Get full insights on the 12th Bipartite Settlement including salary hike expectations, pay scale for clerks and officers, downloadable chart PDF, arrears, and DA updates. Perfect for PSU bank employees, job seekers, and HR professionals.
The 12th Bipartite Settlement has become the most anticipated salary revision for public sector bank employees across India. With lakhs of officers and clerks awaiting clarity on new pay scales, salary hikes, and allowances, the settlement has sparked intense discussions among banking professionals, unions, and aspirants alike.
This article offers a complete overview of what’s expected from the 12th BPS — including latest updates, salary chart PDFs, pay scale details for officers and clerks, and a live calculator to help you estimate your revised salary.
What is the 12th Bipartite Settlement?
The Bipartite Settlement is a wage negotiation process between the Indian Banks' Association (IBA) and bank employee unions such as AIBEA and UFBU. Conducted every five years, this agreement determines the revised salaries, benefits, and service conditions for employees in public sector banks.
The 12th Bipartite Settlement, expected to be effective from 1 November 2022, is currently under final negotiation stages. While the previous settlement (11th BPS) brought a 15% wage increase, early indicators suggest the 12th may offer a slightly higher hike, particularly considering inflation and workload escalations in digital banking roles.
Latest Update on the 12th BPS (As of July 2024)
As of this month, the formal signing of the 12th Bipartite Settlement is still awaited. However, reliable sources including AIBEA’s official circulars and banking insiders suggest that major terms have been discussed and a draft salary structure has been circulated for review. Final approval may be imminent, with the possibility of arrears being credited by Q3 2024.
In the recent UFBU meeting with the IBA, there was a collective push to finalize discussions on allowances, loading factors, and fitment formula. While DA merger points are still under review, most salary slabs have already been tentatively outlined.
Key Highlights at a Glance
| Feature | Expected Update (Tentative) |
|---|---|
| Settlement Period | Nov 2022 – Oct 2027 |
| Tentative Salary Hike | 15% – 17% (proposed) |
| DA Merger Point | 8088 or higher (expected) |
| Fitment Factor (Clerks/Officers) | Under discussion |
| Likely Arrear Credit | Q3 or Q4 2024 |
| Number of Employees Impacted | 8.5 lakh+ |
These are indicative figures. Final confirmation will follow post-signing and gazette notification.
Understanding the Wage Revision Structure
Wage revisions under bipartite settlements follow a layered structure. The basic pay is revised based on a fitment formula, followed by adjustments in dearness allowance (DA), house rent allowance (HRA), and special allowances. Notably, once the revised basic is fixed, other components like pension, gratuity, and PL encashment are recalculated accordingly.
You can refer to how previous settlements were structured through this detailed RBI wage settlement archive.
Why This Settlement Matters Now More Than Ever
The 12th BPS holds greater weight not only due to inflation but also because of evolving job roles in the banking sector. Digital transformation has altered responsibilities, workload has shifted toward customer-centric processes, and banks are seeing younger, tech-savvy officers entering the system. All this has made unions push for a more performance-aligned structure this time around.
Moreover, salary disparity between PSU banks and private sector banks has widened, making retention a key concern. The 12th BPS is expected to bridge this gap partially, if not entirely.
Officer Pay Scale Under the 12th Bipartite Settlement
Officers form the backbone of public sector banks, and their pay revision under the 12th Bipartite Settlement is expected to follow a structured hierarchy — starting from Scale I (Assistant Manager) up to Scale VII (General Manager). While the final matrix is yet to be formally released, internal drafts shared among union circles hint at a rationalized structure that aligns more closely with inflation-adjusted expectations and performance-based benchmarks.
Here's an indicative view of how the officer basic pay structure might change:
| Officer Grade | Existing Basic (11th BPS) | Expected Revised Basic | Annual Growth (Approx.) |
|---|---|---|---|
| Scale I | ₹36,000 | ₹41,500 – ₹43,000 | ₹75,000 – ₹90,000 |
| Scale II | ₹48,170 | ₹55,500 – ₹57,000 | ₹95,000 – ₹1,10,000 |
| Scale III | ₹63,840 | ₹72,000 – ₹75,000 | ₹1.2 – ₹1.4 lakh |
| Scale IV | ₹76,010 | ₹85,000 – ₹88,000 | ₹1.4 – ₹1.6 lakh |
These figures are subject to change once the final agreement is published. The fitment factor and DA merger point will also play a significant role in shaping the final numbers. The overall aim appears to be to ensure parity with other public sector compensation structures without causing a fiscal strain on banks.
