The Indian Banks’ Association, which represents Banking 12th Bipartite Settlement, and the authorized representatives of labor unions and officer associations discussed raising wages for bank employees.
Banking 12th Bipartite Settlement
The need for a strong banking system that can adapt to the difficulties facing the banking sector as well as the need “to further improve the productivity, efficiency, and responsiveness to the needs of the customers and various stakeholders” is acknowledged by the management and the unions and associations that represent the employees and officers.
Raising bank employee wages was considered by the authorized representatives of labor unions and officer associations, as well as the Indian Banks’ Association, which represents bank management. It has been decided to sign an MoU and address the outstanding salary settlement issue with this guarantee.
Banks 12th Bipartite Settlement Points
The pay adjustment will take effect on November 1, 2022, and last for five years. The agreed-upon annual rise in salary and benefits is 17% of the yearly pay slip expenses for the fiscal year 2021–2022, for all PSU banks, including SBI, that amounts to 12,449 crores of rupees.
The new pay scales will be created by adding a 3% loading, or Rs 1795 crore, to the base pay as of October 31, 2022, which will result in Dearness Allowance equal to 8088 points (the average Index point as applicable for the quarters of July, August, and September, 2021).
The yearly salary rise distribution for Workmen and Officers shall be determined individually and proportionately, taking into account the establishment expense breakdown for the fiscal year 2021–2022.
Along with the monthly ex-gratia amount, PSBs will take into consideration the pension of pensioners and family pensioners who were drawing pension as of October 31, 2022, as a one-time measure applicable for the current bipartite / Joint Note period, without prejudice to the demand of unions/associations for an update of pension for all retirees.
Further discussion will be held over the ex-gratia mentioned above applicability to retirees of the present settlement period. No other allowance, not even dearness allowance, will be applied to the aforementioned ex-gratia total.
12th Bipartite Settlement Expected Date
There were little talks in the bipartite meeting on January 12 and decisions seem to be made unilaterally within a closed working group. The completion and release of the cost data have been postponed as a result.
Reputable sources state that there has been a push for revision of specific agreement clauses due to concerns expressed by certain UFBU unions regarding what they view as an arbitrary approach and bankers’ fury on social media.
12th Bipartite Settlement Salary
Everyone is excited to determine their new salary based on this boost now that the 12th Bipartite settlement for bank workers has been finalized. Bank wage increases are capped at 17% and come with a 3% load factor.
This implies that there will be a 17% rise in your total salary on your payslip. The present base wage is combined with the Dearness Allowance (DA). As of July 12, 2023, the Special Allowance which was determined using basic pay and DA and was 16.4% in the 11th Bipartite settlement is still pending.
Below is an analysis of the 12th BPS compensation calculation, which includes a 17% increase:
- Load Factor Explanation: By accounting for both DA and BASIC, the load factor which is taken into account in the 12th BPS benefits bank employees. This 3% load factor is used for both DA and BASIC.
- Total Rise in Pay: The 12th BPS settlement indicates that the overall salary rise is precisely 17%. According to the 12BPS final negotiating committee, for instance, the gross wage was Rs. 74,125 prior to the 12th BPS and became Rs. 89,601 afterward, representing a 17% rise on the payslip.
- Officer compensation Calculation: An employee who began working for the bank in 2021 and whose base pay was Rs. 36,000 in the 11th BPS is given a compensation chart. The employee obtains one increment for each of the JAIIB and CAIIB certification courses that they have completed.
- The total increments are four (1+1+1+1) with two yearly increments between 2022 and 2023. For officers, each increment is worth Rs. 1490 in BASIC PAY. The wage computation for an Officer employee with two yearly increments and CAIIB qualification is displayed in the chart.
- One-Lakh Plus compensation in Banks: A bank officer with two years of experience and CAIIB accreditation will be paid 89k in gross compensation. The good news for bank employees is that an officer employee’s gross compensation can reach 1 lakh when extra allowances such as rent and petrol are included.
- Components of Salary Slips Load Factor: The basic, DA, special allowance, and load factor are the components of a bank officer’s payslip. The load factor of 3%, or 3% of (56212+10286) = 1994, is displayed in the chart for the new basic pay of the 12th BPS and new DA.
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