7th Pay Commission: In big news for the bank officials, the Centre has approved up to 68 per cent Dearness Allowance (DA) for the employees this year. As per CPI data announced by the Labour Bureau for April 2019-June 2019, the bank employees are expected to get up to 68 per cent DA between August to October 2019. In the previous quarter, the bank officials were provided 64.5 per cent DA.
Bank employees with:
Basic pay of Rs 23700 and special pay of Rs 1837-- DA (at 68.10%) would be Rs 17,390.70.
Basic pay of Rs 30,560 and special pay of Rs 2368--DA (at 68.10%) would be Rs 22,423.97.
The basic Pay for Scale 1 to VII range from Rs 23,700 to Rs 85,000. While the highest pay is for OS-VII-O5. These officers will be Rs 64,252.35 and they will get this handsome amount between August to October this year. The amount is around Rs 3396.6 more than what they had received in the previous quarter.
Bank official's Dearness Allowance (DA) Chart for the quarter of August 2019 to October 2019:
What is the Dearness Allowance?
Dearness Allowance (DA is part of the Basic Salary paid to government employees. DA is directly linked to cost of living (CoL) adjustment allowance paid to government employees and pensioners linked to the Consumer Price Index to offset the impact of inflation. DA is fully taxable. The government routinely revises DA provided to employees.
DA is decided on the basis of the city that varies depending on the employee's office location. DA will be more for the employees in the urban area. While for semi-urban areas and villages employees DA will be less.
According to the Ministry of Labour & Employment, the all-India CPI-IW for April 2019 has been increased by 3 points and pegged at 312. On 1-month percentage change, it increases by (+) 0.97 per cent between March 2019 and April 2019 when compared with the hike of (+) 0.35 per cent between the corresponding months of the previous year.
According to reports, the year-on-year inflation based on CPI-IW stood at 8.33 per cent for April 2019. While c the previous month it stood at 7.67 per cent and 3.97 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at (+) 4.92 per cent against (+) 3.96 per cent of the previous month and (+) 1.33 per cent during the corresponding month of the previous year.
DA and AICPI:
DA is linked to the All India Consumer Price Index (AICPI). For DA calculation, AICPI average is taken in the formula.