Indian Banks' Association Announces DA Hike for Bank Staff in 2026

Kokila Chokkanathan
Dearness Allowance Increased – Check Impact on Your Salary

The indian Banks' Association (IBA) has announced a revision in Dearness Allowance (DA) for bank employees for 2026, bringing relief to thousands of public sector bank staff across the country.

What Is Dearness Allowance (DA)?

Dearness Allowance is a cost-of-living adjustment paid to employees to offset the impact of inflation. For bank employees, DA is revised periodically based on the Consumer Price Index (CPI) data.

Key Highlights of the DA Revision

  • DA has been increased following the latest cpi calculations.
  • The revised DA will be applicable from the notified effective date in 2026.
  • The hike will benefit officers, clerks, and subordinate staff in public sector banks.
How It Affects Your Salary

The increase in DA will directly impact:

  • Basic Pay + DA component
  • Gross monthly salary
  • Pension benefits for retired bank employees (where applicable)
For example, if an employee’s basic pay is ₹40,000 and DA increases by 3%, the monthly salary would rise by ₹1,200 (40,000 × 3%).

Who Will Benefit?

The DA hike applies to employees working in public sector banks that follow IBA wage settlements. It will also impact pensioners whose benefits are linked to DA revisions.

Bank staff are advised to check their updated salary slips once the revised DA is officially implemented by their respective banks.

Further details regarding the exact percentage increase and effective date will be available through official bank circulars and IBA notifications.

 

Disclaimer:

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.

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