12th Bipartite Settlement Salary Calculator | 17% with 3% load factor

In a landmark decision, the Indian Banks’ Association (IBA) and workers’ unions recently inked an agreement to enhance the salaries of employees in public sector banks by a substantial 17%, totaling a staggering Rs 12,449 crore. This momentous decision, affecting approximately nine lakh employees, including 3.8 lakh officers in PSU banks like SBI, marks a significant leap in the financial well-being of the banking sector workforce. The agreement, reached on December 7, 2023, through detailed discussions, promises a positive change in the lives of countless bank employees.

Bank Employees Salary Revision Latest News:

After a prolonged wait, the IBA and bank unions have settled on a 17% annual salary increase for five years, commencing from the fiscal year 2021-22. This eagerly anticipated wage revision will be effective from November 1, 2022. However, the prospect of a 5-day work week remains uncertain, as unions advocate for the declaration of all Saturdays as public holidays for banks. The distribution of annual wage increases for bank employees will be meticulously calculated, taking into account the fiscal year 2021-22 expenditures.

Bank Employees Salary Hike:

Both parties are committed to finalizing a detailed agreement within 180 days from the signing of the Memorandum of Understanding (MoU). The IBA has recommended declaring all Saturdays as holidays for the banking industry under the NI Act, a proposal currently awaiting clarity. The ongoing negotiations encompass various issues, including the implementation of this recommendation before signing the final agreement.

Key Points on the 12th Bipartite settlement

1. The new pay rates commence from November 1, 2022, and will remain in effect for five years.
2. A substantial 17% increase in salary and allowances, amounting to Rs 12,449 crore for all public sector banks, including the State Bank of India.
3. The calculation of the new pay involves merging Dearness Allowance points up to 8088 with the basic pay as of October 31, 2022, plus an additional 3%, totaling Rs 1795 crore.
4. Annual wage increases for workers and officers will be determined separately based on the fiscal year 2021-22 expenditure breakdown.
5. Ongoing discussions regarding pension updates for retirees, with a one-time ex-gratia amount agreed upon for pensioners and family pensioners as of October 31, 2022.
6. Applicability of the ex-gratia for retirees of the current settlement period to be discussed later, unaffected by other allowances.
7. Recommendation to declare all Saturdays as holidays for the banking industry under the NI Act, with an unclear status.
8. Resolution of all matters raised during negotiations, including ex-gratia payments for pensioners of private sector banks and foreign banks.

Bank Employees Salary Hike Calculator:

With the 12th Bipartite settlement for bank employees finalized, employees are eager to calculate their new pay. The 17% salary hike, including a 3% load factor, will result in a comprehensive increase on the payslip. The Dearness Allowance is merged with the current basic pay, and the Special Allowance is pending as of 7/12/2023.

FAQ

The salary increase after the 12th Bipartite Settlement is a substantial 17%, totaling Rs 12,449 crore for all public sector banks, including the State Bank of India.

The 12th Bipartite Settlement is effective for five years, starting from November 1, 2022.

The salary revision in banks, as per the 12th Bipartite Settlement, involves a 17% increase in salary and allowances for a period of five years.

The load factor in the salary calculation for the 12th Bipartite Settlement is 3%. This factor is applied to both Basic and Dearness Allowance, contributing to the overall salary increase.