The government has increased Dearness Allowance (DA) for bank employees from May 1 onwards. The increased DA rates will be applicable for May-July 2026. Bank employees, however, will see a small increase in their salaries for the quarter, as the government has announced a small-scale revision in DA.
How much is the increase in bank employees’ DA?
The latest revision pegs DA at 25.70%, up from 25% in the previous quarter, based on the average Consumer Price Index (CPI) for the first three months of 2026. It means the DA has been hiked by .70%. Even a slight change in DA directly impacts take-home pay across different pay scales.
The announcement came days after the central government increased DA for its employees by 2%, from 58% to 60%.
A is calculated on the basis of the basic pay of an employee.
DA payable for the months – May 26 to July 26
| Stages | Scale | Basic Pay | SPL Allow | Learning Allow | Existing DA @25.00% | Revised DA @25.70% | Diff Amount |
| 1 | I | 48480 | 12847.2 | 850 | 15544.3 | 15979.54 | 435.24 |
| 10 | I | 67160 | 17797.4 | 850 | 21451.85 | 22052.5 | 600.65 |
| 15 | I | 80560 | 21348.4 | 850 | 25689.6 | 26408.91 | 719.31 |
| 20 | I | 93960 | 24899.4 | 850 | 29927.35 | 30765.32 | 837.97 |
| 25 | I | 108260 | 28688.9 | 850 | 34449.73 | 35414.32 | 964.59 |
| 30 | II & III | 69840 | 19764.72 | 850 | 22613.68 | 23246.86 | 633.18 |
| 35 | II & III | 83240 | 23556.92 | 850 | 26911.73 | 27665.26 | 753.53 |
| 40 | II & III | 96640 | 27349.12 | 850 | 31209.78 | 32083.65 | 873.87 |
| 45 | II & III | 111240 | 31480.92 | 850 | 35892.73 | 36897.73 | 1005 |
| 47 | II & III | 117200 | 33167.6 | 850 | 37804.4 | 38862.92 | 1058.52 |
The rates worked out are as per the industry level scales up to Scale VII including SBI.
Let us see a few examples
Stage 10 (Scale I – Mid-level officer)
If the basic pay of a bank employee is around Rs 67,000, DA at the earlier rate of 25% worked out to be Rs 21,451.85. With the revised DA of 25.70%, it increases to Rs 22,052.50, resulting in an additional Rs 600.65 hike per month.
A bank officer at Stage 10 will get about Rs 600 more per month due to the 0.70% DA hike.
Check similar examples below
Stage 15 (Scale I – Upper mid-level officer)
Basic Pay: Rs 80,560
Existing DA (25.00%): Rs 25,689.60
Revised DA (25.70%): Rs 26,408.91
Increase: Rs 719.31
Stage 30 (Scale II & III – Entry senior level)
Basic Pay: Rs 69,840
Existing DA (25.00%): Rs 22,613.68
Revised DA (25.70%): Rs 23,246.86
Increase: Rs 633.18
Stage 47 (Scale II & III – Senior level)
Basic Pay: Rs 1,17,200
Existing DA (25.00%): Rs 37,804.40
Revised DA (25.70%): Rs 38,862.92
Increase (Diff): Rs 1,058.52