Bank Employees Dearness Allowance from February 2020 - DA 2020

Bank Employees Dearness Allowance from February 2020 - DA 2020

According to the 10th Bipartite Settlement for the period from February, March and April 2020, 75.90 percent of the Dearness Allowance (DA) grants to Bank employees. In this regard the Indian Banks Association (IBA) released a circular and the same is reproduced and provided for your information below :

Indian Banks’ Association

HR & Industrial Relations

No.CIR/HR&IR/ 76/D/2019-20/ 8619

February 1, 2020

All Members of the Association (Designated Officers)

Dear Sirs,
Dearness Allowance for Workmen and Officer Employees in banks for the months of February, March & April 2020 under X BPS / Joint Note dated 25.5.2015.

The confirmed All India Average Consumer Price Index Numbers for Industrial Workers (Base 1960= 100) for the quarter ended December 2019 are as follows:-

• October 2019 - 7418.42
• November 2019 - 7486.90
• December 2019 - 7532.55

The average CPI of the above is 7479.29 and accordingly the number of DA slabs are 759 (7479 - 4440 = 3039 / 4 = 759 Slabs) The last quarterly Payment of DA was at 717 Slabs. Hence there is an increase in DA slabs of 42 i.e 759 Slabs for payment of DA for the quarter February, March and April 2020.

AICPIN for December 2019 – Press Release

In terms of clause 7 of the 10th Bipartite Settlement dated 25.05.2015 and clause 3 of the Joint Note dated 25.05.2015, the rate of Dearness Allowance payable to workmen and officer employees for the months of February, March & April 2020 shall be 75.90% of pay. While arriving at dearness allowance payable, decimals from third place may please be ignored.

Yours Faithfully,
sd/-
S K Kakkar
Senior Advisor (HR&IR)

4% DA hike to Central Government employees is confirmed as from 1 January 2020

4% DA hike to Central Government employees is confirmed as from 1 January 2020

The Consumer Price Index for Industrial Workers, according to a press release issued by the Labor Bureau, increased by 2 points and pegged at 330
 
Now there is an average of 12 months of AICPIN available for calculating the DA from January 2020.

As per the approved Dearness Allowance rate calculation formula, the DA will be increased by 4 per cent from January 1st, 2020.

For impact from 1.1.2020, the DA rate will increase from the current 17 per cent to 21 per cent. For this DA hike the Central Government must grant its approval. In the second week of March 2020, the Union cabinet must approve the plan to increase DA from 1 January 2020

Check the Expected DA 2020 for Central Government Employees

The Ministry of Finance will subsequently issue an order for payment DA to central government employees and DR to pensioners with effect from 1.1.2020

It appears that AICPIN does not have anything to do with the January 2020 rate DA. But it will provide momentum to the July 2020 Expected DA to reach a level that will affect DA indexed Allowances.

Check the Press Release