Dearness allowance for bank employees is 27.83% of pay for August to October 2026 under the 12th Bipartite Settlement. The next revision takes effect on 1 November 2026. July and August 2026 index figures are already out, and they point to roughly 30.6% to 31.2% from November, depending on the September index due at the end of October. This page gives the current rate, a calculator for your own DA in rupees, every quarter since November 2022, and the rates for pensioners.
By Vishvas Yadav · Updated 5 October 2026 · Next update on the November 2026 DA circular
Bank DA calculator
Choose your cadre and quarter, then enter your basic pay or move the slider to your stage. The calculator shows DA in rupees, the change from the previous quarter, and how much of it counts towards NPS and pension.
For your full pay slip at the current DA, with HRA, deductions and tax, use the 12th Bipartite Settlement salary calculator.
Current DA for bank employees
| DA for August, September and October 2026 | Rate |
|---|---|
| 12th BPS / 9th Joint Note (all public sector banks) | 27.83% of pay |
| Basis | CPI-IW (2016=100) average for April to June 2026: 150.86 |
| Change from previous quarter | + 2.13 percentage points (from 25.70%) |
| 11th BPS series, for banks and pensioners still on it | 62.37% of pay (891 slabs) |
| Next revision | 1 November 2026, using the July to September 2026 index |
The rate is confirmed in AIBEA circular 30/11/2026/37 of 31 July 2026. The 11th series rate is from IBA circular CIR/HR&IR/76/D/2026-27/3435 of 3 August 2026.
How bank DA is calculated
The 12th Bipartite Settlement formula
Under Clause 12 of the 12th Bipartite Settlement, DA is 1% of pay for every point by which the quarterly average of the All India CPI-IW (base 2016=100) exceeds 123.03. In practice, that means you subtract 123.03 from the quarterly average, and the answer is the DA percentage.
| DA payable from | Index months used |
|---|---|
| 1 February | October, November, December |
| 1 May | January, February, March |
| 1 August | April, May, June |
| 1 November | July, August, September |
For the current quarter, the index was 149.90 for April, 150.80 for May and 151.90 for June 2026. The average is 150.8667, which is cut to two decimals as 150.86, not rounded up to 150.87. Subtracting 123.03 gives 27.83%. That truncation is why some websites show a DA one hundredth of a percent too high.
The base of 123.03 is not arbitrary. It is the 2016-series equivalent of 8088 points on the old 1960 series, the level at which 30.38% DA was merged into basic pay when the 12th settlement's scales were built. The count started again from zero on 1 November 2022, so a 27.83% DA today cannot be compared with the 40% to 60% figures paid before.
What DA is paid on
DA is payable on basic pay (including stagnation increments), special pay, graduation and qualification pay, officiating pay, special allowance, and the ₹850 transport allowance (workmen) or learning allowance (officers). HRA does not attract DA.
The distinction that matters for take-home is what counts for retirement. Special allowance and the fixed ₹850 allowance carry DA but do not rank for superannuation. Your NPS deduction is 10% of basic pay plus the DA on basic pay only. It does not include DA on special allowance. This is why the NPS figure on a pay slip looks lower than 10% of "basic plus DA" as printed.
The 11th Bipartite Settlement series
The older formula is still notified every quarter. It pays 0.07% of pay for every slab of 4 points by which the quarterly average index on the 1960=100 series exceeds 6352. IBA converts the 2016 index to the 1960 series using the Labour Bureau's linking factors. For August to October 2026 the converted average is 9917.76, which gives 891 complete slabs and 62.37%. Part slabs are ignored.
Two groups still depend on it. The first is employees of any bank that has not implemented the 12th settlement. The second, much larger, is pensioners who retired between 1 November 2017 and 31 October 2022: their dearness relief follows this series because their pension was fixed on the 11th settlement's scales. For pay in that period, use the 11th BPS salary calculator.
