This 12th Bipartite Settlement salary calculator works out your revised pay and your arrears under the settlement and the 9th Joint Note, effective 1 November 2022. It uses the actual settlement scales and the Dearness Allowance now payable, 27.83% for August to October 2026, and gives you gross pay, in-hand salary, income tax, arrears and gratuity on one screen, for clerical staff, subordinate staff and officers in Scale I to VII.
By Vishvas Yadav · Updated October 2026 · DA 27.83% (August to October 2026 quarter)
How to use this 12th Bipartite Settlement salary calculator
The 12th BPS salary calculator covers every cadre the settlement does: clerical staff, subordinate staff or sub-staff, and officers in Scale I to VII. Pick your cadre, then set your present Basic Pay with the slider or type it in. Everything else follows automatically. If your payslip carries Professional Qualification Pay, Special Pay, Officiating Pay or Fixed Personal Pay, open Customize Inputs and enter them, because they change your DA and your HRA. Officers should also set their HRA area and whether their centre is a CCA centre, because those two settings change gross pay.
Two worked examples, on the first stage of each scale and the DA now payable, so you can sanity-check the tool against your own bank salary slip.
Bank clerk salary at the first stage
| Component | Monthly |
|---|---|
| Basic Pay | Rs 24,050 |
| Special Allowance at 26.50% | Rs 6,373 |
| Transport Allowance | Rs 850 |
| Dearness Allowance at 27.83% on Basic, Special Allowance and Transport Allowance | Rs 8,703 |
| House Rent Allowance at 10.25% of Basic | Rs 2,465 |
| Gross salary | Rs 42,442 |
| Less NPS at 10% of pay plus DA | Rs 3,074 |
Officer Scale I at the first stage
This example assumes a centre that is not eligible for City Compensatory Allowance and falls in the 8% HRA category. In the calculator, choose HRA 8% and Non-CCA under Customize Inputs to reproduce it.
| Component | Monthly |
|---|---|
| Basic Pay | Rs 48,480 |
| Special Allowance at 26.50% | Rs 12,847 |
| Learning Allowance | Rs 850 |
| Dearness Allowance at 27.83% on Basic, Special Allowance and Learning Allowance | Rs 17,304 |
| House Rent Allowance at 8% of Basic | Rs 3,878 |
| Location Allowance, non-CCA centre | Rs 1,200 |
| Gross salary | Rs 84,560 |
| Less NPS at 10% of pay plus DA | Rs 6,197 |
At a CCA centre the officer draws CCA of Rs 1,900 or Rs 2,300 instead of the Location Allowance, and HRA follows the area of posting: 10% at Major A centres and 9% at Area I centres. Your own take-home will differ once income tax, professional tax and any recoveries are applied, which the calculator handles on the Tax tab.
What the 12th Bipartite Settlement changed: the 17% salary hike explained
The 12th Bipartite Settlement is the wage revision that governs pay for employees of the banks party to it. It was signed on 8 March 2024 and takes effect from 1 November 2022. It runs for five years, to 31 October 2027. The officers' side is covered by the parallel 9th Joint Note.
The agreed cost was 17% of the pay slip component of the wage bill. That 17% is an industry-wide cost figure, not the percentage by which any one salary went up. Your own increase depends on your cadre, your stage in the scale and where you are posted, which is what the calculator above works out.
How the new scales were built. Dearness Allowance accrued up to index point 8088 was merged into basic pay, which came to 30.38%, and a loading of 3.22% was applied on top. That is why basic pay rose sharply while take-home rose far less: most of the jump was DA you were already being paid, converted into basic.
Arrears for November 2022 to February 2024, sixteen months, were paid in March 2024 in most banks. If you need to check or reconcile that figure, use the Arrears tab on the calculator above, and the worked example below.
Current DA for bank employees: 27.83% for August to October 2026
Dearness Allowance under the 12th Bipartite Settlement is 1.00% of pay for every one point of the All India Consumer Price Index for Industrial Workers (base 2016=100) above 123.03 points.
