13th Bipartite Settlement Calculator: Expected Salary 2027

The 13th Bipartite Settlement is the next pay revision for employees of India's public sector banks, effective 1 November 2027. As at 21 October 2026 it has not been signed, the unions are still preparing their charter of demands, and negotiations have not opened, so no official 13th BPS pay scale exists. What exists is a method: the 10th, 11th and 12th settlements were all built the same way, and all three CPI-IW figures that set the 13th BPS dearness allowance merger point have now been published. This free 13th BPS calculator applies that method to your own payslip and gives:

• your projected basic pay from 1 November 2027, built step by step from your basic pay now, the DA merged and the loading;
• the projected gross on that date, line by line, against what the 12th BPS would pay on the same date;
• the projected arrears from 1 November 2027 to the month of signature you choose;
• every assumption on screen: the DA merger point, the loading and a possible Special Allowance merger.

It is a projection, not a settlement figure.

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13th Bipartite Settlement at a Glance

• Effective from: 1 November 2027
• Period: five years if it follows past practice, which would run to 31 October 2032
• Status as at 21 October 2026: not signed; charter of demands being prepared; negotiations not opened
• Government direction: in April 2026 the Ministry of Finance asked public sector banks to start and finish negotiations within twelve months, as reported in the press
• Projected dearness allowance merger: 31.33%, at a CPI-IW base of 154.36
• Projected fitment factor: about 1.35559
• Projected clerical first stage: ₹32,600, against ₹24,050 today
• Projected Officer Scale I first stage: ₹65,720, against ₹48,480 today

Those last four figures are projections produced by the method set out below, not announcements. Nothing has been agreed.

13th BPS Pay Projection Formula

First the dearness allowance payable at the merger index is folded into basic pay. That step costs the banks nothing, because that money was already being paid every month as DA. Then a loading is added on top: the actual pay rise, and the only part that is genuinely negotiated. Special Allowance, DA and HRA are then calculated on the new basic exactly as under the 12th BPS, with DA restarting from the new base index. There is no fitment factor printed in a bipartite settlement; the figure above is simply the product of the two steps.

13th Bipartite Settlement Latest News and Date

The 13th Bipartite Settlement date most people are looking for is 1 November 2027, the effective date. Below is the dated record of what has actually happened since, as distinct from what is expected. Each entry is a documented event, and this table is updated as the wage revision moves.

As at 21 October 2026, the charter of demands has not been submitted and no negotiating date has been announced. Anyone publishing a 13th Bipartite Settlement pay scale as settled fact is publishing a guess.

CPI-IW Figures That Decide the 13th BPS Merger Point

Across the last three settlements the merger point has been the same thing every time: the dearness allowance rate payable for the November to January quarter twelve months before the effective date. For the 13th BPS, effective 1 November 2027, that is the quarter beginning November 2026, set by CPI-IW for July, August and September 2026. All three months are now published by the Labour Bureau.

July 2026 came in at 153.2, August 2026 at 154.4 and September 2026 at 155.5. The truncated average of the three is the merger index, and dearness allowance under the 12th Bipartite Settlement runs at 1.00% for each point above 123.03. That gives a merger index of 154.36 and a dearness allowance merger of 31.33%, the same rate IBA notified as bank DA for November 2026 to January 2027 (AIBEA circular letter 30/19/2026/45).

13th Bipartite Settlement Expected Salary: Projected Pay Scales

The first stage of every scale, with the same method applied forward. These are projections. The settlement is unsigned.

Does the Method Work? Tested Against the 12th Bipartite Settlement

A projection method is worth nothing unless it can reproduce a settlement that already happened. So here it is, run backwards: take the 11th Bipartite Settlement scales, merge 30.38% dearness allowance, add 3.22% loading, and compare the answer against the 12th Bipartite Settlement figures actually signed on 8 March 2024.

The largest error across all nine cadres is 0.17%. On the clerical scale the method predicts ₹24,090 against an actual ₹24,050, a difference of ₹40. That is the level of accuracy the projections carry, provided the loading lands near 3.22%.

What Your Payslip Looks Like on 1 November 2027 (Calculator Default)

Both columns are stated on the same date and the same dearness allowance index, so the comparison is like for like. The 12th BPS figure is what the same employee would be paid on 1 November 2027 if no new settlement existed.

13th Bipartite Settlement Expected Hike: Demands Against Likely Outcome

Reported draft demands for the 13th Bipartite Settlement include a 30 to 35% rise in pay slip components, merger of special allowance into basic pay, 100% dearness allowance neutralisation and immediate five day banking. A charter of demands is an opening position, not a forecast. The useful comparison is what the last three settlements closed at.

The loading has risen each time, by about half a percentage point a settlement. On that pattern a 13th Bipartite Settlement loading somewhere between 3.5 and 4.5% is a reasonable expectation, which is why the calculator lets you set it yourself rather than fixing it.

The one demand that would change the arithmetic materially is merger of special allowance into basic pay. Special allowance is 26.50% of basic for clerical staff and Officer Scale I, rising to 31.50% at Scale VII, and it carries dearness allowance. Folding it into basic would raise pension, gratuity and every percentage based allowance at once. It has been demanded at every settlement since the 10th and conceded at none.

September 2026 CPI-IW: Published at 155.5

September was the last of the three months that set the merger point. With it published at 155.5, the merger index of 154.36 and the dearness allowance merger of 31.33% used here are no longer an assumption about the index. The uncertainty that remains is the loading.

What the 13th Bipartite Settlement Date Actually Means

Three different dates get called "the date", and confusing them is the commonest mistake.