DA history under the 12th Bipartite Settlement
| Quarter | Index months | CPI-IW average | DA | Change (points) |
|---|---|---|---|---|
| November 2022 to January 2023 * | Jul–Sep 2022 | 130.46 | 7.43% | – |
| February to April 2023 * | Oct–Dec 2022 | 132.43 | 9.40% | + 1.97 |
| May to July 2023 * | Jan–Mar 2023 | 132.93 | 9.90% | + 0.50 |
| August to October 2023 * | Apr–Jun 2023 | 135.10 | 12.07% | + 2.17 |
| November 2023 to January 2024 | Jul–Sep 2023 | 138.80 | 15.77% | + 3.70 |
| February to April 2024 | Oct–Dec 2023 | 138.76 | 15.73% | − 0.04 |
| May to July 2024 | Jan–Mar 2024 | 139.00 | 15.97% | + 0.24 |
| August to October 2024 | Apr–Jun 2024 | 140.23 | 17.20% | + 1.23 |
| November 2024 to January 2025 | Jul–Sep 2024 | 142.86 | 19.83% | + 2.63 |
| February to April 2025 | Oct–Dec 2024 | 144.23 | 21.20% | + 1.37 |
| May to July 2025 | Jan–Mar 2025 | 143.00 | 19.97% | − 1.23 |
| August to October 2025 | Apr–Jun 2025 | 144.16 | 21.13% | + 1.16 |
| November 2025 to January 2026 | Jul–Sep 2025 | 146.96 | 23.93% | + 2.80 |
| February to April 2026 | Oct–Dec 2025 | 148.03 | 25.00% | + 1.07 |
| May to July 2026 | Jan–Mar 2026 | 148.73 | 25.70% | + 0.70 |
| August to October 2026 | Apr–Jun 2026 | 150.86 | 27.83% | + 2.13 |
* The 12th settlement was signed on 8 March 2024, so these four quarters were paid as arrears. The rates are worked from the published CPI-IW using the settlement's own formula. From November 2023 onwards each rate is as notified in the IBA circular for that quarter.
Two things stand out. DA fell twice: in February 2024, and in May 2025, when it dropped from 21.20% to 19.97%. A DA cut does happen, and the payroll recovers nothing for earlier months; the lower rate simply applies from the new quarter. The other is the pace: DA rose by about 20 points in four years, roughly 5 points a year, which is the figure to use when estimating how much DA will be merged into the 13th settlement's scales.
DA history under the 11th BPS series
| Quarter | DA | Slabs above 6352 | Change (points) |
|---|---|---|---|
| November 2022 to January 2023 | 38.92% | 556 | – |
| February to April 2023 | 41.16% | 588 | + 2.24 |
| May to July 2023 | 41.72% | 596 | + 0.56 |
| August to October 2023 | 44.24% | 632 | + 2.52 |
| November 2023 to January 2024 | 48.51% | 693 | + 4.27 |
| February to April 2024 | 48.51% | 693 | 0.00 |
| May to July 2024 | 48.72% | 696 | + 0.21 |
| August to October 2024 | 50.12% | 716 | + 1.40 |
| November 2024 to January 2025 | 53.13% | 759 | + 3.01 |
| February to April 2025 | 54.74% | 782 | + 1.61 |
| May to July 2025 | 53.34% | 762 | − 1.40 |
| August to October 2025 | 54.67% | 781 | + 1.33 |
| November 2025 to January 2026 | 57.89% | 827 | + 3.22 |
| February to April 2026 | 59.08% | 844 | + 1.19 |
| May to July 2026 | 59.92% | 856 | + 0.84 |
| August to October 2026 | 62.37% | 891 | + 2.45 |
Expected DA from November 2026
The November 2026 rate depends on the July, August and September 2026 index. The Labour Bureau's release of 30 September 2026 put July at 153.2 and August at 154.4. September is due at the end of October 2026.