For the August to October 2026 quarter the average of the April, May and June 2026 index (149.90, 150.80 and 151.90) is 150.86, so DA is 150.86 minus 123.03 = 27.83%.
Two details that most calculators get wrong:
- The quarterly average is truncated to two decimals, not rounded. An average of 150.8666 becomes 150.86, not 150.87.
- Each quarter uses the three months ending two months before it starts.
| DA released on | Months averaged | Applies to |
|---|---|---|
| 1 February | Oct, Nov, Dec | Feb, Mar, Apr |
| 1 May | Jan, Feb, Mar | May, Jun, Jul |
| 1 August | Apr, May, Jun | Aug, Sep, Oct |
| 1 November | Jul, Aug, Sep | Nov, Dec, Jan |
The index values come from the Labour Bureau's CPI-IW release, and IBA issues the resulting DA rate each quarter. The next revision is due 1 November 2026.
12th Bipartite Settlement pay scales
This is the 12th Bipartite Settlement salary chart for every cadre, effective 1 November 2022. Officer Scale I to Scale VII are shown by their grade codes. The first figure is the starting stage, the second is the maximum of the scale before stagnation increments.
| Cadre | First stage (Rs) | Maximum (Rs) |
|---|---|---|
| Clerical | 24,050 | 64,480 |
| Subordinate Staff | 19,500 | 37,815 |
| Scale I (JMGS-I) | 48,480 | 85,920 |
| Scale II (MMGS-II) | 64,820 | 93,960 |
| Scale III (MMGS-III) | 85,920 | 1,05,280 |
| Scale IV (SMGS-IV) | 1,02,300 | 1,20,940 |
| Scale V (SMGS-V) | 1,20,940 | 1,35,020 |
| Scale VI (TEGS-VI) | 1,40,500 | 1,56,500 |
| Scale VII (TEGS-VII) | 1,56,500 | 1,73,860 |
The clerical and subordinate scales have 20 stages each, Scale I has 17 and Scale II has 12. Stagnation increments run beyond the scale maximum: a clerk has eleven stagnation increments of Rs 2,680, payable at two-year intervals, taking the ladder to Rs 93,960. The calculator includes every stage, so you can simply slide to your own basic pay. Every stage and increment for each cadre is set out in the 12th Bipartite Settlement pay scale chart.
A point worth knowing: the top of one scale is often the start of the next. Scale I ends at Rs 85,920, which is exactly where Scale III begins. If you are comparing figures you have seen elsewhere, check whether the number quoted is a first stage or a scale maximum. Rs 1,73,860 is the maximum of Scale VII, not its starting pay.
12th Bipartite Settlement arrears calculator
Arrears under the 12th Bipartite Settlement cover the sixteen months from November 2022 to February 2024 and were paid in March 2024 in most banks. They are the month by month difference between the revised pay and the pre-revised 11th BPS pay you actually drew, including the Dearness Allowance applicable on each side in each quarter. They are not a single percentage applied to one month's salary.
The Arrears tab on the calculator above does this month by month. Enter your 11th BPS Basic Pay as it stood on 31 October 2022 and it works out the whole period. For your pre-revised pay itself, the 11th BPS salary calculator shows the old scales and DA.
Worked example: arrears for a clerk
Calculated with the Arrears tab for a clerk with no increment, promotion or optional pay items during the period:
| Item | Amount |
|---|---|
| 11th BPS Basic Pay | Rs 17,900 |
| 12th BPS Basic Pay | Rs 24,050 |
| Period | 16 months, Nov 2022 to Feb 2024 |
| Average difference a month | Rs 4,702 |
| Gross arrears | Rs 75,236 |
On the same basis the calculator gives an Officer Scale I moving from Rs 36,000 to Rs 48,480 gross arrears of about Rs 1,77,074. Your own figure will differ if you earned an increment or a promotion inside the period, or if you drew Special Pay, PQP, Officiating Pay or Fixed Personal Pay.
