From this month, preparations are being made to increase the salary of bank employees. Dearness Allowance (DA) for bank employees has been increased by 2.1 per cent to 27.79% as compared to the previous quarter. The increment will be effective from August to October and will be applicable for the bankers following the 11th BPS pay structure. The DA of bank employees and workers for 10th bps has been increased by 3 percent as compared to the previous quarter. The increase in DA will be applicable for the next three months starting from August. More than 8 lakh employees will benefit from this decision. The hike in DA will increase the net salary drawn every month by the bank employees as it is directly linked to the basic pay.
Dearness Allowance is a component of salaries of government and bank employees, aimed at mitigating the effects of inflation. DA is calculated on the basis of Consumer Price Index and is revised every quarter for bank employees. Since DA is related to cost of living, it varies from employee to employee depending on whether they work in urban area, semi-urban area or rural area. DA is included to compensate for price rise or inflation in a particular financial year.
The central government had earlier released the Average All India Consumer Price Index Number (AICPIN) for industrial workers for the quarter of April, May and June 2021. With these average AICPIN data, dearness allowance for bank employees is calculated.
How is the hike in dearness allowance calculated for bank employees?
All India Consumer Price Index – Industrial Workers is released by the Ministry of Labor and Employment on the last working day of every previous month. Average is calculated on the basis of three consecutive months or one quarter. DA of bank employees depends on that average rate of AICPI
“We have to inform that the All India Average Consumer Price Index number (Aadhaar 1960 = 100) for industrial workers for the quarter ended June 2021 has been confirmed, as published by the Govt. India’s own website Labor Bureau are as follows: April 2021 7895.20, May 2021 7928.07, June 2021 8000.39,” the Indian Banks Association (IBA) said in a circular.
The average of the above is 7941.22 and accordingly the number of DA slabs is 397 (7941.22 – 6352 = 1589.22 = 397 slabs), DA payment for May, June and July 2021 was at 367 slabs. Therefore, 30 slabs of DA i.e. 397 -367 slab has been increased for payment of DA for the months of August, September and October 2021.
Accordingly, in terms of Clause 7 of the 11th Bipartisan Agreement dated 11.11.2020 and Clause 3 of the Joint Note dated 11.11.2020, the rate of Dearness Allowance payable to employees and officer employees for the months of August, September and October 2021 is 27.79 of ‘Salaries’. % Yes, it was added next.
“While making dearness allowance payable, the decimal from the third position may be ignored,” the association said.
Similarly, dearness allowance of bank pensioners has also been increased. Those retiring after 1.11.2017 will get dearness relief of 27.79 per cent on pension. DR is payable to pensioners of member banks of IBA under Regulation 37 of the Bank Employees’ Pension Regulations.
read all Breaking Newshandjob breaking news And coronavirus news Here
.