Expected Bank DA & PSU IDA Calculator (2026)

Understanding Dearness Allowance (DA) & Dearness Relief (DR) Revisions

Dearness Allowance (DA) and Dearness Relief (DR) are compensatory allowances disbursed by the Government of India, public sector banks, and state enterprises to their active workforce and pensioners. The primary objective is to hedge against inflation and protect the purchasing power of basic salaries and pension packages in response to cost-of-living increases.

DA cycles and calculation parameters are structurally different across employment sectors. While Central Government employees have their DA updated bi-annually, bank employees (SBI and other PSU banks) have their DA revised quarterly, and public sector undertaking (PSU) employees are governed by quarterly Industrial Dearness Allowance (IDA) cycles. This Expected DA 2026 calculator bridges these divisions to provide a unified tool for all sectors.

Central Government DA & DR Revisions: January and July 2026

Central Government employees and pensioners are paid DA based on the All India Consumer Price Index for Industrial Workers (AICPI-IW) compiled monthly by the Labour Bureau. Revisions are declared twice a year, effective from January 1st and July 1st:

• January 2026 Cycle: The government officially notified a **2% increase** in the Dearness Allowance, raising the rate from 58% to **60%** of basic pay.
• July 2026 Cycle Expectations: Current projections, based on the AICPI-IW indexes released for the January-May period (reaching 150.8 in May 2026), point to a minimum **3% increase**, which would bring the revised DA rate to **63%** of basic pay.

Bank Employees Expected DA: February and August 2026

For public sector bank employees (including State Bank of India and other nationalized banks), DA is calculated quarterly based on the quarterly average of the CPI-IW index as governed by Bipartite settlements:

• February – April 2026: Under the 12th Bipartite Settlement (BPS) parameters, the Bank DA was finalized and locked at **25.00%** of basic pay.
• August – October 2026 (Expected): Projections based on the available CPI-IW index figures for April (149.9) and May (150.8) indicate an expected increase to approximately **27.47%** of basic pay, subject to the release of the final June CPI data by the end of July.

PSU Industrial Dearness Allowance (IDA) Slabs: July 2026

CPSE and PSU employees receive Industrial Dearness Allowance (IDA) which is updated quarterly (January, April, July, and October). The expected IDA rates for the July 2026 cycle are:

• 3rd PRC (2017 Pay Scales): Expected to increase from 54.1% to **55.7%** (a hike of 1.6%).
• 2nd PRC (2007 Pay Scales): Expected to increase from 238.3% to **241.8%** (a hike of 3.5%).

All India Consumer Price Index (AICPI-IW) Data Table (2026)

The table below records the monthly AICPI-IW index values released by the Labour Bureau in 2026, which form the base calculation inputs for both banker and government DA cycles:

Frequently Asked Questions (FAQs)