Banking News

Confirmed DA (Dearness Allowance) for August 2016 to October 2016: Bank staff will get 35 slabs hike


Government of India, Ministry of Labour and Employment, (Labour Bureau), releases Consumer Price Index at Base year 2001=100 for Industrial Workers (CPI-IW), on the last working day of every month.   Banks are using the same series of consumer price index; related to previous quarter for calculation of DA for the ensuing quarter. The Dearness Allowance payable to employees/Officers is 455 slabs of DA for Aug, Sept and October 2016 in terms of confirmed CPI for April, May, June 2016. It means an increase of 35 slabs over the current level. Thus, the percentage of DA payable to  employees/Officers for the months of August, September and October 2016 will be @ 45.50% on ‘pay’ (which includes allowances eligible for DA).

Calculation of DA:

The confirmed AICPI numbers for Industrial Workers (Base 1960=100) for the quarter ended June 2016 are as follows.

April 2016:  6185.82

May 2016:    6277.12

June 2016:  6322.77 

The average CPI of the above is 6262

The points over 4440 points are eligible for calculation of DA i.e. 6262.77 – 4440=1822.77 (after merger of 4440 points of DA with ‘pay’ in terms of X BPS/Joint Note)

Eligible slabs for ensuing quarter: 1822 is divided by 4= 455 slabs,

Number of slabs for the previous quarter = 420 slabs

Increase in the slabs for the current quarter = 455 -420 = 35 slabs.

 

Related article    (CLICK): Dearness allowance (DA) calculation formula for bankers

 

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