There is bad news for government bank employees. Their dearness allowance has not been increased. The Indian Banks’ Association has issued an order regarding the DA for the months of August, September, and October 2025. According to the order, employees will get DA at the rate of 54.74% for this period. This rate has been fixed under the 11th Wage Agreement and the 8th Joint Note.
No Change in DA for Bank Employees: CPI Average Remains Same
The Indian Banks’ Association (IBA) has said that there will be no increase in dearness allowance for government bank employees. A circular issued by IBA stated that the average of the Consumer Price Index (CPI) for April, May, and June 2025 was 9480. This is the same as the average of the previous quarter, so the DA rate has not changed.
CPI Figures for Three Months
- April 2025: 9433.49
- May 2025: 9466.36
- June 2025: 9532.10
- Average: 9480
This CPI value is equal to 782 slabs, which is also the same as last quarter. So, the DA for bank employees will remain steady at 54.74% for August to October 2025. The figures are based on the 1960 base year, under the 11th Wage Agreement and 8th Joint Note.
Possibility of Increase in Future
The IBA has also said that while calculating DA, any digits after the third decimal place should be ignored. Even though the DA has not increased this time, there may be changes in the next quarter based on the new CPI data.
This order applies to all member banks that have not yet adopted the 12th Pay Agreement or the 8th Joint Note.