Anticipated Dearness Allowance (DA) for Bankers from February 2024 is projected to be 48.75%. The DA is a crucial element of a bank employee’s salary, designed to counteract the impact of inflation and maintain the purchasing power of employees.
Bankers’ DA from February 2024:
In essence, the Dearness Allowance for bank employees is a percentage of their basic salary, which is then added to their total compensation. The negotiation and determination of Dearness Rates for Bankers are carried out collaboratively by the Indian Bank Association (IBA) and the Reserve Bank of India.
Calculation Process:
To calculate the Dearness Allowance for Bankers in February 2024, it is essential to consider the Consumer Price Index (CPI) for the months of October 2023, November 2023, and December 2023. However, it’s important to note that the CPI index is typically obtained a month later. For example, the CPI index for October 2023 is acquired on November 30, 2023, November 2023 on December 31, 2023, and December 2023 on January 31, 2024.
Expected CPI Index:
Based on the previous year’s trends, where the CPI Index increased by 2.24% in February 2023, the anticipated CPI Index for October 2023, November 2023, and December 2023 are projected as follows:
12th Bipartite Settlement Expected Salary
Expected October 2023 CPI Index: 138.25
Expected November 2023 CPI Index: 139.00
Expected December 2023 CPI Index: 139.75
Calculation of DA:
The cumulative CPI Index for the three months is calculated and converted to base year tables. The resulting figure is then adjusted for the merger of 6352 points in the DA, leaving 2786 remaining points. These points are then converted into slabs by dividing by 4, resulting in 696.50 slabs.
Conversion to Percentage:
To express the DA in percentage terms, the slabs are multiplied by 0.07 (as per the 11th Bipartite Settlement, where 1 slab equals 0.07). This calculation yields an expected DA of 48.75% for Bankers from February 2024.
Conclusion:
This article provides insight into the expected DA for Bankers from February 2024, detailing the calculation process. For further information, feel free to explore additional articles on this website. If you have any queries regarding this article, please leave a comment below. Stay informed about more updates!