Salary Chart PDF Download – A Growing Demand
One of the most searched-for resources since negotiations began is the 12th bipartite settlement salary chart in PDF format. Employees, HR departments, and aspiring bank candidates are looking for a simplified, printable breakdown of revised pay scales.
The convenience of a downloadable file—especially for offline sharing and union-level discussions—has made this format extremely popular. While official PDFs will be circulated only after the final agreement, several union groups and websites like AllBankingSolutions have shared provisional versions based on internal drafts.
Such documents typically include:
- Basic Pay Tables for Clerks and Officers
- HRA, CCA, and Transport Allowance structures
- Expected gross pay and in-hand salary estimates
- Comparison with 11th BPS figures
Readers should verify authenticity before referring to any draft PDF as final.
Clerk-Level Salary Revision: What to Expect
For clerical staff, the 12th BPS is expected to bring a substantial rise in gross monthly salary, particularly in metro cities where allowances play a big role. Here's a projected table based on common expectations:
| Component | Existing (11th BPS) | Expected (12th BPS) |
|---|---|---|
| Basic Pay | ₹19,900 | ₹22,500 – ₹23,500 |
| Special Allowance | ₹3,263 | ₹4,200 – ₹4,500 |
| DA (Variable) | ₹9,700 – ₹10,500 | ₹11,800 – ₹12,500 |
| HRA (Metro) | ₹1,800 – ₹2,000 | ₹2,300 – ₹2,600 |
| Gross Monthly Salary | ₹34,000 – ₹36,000 | ₹40,000 – ₹43,000 |
Clerks in non-metro zones may see minor differences due to HRA and CCA variations. The overall hike is expected to cross 16% in several zones, though the final percentage will be confirmed after the official settlement release.
For deeper insights on wage revision and banking reforms, publications from PRS Legislative Research often provide background on sector-wide HR reforms and financial structuring in public banks.
Position-Wise Salary Projection Under 12th Bipartite Settlement
The 12th Bipartite Settlement is expected to reshape the salary structure not just for clerical and officer grades, but also for specific positions such as SBI PO, IBPS PO, RRB Officers, and SBI Clerks. Each of these roles comes with slight variations in allowances and additional benefits, making it crucial to understand how the new settlement will reflect across designations.
The following projections are based on draft inputs from banking unions and industry experts and should help candidates and employees get a realistic picture of what's ahead.
SBI PO Salary After 12th Bipartite Settlement
State Bank of India offers slightly better salary packages compared to other public sector banks due to additional allowances and benefits. Here's what a new SBI PO can expect after the 12th BPS is implemented:
| Component | Current (11th BPS) | Expected (12th BPS) |
|---|---|---|
| Basic Pay | ₹41,960 | ₹48,500 – ₹50,000 |
| Special Allowance | ₹6,000 – ₹7,000 | ₹7,800 – ₹8,500 |
| DA (Expected Avg.) | ₹17,000 – ₹18,500 | ₹20,500 – ₹22,000 |
| City Compensatory Allowance | ₹600 – ₹870 | ₹850 – ₹1,200 |
| HRA (Metro) | ₹3,000 – ₹4,000 | ₹3,800 – ₹4,500 |
| Gross Monthly Salary | ₹68,000 – ₹71,000 | ₹80,000 – ₹85,000 |
In addition to salary, SBI POs enjoy perks like leased accommodation, fuel reimbursement, and higher LFC eligibility. According to the official SBI Careers portal, benefits continue to evolve based on service length and location.
IBPS PO Salary After 12th Bipartite Settlement
The IBPS PO cadre covers officers placed across various PSU banks including PNB, Canara Bank, BoB, and Union Bank. With the 12th BPS in play, their compensation is expected to align with the revised Scale I structure.
| Component | Existing Structure | Expected Revision |
|---|---|---|
| Basic Pay | ₹36,000 | ₹41,500 – ₹43,000 |
| DA | ₹14,000 – ₹15,000 | ₹17,000 – ₹18,500 |
| HRA (Metro) | ₹3,240 – ₹3,600 | ₹3,900 – ₹4,400 |
| Special Allowance | ₹5,904 | ₹6,800 – ₹7,500 |
| Gross Monthly | ₹59,000 – ₹61,000 | ₹69,000 – ₹73,000 |
These officers will also receive additional benefits such as furniture allowances, newspaper reimbursement, and mobile bill compensation as per individual bank policies. These are reviewed every settlement cycle.
