12th Bipartite Settlement Salary Calculator: This free 12th BPS salary calculator works out your revised bank salary and your arrears under the 12th Bipartite Settlement and the 9th Joint Note, effective 1 November 2022, for clerical staff, subordinate staff and officers in Scale I to VII. It uses the actual settlement scales and the bank DA now payable, 27.83% for August to October 2026, and gives:
- gross and in-hand salary with every payslip line: Basic Pay, Special Allowance, DA, HRA, Transport or Learning Allowance, CCA or Location Allowance;
- your NPS or PF deduction and the bank's NPS at 14%;
- income tax under the new and old regimes on your own figures;
- month-wise arrears for November 2022 to February 2024;
- gratuity on both the statutory and the Service Regulations route, and which one applies.
12th BPS Salary Calculation Formula
Pay here is Basic Pay plus stagnation increments, Special Pay, Professional Qualification Pay and Officiating Pay. Special Allowance and Transport or Learning Allowance carry DA but are not part of the HRA base, and Special Allowance does not count for pension, PF, NPS or gratuity. DA is 1.00% of pay for every point of the CPI-IW (2016 = 100) quarterly average above 123.03: 150.86 − 123.03 = 27.83% for August to October 2026.
Bank Clerk Salary at the First Stage (Calculator Default)
| Component | Working | Monthly |
|---|---|---|
| Basic Pay | First stage, Clerical | ₹24,050 |
| Special Allowance | 26.50% × ₹24,050 | ₹6,373 |
| Transport Allowance | Flat, workmen only | ₹850 |
| Dearness Allowance | 27.83% × (₹24,050 + ₹6,373 + ₹850) | ₹8,703 |
| House Rent Allowance | 10.25% × ₹24,050 | ₹2,465 |
| Gross salary | ₹42,441 | |
| Less NPS | 10% × (₹24,050 + ₹6,693 DA on pay) | ₹3,074 |
Officer Scale I Salary 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 | Working | Monthly |
|---|---|---|
| Basic Pay | First stage, Scale I | ₹48,480 |
| Special Allowance | 26.50% × ₹48,480 | ₹12,847 |
| Learning Allowance | Flat, officers only | ₹850 |
| Dearness Allowance | 27.83% × (₹48,480 + ₹12,847 + ₹850) | ₹17,304 |
| House Rent Allowance | 8% × ₹48,480 | ₹3,878 |
| Location Allowance | Non-CCA centre | ₹1,200 |
| Gross salary | ₹84,559 | |
| Less NPS | 10% of pay plus DA on pay | ₹6,197 |
At a CCA centre the officer draws CCA of ₹1,900 or ₹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.
12th Bipartite Settlement Pay Scales
The 12th Bipartite Settlement salary chart for every cadre, effective 1 November 2022. The first figure is the starting stage, the second is the maximum of the scale before stagnation increments.
| Cadre | First stage | Maximum |
|---|---|---|
| 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 ₹2,680, payable at two-year intervals, taking the ladder to ₹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.
The top of one scale is often the start of the next. Scale I ends at ₹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. ₹1,73,860 is the maximum of Scale VII, not its starting pay.
Special Allowance Rates by Cadre
| 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 |
Special Allowance is a percentage of Basic Pay alone, and it carries DA. 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.
Bank DA for August to October 2026: 27.83%
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%.
- 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 from 1 August uses the April, May and June index.
| 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. Every quarter's rate since November 2022, with a calculator for DA in rupees, is on the bank DA page.
