For India's approximately 10 lakh bank employees, there will be a marginall fall in dearness allowance (DA) for May, June and July this year. They will be paid DA at the rate of 45.6 percent of pay for the three months, as against 46.9 percent for February, March and April, according to the Indian Banks' Association (IBA).
The decrease is based on a calculation that factors in consumer price index (CPI) for industrial workers for the period January-March 2017.
"The average CPI of the above (a reference to Jan, Feb and March CPI numbers) is 6261.91 and accordingly the number of DA slabs is 456 (6261.90-4440=1821.91/4=456). The last quarterly payment of DA was at 469 slabs. Hence there is a decrease in DA slabs of 13...for payment of DA for the quarter May, June and July, 2017," the IBA said in a statement last Saturday.
"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 May, June and July, 2017 shall be 45.60 percent of 'pay'," the statement added.
How is the DA percentage calculated?
In terms of 10th Bipartite Settlement/Joint Notes, 4440 points of DA was merged with "pay" and DA rate was fixed at 0.10 percent per DA slab.
Step 1
Take the CPI for industrial workers; for January, February and March 2017, the figures were 274, 274 and 275, respectively.
Step 2
Multiply them by a factor of 4.93. Thus you get 6254.3, 6254.3 and 6277.12 and the average will be 6261.91.
Step 3
Deduct 4440 from the average as per the 10th Bipartite Settlement/Joint Note; this now comes to 1821.91 (6261.91-4440).
Divide the derived figure by 4 for the purpose of arriving DA slabs. In this case, it will be 456 (1821.91/4).
Step 4
Multiply the figure by 0.10 percent to arrive at DA payable. Here, it comes to 45.60 percent.
Wage-revision negotiations
In a related development, the IBA has invited bank employees for wage-revision talks. The last such negotations was signed in May 2015 and was valid for the period November 2012 to October 2017.
The talks are scheduled to be held on Tuesday (May 2) in Mumbai.
The salaries and other benefits are not in any way related to those of Central government employees and pensioners, who are governed by the recommendations of pay commissions appointed periodically. The salaries and pension are revised every 10 years.
