Following the publication of the Consumer Price Index for October 2023 by Labour Bureau, the recent update regarding the hike of Dearness Allowance for bank employees and officers will come into effect starting from February 2024.
Bank Employees DA Hike
In the first quarter of this year, specifically in 2024, the bank employees’ Dearness Allowance (DA) hike calculation has reached its initial stage, marking the completion of the first out of three stages. This first stage is specifically for the month of February in 2024, while the subsequent two stages are designated for March and April of the same year. This multi-stage process ensures that the bank employees’ DA is incrementally adjusted and aligned with the changing economic conditions and cost of living, thus safeguarding their financial well-being.
AICPIN Connect with Bank DA
This is a little bit crucial combination of calculation of Dearness Allowance for bank employees and officers! The Consumer Price Index points for the month of October 2023 is used for calculating the Dearness Allowance for the month of February 2024. This calculation is important for your better understanding of how the DA is determined.
- October 2023 CPI is used for February 2024 DA Calculation
- November 2023 CPI is used for March 2024 DA Calculation
- December 2023 CPI is used for April 2024 DA Calculation
However, it is important to note that the last CPI for the month of April will ultimately determine the accurate percentage and slabs of DA for bank employees and officers.
Latest CPI 2016 Index
The Labor Bureau recently released the latest AICPIN (All India Consumer Price Index) index number for the month of October 2023. This index serves as a crucial indicator of inflation and price fluctuations in the market. On the 30th of November 2023, the new index number was unveiled, revealing a significant jump from the existing level. The existing CPI (Consumer Price Index) for the year 2016 stood at 137.5, while the current index for the same year soared to 138.4. This increase in CPI points amounted to a noteworthy 0.9, signifying a notable change in the overall price levels of goods and services. These figures hold immense importance as they provide valuable insights into the current economic landscape and help policymakers make informed decisions.
Sep-23 CPI-2016 Index – 137.5
Oct-23 CPI-2016 Index – 138.4
Increased in CPI Points – 0.9
Feb 2024 Bank DA Calculation
In February 2024, we perform the calculation for Bank Dearness Allowance using the latest Consumer Price Index (CPI) of 2016, as recommended by the 11th Bipartite Settlement (BPS). It is important to note that we cannot calculate the Bank Dearness Allowance for each individual month. Instead, we calculate it based on the October 2023 CPI for a three-month period. Assuming that the same CPI index point will be released for the next two months, the Bank Dearness Allowance will increase to approximately 48.09 percentage points.
Expected Feb 2024 Bank DA Calculator
Introducing our new and convenient online tool, the Expected February 2024 Bank DA Calculator! With this user-friendly tool, you can easily calculate the Dearness Allowance for bank employees and officers. Simply click on the provided link, and you will be directed to a page where you can input the Consumer Price Index (CPI) points for the upcoming months. Once you have entered the desired CPI points, just click the “calculate” button, and within seconds, the tool will generate an approximate percentage of Dearness Allowance for bank employees and officers. This calculation will be effective from February 2024, helping you stay informed and prepared for any financial adjustments that may arise.