The Indian Banks’ Association (IBA) has announced the new dearness allowance for bank employees for August–October 2025, while union demands and wage revision talks intensify. Read the latest on bank employees salary hike 2025.
What’s New in 2025: IBA’s DA Order and Pending Hike
Bank employees across India are watching closely as the Indian Banks’ Association (IBA) released its circular on August 1, 2025, approving a dearness allowance (DA) of 21.13% for the months of August, September, and October 2025. This applies to workmen and officer staff under the 12th Bipartite Settlement / 9th Joint Note.
This DA announcement is a bridging move, not the full salary hike that many bank staff are hoping for. The bigger question remains: when will the much-awaited IBA salary revision take place?
How the DA 21.13% Was Calculated
The IBA’s circular cites the All-India Average Consumer Price Index for Industrial Workers (base 2016 = 100). For April, May, and June 2025, the CPI values were 143.5, 144.0, and 145.0, respectively, giving an average of 144.16. Subtracting the base index of 123.03 gives 21.13 points, hence 21.13 % DA.
The increase from the prior quarter is 1.16 points, which reflects inflation movement.
In effect, banks will apply this DA to the “pay” (basic pay + merged DA components) of employees under the 12th Bipartite Settlement regime.
What This Means on Salary Slips
For many officers and clerical staff, the 21.13% DA is a meaningful add-on, but not the blockbuster “hike” most have been hoping for.
- In officer scales, especially at higher stages, this DA adds thousands of rupees monthly.
- Clerks and sub-staff also see increments in take-home pay, especially when other allowances (HRA, transport, special pay) are factored in.
- However, comparisons with union demands show expectations are much higher.
The Larger Fight: IBA Salary Revision Talks
What Unions Want
Banking unions have been pressing for a full wage revision, not just DA adjustment. Their demands typically include:
- An across-the-board rise in basic pay (not just DA)
- Better allowances (housing, conveyance, medical)
- Pension improvements for retirees
- Transparent formulae for future hikes
Some reports say unions and the IBA had tentatively agreed to a 17% increase in overall salary/allowances under the 12th Bipartite Settlement, inclusive of load factors.
But that agreement (if real) has yet to be translated into a formal circular that all banks must follow.
Why Full Revision Is Delayed
- Negotiations & consensus: With many banks involved and multiple union bodies (officers, clerks, workmen), aligning on a formula is complex.
- Financial stress & regulation: Banks must examine profitability, duty to shareholders, and regulatory oversight before approving big salary rises.
- Timing with DA: The DA circular is often issued quarterly, and wage revision is usually tied to a longer settlement cycle (bi-partite settlements are multi-year agreements).
The DA order for August–October doesn’t preclude a new settlement; it just keeps staff aligned with inflation in the meantime.
What Employees Should Watch Out For
DA / DR Circulars
Employees should keep an eye on the IBA or bank-specific HR circulars confirming payment schedules and whether the DA is merged or continues as a separate line item.
Wage Revision Announcement
A formal wage revision announcement (covering basic pay, allowances, maybe pension) is what many look forward to. The 17% figure often cited remains tentative until officially notified.
Union Updates
Union meetings, strike resolutions, and memos from federations like UFBU or officers’ unions will carry updates on demands and progress. These channels often signal when a proposal is ready to be accepted or rejected.
Quick Table: DA 21.13% Impact vs Past DA
| Period | DA Rate (%) | Notes |
|---|---|---|
| Aug–Oct 2025 | 21.13 % | Latest IBA circular under 12th BPS |
| Previous quarter | ~19.97 % | Implied from CPI movement |
The jump from ~19.97% to 21.13% marks a moderate adjustment for inflation, though not a major basic pay hike.
Why This Matters for Bank Employees (and Retirees)
- Cost of living cushion: The DA increase helps cushion rising expenses in food, fuel, utilities.
- Expectation management: Many staff were hoping for more substantial hikes; this DA keeps things afloat till the full revision.
- Retirees’ dearness relief (DR): Pensioners’ DR is tied to similar indices; the DA movement often influences DR adjustments.
What’s Next: When Could Salary Hike Arrive?
- The wage revision under the 12th bipartite settlement is due for a full settlement in due course. Unions have long demanded that the full revision come alongside better allowances and pension terms.
- A full circular would likely cover multiple years and replace the current 11th/12th arrangements.
- The timeline is uncertain, but employee groups expect proposals soon, likely in late 2025 or early 2026.
Final Word
The bank employees salary hike 2025 conversation is currently halfway—what we have now is a DA adjustment, not the full wage revision most employees hope for. The 21.13% DA for August to October 2025 is confirmed via IBA’s latest circular. But a meaningful increase in basic pay and allowances is still pending negotiation.
Employees should monitor union announcements, bank HR notices, and any indication of a formal 12th bipartite settlement being finalized. During this waiting period, the DA raise provides some inflation relief—but does not replace the full-fledged salary hike many were anticipating.
Please do not enter any spam link in comment box. Thank you!