Dearness Allowance (DA) from August 2020 to October 2020 @77.50%

Dearness Allowance is paid to an employee as a percentage of his basic salary. In order to mitigate the effect of inflation DA is paid as a part of salary. 

In banking industry DA is calculated as on the basis of All India Consumer Price Index Number (ACPIN) released by the Ministry of Labour, Govt. of India. Since the Bank DA is based on ACPIN, it may increase or decrease on the basis of CPI numbers released by the department.

Bank DA is released every quarter but here the quarters are different from the accounting quarters. DA is changed every February, May, August & November on the basis of average change in Slabs.

We have calculated the DA to be paid from August 2020 to October 2020

Month	CPI (1960=100)
April, 2020	7509.72
May, 2020	7532.55
June, 2020	7578.20
Average	7540.16
Less:Points merged in 10th BPS	4440.00
Remaining Points	3100.16
Less: D.A. for the previous quarter	3044.00
Difference in Point	56.16
No. of Slabs increased (56.16/4)	14.00
Increase in D. A.% (0.10%*14)	1.40
Existing DA %	76.10
D. A. from Aug. 2020 to Oct. 2020	77.50

Here is the expected increase in salary with the increase in DA from 76.10% to 77.50%

Update dated 04.08.2020