12th Bipartite Settlement Arrears: Worked Example
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, not a single percentage applied to one month's salary. The Arrears tab on the calculator does this month by month: enter your 11th BPS Basic Pay as it stood on 31 October 2022. For your pre-revised pay itself, the 11th BPS salary calculator shows the old scales and DA.
| Item | Clerk |
|---|---|
| 11th BPS Basic Pay | ₹17,900 |
| 12th BPS Basic Pay | ₹24,050 |
| Period | 16 months, Nov 2022 to Feb 2024 |
| Difference in November 2022 | about ₹4,449 |
| Difference in February 2024 | about ₹4,989 |
| Average difference a month | ₹4,702 |
| Gross arrears | ₹75,236 |
The example assumes no increment, promotion or optional pay items during the period. On the same basis the calculator gives an Officer Scale I moving from ₹36,000 to ₹48,480 gross arrears of about ₹1,77,074 at a Major A centre (10% HRA) that is not a CCA centre; at an 8% HRA centre it is about ₹1,73,081. The monthly difference grows because DA was still rising on both the 11th and 12th BPS sides, and the revised DA runs on a larger basic.
PF or NPS: Contribution Rates for Bank Employees
| 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. Bank PF is 10%, not the 12% that applies under the EPF scheme in most private employment, so any bank calculator deducting 12% is overstating your deduction. The calculator asks which cohort you belong to and applies the correct base to each.
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 | ₹850, workmen only | Yes |
| Learning Allowance | ₹850, officers only | Yes |
| CCA / Location Allowance | Officers: CCA at CCA centres, ₹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.
About the Calculator
How to Use This 12th BPS Salary Calculator
- Pick your cadre: Clerical, Subordinate or Officer (and your scale, Scale I to VII).
- Set your present Basic Pay with the slider or type it in; the stage is shown under the box.
- 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: set the HRA area and whether the centre is a CCA centre, because both change gross pay.
- Read the Salary tab, then use the Tax, Arrears and Gratuity tabs.
What the 12th Bipartite Settlement Changed: the 17% Hike Explained
The 12th Bipartite Settlement is the wage revision for employees of the banks party to it. It was signed on 8 March 2024 and takes effect from 1 November 2022, running 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 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.
How Bank Salary Is Calculated: the Three Bases
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.
- 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".
- HRA base: Basic Pay, stagnation, Special Pay, PQP and Officiating Pay only.
- 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 Indian payroll e-book covers the same discipline step by step for general employers.
HRA, Transport and Learning Allowance
For workmen, House Rent Allowance 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 ₹850 a month and both carry DA. Officers at CCA centres draw CCA of ₹1,900 or ₹2,300 depending on the place of posting; officers at non-CCA centres draw a flat Location Allowance of ₹1,200 instead. Neither carries DA, and the two are never paid together. For HRA exemption against rent paid, use the HRA exemption calculator.
Income Tax on Revised Salary and Arrears
From 1 April 2026 salary is taxed under the Income-tax Act 2025. The Tax tab compares the new and old regimes on your own figures, including the deduction for the bank's NPS contribution. 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.
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. 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. 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: 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. The authoritative list is in the signed settlement itself.
Regional Rural Banks are not parties to the settlement, but their staff have pay parity with sponsor bank staff and each revision reaches them by government order. Co-operative banks and new private sector banks set pay through their own arrangements, so a general salary calculator built on private-sector CTC will not give the right figure for a settlement bank.
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 ₹17,900 to ₹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, so anything quoting a 13th BPS salary is a projection.
The 13th Bipartite Settlement projection calculator runs the settlement's own scale construction method forward and shows which parts are documented and which are inferred. For background, see the latest on the bank employees salary hike and the complete guide to Bipartite Settlements.
Related Calculators
- Bank DA calculator: current DA and every quarter since November 2022
- 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
Which DA rate does this 12th BPS calculator use?
27.83% of pay, the rate for August to October 2026, calculated as the CPI-IW quarterly average of 150.86 less the 12th BPS base of 123.03. It changes on 1 November 2026, and every quarter's rate is on the bank DA page.
What is the starting basic pay of a bank clerk under the 12th Bipartite Settlement?
₹24,050 a month. Subordinate staff start at ₹19,500 and an Officer Scale I starts at ₹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 ₹17,900 to ₹24,050 with no increment in the period gets gross arrears of about ₹75,236 for the sixteen months, and an Officer Scale I moving from ₹36,000 to ₹48,480 gets about ₹1,77,074 at a Major A, non-CCA centre.
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.
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.