Editor’s Note
This article reports that the Dearness Allowance for Indian public sector bank employees will remain unchanged at 54.74% for the August-October 2025 period, as confirmed by the Indian Banks’ Association.
There is bad news for employees of government banks. Their dearness allowance (DA) has not been increased. The Indian Banks’ Association (IBA) has issued an order regarding the dearness allowance for bank employees for August, September, and October 2025. According to the new order, employees will receive DA at the rate of 54.74% for this period. This rate has been fixed under the 11th wage settlement and the 8th joint note.
The circular issued by the IBA clarifies that the average Consumer Price Index (CPI) for April, May, and June 2025 was 9480. The average for the previous quarter was also 9480, hence no change has been made in the DA rate. This figure is determined based on the base year of 1960. According to the latest data:
- CPI for April 2025: 9433.49
- CPI for May 2025: 9466.36
- CPI for June 2025: 9532.10
- Average CPI for the three months: 9480
This CPI is equivalent to 782 slabs, and the number for the previous quarter was also 782 slabs.
The IBA has also directed that numbers beyond the third decimal place be ignored when calculating DA. While the dearness allowance has not increased now, a change in the allowance based on CPI is possible in the upcoming quarter. This order will apply to all member banks that have not yet implemented the 12th wage settlement or the 8th joint note.