DA hike: Big good news for these employees! Increment in Dearness Allowance announced

It is a piece of good news for bank professionals. The Dearness Allowance (DA) for the public sector bank employees has been announced at 4.2 per cent that will lead to a huge jump in the monthly salary of the bank employees. The Indian Banks Association (IBA) has issued the notification in this regard. In the AIB notification, it has been said that December 2019 numbers of the AIACPI (All India Average Consumer Price Index) have come out and the inflation number has scaled to 7532.55, which was 7486.90 in November 2019 and 7418.42 in October 2019.

This DA hike to the tune of 4.2 per cent will lead to a hike in the monthly salary of the PSU bank employees. In any bank, a Bank PO (Probationary Officer) gets an initial salary of Rs 27,620 and with 4.2 per cent hike, their monthly salary is expected to go up by around Rs 1,160 per month. During adjustment of the DA for bank employees, four increments are also added. Hence, after 4.2 per cent DA hike, a Bank PO's basic salary per month will become Rs 42,020. Those who are already getting this basic salary will get a monthly salary hike of Rs 1,764. Forget about the bank officers who have a service record of decades.

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Here is how the DA calculation is being done:

DA Slab 7449-4440= 3039/4=759 (75.9%)

DA Slab in last quarter = 717 (71.7%)

Hence, the net DA hike is 75.9 - 71.7 = 4.2%

Demand for change in the pension system

Demanding salary revision and change in the pension system, bank employees had gone on a nation-wide strike on 31st January 2020 to 1st February 2020. A bank official said that since November 2017, salary revision of the bank employees is pending. In fact, retired bank employees have also demanded a change in the pension system. They have raised the demand for change in the family pension system, health insurance at a lower premium in sync with the existing bank employees, etc. Speaking on the matter Ashwini Rana, Former Secretary-General at National Organisation of Bank Workers said that there is an urgent need for change in Banking Pension Scheme.