Dear readers in this article you will know about “12thBipartite Settlement Expected Salary” related to bankers expected salary details.

Here are the main points

1. The changes will start from November 1, 2022.
2. Everyone’s pay will go up by a total of 17%.
3. Some parts of the pay are being combined (DA at 8088 points), and after combining, there will be an extra 3% increase.
4. The increase in yearly pay for workers and officers will be calculated separately.
5. For retired people, a fixed monthly payment (excluding DA) will be considered, without affecting their pension update request as of October 31, 2022.
6. Recommendations have been sent to the Government of India for a 5-day work week.

Table of Contents

INTRODUCTION TO 12TH BIPARTITE SETTLEMENT

The 12th Bipartite settlement is an eagerly anticipated event for bankers, scheduled for November 1, 2022. It is the moment when the salary and various wage components for employees in public sector banks and certain private sector banks are determined through discussions between two key parties:

The United Forum of Bank Unions (UFBU) and
The Indian Banks’ Association (IBA).

ALSO READ: SALARY HIKE FOR BANK EMPLOYEES

12TH BPS SALARY ARREARS CALCULATOR OFFICERS -CLERICALS- SUB STAFF (ESTIMATED)

EXPECTED SALARY TABLE

Please remember that these figures are speculative and subject to change. We’ll update them as soon as we have more information regarding the 12th Bipartite Settlement discussions and any other influencing factors, such as Dearness Allowance.

OFFICERS SALARY 12TH BIPARTITE SETTLEMENT

Stage	Old Basic pay	DA merged (8088 Points- 30.38%)	3.00% Load Factor	New Basic Pay	New Gross (Expected)	Total Gross increase (Expected)
1	36000	10936.80	1408.10	48350	76566.00	10922.00
2	37490	11389.46	1466.38	50350	79705.00	11381.70
3	38980	11842.12	1524.66	52350	82844.00	11840.40
4	40470	12294.79	1582.94	54350	85984.00	12300.10
5	41960	12747.45	1641.22	56350	89123.00	12759.80
6	43450	13200.11	1699.50	58350	92263.00	13219.50
7	44940	13652.77	1757.78	60360	95414.00	13690.20
8	46430	14105.43	1816.06	62360	98554.00	14149.90
9	48170	14634.05	1884.12	64690	102213.00	14679.10
10	49910	15162.66	1952.18	67030	105885.00	15222.30
11	51900	15767.22	2030.02	69700	110076.00	15834.00
12	53890	16371.78	2107.85	72370	114267.00	16444.70
13	55880	16976.34	2185.69	75050	118471.00	17070.40
14	57870	17580.91	2263.53	77720	122663.00	17683.10
15	59860	18185.47	2341.36	80390	126855.00	18294.80
16	61850	18790.03	2419.20	83060	131045.00	18906.50
17	63840	19394.59	2497.04	85740	135250.00	19532.20
18	65830	19999.15	2574.87	88410	139441.00	20142.90
19	67820	20603.72	2652.71	91080	143633.00	20756.60
20	69810	21208.28	2730.55	93750	147825.00	21369.30
21	71800	21812.84	2808.39	96430	152028.00	21992.00
22	73790	22417.40	2886.22	99100	156220.00	22604.70
23	76010	23091.84	2973.06	102080	160898.00	23290.30
24	78230	23766.27	3059.89	105060	165575.00	23973.90

SCALE IV AND V SALARY 12TH BIPARTITE SETTLEMENT

Stage	Old Basic pay	DA merged (8088 Points- 30.38%)	3.00% Load Factor	New Basic Pay	New Gross (Expected)	Total Gross increase (Expected)
1	76010	23091.84	2973.06	102080	167629.70	27087.00
2	78230	23766.27	3059.89	105060	172503.10	27881.00
3	80450	24440.71	3146.72	108040	177377.50	28677.00
4	82670	25115.15	3233.55	111020	182251.90	29473.00
5	84890	25789.58	3320.39	114000	187126.30	30268.00
6	87390	26549.08	3418.17	117360	192620.30	31170.00
7	89890	27308.58	3515.96	120720	198114.30	32070.00
2	92390	28068.08	3613.74	124080	203609.30	32972.00
3	94890	28827.58	3711.53	127430	209090.30	33859.00
4	97620	29656.96	3818.31	131100	215092.40	34846.00
5	100350	30486.33	3925.09	134770	221092.50	35831.00

Note:
1.CCA is not added to the Gross Salary. So, Eligible staff can add CCA to their Gross Salary
2.Slight variance will be there for those who are having PQP
3.DA is calculated at 0.05% of Pay per slab
4.Special allowance (Expected) is calculated at 30.75% of Pay for Officer Scale-I, II, III and 33% for Officer Scale-IV,V
5.HRA is calculated at 10% of Basic pay
6.No change in Learning Allowance.

12TH BIPARTITE SETTLEMENT CALCULATIONS

Your new Basic Pay, according to the Memorandum of Understanding (MOU) signed on December 7, 2023, will be calculated as follows:

Your present Basic Pay is X.
A percentage of X (30.38%) will be added, and the result is Y.
A load factor is calculated (3% of the sum of X and Y), and the result is Z.
The new Basic Pay is the sum of X, Y, and Z.

