There is good news for bank employees and pensioners.
The Indian Banks’ Association (IBA) has announced revised Dearness Allowance (DA) rates for February, March and April 2026.
It has also revised Dearness Relief (DR) for pensioners for the period February to July 2026.
Here’s what it means for employees and retirees.
Dearness Allowance Increased for Bank Employees
For workmen and officer employees under the XII Bipartite Settlement (9th Joint Note dated March 8, 2024), the DA has been fixed at 25% of pay for February, March and April 2026.
This rate is based on the Consumer Price Index (CPI) data for October, November and December 2025.
According to IBA, the average CPI stood at 148.03. Since the base index is 123.03, the increase works out to 25 points.
Compared to the last quarter’s average CPI of 146.96, there is an increase of 1.07 points.
In simple terms, employees will see a higher DA component in their salary for these three months.
For employees under the XI Bipartite Settlement (8th Joint Note dated November 11, 2020), the DA has been fixed at 59.08% of pay for the same period.
Dearness Relief for Pensioners Announced
IBA has also revised Dearness Relief (DR) for pensioners for February 2026 to July 2026.
The DR rates vary depending on the date of retirement:
Retired between January 1, 1986 and before November 1, 1992 / July 1, 1993: 1528.94% of basic pension
Retired on or after November 1, 1992 / July 1, 1993: 750.75%
Retired on or after April 1, 1998: 482%
Retired on or after November 1, 2002: 334.80%
Retired on or after November 1, 2007: 258.45%
Retired on or after November 1, 2012: 132.20%
Retired on or after November 1, 2017: 59.08%
Retired on or after November 1, 2022: 25%
These revised rates will directly impact the pension amounts credited during the specified period.
Why This Matters
Dearness Allowance and Dearness Relief are revised to offset the impact of inflation.
With rising living costs, even a small increase in DA or DR can make a noticeable difference in monthly income.
For serving employees, this means a higher salary component.
For pensioners, it ensures better support against inflation.
Bank staff and retirees can now expect the revised amounts to reflect in their payouts for the announced period.