Understanding the 4-Point Rule and IBA’s Circular:

Administrator’s Note: This post was originally titled “One Slab Fall in DR for Aug 2025–Jan 2026.” Based on further analysis and IBA’s methodology, the conclusion has been revised. The corrected interpretation is presented below.

Initially, this average was compared to the previous quarter’s average of 9480, suggesting a 3-point fall and a possible 1-slab reduction in DR.

Clause from 11th Bipartite Settlement

“Dearness Relief shall be paid half yearly for every rise or fall of 4 points over 6352 points in the quarterly average of the All India Consumer Price Index for industrial workers in the series 1960=100.”

Why There Is No Slab Change

• The fall from 9480 to 9477.31 is only 3 points.
• As per the clause, DR slabs change only when the movement is 4 points or more.
• Therefore, no slab reduction is applicable for Aug 2025–Jan 2026.
• The DR slab count remains at 782, with a DR rate of 54.74%.

Conclusion

This situation is consistent with IBA’s interpretation. Pensioners and family pensioners covered under the 11th Bipartite Settlement will continue to receive DR at the existing rate for the current half-year.

Dearness Relief, No decline-See revised interpretation above

The latest All-India Consumer Price Index (AICPIN) data released by the Labour Bureau (Ministry of Labour and Employment), has led to a slight adjustment in Dearness Relief (DR) for pensioners. Contrary to the previous half-year’s 66-slab increase, the current revision shows no change in payment of Dearness Relief.
A decline of one slab, as interpreted earlier is no longer valid.

DR Percentages by CPI Index (Other Banks)

Impact on Pensioners

While the there is no change in payment of Dearness Relief, it reflects the dynamic nature of inflation-linked pension adjustments.

Understanding the AICPIN and DR

The AICPIN tracks the cost of living for industrial workers and directly influences DR calculations. Even a single slab movement can affect pensioners’ monthly income, underscoring the importance of these updates.