In a significant development for bank employees, the Indian Bank's Association (IBA) has announced a hike in the dearness allowance (DA) to 15.97% for the months of May, June, and July 2024.
The notification outlines the revised DA rates in accordance with the 12th Bipartite Settlement dated March 8, 2024, and the Joint Note of the same date.
The notification stated: "In terms of clause 13 of the 12th Bipartite Settlement dated 08.03.2024 and clause 2 (i) of the Joint Note dated 08.03.2024, the rate of Dearness Allowance payable to Workmen and Officer employees for the months of May, June & July 2024 shall be 15.97% ‘of ‘pay’ (0.01 % change in DA on ‘pay’ for change in every second decimal place of CPI 2016 over 123.03 points)."
The adjustment in DA is based on the confirmed All India Average Consumer Price Index for Industrial Workers (Base 2016=100) for the quarter ending in March 2024.
The index values were recorded as follows:
February 2024: 139.2
March 2024: 138.9
The average CPI for this period is 139, marking an increase from the previous quarter's average CPI of 138.76.
Consequently, the number of points over the base index of 123.03 is calculated to be 15.97 (139 - 123.03), resulting in a corresponding DA hike.
This increase in dearness allowance is a part of the broader wage revision agreed upon in March 2024, where the IBA and bank employee unions settled on an annual wage hike of 17%.
This wage agreement, effective from November 2022, is expected to cost public sector banks an additional ₹8,284 crore annually and will benefit approximately 8 lakh bank employees.
The notification outlines the revised DA rates in accordance with the 12th Bipartite Settlement dated March 8, 2024, and the Joint Note of the same date.
The notification stated: "In terms of clause 13 of the 12th Bipartite Settlement dated 08.03.2024 and clause 2 (i) of the Joint Note dated 08.03.2024, the rate of Dearness Allowance payable to Workmen and Officer employees for the months of May, June & July 2024 shall be 15.97% ‘of ‘pay’ (0.01 % change in DA on ‘pay’ for change in every second decimal place of CPI 2016 over 123.03 points)."
The adjustment in DA is based on the confirmed All India Average Consumer Price Index for Industrial Workers (Base 2016=100) for the quarter ending in March 2024.
The index values were recorded as follows:
January 2024: 138.9
February 2024: 139.2
March 2024: 138.9
The average CPI for this period is 139, marking an increase from the previous quarter's average CPI of 138.76.
Consequently, the number of points over the base index of 123.03 is calculated to be 15.97 (139 - 123.03), resulting in a corresponding DA hike.
This increase in dearness allowance is a part of the broader wage revision agreed upon in March 2024, where the IBA and bank employee unions settled on an annual wage hike of 17%.
This wage agreement, effective from November 2022, is expected to cost public sector banks an additional ₹8,284 crore annually and will benefit approximately 8 lakh bank employees.
First Published: Jun 11, 2024 4:06 PM IST
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