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Government raises bank employees Dearness Allowance to 25.70 percent from 25 percent for May July 2026, giving modest salary hikes based on basic pay and CPI linked inflation
The revision for bank employees comes shortly after the central government increased DA for its employees from 58% to 60%, a sharper 2% jump.
Bank employees will see a marginal rise in their salaries for the May–July 2026 quarter after the government revised the Dearness Allowance (DA). The updated DA rate now stands at 25.70%, up from 25%, reflecting a 0.70% increase.
This revision is based on the average Consumer Price Index (CPI) for the first three months of 2026 and will directly impact take-home pay, as DA is calculated on basic salary.
How the Latest DA Revision Impacts Salary
Even a small increase in DA leads to a noticeable difference in monthly earnings, especially across higher pay scales. Since DA is linked to inflation, periodic revisions help employees maintain purchasing power.
For instance:
At Stage 1 (Scale I), with a basic pay of Rs 48,480, the DA increases from Rs 15,544 to Rs 15,979, resulting in a monthly gain of Rs 435.
At Stage 10 (Scale I), for a basic pay of Rs 67,160, the DA rises from Rs 21,451 to Rs 22,052. This leads to an increase of Rs 601 per month.
At Stage 15 (Scale I), employees earning Rs 80,560 basic pay will see their DA move from Rs 25,689 to Rs 26,408, giving them an additional Rs 719 monthly.
At Stage 20 (Scale I), with a basic salary of Rs 93,960, DA increases from Rs 29,927 to Rs 30,765. This results in a gain of Rs 838 per month.
At Stage 25 (Scale I), employees with a basic pay of Rs 1,08,260 will see DA rise from Rs 34,449 to Rs 35,414, translating into an increase of Rs 965 monthly.
Comparison With Central Government Employees
The revision for bank employees comes shortly after the central government increased DA for its employees from 58% to 60%, a sharper 2% jump. In comparison, the bank employees’ hike remains modest but still adds incremental income.
DA is calculated as a percentage of basic pay. So, any revision—big or small—affects total salary directly. Over time, even small quarterly increases can significantly improve annual earnings.
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