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.
Present
DA is calculated on the basis of 12th Bipartite Settlement. There is a
fixed formula to calculate the banking DA but I am skipping this
Source: Indian Banking Association (IBA)Website and 10th, 11th & 12th BPS/Joint Note
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