Dearness Allowance increased by 3.6%; here is how these employees will benefit - check calculation

There is good news for employees of government owned banks (PSBs) as they will get increased salaries from November 2019. It has been revealed that they have received a dearness allowance (DA) hike of 3.6%. This increase is between November 2019 to January 2020 and the order for the same has been issued by the Indian Banks Association (IBA) already.

The copy of this order is with 'Zee Business' and according to this, the AIACPI (All India Average Consumer Price Index) increased to 7212.98 in June 2019. While in July, August and September it has further increased to 7281.46, 7304.29 and 7349.94 respectively.

Calculation of Dearness Allowance

DA slab 7311-4440 = 2871/4 = 717 (71.7%)
Slab in the last 3 months = 681 (68.1%)

SBI PO basic starts at Rs 27,620 and with a 3.6 percent increase in DA, his/her salary will increase by Rs 1,000 a month. It also takes 4 increments to get this much hike. While, the maximum basic pay becomes Rs 42,020 where a difference in salary is Rs 1,513. At the same time, the salary of the top officer will get an increase of Rs 1,000.

Demand for change in pension system

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Bankers have been demanding a change the pension system for a while now. The Forum of Retired Bank Employees has demanded changes in the banking system seeking improvement in family pension and group health insurance at lower premiums, only for the existing employees.

According to Ashwini Rana, Former General Secretary of the National Organization of Bank Workers, the pension and salary of central employees is increasing with time. The same is also with the RBI. But there is no change in the pension scheme in banks as of now.