Bank DA Hike from August 2026: AIBEA Issues 12th BPS Circular (27.83%)
The 12th Bipartite Settlement (BPS) Dearness Allowance increases by 2.13%. Check the updated rates for bank employees and pensioners effective August to October 2026.
Quick Answer: What is the Bank DA Rate from August 2026?
According to AIBEA Circular No. 30/11/2026/37, the revised Dearness Allowance (DA) rate under the 12th Bipartite Settlement is 27.83%.
- Effective Months: August, September, and October 2026
- Net Hike: +2.13% (an increase of 47 slabs)
- Applicability: Calculated on Basic Pay, Special Allowance, and Transport Allowance.
12th BPS Bank DA Hike Explained
Every quarter, bank employees and pensioners eagerly track the Consumer Price Index (CPI) to estimate their upcoming Dearness Allowance. The All India Bank Employees’ Association (AIBEA) released its latest circular on July 31, 2026, finalizing the bank DA hike from August 2026.
Based on the CPI data for April, May, and June, the new DA sees a significant jump of 2.13%, settling the final DA payable at 27.83%.
CPI-IW Calculation Breakdown (2016=100)
The DA for the August to October 2026 quarter is derived from the CPI index of the preceding three months. Here is exactly how the 47-slab increase was calculated:
| Month | CPI Index Value |
|---|---|
| April 2026 | 149.90 |
| May 2026 | 150.80 |
| June 2026 | 151.90 |
| Quarterly Average Index | 150.86 |
The previous average index was 148.73. This results in an index increase of 2.13 points, translating to a 47-slab increase. With the DA rate fixed at 1% for points over 123.03, the final revised DA rate sits at 27.83%.
Special Pay DA Rates (August 2026)
The circular outlines the DA payable on Special Pay for various clerical and subordinate staff roles. Below are the updated figures and their respective increases:
| Post / Designation | Total DA (₹) | Net Increase (₹) |
|---|---|---|
| Customer Service Associate | ₹548.25 | +₹41.96 |
| Sr. Customer Service Assoc. (Cash) | ₹848.82 | +₹64.97 |
| Spl. Customer Service Associate | ₹1280.18 | +₹97.98 |
| Armed Guard / Security Guard | ₹221.25 | +₹16.93 |
| Sr. Office Assistant | ₹318.65 | +₹24.39 |
| Spl. Office Assistant | ₹418.84 | +₹32.06 |
| Office Assistant (Tech) | ₹1154.95 | +₹88.40 |
| Driver | ₹1342.80 | +₹102.77 |
Bank Pensioner DA from August 2026
Retirees and family pensioners will also benefit from the 47-slab increase. The DA rate differs significantly based on the period of retirement, as older settlements carry different base indices.
More DA Tools: If you want to forecast your upcoming hike, use our Expected DA Calculator. For exact monthly DA amounts and HRA calculations, visit our main DA Calculator. You can also check the latest updates on the July 2026 DA Confirmation.
Frequently Asked Questions (FAQ)
What is the 12th BPS Bank DA from August 2026?
Under the 12th Bipartite Settlement, the bank DA rate applicable from August to October 2026 is 27.83%.
How much did the bank DA increase by?
The DA increased by 2.13% (an increase of 47 slabs), rising from the previous average index of 148.73 to the new quarterly average of 150.86.
On what components is the DA calculated?
The 27.83% Dearness Allowance is calculated on Basic Pay, Special Allowance, and Transport Allowance.
What is the new DA for bank pensioners who retired after Nov 2022?
For bank pensioners who retired on or after 01-11-2022, the revised DA rate from August 2026 is 27.83%.
Conclusion
The AIBEA's prompt release of Circular No. 30/11/2026/37 clarifies the exact financials for the upcoming quarter. A 2.13% boost in the 12th Bipartite Settlement DA to 27.83% represents a solid offset against the inflation recorded between April and June 2026, directly impacting August, September, and October salaries and pensions.
Rohit Kushwaha
Software Engineer & Creator of mysalarycalculator.in
I'm Rohit Kushwaha, a Software Engineer with 3+ years of experience in developing web applications and digital solutions. By combining technology with practical financial tools, I built mysalarycalculator.in to help Indian professionals easily understand their salary, taxes, EPF, gratuity, and take-home income.
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