RRB PO Salary Adjustment After 12th BPS
For Regional Rural Banks, salary structures have historically followed the bipartite model, though implementation may be slightly delayed due to approval from NABARD and Ministry of Finance. Nevertheless, once cleared, RRB officers will receive arrears with retrospective effect.
The entry-level RRB PO (Scale I) is expected to move from a gross salary of ₹52,000–₹55,000 to around ₹61,000–₹64,000. The gap primarily arises due to lesser allowances and facilities compared to nationalized banks.
Further clarity can be drawn from data published by Institute of Banking Personnel Selection (IBPS) which routinely shares updates on structure, salary components, and eligibility.
SBI Clerk Salary After 12th Bipartite Settlement
SBI Clerks enjoy additional monetary and non-monetary benefits, which enhance their compensation over their counterparts in other PSBs. Here's a tentative revised structure post-12th BPS:
| Component | Current (11th BPS) | Expected (12th BPS) |
|---|---|---|
| Basic Pay | ₹19,900 | ₹22,500 – ₹23,500 |
| DA | ₹9,500 – ₹10,500 | ₹11,800 – ₹12,800 |
| Special Allowance | ₹3,263 | ₹4,100 – ₹4,400 |
| HRA (Metro) | ₹1,800 – ₹2,100 | ₹2,300 – ₹2,600 |
| Total Gross | ₹34,500 – ₹36,500 | ₹40,000 – ₹43,000 |
These figures do not include SBI’s extra allowances like furniture grants or transport subsidies, which make the total CTC significantly higher for clerical staff as well.
The position-wise projections clearly show that the 12th Bipartite Settlement is poised to bring meaningful changes across all levels, making PSU banking roles more competitive and attractive, especially in today’s evolving job market.
Estimating Your Take-Home Pay After 12th Bipartite Settlement
Understanding what goes into your in-hand salary after the 12th Bipartite Settlement is as important as knowing the revised basic pay. While gross salary includes various allowances, the actual amount credited to your bank account is affected by deductions such as PF, income tax, professional tax, and NPS contributions.
Using early figures shared by bank unions and wage revision analysts, we can estimate take-home salary for different positions post-revision. These numbers are indicative and will vary slightly depending on city class, allowances approved by respective banks, and deductions.
| Post | Gross Salary (Est.) | Deductions (Est.) | Net In-Hand Salary |
|---|---|---|---|
| Clerk (Metro) | ₹42,000 | ₹6,500 – ₹7,000 | ₹35,000 – ₹36,000 |
| PO (IBPS Banks) | ₹71,000 | ₹9,000 – ₹10,000 | ₹61,000 – ₹62,000 |
| SBI PO | ₹84,000 | ₹11,000 – ₹12,000 | ₹72,000 – ₹73,000 |
| Officer Scale II | ₹90,000 – ₹95,000 | ₹12,500 – ₹13,000 | ₹77,500 – ₹82,000 |
These are only sample estimates and do not account for income tax slab variations or optional reimbursements. However, they offer a practical view of what employees can expect once the 12th BPS is enforced across PSU banks.
For those calculating annual take-home salary, remember to account for bonuses, LFC encashment, and annual increments. Bonus payments and ex gratia are typically disbursed during Diwali or year-end, and they can vary depending on the bank's profitability.
For an official breakdown of allowance structures that contribute to gross and net pay, refer to the Ministry of Finance documentation, which outlines compensation guidelines for public sector banks.
12th Bipartite Settlement Salary Calculator
To simplify the estimation process, various tools have emerged to help employees project their post-settlement salaries. These calculators take into account basic pay, proposed hike percentage, DA merger point, and likely fitment factor.
One such tool allows you to input:
- Your current basic pay
- Cadre (Clerk/Officer)
- Expected fitment multiplier
- DA merger assumption
It then generates your expected revised basic, gross monthly salary, and annual cost-to-company (CTC).
For the most accurate calculations aligned with the 12th BPS discussions, users often rely on community-supported calculators shared by banking professionals on forums like Bankers Forum India, which are regularly updated as new information becomes available.
Once the settlement is finalized and gazetted, these calculators will update their logic to reflect official numbers. Until then, they serve as a valuable resource for planning and negotiation preparation.
For HR professionals or bank management staff, such calculators also help in forecasting branch-level budgetary allocations for salary payments and arrears.
Take-home salary estimations and calculator tools have grown increasingly vital for bank employees during this waiting period. They offer not just clarity but a sense of preparedness in financial planning—whether it's for loans, investments, or family budgeting.