Why the monthly difference grows
DA was still rising across the period on both the 11th and 12th BPS sides, and the revised DA runs on a larger basic. For the clerk above the gap starts at about Rs 4,449 in November 2022 and reaches about Rs 4,989 by February 2024.
Tax on arrears
Arrears are taxable in the year of receipt, not the years they relate to, which can push you into a higher slab. Relief is available under section 157(1) of the Income-tax Act 2025, claimed on Form 39, which replaced section 89(1) and Form 10E from 1 April 2026. If your bank deducted TDS on the full arrears in one go, that relief is worth checking.
How bank salary is actually calculated under the 12th BPS
This is where most online calculators go wrong, and it is worth understanding even if you only ever use the tool. The settlement does not have one definition of "pay". It has three, and they contain different components. Treating them as one, and simply applying every percentage to Basic, is the error that makes a calculator look right for a new clerk and wrong for everybody else.
The DA base
Basic Pay, stagnation increments, Special Pay, Professional Qualification Pay, Officiating Pay, plus Special Allowance and Transport Allowance (workmen) or Learning Allowance (officers). Those last three are not inside the definition of pay, but their own clauses grant them "with applicable DA thereon", so DA reaches them by a different route.
The HRA base
Basic Pay, stagnation, Special Pay, PQP and Officiating Pay only. Special Allowance and Transport or Learning Allowance are absent from the HRA definition.
The superannuation base
The HRA base plus the increment component of Fixed Personal Pay. Special Allowance expressly does not rank for pension, PF, NPS or gratuity.
Fixed Personal Pay carries no DA, because DA was already built into it when it was fixed on 1 November 2022. City Compensatory Allowance, Location Allowance and Hill and Fuel Allowance carry no DA either.
If you also run payroll outside banking, the same discipline of fixing each component's base before calculating applies to every salary structure. The Indian payroll e-book covers that process step by step for general employers.
Your bank salary slip explained, line by line
| Payslip line | What it is | Carries DA? |
|---|---|---|
| Basic Pay | Your stage in the scale for your cadre | Yes |
| Special Allowance | Your cadre's percentage of Basic Pay | Yes |
| Dearness Allowance | DA on the DA base for the current quarter | – |
| HRA | House Rent Allowance on the HRA base | No |
| Transport Allowance | Rs 850, workmen only | Yes |
| Learning Allowance | Rs 850, officers only | Yes |
| CCA / Location Allowance | Officers: CCA at CCA centres, Rs 1,200 elsewhere | No |
| Special Pay / PQP / Officiating Pay | Paid where applicable to your duties or qualification | Yes |
| Fixed Personal Pay | Personal pay fixed on 1 November 2022, where applicable | No |
| NPS / PF | Your retirement contribution, depending on your scheme | – |
| Professional Tax / Income Tax | State professional tax and TDS on salary | – |
Labels differ from bank to bank, but the components are the same. If your gross does not match the calculator, compare it line by line with this table; the difference is usually an optional item such as Special Pay or FPP, or a different HRA or CCA category.
Special Allowance under the 12th Bipartite Settlement
Special Allowance is a percentage of Basic Pay alone, and it carries DA. It is 26.50% for clerical staff, subordinate staff and Officer Scale I, rising with the scale:
| Special Allowance | Cadres |
|---|---|
| 26.50% | Clerical, Subordinate Staff, Officer Scale I |
| 28.30% | Officer Scale II and Scale III |
| 30.50% | Officer Scale IV and Scale V |
| 31.50% | Officer Scale VI and Scale VII |
It was introduced in the 10th Bipartite Settlement at 7.75%, raised to 16.40% in the 11th, and raised again to the present rates in the 12th. Merging it into basic pay has been a standing union demand, because as a separate allowance it does not count towards pension or gratuity.
HRA, Transport and Learning Allowance
For workmen, House Rent Allowance under the 12th Bipartite Settlement is a single unified rate of 10.25% of the HRA base at all centres. For officers it varies by area: 10% at Major A centres, 9% at Area I and Goa, and 8% elsewhere.
