The Indian Banks’ Association (IBA) has announced a significant Dearness Allowance (DA) increase for bank employees effective from 1st February 2026, providing a meaningful boost to monthly salaries amid rising inflation. If you are a banker, then this good news is for you.
This latest revision follows quarterly changes in the All-India Consumer Price Index for Industrial Workers (AICPIN-IW), which determines the DA slab under the 12th Bipartite Settlement applicable to bank workmen, clerical staff and officers.
What’s the New DA Rate?
| Period | DA Rate (12th BPS) | Previous Rate | Increase |
|---|---|---|---|
| Nov 2025 – Jan 2026 | 23.93% | 21.13% | +2.80% |
| Expected from Feb 2026 | ~25.60% (est.)* | 23.93% | ~+1.67% (est.) |
*The February 2026 figure is based on AICPIN projections and industry estimates; official circular from IBA is generally published in early February.
This means bank employees may see their DA climb from around 23.93% to approximately 25.60% of basic pay once the new rates come into effect in February. (only30sec.com)
💰 How Much Will Salaries Increase? (Scale Wise)
The actual impact of the DA hike varies by role and basic pay. Based on recent DA increase (Nov 2025 – Jan 2026), here’s an estimate of how much extra you could receive monthly:
| Employee Category | Increase in DA (Monthly) |
|---|---|
| Sub-Staff | ₹700 – ₹1,900 |
| Clerk/Customer Service Assistant | ₹1,000 – ₹3,400 |
| Scale-I Officer | ₹1,750 – ₹4,000 |
| Scale-II Officer | ₹2,350 – ₹4,600 |
| Scale-III Officer | ₹3,100 – ₹4,700 |
| Scale-IV Officer | ₹3,760 – ₹5,100 |
| Scale-V Officer | ₹4,400 – ₹5,600 |
| Scale-VI Officer | ₹5,200 – ₹6,300 |
| Scale-VII Officer | ₹5,800 – ₹7,000 |
These figures are based on the 2.80% DA hike already implemented for November 2025 – January 2026, and give a practical sense of how much more money employees saw in their paychecks. The additional rise from February 2026 (~1.67%) would further add to these numbers.
Example: Officers’ DA Impact (Revised vs Previous)
Here’s an illustrative comparison for officers to show how DA revision affects take-home pay:
| Stage | Basic Pay | Old DA @21.13% | New DA @23.93% | Difference |
|---|---|---|---|---|
| Stage 1 | ₹48,480 | ₹10,247 | ₹11,603 | ₹1,356 |
| Stage 3 | ₹52,480 | ₹11,089 | ₹12,565 | ₹1,476 |
| Stage 5 | ₹56,480 | ₹11,921 | ₹13,503 | ₹1,582 |
(Amounts approximate; includes DA on special allowance where applicable.)
What This Means for Employees
✔ Higher monthly salary: With every percentage point increase in DA, bank employees see a direct uplift in monthly pay: roughly proportional to their basic salary.
✔ Inflation protection: The DA hike helps offset rising living costs and inflation.
✔ Retirees also benefit: Bank pensioners receive Dearness Relief (DR) adjustments linked to similar calculations, aiding post-retirement income.
🕒 Timeline & Next Steps
- The 2.80% DA hike has already been implemented for earnings from Nov 2025 to Jan 2026.
- The new rate effective 1st February 2026 is expected to be confirmed officially by the IBA by early February based on the latest CPI figures and the 12th Bipartite Settlement.
- Once declared, banks update payrolls, and employees receive the increased DA in the subsequent salary cycle.
- SO all in all, you are bound to get this salary Hike from February salary itsslf
