Bank Employees’ DA Hiked To 25% For Feb–Apr 2026: Check Details

The Indian Banks’ Association (IBA) has announced revised Dearness Allowance (DA) rates for bank workmen and officer employees for February, March and April 2026. Along with this, it has also revised Dearness Relief (DR) for bank pensioners for the period from February 2026 to July 2026.

This update is important for bank employees and retirees because DA and DR directly affect monthly take-home pay and pension payouts. These revisions are linked to inflation trends measured through the Consumer Price Index (CPI).

New DA Under XII Bipartite Settlement

For bank employees covered under the XII Bipartite Settlement (XII BPS) and the 9th Joint Note dated March 8, 2024, the DA has been set at 25% of pay for February to April 2026.

This rate is around 4% higher than the DA levels applicable for August, September and October 2025. The DA calculation is based on the average CPI for October, November and December 2025, which stood at 148.03. This is 25 points above the base level of 123.03, leading to the revised DA rate.

DA Under XI Bipartite Settlement

For employees covered under the XI Bipartite Settlement (XI BPS) and the 8th Joint Note dated November 11, 2020, the DA for February to April 2026 has been revised to 59.08% of pay.

This rate applies to eligible workmen and officer employees under the older settlement structure.

Revised DR For Bank Pensioners Till July 2026

IBA has also updated DR rates for pensioners for February 2026 to July 2026. These rates vary depending on the retirement period. Key categories include:

Read more: Step Up SIP Calculator: Can a ₹25,000 SIP Grow to a ₹13 Crore Retirement Corpus in 30 Years?

Conclusion

The revised DA and DR rates announced by IBA for 2026 reflect inflation-linked adjustments and will provide higher payouts for eligible bank employees and pensioners. Employees should check which settlement applies to them, while pensioners should refer to their retirement category to understand the applicable DR rate.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.