Categories: Bank News

DA (Dearness Allowance) for Bank employees for the quarter Feb’16- Apr’16

On the basis of CPI data announced by the Government for the month of October, November & December 2015, as tabled below, the Dearness Allowance (DA) payable for the period of February’16 to April ‘16 is an increase of 28 DA Slabs at a rate of 0.10% per slab.

DA for bank employees and officers is calculated by multiplying basic salary of an employee (including allowance eligible for DA) with number of DA slabs into 0.10%.

For example 426 slabs for the ensuing quarter, the DA are 42.60% of basic salary of an employee (including allowance eligible for DA).

How increase in DA slabs is calculated for the Quarter (Febraury2016 – April 2016)?

CPI for October 2015 is 6140.17, CPI for November 2015 is 6162.99, and CPI for Dec 2015 is 6140.17

Average CPI for the Quarter October-December 2015 = 6147.78

The points over 4440 points (after merger of 4440 points of DA with basic in the previous settlement) are eligible for calculation of DA i.e. 6147-4440=1707

1707 is divided by 4= 426 slabs

Number of slabs for the previous quarter = 398 slabs

Increase in the slabs for the ensuing quarter Feb 16 – April 2016 is 426-398 = 28 slabs

Surendra Naik

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Surendra Naik

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