For example, if your current Basic Pay (X) is 78,230:

Y is calculated as 78,230 * 30.38% = 24,157.40, which is the amount of DA to be merged with your basic pay.
The total after merging is 78,230 + 24,157.40 = 102,387.40.
Z, the 3% basic load, is calculated as 102,387.40 * 3% = 3,053.62.
Therefore, your new Basic Pay is 102,387.40 + 3,053.62 = 105,459.

CLERICAL STAFF SALARY 12TH BIPARTITE SETTLEMENT

STAGE	BASIC PAY	NEW BASIC PAY **3% LOAD
1	17900.00	24040.00
2	18900.00	25380.00
3	19900.00	26720.00
4	20900.00	28060.00
5	22130.00	29710.00
6	23360.00	31360.00
7	24590.00	33010.00
8	26080.00	35010.00
9	27570.00	37010.00
10	29060.00	39010.00
11	30550.00	41010.00
12	32280.00	43330.00
13	34010.00	45650.00
14	35740.00	47970.00
15	37470.00	50290.00
16	39200.00	52610.00
17	40930.00	54930.00
18	42660.00	57250.00
19	45930.00	61650.00
MAX 20	47920.00	64320.00
1^st STAGE	49910.00	66990.00
2^nd STAGE	51900.00	69660.00
3^rd STAGE	53890.00	72330.00
4^th STAGE	55880.00	75000.00
5^th STAGE	57870.00	77670.00
6^th STAGE	59860.00	80340.00
7^th STAGE	61850.00	83010.00
8^th STAGE	63840.00	85680.00
9^th STAGE	65830.00	88350.00

SUBORDINATE STAFF SALARY 12TH BIPARTITE SETTLEMENT

STAGE	BASIC PAY	NEW BASIC PAY **3% LOAD
1	14500.00	19470.00
2	15000.00	20140.00
3	15500.00	20810.00
4	16000.00	21480.00
5	16500.00	22150.00
6	17115.00	22975.00
7	17730.00	23800.00
8	18345.00	24625.00
9	18960.00	25450.00
10	19575.00	26275.00
11	20315.00	27270.00
12	21055.00	28265.00
13	21795.00	29260.00
14	22535.00	30255.00
15	23405.00	31425.00
16	24275.00	32595.00
17	25145.00	33765.00
18	26145.00	35105.00
19	27145.00	36445.00
MAX 20	28145.00	37785.00
1^st STAGE	29145.00	39125.00
2^nd STAGE	30145.00	40465.00
3^rd STAGE	31145.00	41805.00
4^th STAGE	32145.00	43145.00
5^th STAGE	33145.00	44485.00
6^th STAGE	34145.00	45825.00
7^th STAGE	35145.00	47165.00
8^th STAGE	36145.00	48505.00
9^th STAGE	37145.00	49845.00

UNDERSTANDING DA MERGER

MERGING DA WITH BASIC PAY

Agreement to merge dearness allowance (DA) up to 8088 points of the price index with basic pay.

The specific increment resulting from the DA merger is yet to be determined, with indications pointing to a potential 17 % increase, as seen in previous settlements.

Video Credit : Study Niti

DURATION OF BIPARTITE SETTLEMENT TALKS

These discussions typically span a duration of 2 to 3 years before culminating in increased salaries and the payment of arrears to bankers. Before reading this article to have a better understanding of Bipartite settlement you can read Bank Bipartite Settlement History

IMPLEMENTATION TIMELINE FOR 12TH BIPARTITE SETTLEMENT

However, it is important to manage expectations as the actual implementation of these increased salaries, resulting from the 12th Bipartite Settlement, is signed in December 2023.

Understanding what these future salaries will look like is a challenging task. Nonetheless, we have endeavored to provide an estimate of the expected salary under the 12th Bipartite Settlement, drawing insights from past bipartite settlements.

Please find our projection in the table below, which we will continue to update as more information becomes available regarding the progress of the 12th Bipartite Settlement discussions, and other factors like Dearness Allowance.

ACCELERATED NEGOTIATIONS FOR 12TH BIPARTITE SETTLEMENT

The Government has instructed the Indian Banks’ Association (IBA) to initiate negotiations for the 12th Bipartite settlement promptly.

BENEFITS OF EARLY WAGE REVISION

Early wage revision is expected to enhance working conditions and provide incentives to employees in the banking sector.

PAST AGREEMENT: 15% PAY INCREASE

In November 2020, the IBA had reached an agreement with bank unions for a 15% increase in the pay slip for bank employees.

This increase applied to the five year period spanning from November 2017 to October 2022.

CONCLUSION

While the exact details of the 12th Bipartite Settlement remain uncertain, it is pivotal moment for the banking sector.

Bankers can expect salary revisions, but the actual implementation is likely a few years away. Stay tuned for updates, and we’ll keep you informed about the progress of these discussions and any changes to the expected salary estimates.