Dearness Relief (DR) for the period between August 2024 and January 2025 has been announced for the pensioners of banks. This move will impact thousands of bank pensioners in the country. How much will Dearness Relief bank pensioners get from August 2024 to January 2025? Read on.
In a release dated August 7, 2024, the Indian Banks’ Association (IBA) said, “In terms of Regulation 37 of Bank Employees’ Pension Regulations, 1995 Dearness Relief is payable to pensioners at rates specified…”
Dearness Relief from August 2024 to January 2025 announced for bank pensioners
Dearness Relief for pensioners who retired on or after January 1, 1986, and before November 1, 1992/July 1, 1993:
Average Index (CPI) for the quarter ended June 2024: 9218.74
Number of slabs: 2154
Rate of Dearness Relief on pension for the period between August 2024 to January 2025: 1443.18% of basic pensionDearness Relief to pensioners who retired on or after November 1, 1992, or July 1, 1993
Average Index (CPI) for the quarter ended June 2024: 9218.74
Number of slabs: 2017
Rate of Dearness Relief on pension for the period between August 2024 and January 2025: 705.95% of basic pension
Dearness Relief to pensioners who retired on or after April 1, 1998:
Average Index (CPI) for the quarter ended June 2024: 9218.74
Number of slabs: 1883
Rate of Dearness Relief on pension for the period between August 2024 and January 2025: 451.92% of basic pension
Dearness Relief to pensioners who retired on or after November 1, 2002:
Average Index (CPI) for the quarter ended June 2024: 9218.74
Number of slabs: 1732
Rate of Dearness Relief on pension for the months between August 2024 and January 2025: 311.76% of basic pension
Dearness Relief to pensioners who retired on or after November 1, 2007:
Average Index (CPI) for the quarter ended June 2024: 9218.74
Number of slabs: 1595
Rate of Dearness Relief on pension for the period between August 2024 to January 2025: 239.25% of basic pension
Dearness Relief to pensioners who retired on or after November 1, 2012:
Average Index (CPI) for the quarter ended June 2024: 9218.74
Number of slabs: 1194
Rate of Dearness Relief on pension for the months between August 2024 and January 2025: 119.40 % of basic pension
Dearness Relief to pensioners who retired on or after November 1, 2017:
Average Index (CPI) for the quarter ended June 2024: 9218.74
Number of slabs: 716
Rate of Dearness Relief on pension for the period between August 2024 to January 2025: 50.12 % of basic pension
Dearness Relief to pensioners who retired on or after November 1, 2022:
Average Index (CPI) for the quarter ended June 2024: 140.23
Number of slabs: 17.20
Rate of Dearness Relief on a pension for August 2024 to January 2025:17.20% of basic pension
IBA added, “Further, we draw your attention to our circular HR&IR/MBR/G2/0533 dated 16.10.2023, wherein we have communicated about DR neutralization for pre-01.11.2002 retirees and family pensioners. The amount of ex-gratia to be paid, to a group of pensioners, was also mentioned therein.”
100% Dearness Relief neutralisation for bank employees retired before 2022:
In a letter dated October 5, 2023, the Ministry of Finance advised the Indian Banks’ Association to implement the following changes effective from October 1, 2023:
i) Implement Dearness Relief at a uniform rate applicable to the lowest slab of basic pension in the existing DR frameworks for all pre-1/11/2002 retirees, ensuring 100% neutralisation of tapered DR.
ii) Provide an ex-gratia amount of Rs 800.00 per month to pensioners/family pensioners falling under the first slab of basic pension and drawing the highest DR. Additionally, an ex-gratia amount of Rs 450 per month will be given to pensioners/family pensioners falling under the second slab of basic pension, attracting the second-highest DR in the present framework. It’s clarified that these ex-gratia amounts will not attract any DR and will be absorbed in future changes in the pension structure if any.
IBA also said, “Pending amendments to Pension Regulations, Banks may pay on ad hoc basis, the Dearness Relief payable to pensioners from August 2024 to January 2025 as per Annexure.”
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