New Delhi: In what could be good news for bank employees, the salaries of all bankers working with state-owned banks is going to increase from August 2021. The hike in the salaries of bank employees has come in the backdrop of a 2.1% increase in their dearness allowance (DA) from 25.69% to 27.79%.
Bank employees will receive the increased salaries in their bank accounts for three months of August, September and October 2021. More than eight lakh bankers are expected to enjoy the benefits of the increased salary for the three months.
Bank employees who were retired on or after November 1, 2017, will also receive increased dearness relief of 27.79% with their pensions for the above mentioned three months.
What is Dearness Allowance or DA?
For those uninitiated, central and state governments provide dearness allowance (DA) to their employees as part of their salary. DA, which is usually a percentage of the basic salary of an employee, is calculated according to inflation.
The government takes note of the Consumer Price Index before revising the dearness allowance after every quarter or three months. The DA varies among central and state government employees. It also varies based on the location the employee is working. For instance, the DA is higher for employees posted in cities while workers deployed in rural areas have lower DAs. Also Read: Gold Price Today, 12 August 2021: Gold still cheaper by over Rs 9,800 from record highs
Recently, the Central government has also increased the dearness allowance (DA) for central government employees and employees from 17% to 28% of their basic salary. Meanwhile, the central government employees are also expected to get a 3% DA hike for the month of June which basically adds up to 31% instead of 28%. Also Read: National Pension Scheme alert! Aadhaar card now mandatory for receiving benefits under NPS