Transport Allowance is payable to workmen only; Learning Allowance is for officers only. Both are Rs 850 a month and both carry DA. Officers at CCA centres draw CCA of Rs 1,900 or Rs 2,300 depending on the place of posting; officers at non-CCA centres draw a flat Location Allowance of Rs 1,200 instead. Neither carries DA, and the two are never paid together.
If you are claiming HRA exemption against rent paid, that is a separate income-tax calculation: use the HRA exemption calculator.
PF or NPS: which applies to you, and why the rates differ
This depends on when you joined, and the two schemes do not share a contribution base.
| Scheme | Employee | Bank |
|---|---|---|
| NPS, joined on or after 1 April 2010, on Pay plus DA | 10% | 14% |
| Pension optee PF, on Pay without DA | 10% | nil |
| CPF member, on Pay without DA | 10% | 10% |
The bank's NPS contribution was raised from 10% to 14% under a Government decision announced on 25 August 2021. Note that bank PF is 10%, not the 12% that applies under the EPF scheme in most private employment. Any bank calculator deducting 12% is overstating your deduction. The calculator above asks which cohort you belong to and applies the correct base to each.
Income tax on your revised salary
From 1 April 2026 salary is taxed under the Income-tax Act 2025. The Tax tab on the calculator above compares the new and old regimes on your own figures, including the deduction for the bank's NPS contribution.
One point specific to banks: a bank is not "Government" for the employer NPS deduction, so it is capped at 14% of salary in the new regime and 10% in the old. For a full-year estimate across all your income, use the income tax calculator. The rules are on the Income Tax Department site.
Gratuity for bank employees
Statutory gratuity now sits in the Code on Social Security 2020, which replaced the Payment of Gratuity Act 1972 on 21 November 2025. The formula is unchanged.
Bank employees get the higher of the statutory figure and the Service Regulations or Settlement figure, each applied whole rather than blended. The two routes use different bases, and which one wins can change across a career, so the Gratuity tab works out both and tells you which applies to you. For a general estimate outside banking, use the gratuity calculator.
Which banks are covered
The settlement applies to the banks listed in its own schedule, which is all public sector banks plus a number of private and foreign banks that are members of the Indian Banks' Association and party to the settlement. If you are unsure whether your bank is covered, the authoritative list is in the signed settlement itself, linked in the sources below, and IBA publishes the circulars that follow from it.
Banks outside the settlement, including Regional Rural Banks and co-operative banks, set pay through their own arrangements. A general bank salary calculator built on private-sector CTC will not give you the right figure for a settlement bank, and these scales and this tool apply only to the banks that are party to the settlement.
Common mistakes when checking bank salary
- Adding 17% to your old gross. The 17% is the industry-wide cost of the revision, not your personal increase.
- Calculating HRA on gross pay. HRA is a percentage of the HRA base, which excludes Special Allowance.
- Leaving out DA on Special Allowance. Special Allowance carries DA; missing it understates gross pay by a large amount.
- Using last quarter's DA. DA changes on 1 February, 1 May, 1 August and 1 November.
- Quoting an 11th BPS scale as current. A clerk's first stage moved from Rs 17,900 to Rs 24,050 with effect from 1 November 2022.
What comes next: the 13th Bipartite Settlement
The 12th Bipartite Settlement runs to 31 October 2027, so the next revision is due from 1 November 2027. In April 2026 the Ministry of Finance asked public sector banks to complete the wage negotiations within twelve months, as reported in the press.
No 13th BPS pay scale, allowance rate or hike percentage has been published by IBA or by any union, and as at this update the unions were still preparing their charter of demands. Anything you see online quoting a 13th BPS salary is a projection.
If you want to model it honestly, the 13th Bipartite Settlement projection calculator runs the settlement's own scale construction method forward and shows you exactly which parts are documented and which are inferred. For background on the negotiations, see the latest on the bank employees salary hike.
