DA Hike 2026 – IBA Raises DA from 25% to 25.70% – Salary Up ₹435 to ₹1,050
DA Hike Updates: Major news has emerged for bank employees. The Indian Banks' Association (IBA) has announced an increase in the Dearness Allowance (DA) for May, June, and July 2026. Following this announcement, the salaries of lakhs of bank employees will see a modest yet
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DA Hike Updates: Major news has emerged for bank employees. The Indian Banks’ Association (IBA) has announced an increase in the Dearness Allowance (DA) for May, June, and July 2026. Following this announcement, the salaries of lakhs of bank employees will see a modest yet significant increase. According to reports, employees with a basic salary ranging from ₹48,000 to ₹1,17,000 will receive an additional ₹435 to ₹1,050 per month.
The primary objective of the DA is to preserve employees’ purchasing power. This revision has been implemented based on AICPI data.
DA Hike for Bank Employees – Key Highlights
- Effective Period: May, June & July 2026
- Announced by: Indian Banks’ Association (IBA)
- DA Hike: Increased from 25% to 25.70% (total hike of 0.70%)
- Beneficiaries: Lakhs of bank employees across India
- Basis: Consumer Price Index (CPI) data for Q1 2026
Overall Salary Impact Range
| Basic Salary Range | Monthly DA Increase |
|---|---|
| ₹48,000 | ~₹435 per month |
| ₹1,17,000 | ~₹1,050 per month |
| Overall Range | ₹100 – ₹1,000 per month |
According to the IBA’s notification, the average CPI for the quarter ending March 2026 stood at 148.73, which is 25.70 points higher than the base index of 123.03. A 0.70-point increase in the DA has been finalised. Meanwhile, for employees covered under the previous wage settlement (XI BPS/8th Note), the DA rate has reached 59.92%. The DA is not merely a component of one’s salary; it is also fully taxable and must be declared separately in one’s Income Tax Return (ITR).
DA Rises from 25% to 25.70%
The DA has been increased from 25% to 25.70%, a 0.70% hike. This increase has been determined based on the Consumer Price Index (CPI) data for the first quarter of 2026.
What Will Be the Impact on Salaries?
The increase in DA will result in a slight change in the employees’ in-hand salary. The hike is expected to range from ₹100 to approximately ₹1,000.
Stage 10 (Scale I):
Basic ₹67,160 → Increase of approximately ₹600 per month
Stage 15 (Scale I):
Basic ₹80,560 → Increase of approximately ₹719 per month
Stage 30 (Scale II-III):
Basic ₹69,840 → Increase of approximately ₹633 per month
DA is determined quarterly based on the CPI; therefore, further changes may be observed in the coming months, depending on inflation figures.
Priyanka Singh
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