Finance Desk – The Indian Banks’ Association (IBA) announced a significant update to the dearness allowance (DA) for the months of May, June, and July 2024.
The dearness allowance for bank workers has been increased to 15.67% for May, June, and July 2024. Now, bank employees will receive a slightly higher percentage of their basic salary as part of their total earnings.
How DA is Calculated
The calculation of the dearness allowance is based on the Consumer Price Index (CPI). For the latest quarter, the average CPI was 139, compared to a base of 123.03 points. This difference leads to the new DA rate.
In addition to the DA hike, there was an agreement earlier this year to increase the annual wages of bank employees by 17%. This agreement is set to enhance the overall salaries and benefits for approximately 800,000 bank employees.
Furthermore, officers completing certain qualifications like CAIIB will receive additional increments.
One of the most awaited changes for bank employees is the proposed transition to a five-day workweek, with Saturdays off. This change is currently awaiting government approval.
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