Related calculators
- 12th Bipartite Settlement pay scale chart - every stage and stagnation increment
- 13th Bipartite Settlement projection calculator - expected pay from November 2027
- 11th BPS salary calculator - the previous settlement, for comparison and arrears
- Gratuity calculator
- Income tax calculator
- All HR Calcy calculators
Frequently asked questions
What is the current DA for bank employees?
27.83% of pay for the August to October 2026 quarter, calculated as the CPI-IW quarterly average of 150.86 less the 12th BPS base of 123.03. The next revision is due on 1 November 2026.
What is the starting basic pay of a bank clerk under the 12th Bipartite Settlement?
Rs 24,050 a month. Subordinate staff start at Rs 19,500 and an Officer Scale I starts at Rs 48,480.
What is Special Allowance in a bank salary slip?
A percentage of Basic Pay alone, 26.50% for clerical staff, subordinate staff and Scale I officers, rising to 31.50% in Scale VII. It carries DA but does not count towards pension, PF, NPS or gratuity.
Is bank PF 10% or 12%?
10%. Bank Provident Fund is 10% of pay without DA. NPS, which applies to those who joined on or after 1 April 2010, is 10% from the employee and 14% from the bank, on pay plus DA.
How much HRA do bank employees get?
Workmen get a unified 10.25% of the HRA base at all centres. Officers get 10% at Major A centres, 9% at Area I and Goa centres, and 8% elsewhere. Special Allowance and Transport or Learning Allowance are not part of the HRA base.
How were the 12th Bipartite Settlement arrears calculated?
Arrears cover the sixteen months from November 2022 to February 2024 and were paid in March 2024 in most banks. They are the month by month difference between the revised pay and the pre-revised 11th BPS pay actually drawn, including the DA applicable on each side in each quarter.
How much arrears did bank employees get under the 12th Bipartite Settlement?
It depends on cadre and stage. On this calculator, a clerk moving from Rs 17,900 to Rs 24,050 with no increment in the period gets gross arrears of about Rs 75,236 for the sixteen months, and an Officer Scale I moving from Rs 36,000 to Rs 48,480 gets about Rs 1,77,074.
How is tax on 12th BPS arrears relieved?
Arrears are taxed in the year of receipt. Relief for spreading them over the years they relate to is claimed under section 157(1) of the Income-tax Act 2025 on Form 39, which replaced section 89(1) and Form 10E from 1 April 2026.
When will the 13th Bipartite Settlement be signed?
It is due from 1 November 2027 and has not yet been negotiated. For reference, the 12th BPS was signed 16 months after its effective date and the 11th BPS 36 months after its effective date. No pay scale has been published by IBA or any union.
Does the 8th Pay Commission apply to bank employees?
No. Pay Commissions set central government pay. Bank employee pay is settled by bipartite negotiation between the Indian Banks' Association and the unions, currently under the 12th Bipartite Settlement and the 9th Joint Note.
Sources
- 12th Bipartite Settlement, memorandum of settlement dated 8 March 2024 (PDF)
- AIBOC circular 06/2024 on the 9th Joint Note (PDF) - officer Special Allowance, HRA, Learning Allowance, CCA and Location Allowance, DA merger at 30.38% and loading of 3.22%
- AIBEA circular letter 30/11/2026/37 dated 31 July 2026 - DA of 27.83% for August to October 2026 and the CPI-IW figures
- Labour Bureau, All India CPI-IW, base 2016=100
- PIB release of 25 August 2021 - bank's NPS contribution raised to 14%
- Indian Banks' Association
- Income Tax Department, Government of India - section 157(1) and Form 39
Disclaimer. This calculator is an estimate based on the published settlement. Your actual salary slip may differ because of bank specific allowances, recoveries, or the way your bank applies optional components. Verify your pay with your bank's HR or payroll department before relying on any figure for a financial decision. Spotted a figure that differs from your bank's circular? Tell us.
Written by Vishvas Yadav, Senior HR | Payroll & Compliance Professional, Founder of HR Calcy.