DA hike of 15.97% announced for bank employees from May to July 2024 

DA hike: Bank employees' dearness allowance has been hiked and will be 15.97% for May, June and July 2024. The Indian Bank's Association (IBA), in a notification issued on June 10, 2024, said: "In terms of clause 13 of the 12th Bipartite Settlement dated 08.03.2024 and clause 2 (i) of the Joint Note dated 08.03.2024, the rate of Dearness Allowance payable to Workmen and Officer employees for the months of May, June & July 2024 shall be 15.97% ‘of ‘pay’ (0.01 % change in DA on ‘pay’ for change in every second decimal place of CPI 2016 over 123.03 points)."

The confirmed All India Average Consumer Price Index for Industrial Workers (Base 2016= 100) for the quarter ended March 2024 is as follows:-

January 2024 – 138.9
February 2024 – 139.2
March 2024 – 138.9

The average CPI of the above is 139 and accordingly the number of points over 123.03 are 15.97 (139- 123.03) The last average quarterly CPI was 138.76. Hence, there is an increase of 0.24 points for May, June & July 2024.

In March this year, IBA and bank employee unions agreed on an annual wage hike of 17%, a move that will result in an additional yearly outgo of around Rs 8,284 crore for public sector banks. As many as 8 lakh bank employees are set to benefit from the wage hike, which will be effective from November 2022.

As per the 9th Joint Note on Officers’ Wage Revision, "The total quantum of wage revision increase (pay slip component) is more than Rs 8,284 crores being the 17% of the cost of pay slip component of establishment expenses of public sector banks."

The notification said: "Officers who have completed CAIIB (CAIIB Part-II) shall be eligible for two increments w.e.f 01.11.2022." It further said, "The new scales of pay ranges from Rs. 48480/- to Rs.173860/- covering all the scales from Scale I to VII, with effect from 01.11.2022."

The joint note also added that the index for DA is shifted from 1960 = 100 to 201+6 = 100 series resulting in shifting the conversion factor from 0.06 to 0.99 as per 2016 = 100 series benefitting the bank employees with enhanced dearness allowance.

5-day workweek

Bank employees have long demanded a five-day workweek. The Indian Banks' Association (IBA) and bank unions have agreed on the proposal, awaiting government approval. 

The joint declaration in March 2024 added that the pact will pave the way for the 5-day work in a week for PSU bank employees as the joint note recognizes all Saturdays as bank holidays. 

The Reserve Bank of India (RBI) stipulates specific minimum working hours and customer service periods that banks are required to observe. The guidance provided by the central bank will be instrumental in determining whether Public Sector Undertaking (PSU) banks can implement a five-day workweek.

The revised working hours will be effective after notification by the government, it said.