Higher take home salary for Bankers: Change in Dearness Allowance from August 2023

Last Updated on August 22, 2023 by Brajesh

Dearness Allowance from August 2023 for Bankers

Dearness Allowance for Bank employees is revised every quarter, which increases or decreases based on the basis of CPI (Consumer Price Index) numbers announced by Ministry of Labour & Employment Government of India. CPI (W) for June 2023 is announced on 31.07.2023 which stood at 136.4 up by 170 basis points compared to May 2023. Increase in Dearness Allowance will result in higher take home salary for bankers from August 2023. Let us check the article to know the calculation and CPI data.

What is CPI Data ?

CPI (W) number measures the relative changes in retail prices of fixed basket of goods and services consumed by industrial workers over a period of time.

When CPI (W) data is announced by Government ?

CPI data of a month is released on the last day of next month, hence June 2023 data is released on 31st July 2023.

Dearness Allowance from August 2023 of Bankers

CPI data for the month of June 2023 has resulted in increase of Dearness Allowance of the banker by 632 slabs from August 2023. Now the new DA for serving Employee will be 44.24%

Earlier the DA was at 41.72% basis 596 Slabs. (Click for OLD DA)

Calculation of Dearness Allowance from August 2023 of Bankers

Above is the calculation shown for Increase in Dearness Allowance(DA) for Bankers from August 2023

Bank Pensioners Dearness Allowance

Bank Pensioners DA is revised twice in a year unlike serving Employee. CPI figure for June 2023 will result in new DA for pensioners also. Dearness Allowance of rtired employees is categorized in 3 brackets

100% Dearness Allowance neutralization have already agreed for Pre- Nov 2002 retired Employees, however the effective date is not yet approved by Department Of Services.

Trend in CPI Data

 

7th Pay Commission : Huge increase in dearness allowance is expected from July 2023

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