Indian Banks’ Association circulars dated 2 November 2026, reproduced by specialist staff-information outlets, specify dearness allowance of 31.33% of pay under the 12th Bipartite Settlement/9th Joint Note and 66.36% under the 11th settlement for banks yet to implement the later agreement. The rates concern November 2026 through January 2027 and apply to different employee cohorts, not cumulatively.
Why this is a substantive follow-up
Bank-employee associations had already circulated calculations indicating 31.33% dearness allowance for the period beginning November 2026. The new documentary development is the subsequent Indian Banks’ Association (IBA) circular dated 2 November 2026, reproduced by specialist employee-information websites. This article updates the status from an association calculation to a reported formal IBA communication; it does not represent a second unrelated pay increase.
Rates and who they concern
| Employee pay framework | DA rate stated in reproduced IBA notice | Period |
|---|---|---|
| 12th Bipartite Settlement / 9th Joint Note (8 March 2024) | 31.33% of pay | November 2026–January 2027 |
| 11th Bipartite Settlement / 8th Joint Note (11 November 2020), where still in force | 66.36% of pay | November 2026–January 2027 |
The 12th-settlement circular is identified as CIR/HR&IR/D/2026-27/3690-A, dated 2 November 2026. The reproduced text uses confirmed Consumer Price Index for Industrial Workers observations of 153.2 (July), 154.4 (August) and 155.5 (September). It reports a quarterly average of 154.36 and a 31.33-point gap over the settlement reference figure of 123.03. The prior quarter’s figure was 150.86, giving a 3.50 percentage-point increase in the relevant rate.
Separately, a reproduced IBA notice for banks that have yet to implement the 12th settlement reports 66.36% under the 11th settlement’s different index and slab formula. These percentages must not be added together, and the older-framework figure must not be applied to an employee already covered by the later settlement.
What staff and pensioners should check
The notice is about dearness allowance on the defined pay components of eligible working employees under their applicable settlement. It is not a new base-pay scale, a uniform increase in take-home salary for every banker or an automatic 31.33% increase on gross salary. The actual rupee impact depends on the employee’s pay components and applicable service framework.
Retired employees ordinarily receive dearness relief (DR) on eligible pension, revised on a different schedule. These DA letters by themselves are not evidence that pension DR changed from November. Bank-specific payroll implementation and applicability should be checked against the issuing circular and the relevant settlement.
Source and verification limits
The figures and circular identification above were cross-checked against multiple websites reproducing IBA communications. The original IBA-hosted signed PDF was not independently retrieved for this report. Readers should distinguish that documentary limitation from a claim that the circular is a proposal. Any materially different authenticated bank/IBA correction would take precedence and warrant an update.
Sources and References
- Bank Dearness Allowance for Nov-26, Dec-26 and Jan-2027 @ 31.33% Under XII BPS / 9th Joint Note: IBA Order — StaffNews (2026-11-03)
- 11th BPS Bank DA Nov 2026 to Jan 2027: Dearness Allowance for Bank Employees – IBA ORDER — IGECorner / Central Government Employees News (2026-11-02)
- IBA issued Dearness Allowance for Bank Employees under the 9th Joint Note from November 2026 to January 2027 — TeamLease RegTech (2026-11-03)
Please consult the cited sources and check the exact applicability of any legal or employment change. Corrections are welcomed.
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