Impact of 12th BPS on Allowances and Dearness Adjustment
Beyond the basic pay revision, one of the most significant elements of the 12th Bipartite Settlement is the restructuring of allowances—particularly Dearness Allowance (DA), House Rent Allowance (HRA), and Special Allowance. These components together form a considerable portion of a bank employee's gross and take-home salary.
Dearness Allowance (DA)
DA is revised quarterly based on the All India Consumer Price Index (AICPI). With the 12th BPS expected to merge DA at a new point (likely 8088 or higher), this component is projected to undergo a noticeable reset. A higher DA merger point typically means a better base for future hikes.
Currently, DA is being paid at over 50% of the basic pay for clerks and officers. Once the new settlement is implemented, DA may initially appear lower due to merger but will rise steadily again. According to the Labour Bureau of India, AICPI numbers have been climbing consistently, indicating further DA increases in upcoming quarters.
House Rent Allowance (HRA)
HRA is calculated as a percentage of basic pay, and it varies by location category:
- 9% in metro cities
- 8% in other urban areas
- 7% in semi-urban and rural areas
The 12th BPS may also bring a proposal to revise these percentages or increase the basic pay slabs that form the basis of HRA calculation. Unions have long argued for revising HRA categories to reflect the actual cost of living in smaller cities that have seen significant rent increases over the past decade.
If accepted, the new structure could look like this:
| City Type | Current HRA % | Expected HRA % |
|---|---|---|
| Metro | 9% | 10% |
| Urban | 8% | 9% |
| Semi-Urban/Rural | 7% | 8% |
Some unions have also suggested linking HRA to actual rental expenses within specified caps, similar to allowances offered in certain central government roles under the 7th CPC.
Special Allowance and CCA
Special Allowance was introduced in the 10th BPS and retained in the 11th. Though it is excluded from retirement benefits like pension and gratuity, it has grown to become a fixed part of the pay structure. The 12th BPS is expected to marginally increase the percentage of this allowance, making it more relevant in overall earnings.
City Compensatory Allowance (CCA), though a small figure, is expected to continue as-is or receive nominal upward revision for select cities. These allowances are more significant for junior staff posted in high-cost zones.
Additional allowances such as Transport Allowance, Newspaper Reimbursement, and Hill Area Allowance are likely to be retained with marginal tweaks. Insights into current government norms can be cross-checked with the Department of Expenditure under the Ministry of Finance.
As wage revision talks near closure, clarity on these non-basic components becomes equally important. They often decide the real-world utility of the salary hike and significantly impact long-term financial planning for employees.
Downloadable Salary Chart & Draft PDF Resources
With ongoing negotiations and multiple internal drafts circulating, many employees and HR departments are seeking access to reliable 12th Bipartite Settlement salary charts in PDF format. While the final document will only be published after formal signing between the Indian Banks’ Association (IBA) and union representatives, several credible draft versions are already available.
These draft salary charts typically include:
- Revised basic pay for clerical and officer cadres
- Projected allowances and benefits
- Fitment details based on DA merger points
- Cadre-wise progression (e.g., Scale I to Scale VII)
Such PDFs are being used for planning arrears, calculating tax impacts, and preparing budgets at institutional levels. For employees, having this chart helps in better understanding take-home projections and financial planning post-settlement.
A few known banking forums and platforms like Bankers Club have hosted editable versions of these salary structures, often compiled by union members and HR consultants for community use.
Frequently Asked Questions on 12th Bipartite Settlement
To address the growing curiosity and concerns from both current employees and banking aspirants, here are some of the most relevant questions being asked around the 12th BPS:
What is the effective date of the 12th Bipartite Settlement?
The wage revision will be retrospectively applicable from 1st November 2022, similar to previous settlements. However, the actual date of implementation and arrears disbursal will depend on when the final agreement is signed.
What is the expected percentage of salary hike?
Estimates currently indicate a 15% to 17% increase in gross salary, with final numbers depending on the agreed fitment factor and merged DA point. Officers and clerks across scales are expected to benefit proportionally.
Will pension and gratuity be affected?
Yes, indirectly. Once the revised basic pay is implemented, benefits like pension, gratuity, and leave encashment—calculated on basic—will also reflect upward changes. However, components like Special Allowance (which are excluded from pension) may continue to remain outside that calculation base unless renegotiated.
Is the 12th BPS applicable to Regional Rural Banks?
