New Delhi | Jagran Business Desk: The Dearness Allowance (DA) for about 8.5 Lakh employees of Public Sector Undertaking (PSU) banks has been released for the months of May, June and July 2021. A total of seven slabs have been reduced this time. Following the release of the All India Average Consumer Price Index (AIACPI), Indian Banks’ Association (IBA) announced the release of DA for its close to 8.5 Lakh employees.

At the same time, over 52 Lakh Central Government employees, being salaried as per the 7th Central Pay Commission continue to await the release of their Dearness Allowance whose DA-freeze hasn’t been revoked so far.

The AIACPI average for an industrial worker has been figured at 7818.51 for the months of January, February and March 2021, according to the Indian Banks’ Association’s figures. This made a total of 374 DA slabs, which have come down to 367 for the months of May, June and July 2021. The calculated DA for May, June and July 2021 is henceforth over 25 per cent of the Basic pay.

The DA had increased in 2020

Last year, the All India Average Consumer Price Index had increased to 7855.76, which further increased to 7882.06 and 7809.74 in the months of November and December respectively.

How the Dearness Allowance calculated?

7818.51 – 6352 = 1466.51/4= 367 Slabs
Slab in last quarter: 374 DA decrease = 374-367=7 Slabs

PO Salary

The monthly salary of an SBI PO ranges from around Rs 40,000-42,000. The change in Dearness allowance also reflects in the salary. Bank PO also gets four increments. After promotion, the minimum basic pay goes up to Rs 42,020.

Salary hike during the pandemic

The banks were directed to hike the salary of over 8.5 Lakh PSU employees during the Covid-19 pandemic. Bank Employees Union and Indian Banking Association (IBA) had agreed on a 15 per cent annual salary hike. Due to this, an added burden of Rs 7,900 Crore came into effect on the Banking sector.

Posted By: Talibuddin Khan