DA Hike News: The government has decided to increase the Dearness Allowance (DA) for bank employees from 25% to 25.70% for the quarter spanning May to July 2026.

DA Hike News: If you work in a bank, or if you know someone who is a bank employee, this news is for you. The government has, in fact, announced a marginal increase in the Dearness Allowance (DA) for bank employees.

How Much Has the DA Been Increased?

The government has decided to raise the Dearness Allowance (DA) for bank employees from 25% to 25.70% for the quarter covering May to July 2026. However, bank employees and unions have termed this 0.70% increase as 'very meager.'

How Much Will Salaries Increase?

This 0.70% increase will result in a monthly salary hike of only 435 rupees to 1,050 rupees for employees across various pay scales. For employees whose basic pay falls between 48,000 rupees and 117,000 rupees, this revised DA means their salaries will increase by an amount ranging from 435 rupees to 1,050 rupees. While this increase may not be substantial, it ensures that the allowance received by employees remains aligned with inflation trends.

Who Gets How Much of a Salary Hike?

Stage 1: An increase of just 435 rupees per month on a basic pay of 48,480 rupees.

Stage 10: An increase of just 601 rupees per month on a basic pay of 67,160 rupees.

Stage 20: An increase of just 838 rupees per month on a basic pay of 93,960 rupees.

Stage 25: An increase of 965 rupees per month on the maximum basic salary of 108,260 rupees.

On What Basis Was the Calculation Made? According to a notification issued by the Indian Banks' Association (IBA) on May 2, the updated Dearness Allowance (DA) figures are based on the All India Average Consumer Price Index for Industrial Workers (AIACPI-IW) for the quarter ending March 2026. This index continues to serve as the benchmark for periodic revisions to the DA.

The CPI data for the first quarter of 2026 was as follows: the DA stood at 148.6 in January 2026; it dipped slightly to 148.5 in February 2026; and subsequently rose to 149.1 in March 2026. The average CPI for these three months works out to 148.73. When compared against the base index of 123.03 (CPI 2016), the difference amounts to 25.70. Accordingly, the increase in the DA for the May-July period has been fixed at 0.70 points.