Dearness allowance news: DA, DR for bank employees and pensioners for August to October declared

The Indian Banks' Association (IBA) has announced the dearness allowance (DA) and dearness relief (DR) rates for various bank employees and pensioners for August, September and October 2025.

The following are the details of the revised DA/DR rates;

The rate of DA will be 21.13% of pay. "...the rate of Dearness Allowance payable to Workmen and Officer employees for the months of August, September, and October 2025 shall be 21.13% of `pay' (0.01% change in DA on 'pay' for change in every second decimal place of CPI 2016 over 123.03 points)," IBA said in a circular dated August 1, 2025.

The above is based on the Consumer Price Index for April, May and June 2025.

"The average CPI of the above is 144.16 and accordingly the number of points over 123.03 are 21.13 (144.16 - 123.03). The last average quarterly CPI was 143.0. Hence, there is an increase of 1.16 points for August, September, and October 2025," IBA said.

DA will be 54.74% of pay. "... the rate of Dearness Allowance payable to Workmen and Officer employees for the months of August, September, and October 2025 shall be 54.74% of `pay'. While arriving at dearness allowance payable, decimals from third place may please be ignored," the IBA said.

The following rates of DR will apply for different retirees:

Dearness Relief to pensioners who retired on or after 1st day of January,1986, but before the 1st day of November,1992/1st July, 1993: 1487.40 % of basic pension