average Consumer Price Index of Industrial Workers (AIACPI-IW) for the quarter ending March 2026. This index remains the benchmark for the periodic amendments in DA.

The CPI data for the first quarter of 2026 remained as follows – DA was 148.6 in January 2026, it fell slightly to 148.5 in February 2026 and then increased to 149.1 in March 2026. The average CPI of three months is 148.73. Compared to the base index of 123.03 (CPI 2016), its difference comes to 25.70. Accordingly, the increase in DA for the May-July period has been set at 0.70 points.

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