Bank employees are paid under the 12th Bipartite Settlement, signed on 8 March 2024 and in force until 31 October 2027. Dearness allowance is 27.83% for August to October 2026, and the next full salary hike is the 13th Bipartite Settlement, due from 1 November 2027 but not yet negotiated. This page records what has actually happened, with a date and a source for each step.
Updated 4 October 2026
The short answer
| Question | Answer |
|---|---|
| Has the salary hike happened? | Yes. The 12th Bipartite Settlement was signed on 8 March 2024 |
| From when? | 1 November 2022 |
| How much? | 17% of the 2021-22 pay slip cost, put at about Rs 12,449 crore a year in the December 2023 agreement |
| Were arrears paid? | Yes, for November 2022 onwards, paid after the settlement was signed |
| Current DA? | 27.83% for August to October 2026 |
| Next hike? | 13th Bipartite Settlement, due from 1 November 2027, not yet negotiated |
Bank salary news: what changed and when
Each entry is a documented event with its source. This log is updated as things move, so check the date at the top.
| Date | What happened | Source |
|---|---|---|
| 8 March 2024 | 12th Bipartite Settlement and 9th Joint Note signed, effective 1 November 2022 to 31 October 2027 | Settlement |
| April 2026 | Ministry of Finance asks public sector banks to start and complete 13th BPS negotiations within twelve months | Press reports |
| 29 June 2026 | AIBEA circular on preparing the charter of demands for the 13th BPS | AIBEA |
| 31 July 2026 | DA for August to October 2026 fixed at 27.83% under the 12th BPS | AIBEA |
| 27 September 2026 | UFBU defers the strike called for 28 to 30 September after meeting IBA on five-day banking, the PLI scheme and residual 12th BPS issues. Wage revision was not on the agenda | Press reports |
| Expected late October 2026 | September 2026 CPI-IW release, which fixes DA from 1 November 2026 and the 13th BPS merger point | Labour Bureau |
What the 12th Bipartite Settlement actually delivered
The settlement was signed on 8 March 2024 between the Indian Banks' Association and the unions, with the officers' side covered by the parallel 9th Joint Note. It runs five years, from 1 November 2022 to 31 October 2027. For how bipartite settlements work and every round since 1966, see our guide.
The agreed increase was 17% of the annual pay slip cost for 2021-22, which the December 2023 agreement put at about Rs 12,449 crore a year. That 17% is an industry-wide cost figure, not the percentage by which any one salary rose. The new scales were built by merging dearness allowance up to index point 8088, which came to 30.38%, into basic pay and then adding a load of 3.22%.
| Cadre | First stage |
|---|---|
| Clerical | Rs 24,050 |
| Subordinate staff | Rs 19,500 |
| Officer Scale I | Rs 48,480 |
| Officer Scale VII | Rs 1,56,500 |
Every stage of every scale is in the 12th Bipartite Settlement pay scale chart.
DA this quarter
DA is 27.83% for August to October 2026: 1.00% of pay for every point by which the April to June 2026 CPI-IW average of 150.86 exceeds 123.03. It is revised on 1 February, 1 May, 1 August and 1 November; the next revision is due on 1 November 2026. Every quarter since November 2022, and the expected rate from November, are on the current bank DA page. To see what it means for your pay, use the 12th Bipartite Settlement salary calculator.
The next salary hike: 13th Bipartite Settlement
The 12th Bipartite Settlement ends on 31 October 2027, so the next revision is due from 1 November 2027. As at 4 October 2026 no pay scale, allowance rate or hike percentage has been published, the unions are still preparing their charter of demands, and nothing has been submitted to IBA. Any 13th BPS salary figure you see is a projection.
Past settlements were signed well after their effective dates:
| Settlement | Effective from | Signed | Gap |
|---|---|---|---|
| 9th | 1 Nov 2007 | 27 Apr 2010 | about 30 months |
| 10th | 1 Nov 2012 | 25 May 2015 | about 31 months |
| 11th | 1 Nov 2017 | 11 Nov 2020 | about 36 months |
| 12th | 1 Nov 2022 | 8 Mar 2024 | about 16 months |
If the 13th followed the same pattern, it would be signed between 2029 and 2030. The Government's request to finish talks within twelve months points much earlier, but no settlement has yet been concluded that fast. Whenever it is signed, arrears will run from 1 November 2027. For the projected scales and the latest status, see the 13th Bipartite Settlement status and projection.
Does the 8th Pay Commission apply to bank employees?
No. Pay Commissions set central government pay. Bank pay is set by bipartite settlement between IBA and the unions, so an 8th Pay Commission award has no direct effect on a bank pay slip.
What unions are asking for
These are demands, not agreed terms:
- Five-day banking, with all Saturdays as holidays, pressed through 2026 by the United Forum of Bank Unions and the reason for the strike call deferred in September 2026
- Merger of special allowance into basic pay, because as a separate allowance it does not count towards pension or gratuity
- Pension updation and improved family pension
- Merger of DA as at the effective date rather than twelve months earlier, which would raise the merger sharply
- Changes to the performance linked incentive scheme and settlement of residual 12th BPS issues
What to watch
- The charter of demands submitted to IBA. Negotiations cannot start before this
- IBA seeking a mandate from member banks to negotiate
- The first negotiating meeting. For the 12th BPS, IBA began negotiations on 28 July 2023, about nine months after the effective date
- The quarterly DA circular, every 1 February, May, August and November
Work out your own figure
For your current pay under the signed settlement, including arrears, income tax and gratuity, use the 12th Bipartite Settlement salary and arrears calculator. If you retired between November 2017 and October 2022, your pension rests on the old scales in the 11th Bipartite Settlement calculator.
Frequently asked questions
Will bank employees get a salary hike in 2026?
The main revision for 2022 to 2027 has already happened: the 12th Bipartite Settlement was signed on 8 March 2024 with effect from 1 November 2022. In 2026 pay rises through quarterly DA revisions and annual increments. The next revision is the 13th Bipartite Settlement, due from 1 November 2027.
Has bank DA gone up in 2026?
Yes. Under the 12th Bipartite Settlement it was 23.93% for November 2025 to January 2026, 25.00% from February, 25.70% from May and 27.83% from August 2026. The next revision is due on 1 November 2026.
When is the next bank wage revision?
The 13th Bipartite Settlement, due from 1 November 2027. As at 4 October 2026 it has not been negotiated and the unions are still preparing their charter of demands.
What was the percentage hike in the 12th Bipartite Settlement?
17% of the annual pay slip cost for 2021-22 across the banks covered. Individual increases differ, because the new scales were built by merging 30.38% DA into basic pay and adding a 3.22% load, not by adding 17% to each salary.
Does the 8th Pay Commission apply to bank employees?
No. Bank pay is set by bipartite settlement between the Indian Banks' Association and the unions, not by a Pay Commission.
This page summarises published settlements, circulars and news reports for general information. Projections and demands are not agreed terms. Check your own pay with your bank's HR or payroll department.
Written by Vishvas Yadav, Senior HR | Payroll & Compliance Professional, Founder of HR Calcy.