The monthly index behind the last five quarters and the next one:
| Month | All India CPI-IW (2016=100) |
|---|---|
| July 2025 | 146.5 |
| August 2025 | 147.1 |
| September 2025 | 147.3 |
| October 2025 | 147.7 |
| November 2025 | 148.2 |
| December 2025 | 148.2 |
| January 2026 | 148.6 |
| February 2026 | 148.5 |
| March 2026 | 149.1 |
| April 2026 | 149.9 |
| May 2026 | 150.8 |
| June 2026 | 151.9 |
| July 2026 | 153.2 |
| August 2026 | 154.4 |
| September 2026 | Due end of October 2026 |
| If September 2026 index is | Quarterly average | DA from 1 November 2026 |
|---|---|---|
| 153.4 (falls 1.0) | 153.66 | 30.63% |
| 154.0 (falls 0.4) | 153.86 | 30.83% |
| 154.4 (unchanged) | 154.00 | 30.97% |
| 155.0 (rises 0.6) | 154.20 | 31.17% |
These are estimates, not notified rates. Each 0.3-point change in the September index moves the DA by about 0.10 percentage point, so the rate from November will almost certainly be between 30.6% and 31.2%: a rise of about 3 points. Once the September figure is released, choose "Nov 2026 – Jan 2027 – expected" in the calculator above and enter it.
Dearness relief for bank pensioners
Pensioners do not all get the same rate. Each pension was fixed on the scales of the settlement in force at retirement, with that settlement's DA merged in, so the dearness relief is counted from that settlement's own base. For August to October 2026, the rates listed in the same AIBEA circular are:
| Retired | Dearness relief |
|---|---|
| Before 1 November 1992 | 1560.43% |
| 1 November 1992 to 31 March 1998 | 767.20% |
| 1 April 1998 to 31 October 2002 | 493.92% |
| 1 November 2002 to 31 October 2007 | 343.26% |
| 1 November 2007 to 31 October 2012 | 265.50% |
| 1 November 2012 to 31 October 2017 | 136.90% |
| 1 November 2017 to 31 October 2022 | 62.37% |
| On or after 1 November 2022 | 27.83% |
A 1560% rate on an old basic pension is not a windfall. It reflects a basic pension fixed on pre-1992 scales, with all later price rises carried in the relief rather than in the pension itself. Check which band applies to you by your date of retirement, not your date of joining.
DA and the 13th Bipartite Settlement
Every new settlement merges the DA due on an agreed index point into basic pay and restarts the count. The 12th merged 30.38% at 8088 points. When the 13th settlement takes effect from 1 November 2027, the DA reached by then becomes the starting point for that merger. On the recent pace of about 5 points a year, that is likely to be in the mid-30s per cent, though this is an estimate, not a negotiated figure. See how DA sets the 13th BPS merger point. For the wider picture, read the complete guide to Bipartite Settlements.
Frequently asked questions
What is the current DA for bank employees?
27.83% of pay for August to October 2026 under the 12th Bipartite Settlement, based on the April to June 2026 CPI-IW average of 150.86. Banks and pensioners still on the 11th settlement series get 62.37%.
How is DA calculated for bank employees?
Take the average of three months' All India CPI-IW (2016=100), cut it to two decimals and subtract 123.03. The result is the DA as a percentage of pay. DA is paid on basic pay, special allowance and the ₹850 transport or learning allowance.
When is bank DA revised?
Four times a year, from 1 February, 1 May, 1 August and 1 November. Each revision uses the average index of the three months ending two months before it: DA from 1 August uses April, May and June, and DA from 1 November uses July, August and September.
What will be the bank DA from November 2026?
About 30.6% to 31.2%, depending on the September 2026 index. July (153.2) and August (154.4) are already published. The rate is final only when the IBA circular is issued in early November.
Is DA paid on special allowance?
Yes. DA is payable on special allowance and on the transport or learning allowance as well as on basic pay. However, DA on special allowance does not count for pension, NPS, PF or gratuity.
Rates up to August to October 2026 are as notified. Expected rates are estimates from published index figures until IBA issues the quarter's circular. Confirm your own DA with your bank's payroll department. Found a figure that looks wrong? Tell us.
Written by Vishvas Yadav, Senior HR | Payroll & Compliance Professional, Founder of HR Calcy.