The Indian Banks’ Association (IBA) has released circulars regarding the Dearness Allowance (DA) payable to Workmen and Officer employees in banks for the quarter covering November, December 2025, and January 2026. The DA rates have been calculated under both the 12th Bipartite Settlement (BPS)/9th Joint Note and the 11th BPS/8th Joint Note, catering to different groups of employees.
Under XII BPS / 9th Joint Note (Dated 08.03.2024)
The DA calculation for employees covered under the 12th BPS/9th Joint Note is based on the All India Average Consumer Price Index for Industrial Workers (Base 2016=100).
- Applicable DA Rate: The rate of Dearness Allowance payable is 23.93% of ‘pay’.
- Period of Effect: The DA is applicable for the months of November, December 2025, and January 2026.
- Average CPI Data for the Quarter ended September 2025:
- July 2025: 146.5
- August 2025: 147.1
- September 2025: 147.3
- DA Calculation Details:
- The average CPI for the quarter is 146.96
- This results in 23.93 points over the 123.03 mark (146.96 – 123.03).
- There is an increase of 2.80 points for this period compared to the last average quarterly CPI of 144.16.
Under XI BPS / 8th Joint Note (Dated 11.11.2020)
The DA circular for those members who are yet to implement the 12th BPS/9th Joint Note (Designated Officers) uses the All India Average Consumer Price Index for Industrial Workers (Base 1960=100).
- Applicable DA Rate: The rate of Dearness Allowance payable is 57.89% of ‘pay’.
- Period of Effect: The DA is applicable for the months of November, December 2025, and January 2026.
- Average CPI Data for the Quarter ended September 2025:
- July 2025: 9630.70
- August 2025: 9670.15
- September 2025: 9683.29
- DA Calculation Details:
- The average CPI for the quarter is 9661.38.
- This corresponds to 827 DA slabs.
- There is an increase in DA by 46 slabs for this quarter compared to the last average quarterly CPI, which was 781.
- Decimals from the third place should be ignored when calculating the dearness allowance payable.
The circulars were issued by the Indian Banks’ Association (IBA) on November 1, 2025 and signed by Brajeshwar Sharma, Senior Advisor (HR&IR).
