Quick answer: Dearness Allowance for bank employees under the 12th Bipartite Settlement is 31.33% of pay for November 2026, December 2026 and January 2027, up from 27.83%. The Indian Banks' Association confirmed it by circular dated 2 November 2026. For a clerk at the entry basic of ₹24,050, DA on basic rises by about ₹842 a month; for an officer at the JMGS-I entry basic of ₹48,480, by about ₹1,697. A separate rate of 66.36% applies under the older 11th Bipartite Settlement.
Bank DA moves every quarter, so the numbers circulating online in October were estimates. The IBA's circular now fixes the rate. This guide shows how 31.33% was worked out from the price index, what it means for pay at common levels, why there are two rates in the same week, and what the next revision depends on.
The IBA order
Last updated: 3 November 2026. Based on IBA circular No. CIR/HR&IR/D/2026-27/3690-A dated 2 November 2026.
| Point | Position |
|---|---|
| Circular | IBA No. CIR/HR&IR/D/2026-27/3690-A, 2 November 2026 |
| Applies to | Workmen and officer employees under the 12th Bipartite Settlement and 9th Joint Note of 8 March 2024 |
| Period | November 2026, December 2026 and January 2027 |
| Rate | 31.33% of pay |
| Previous rate | 27.83% (August to October 2026) |
| Increase | 3.50 percentage points |
The circular text is reproduced by IGECorner and StaffNews.
How 31.33% was calculated
Under the 12th Bipartite Settlement, DA is linked directly to the All India Consumer Price Index for Industrial Workers (base 2016 = 100). The rule is simple: DA as a percentage of pay equals the average index for the previous quarter minus 123.03, with each 0.01 point of the index worth 0.01% of pay.
| Month | CPI-IW (2016 = 100) |
|---|---|
| July 2026 | 153.2 |
| August 2026 | 154.4 |
| September 2026 | 155.5 |
| Average, as taken by IBA | 154.36 |
DA = 154.36 − 123.03 = 31.33%. The previous quarter's average was 150.86, which gave 27.83%, so the index rose by 3.50 points.
One small detail: the exact average of the three months is 154.3667. The IBA's figure of 154.36 keeps two decimal places without rounding up. A calculator that rounds the average up to 154.37 would show 31.34%; the IBA's figure is 31.33%.
What it means for pay
DA is calculated on "pay" as defined in the settlement. The examples below use entry-level basic pay only. Special allowance also attracts DA under the settlement, so the actual increase in your salary will be higher than these figures.
| Example | Basic pay | DA at 27.83% | DA at 31.33% | Increase per month | Increase over the quarter |
|---|---|---|---|---|---|
| Clerk, entry | ₹24,050 | ₹6,693 | ₹7,535 | ₹842 | ₹2,525 |
| Officer JMGS-I, entry | ₹48,480 | ₹13,492 | ₹15,189 | ₹1,697 | ₹5,090 |
Formula: monthly increase = basic pay × 3.50%. For any other basic, use the bank DA calculator or the 12th BPS salary calculator. Figures are rounded to the nearest rupee; your bank's payroll applies its own rounding.
If November salary has already been processed at 27.83%, the difference is normally paid as an adjustment in a later salary.
Why there are two rates: 31.33% and 66.36%
The IBA issued a second circular on the same day, No. 3690-B, fixing DA at 66.36% under the 11th Bipartite Settlement of 11 November 2020. That settlement used an older price index series and a slab system: the average index of 10,147.85 gives 948 slabs above the base of 6,352, an increase of 57 slabs.
The two percentages are not comparable. The 66.36% rate applies only where pay or pension is still calculated on 11th Bipartite Settlement scales. Serving employees on 12th BPS pay get 31.33%. If you are not sure which applies to you, your payslip or pension slip will show the scale.
Bank DA over the past year
| Quarter | DA under the 12th BPS |
|---|---|
| November 2025 to January 2026 | 23.93% |
| May to July 2026 | 25.70% |
| August to October 2026 | 27.83% |
| November 2026 to January 2027 | 31.33% |
Over the twelve months from November 2025, DA under the settlement has risen by 7.40 percentage points. The 3.50-point rise this quarter is larger than any earlier quarterly increase under the 12th BPS in the published rate history, which showed a previous high of 2.80 points in November 2025.
What comes next
The next revision applies from 1 February 2027 and will be based on the average CPI-IW for October, November and December 2026. The Labour Bureau publishes each month's index at the end of the following month, so the February rate can be worked out once the December 2026 index is out at the end of January 2027. We will not estimate it before the figures exist.
Central government DA works differently. It is revised every six months, on a 12-month average, and is a percentage of 7th CPC pay, so 63% for central employees and 31.33% for bank employees measure different things. See who gets the DA hike to 63%.
Check your bank salary with the new DA. Use the free bank DA calculator and the 12th BPS salary calculator. No app, no download, no login.
Frequently asked questions
Does the new DA apply to private sector banks?
It applies to banks that follow the 12th Bipartite Settlement through the IBA, which are mainly public sector banks. Private banks that are not party to the settlement set their own pay structures.
Is DA paid on special allowance?
Yes. Under the settlement, special allowance attracts DA, so your total increase is higher than DA on basic pay alone.
Why is bank DA so much lower than central government DA?
The 12th Bipartite Settlement folded earlier DA into revised bank pay and measures DA from a newer base index, while central government DA has been accumulating since 7th CPC pay began in 2016. The two are calculated on different pay and cannot be compared directly.
When will the next bank DA be announced?
The rate from 1 February 2027 depends on the October to December 2026 index. The IBA circular normally follows shortly after the December index is published at the end of January.
Related: 5-day banking week: what the 12 November committee meeting can decide and who gets the DA hike to 63%.
Position as of 3 November 2026. Sources: IBA circulars No. CIR/HR&IR/D/2026-27/3690-A and 3690-B of 2 November 2026, as reproduced by IGECorner and StaffNews; earlier quarterly rates from published IBA circulars and rate histories. Salary figures are HR Calcy's calculation at entry basic pay. General information, not financial advice.