DEARNESS ALLOWANCE INCREASE FOR BANKERS FROM NOVEMBER, 2011 to January 2012

We have been projecting the DA for bank staff  on many occasions.  We have been on dot on number of occasions and our projections have been correct.  In the month of August,  2011, we again received large number of mails, requesting us to again project DA for November 2011 to January, 2012 period.   In view of the large variation in inflation rates, we were reluctant as even Government of India and RBI have failed to project the inflation rate accurately even for one week or so.    Frequently they are forced to revised their projections.   However, still we took the gamble and based on the available data we projected the DA from November, 2011.  However, as there has been continued inflation, specially the food inflation in last few months, the CPI has shown unprecedented increase in recent years.

Now CPI has been announced for three relevant months which is as follows:-

Month                        CPI
July 2011                      4405.40
August 2011               4428.22
September, 2011        4496.70

Based on the above calculations the new DA will be @ 60.15%, for the months of November, December, 2011 and January, 2012   [The DA for October 2011 is  54.00%].  We have conservatively estimated to be at 59.40%.  There will be  increase of  41 slabs.   We give below the DA for November, 2011 onwards vis a vis existing DA, alongwith  the increase in DA at various levels of scales.  [As a matter of abundant caution, bankers must wait for final declaration of IBA and payments should be made as per bank circulars ] :-

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Courtesy:All banking solutions