• Effective date, when the new pay is treated as starting: 1 November 2027, the day after the 12th Bipartite Settlement ends.
• Signing date, when the agreement is actually executed: not known. The Ministry of Finance target implies 2027; the 12th took sixteen months beyond its effective date.
• Payment date, when revised pay and arrears reach the account: one to three months after signing, in practice.

The gap between the effective date and the signing date is what creates arrears. The 12th Bipartite Settlement was effective 1 November 2022 and signed 8 March 2024, so employees received sixteen months of arrears in one payment.

How a Bipartite Settlement Builds the New Pay Scale

A settlement does not invent new basic pay figures. It performs two steps on the existing scale, in this order: first the dearness allowance payable at a chosen index point is folded into basic pay, then a loading is added on top.

Where the merger point comes from. For the 12th Bipartite Settlement, effective 1 November 2022, the rule points to the quarter beginning November 2021. Quarterly DA is set by the average CPI-IW index for the preceding July, August and September. Those three months of 2021 were 122.8, 123.0 and 123.3, averaging 123.0333, truncated to 123.03, which is exactly the index the 12th Bipartite Settlement merged at. The rule reproduces the real merger point to the second decimal.

Why "Add 17% to Your Gross" Is the Wrong Calculation

Most 13th Bipartite Settlement articles tell you to multiply your current gross salary by 1.17, because the 12th Bipartite Settlement was reported as a 17% rise. That produces a number that cannot happen, for two reasons.

The 17% was the increase in the pay slip component cost to the banks at the time of signing, not a multiplier anyone's salary was multiplied by. And it was measured against pay as it stood in 2022, before five years of dearness allowance had accumulated. A settlement works on basic pay, not on gross, and the gross then follows because special allowance, dearness allowance and house rent allowance are all calculated from basic. Multiplying the gross skips the mechanism entirely.

Why Basic Pay Rises 35% but the Gross Rises About 6%

Projected clerical basic pay rises from ₹24,050 to ₹32,600, which is 35.6%. But the gross rises only 6.04%, from ₹46,116 to ₹48,903. For Officer Scale I the gross rise is 6.30%.

Most of the basic pay increase is dearness allowance being moved, not added. It was already in the pay slip as DA; the settlement converts it into basic. Once converted, the DA line restarts near zero against the new index base. The genuine gain is the loading, plus the secondary effect that special allowance, house rent allowance and future dearness allowance now all compute on a larger basic pay. Anyone telling you the 13th Bipartite Settlement will raise your take-home pay by 30% is quoting the basic pay movement, or a union demand, and calling it a salary rise.

13th Bipartite Settlement Arrears

Arrears accrue from 1 November 2027 until the month the settlement is signed and paid. They are the month by month difference between what you were actually paid under the 12th Bipartite Settlement and what you should have been paid under the 13th.

The Ministry of Finance has asked for negotiations to be completed within twelve months of April 2026, which would be unusually fast. The 12th Bipartite Settlement ran sixteen months past its effective date before it was signed; the 11th ran considerably longer. The Arrears tab lets you set the month of signature and see the accumulated figure, because the number depends almost entirely on that one assumption.

A rough guide for clerical staff at the first stage, on a monthly difference of about ₹2,787: twelve months of arrears is in the order of ₹33,444, eighteen months about ₹50,166. Arrears are taxable in the year of receipt. Relief for spreading them back 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.

What the 13th BPS Means for Pensioners and Retirees

Employees who retire on or after 1 November 2027 will have their pension and gratuity computed on revised basic pay, so the settlement raises their retirement benefits directly. Employees who retired before that date draw pension on the pay scales in force when they retired; a bipartite settlement does not, by itself, revise pension already being drawn.

Pension updation for earlier retirees is a separate demand that bank unions have pressed for several settlements and that has not been conceded. If you retire between 1 November 2027 and the signing date, your pension is normally re-fixed on the revised scale once the settlement is signed, and the difference is paid as arrears.

Will the 8th Pay Commission Apply to Bank Employees?

No. Central government employees are paid under a Pay Commission, appointed by the government, which makes recommendations the government accepts or modifies. Public sector bank employees are paid under a bipartite settlement: a negotiated industrial agreement between the Indian Banks' Association and the recognised unions, signed under the Industrial Disputes Act. The two systems are separate, they run on different cycles, and a Pay Commission award does not flow through to bank pay. The 8th Pay Commission affects bank employees only indirectly, as a reference point unions cite in negotiation.

What Could Move These Projections

• The loading. This is the real negotiation and the main uncertainty. Every extra percentage point of loading raises projected basic pay by about one per cent.
• A different merger point. If the parties merge at the effective date rather than twelve months before, the merger index would be materially higher. The last three settlements did not do this, but nothing compels the pattern.
• Special allowance merger. Demanded every time, conceded never. If it happens the whole structure changes.
• A CPI-IW rebasing. The index moved from 1960=100 to 2016=100 once already. A fresh base would require the merger point to be restated.

The projections on this page are revised whenever a new CPI-IW figure is published or the negotiating position changes.

How to Use This 13th BPS Calculator

1. Pick your cadre: Clerical, Subordinate or Officer; officers also choose their scale and HRA area.
2. Set your basic pay now under the 12th BPS with the slider or type it in.
3. Open Customize Inputs to change the assumptions: the DA merger point, the loading, a Special Allowance merger and the yearly CPI-IW rise, and to add your payslip items (PQP, Special Pay, Officiating Pay, FPP, Hill Allowance, other allowances).
4. The Projection tab shows how the new basic is built and the projected breakup against the 12th BPS on 1 November 2027.
5. On the Arrears tab, choose the expected month of signature to see the arrears.
6. Open Salary Charts for the same figures as pie charts and graphs.
7. Use Copy, Print, Excel or PDF to save the projection or arrears table you are viewing.