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Bank Pay Boost: DA Jumps 0.70% from May 1
2 May
Summary
- Dearness Allowance for bank employees increased by 0.70% from May 1, 2026.
- The new DA rate for bank staff is 25.70%, impacting May-July salaries.
- This hike results in a monthly pay increase of around Rs 600 to Rs 1,058.
Effective May 1, 2026, bank employees can expect a slight increase in their monthly take-home pay. The government has revised the Dearness Allowance (DA) upwards by 0.70%, bringing the new rate to 25.70% for the May-July 2026 period.
This adjustment, based on the average Consumer Price Index for the first three months of 2026, impacts salaries across various pay scales. For instance, an employee with a basic pay of Rs 67,000 will see an additional Rs 600.65 per month. Higher-level officers, such as those at Stage 47 with a basic pay of Rs 1,17,200, could receive an extra Rs 1,058.52 monthly.
The revised DA rates apply to industry-level scales up to Scale VII, including those at the State Bank of India. This DA hike follows a recent 2% increase for central government employees, raising their DA to 60%.