Eventually, yes. While implementation in Regional Rural Banks (RRBs) takes time due to separate administrative channels involving NABARD and the Ministry of Finance, the 12th BPS framework typically gets extended to RRBs with a time lag. The previous BPS was also adopted similarly with slight modifications.
More clarity can be found on this through circulars and updates published on the IBA India official site, which serves as the negotiation authority on behalf of all public sector banks.
Summary of Key Takeaways (So Far)
| Aspect | Status / Projection |
|---|---|
| Effective Period | Nov 2022 – Oct 2027 |
| Salary Hike (Average) | 15% – 17% Expected |
| Final Draft Status | Shared with Unions – Awaiting Signature |
| DA Merger Point | Likely to be 8088 or Higher |
| Expected Arrears Timeline | Q3 or Q4 2024 |
| Salary Chart PDF Availability | Drafts in circulation, official awaited |
These Questions reflect the current state of anticipation and evolving developments around the 12th BPS. They will continue to change as formal announcements are made and circulars are issued.
Final Thoughts and Expert Observations
The 12th Bipartite Settlement marks more than just a routine wage revision—it reflects the evolving priorities of India’s banking sector. As PSU banks adapt to technology, rising customer expectations, and policy-level changes, this settlement is a key opportunity to align compensation with both performance and inflationary trends.
Experts believe this round of negotiations has been more data-driven and employee-centric than previous ones. The extended gap since the 11th BPS, combined with rising living costs and digital workload, has led to louder union demands and greater pressure on the Indian Banks’ Association to deliver a balanced, forward-looking settlement.
Moreover, financial analysts tracking workforce trends across public institutions suggest that retaining mid-level officers has become a strategic priority. With lateral movement to private banks increasing, a strong compensation framework could curb attrition and improve morale, especially at branch levels.
Staying Updated and Planning Ahead
While this article covers everything available as of now, developments are ongoing. Once the final memorandum of understanding (MoU) is signed and published, the salary charts, arrear calculators, and new allowances will be updated accordingly.
To stay informed, employees can regularly check circulars from All India Bank Employees Association (AIBEA) and industry news published in financial dailies like The Hindu BusinessLine or Economic Times. Many union groups also share detailed explanatory notes after signing, making them valuable for understanding the nuances.
For personal planning:
- Use a reliable salary calculator once official figures are out
- Revisit your tax-saving investments after the revised salary starts
- Keep track of bank-specific communications regarding arrears and promotions
Whether you’re a new entrant or a senior officer, this is the right time to reassess your financial goals, update your salary documentation, and make use of any additional benefits offered under the revised structure.
Closing Summary
| Key Outcome | Details |
|---|---|
| Salary Revision | Expected hike of 15%–17% |
| Effective Date | Retrospective from 1 Nov 2022 |
| Final Signature Status | Awaiting MoU – Draft Circulated |
| Revised Pay Scale | Clerical and Officer charts updated |
| Arrears Credit | Likely by end of 2024 |
| Tools for Planning | Calculators, PDFs, official notices |
This settlement, while delayed, is positioned to offer a fair, much-needed correction in pay and benefits—something that the entire banking workforce has been waiting for.
As new developments arise, this article will continue to be updated to reflect the latest information. Bookmark this page or subscribe to trusted union or industry portals to never miss an important update.
FAQ
What is the effective date of the 12th Bipartite Settlement?
The 12th Bipartite Settlement is expected to be applicable from 1st November 2022, with arrears paid retrospectively.
How much salary hike is expected under the 12th BPS?
Employees can expect a 15% to 17% hike in gross salary, depending on the final fitment factor and merged DA point.
Will clerks and officers both get revised pay?
Yes, the revised pay structure under the 12th BPS applies to clerks as well as officers from Scale I to Scale VII.
Where can I find the 12th Bipartite Settlement salary chart PDF?
You can download draft and final charts from trusted platforms like BankersClub and union circulars once the MoU is signed.
How will arrears be calculated?
Arrears will be based on the difference between old and revised salary from Nov 2022 to the date of implementation.
What is the expected DA merger point?
The DA merger point under discussion is 8088 or higher, subject to final agreement between IBA and unions.
Will pension and gratuity increase after the 12th BPS?
Yes, since both are linked to basic pay, any hike in basic will positively affect pension and gratuity amounts.
Is the 12th BPS applicable for Regional Rural Bank (RRB) employees?
Yes, though it may take longer for RRBs to implement as approval must come from NABARD and the Finance Ministry.
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