7th Pay Commission: Central employees and pensioners got good news about dearness allowance recently. Now an increase in dearness allowance has been announced for bankers. Dearness allowance for bankers has been increased to 27.79 per cent.
7th Pay Commission: Big news is coming for bank employees. The government has announced to increase dearness allowance for bank employees. The benefit of the increased allowance will be available only from the month of August. According to the information available on the website of Indian Banks Association (IBA), Dearness Allowance for the months of August, September and October has been increased to 27.79 per cent.
Earlier, for the months of May, June and July, bank employees were getting the benefit of 25.69 percent dearness allowance. The government has increased dearness allowance by 2.1 percent for the next three months. The dearness allowance for the months of February, March and April this year was 26.18 per cent. It was reduced by 0.49 per cent for the next three months from May. According to the IBA website, the dearness allowance for November, December 2020 and January 2021 was 81.9 per cent. For the next three months, the government had cut it by 55.72 percent.
Bank employees will get the benefit of 2.1 percent increase in dearness allowance under the 11th BPS salary structure. Dearness allowance for 10th BPS employees has been increased by 3 percent. 8 lakh bankers will get the benefit of increase in dearness allowance. This will increase their take home salary, as it is directly linked to the basic salary. Apart from bank employees, bank pensioners will also get the benefit of increase in dearness allowance. Pensioners who have retired after November 1, 2017 will now get the benefit of Dearness Relief (DRA) 27.79.
Revision of Dearness Allowance for bank employees is done every three months. It is fixed for every three months on the basis of consumer price index i.e. retail inflation rate. For those living in metro city, urban area and rural area, the benefit of dearness allowance is available in different ways.
Bankers get the benefit of Dearness Allowance based on AICPIN (All India Consumer Price Index Numbers) data. Its calculation is done on a quarterly basis for industrial workers. The government had recently released AICPIN data for the April-June quarter. The AICPIN index for June 2021 stood at 121.7. It was 120.6 for May and 120.1 for April. This data is released by the Ministry of Labor and Employment.
Earlier, the government had increased dearness allowance from 17 per cent to 28 per cent for central employees and pensioners. Its benefit is being given from the month of July. 52 lakh central employees and 60 lakh pensioners will get the benefit of this announcement of the government. The DA / DR available to central employees and pensioners was frozen in January 2020. They have not got the benefit of arrears, but they have definitely got the benefit of increased dearness allowance in December 2019, June 2020 and December 2020. The government revises the Dearness Allowance and Dearness Relief twice a year in the months of June and December for the next six months.