Expected DA increase for bankers comes out to be 3.80 percent. In our earlier article, we discuss about how DA is calculated for bank employees on the basis of consumer price index (CPI). Now Consumer price index (CPI) data for month of July 2017 has been released by Labour Bureau, which is 285. Let us suppose CPI data for August 2017 and September 2017 remain at same level. Then DA slabs for the next quarter will be 516 on which 0.10 percent DA is payable. Which means new DA will be 51.60 percent from Nov 2017 to Jan 2018.
Expected percentage DA increase for bankers :
As calculated above, DA for bankers from Nov 2017 is expected to increase by (51.60-47.80) 3.80 percent. As DA for current quarter is 47.80.
Let us tell you the calculation for calculating expected DA increase for bank employees –
CPI for July 2017 = 285
Suppose CPI for August 2017 = 285 and CPI for September 2017=285
Multiplying by conversion factor (*4.63*4.93)and calculating average it comes out to be 6505.38.
Deducting 4440 slabs which are merged in basic pay as per 10th BPS = [6505.38-4440]=2065.38
Divide it by 4 to calculate DA slabs for quarter = [2065.38/4]=516 (rounded off)
The above calculation is just on the basis of expectations. We will update you with change in actual change in Dearness allowance for bankers for November 2017 to January 2018 whenever the CPI data for August 2017 is released by Labor Bureau.
Dearness Allowance is cost of living allowance paid to central government employees , PSU employees , pensioners to protect the erosion in the real value of basic salary on account of inflation.