The Indian Bank’s Association (IBA) has announced a significant development for bank employees, hiking the dearness allowance (DA) to 15.97% for the months of May, June, and July 2024.
The notification outlines the revised DA rates by the 12th Bipartite Settlement dated March 8, 2024, and the Joint Note of the same date.
According to the notification, the Dearness Allowance rate for Workmen and Officer employees for May, June & July 2024 will be 15.97% of the ‘pay’ (with a 0.01% change in DA on ‘pay’ for every change in the second decimal place of CPI 2016 over 123.03 points), as per clause 13 of the 12th Bipartite Settlement dated 08.03.2024 and clause 2 (i) of the Joint Note dated 08.03.2024.
The adjustment in DA is determined by the confirmed All India Average Consumer Price Index for Industrial Workers (Base 2016=100) for the quarter ending in March 2024.
During this period, the average CPI stands at 139, indicating an increase from the previous quarter’s average CPI of 138.76.
As a result, the calculation determines the number of points above the base index of 123.03 to be 15.97 (139 – 123.03), leading to the corresponding DA hike.
As part of the broader wage revision agreed upon in March 2024, the IBA and bank employee unions have settled on an annual wage hike of 17%.
This wage agreement, effective from November 2022, is anticipated to incur an additional annual cost of ₹8,284 crore for public sector banks and will provide benefits to approximately 8 lakh bank employees.
Also Read: Country’s Biggest Mall, Sprawling 28 Lakh Sq. Ft., Planned at Airport with 8000-Car Parking
