When is DA revised for bank employees?

DA for bank employees is revised quarterly — in February (effective May), May (effective August), August (effective November), and November (effective February). Each revision is based on the quarterly average AICPI for the preceding three months. The Labour Bureau publishes AICPI data monthly with a lag of approximately 2 months.

Is bank employees' DA the same as central government employees' DA?

No. Bank employees (PSBs under IBA bipartite) and central government employees follow different DA systems. Central government employees' DA is based on the 7th Pay Commission formula with AICPI base 2001=100. Bank employees' DA under the 12th Bipartite Settlement is based on AICPI 2016=100. The base year was reset in the 12th bipartite, which is why bank employee DA% appears lower than central government DA% despite both tracking the same underlying price index.

What was the previous DA rate for bank employees?

The previous DA rate was 25.70% effective from 1 May 2026 (Q2 2026). Before that, the rate for Q1 2026 (February 2026) was 23.84%. DA has been rising steadily since the 12th Bipartite Settlement reset the base to AICPI 2016=100.

When is the next DA revision for bank employees?

The next DA revision is due in November 2026, effective from 1 February 2027 (Q1 2027). It will be based on the quarterly average AICPI for August, September, and October 2026. The Labour Bureau publishes AICPI data with approximately 2 months lag, so the Q4 2026 AICPI data (Jul-Sep) will be available around November 2026.

Current Rate: 27.83%12th Bipartite FormulaUpdated Aug 2026

DA Rate for Bank Employees 2026

Q: What is the current DA rate for bank employees in 2026?

The current Dearness Allowance (DA) rate for bank employees is 27.83% of basic pay, effective from 1 August 2026 (Q3 2026). This is calculated based on the quarterly average of the All India Consumer Price Index (AICPI) for industrial workers on base year 2016=100 minus the reference figure of 123.03, as per the 12th Bipartite Settlement formula.

Q: How is DA calculated for bank employees?

Under the 12th Bipartite Settlement, DA% = Quarterly average AICPI (base 2016=100) − 123.03. The DA percentage is then applied to the employee's basic pay. For example, at 27.83% DA, an employee with ₹17,900 basic pay receives ₹4,982 as DA per month.

Current Rate · Quarterly History · DA Formula · Grade-wise DA Amount

Dearness Allowance for bank employees is revised every quarter based on the All India Consumer Price Index (AICPI, 2016=100). The current rate is 27.83% effective 1 August 2026 — up from 25.70% in the previous quarter.

Current DA

27.83%

Previous Quarter

25.70%

Effective From

1 Aug 2026

Next Revision

Nov 2026

DA Formula Under 12th Bipartite Settlement

DA Formula

DA% = Quarterly Average AICPI (2016=100) − 123.03

AICPI = All India Consumer Price Index for Industrial Workers

The 12th Bipartite Settlement (effective November 2022) reset the DA base year to 2016=100. Under the previous (11th) bipartite, DA was calculated on the 1960=100 base, and had reached ~52% — that entire old-base DA was merged into basic pay at the time of the 12th bipartite.

The reference index figure of 123.03 represents the average AICPI level when the 12th bipartite took effect (November 2022). Any rise in AICPI above 123.03 directly translates into DA.

DA is calculated on basic pay only. It is not applied to special allowance, HRA, or other components. DA itself is fully taxable as salary income.

The quarterly AICPI average is computed using data for three months published by the Labour Bureau (Ministry of Labour & Employment). AICPI data is published monthly with approximately a 2-month lag.

DA Rate History — 12th Bipartite (2024–2026)

Quarter	DA Period	DA Rate	Effective From
Q3 2026Current	Aug–Oct 2026	27.83%	1 Aug 2026
Q2 2026	May–Jul 2026	25.70%	1 May 2026
Q1 2026	Feb–Apr 2026	23.84%	1 Feb 2026
Q4 2025	Nov–Jan 2025	21.71%	1 Nov 2025
Q3 2025	Aug–Oct 2025	19.90%	1 Aug 2025
Q2 2025	May–Jul 2025	18.06%	1 May 2025
Q1 2025	Feb–Apr 2025	16.49%	1 Feb 2025
Q4 2024	Nov–Jan 2024	14.83%	1 Nov 2024
Q3 2024	Aug–Oct 2024	13.08%	1 Aug 2024
Q2 2024	May–Jul 2024	11.68%	1 May 2024
Q1 2024 (inception)	Feb–Apr 2024	10.06%	1 Feb 2024

DA rates shown are for IBA Bipartite-covered public sector bank employees (12th Bipartite). DA is revised quarterly. Rates may vary slightly pending official IBA circular for each quarter.

Upcoming DA Revisions

📅

Q4 2026 — Effective 1 Nov 2026

DA Period: Nov 2026–Jan 2027

Based on AICPI Jul–Sep 2026 average (data due Oct–Nov 2026)

📅

Q1 2027 — Effective 1 Feb 2027

DA Period: Feb–Apr 2027

Based on AICPI Oct–Dec 2026 average (data due Jan 2027)

Grade-wise DA Amount at 27.83% (August 2026)

Grade	Basic Pay	DA @ 27.83%	Basic + DA
Clerical (Starting)	₹17,900	₹4,982	₹22,882
Clerical (After 5 yrs)	₹22,900	₹6,378	₹29,278
Clerical (Maximum)	₹39,900	₹11,114	₹51,014
Officer Scale I (Starting)	₹36,000	₹10,019	₹46,019
Officer Scale I (Max)	₹67,140	₹18,691	₹85,831
Officer Scale II	₹48,170	₹13,406	₹61,576
Officer Scale III	₹63,840	₹17,767	₹81,607

DA is calculated on basic pay only. Use the salary calculator for full take-home including HRA, special allowance, and PF deduction.

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Calculate Your Full Take-Home Salary

Includes basic + DA (27.83%) + HRA + special allowance − PF. Select your grade and city to see the exact in-hand amount.

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Frequently Asked Questions — DA for Bank Employees

What is the current DA rate for bank employees in 2026?▼

27.83% of basic pay, effective from 1 August 2026 (Q3 2026). Revised quarterly based on AICPI 2016=100.

How is DA calculated for bank employees?▼

DA% = Quarterly average AICPI (2016=100) − 123.03. The result is applied to basic pay. At 27.83%, a clerk with ₹17,900 basic receives ₹4,982 DA per month.

When is DA revised?▼

Quarterly — effective February, May, August, and November each year. Each revision is based on AICPI data for the preceding 3 months.

Is bank employees' DA same as central government DA?▼

No. Central government employees follow AICPI 2001=100 under the 7th Pay Commission. Bank employees follow AICPI 2016=100 under the 12th Bipartite. Both track the same index but use different base years and formulas, giving different percentage figures.

What was the previous DA rate?▼

25.70% effective 1 May 2026 (Q2 2026). The rate increased to 27.83% from 1 August 2026.

When is the next DA revision?▼

November 2026, effective 1 February 2027 (Q1 2027). It will be based on AICPI for July, August, and September 2026.

Related — Salary & Bipartite Resources

→

Complete Bipartite Settlement Guide

All 12 settlements, DA mechanism, HRA, pay scales explained

→

12th Bipartite Salary Calculator

Grade-wise take-home with current DA, HRA, PF

→