On March 8, 2024, the 12th Bilateral Agreement and the 9th Joint Memorandum were signed in Mumbai, marking a significant development in the Indian banking sector. The accord comes after months of negotiations between the Indian Bankers Association (IBA) and bank staff. This twin agreement represents a favorable outcome after overcoming various barriers throughout the negotiations.
Authorized officials from the Association of Officers' Union & the Union of Workmen's Unions met with the Indian Banks' Association, which represents bank management, to discuss wage increases for bank officers and employees. The management team, as well as the executives and people of the Union/Association of Workers, agree that improving the banking system is required to meet the needs of stakeholders and customers.
The 12th Bipartite Settlement Features
- The wage adjustment takes effect on November 1, 2022, and lasts five years.
- Simplify the five-day work week: The joint memo recognizes all Saturdays as public holidays pending government notification. The new working hours will take effect after the government's announcement, most likely within six months.
- Substantial Pay rise: The entire rise in pay revision (price ticket component) exceeds Rs. 8,284 crowns, accounting for 17% of the salary fund's cost for the construction of public sector banks.
- New salary scales: The new salary scales are created by adding the dearness corresponding to point 8088 and the associated additional burden.
- The post-reunion family allowance has an applied load of 3.22%, resulting in an effective load of 4.20% at 30.38% of base pay.
- The officer community's long-standing request for two additional CAIIB increments (CAIIB Part II) has been granted.
- Officers who have passed CAIIB Part II will receive a twofold increment beginning November 1, 2022.
- Officers are now entitled to three PQPs, up from two previously. PQP-I - Rs 1370/-, PQP-II Rs 3425/-, and PQP III - Rs 5480/-
- The actual strain on officers conducting CAIIB will rise dramatically.
- Differences resulting from additional CAIIB increases are examined.
- Deviation owing to PQP approval has also been factored in.
- From November 1, 2022, the new pay scales will range from Rs. 48480/- to Rs. 173860/-, covering all scales I to VII.
- Revision to the daily allotment formula in the question: The conversion factor due to the consolidation of dearness allowances was reduced by 0.0549. Instead of rounding up to 0.05, it is increased to 0.06, extending the benefit to both active and retired officers.
- The merit compensation index shifts from row 1960=100 to row 2016=100, as the conversion factor changes from 0.06 to 0.99 per 2016=100 series, favoring officers with greater value.
- Adjuster 0.99 2016 = 100 is transformed to the series 1.00, increasing the added value.
- Additional remuneration should be provided in the form of a percentage based on the above-mentioned modifications.
- Value support is paid at 1.00% of the "salary" for each percentage point of the index. As previously stated, DA is paid for any increase or drop in the 2016 CPI Quarterly Average for Industrial Workers higher than 123.03 points (123.03 points = 100), with a 0.01% change in DA "wage" for every other decimal change in the 2016 CPI greater than 123.03 points.
- Evaluation The aforesaid pension reduction is paid semi-annually for each 123.03-point rise or decrease. All India Industrial Workers CPI-Quarterly Average 2016 = 100.
- Senior MMG Scale III officers, i.e. those recruited or promoted to MMG Scale III, are currently entitled to six stationary ranks once they achieve the scale maximum. These officers are entitled for eight biennial increments beginning November 1, 2022, with the first four at Rs. 2980/- and the next four at Rs. 3360/- apiece.
- SMG Scale IV officers are currently eligible for two stagnation grades. With effect from November 1, 2022, these officers will be entitled to five fixed increases, each at a two-year interval, the first of which will be Rs. 3360/- and the remaining four will be Rs. 3680/- each.
- SMG scale V officers are now entitled to a single static grade. From November 1, 2022, these officers will get a four-stop increment after reaching the top of the scale. The periodicity is Rs.4000 every two years.
- After achieving the scale limit, TEG Scale VI officers are entitled to three static increments at a two-year frequency: the first two are Rs.4000/-, and the third is Rs.4340/-.
- TEG Scale VII officials are entitled to three static levels of Rs.4340/- every two years after attaining the highest level on each scale.
- Every promoted officer shall be assigned to a higher rung on the new pay scale, with protection equivalent to at least one step of the pay gap he bridged in the previously promoted group or scale, less the relevant deviation.
The 12th Bipartite Settlement Date
The UFBU and IBA signed a Memorandum of Understanding on December 7, 2023, as part of a year-long bilateral negotiation process. The following meeting was conducted on January 12, 2024, and after a lengthy discussion that lasted until late at night, the cost sheets were signed by IBA and UFB. However, official sources continue to maintain a shroud of secrecy around the expense statement's facts. As a result, there has been discussion and dispute about whether the hacked information is still being circulated. Along with the monthly ex-gratia payment, PSBs will accept pensioners' and family pensioners' pensions on October 31, 2022, as a one-time resource applicable to the existing bilateral/joint funding, notwithstanding unions'/associations' demand for an update of pensions for all retirees.
12th Bipartite Settlement Expected Date
The bipartisan meeting on January 12th featured limited discussion, and decisions appear to be taken unilaterally within an exclusive working group. According to trustworthy sources, there has been a push to renegotiate key parts of the agreement due to concerns raised by several unions within the UFBU about what they believe to be an arbitrary approach, as well as social media uproar among bankers. As a result, the cost data's finalization and dissemination have been postponed.
The 12th Bipartite Settlement Salary Calculator
The 12th Bipartite settlement for bank workers has been finalized, and everyone is excited to compute their new salary based on the rise. The pay increase at banks is set at 17%, with a 3% load factor. This means that your total pay on the pay slip will increase by 17%. The Dearness Allowance (DA) is integrated into the existing base salary.
Here's a breakdown of the 12th Bipartite Settlement Salary Calculator, with a 17% increase:
- Load Factor Explained: The load factor, which is included in the 12th BPS, benefits bank employees by accounting for both BASIC and DA. This 3% load factor applies to both BASIC and DA.
- Total salary increase: The entire wage rise is exactly 17%, according to the 12th BPS settlement. For example, before the 12th BPS, the gross wage was Rs. 74,125, and after the 12th BPS, it is Rs. 89,601, representing a 17% increase on the pay slip, according to the 12BPS final negotiating committee.
- The computation for Officer Salaries: A salary chart is offered for an employee who enters the bank in 2021 with a basic pay of Rs. 36,000 in the 11th BPS. Employees who have completed JAIIB and CAIIB certification courses receive one increment for each. With two annual increases in 2022 and 2023, the total increment is four (1+1+1+1). Officers' BASIC PAY increases by Rs. 1490 per increment. The graphic depicts the compensation computation for an Officer employee with CAIIB certification and two yearly increments.
- 1 Lakh Plus Salary in Banks: A bank officer with CAIIB qualification and two years of experience will be paid 89k gross. With additional allowances such as rent and petrol, an officer's gross income in a bank can reach one lakh, which is fantastic news for bank employees.
- Salary Slip Components Load Factor: The pay stub for an officer employee in a bank includes BASIC, DA, SPECIAL ALLOWANCE, & LOAD FACTOR. The chart depicts the load factor of 3%, computed for the new basic pay of the 12th BPS and new DA, i.e., 3% of (56212+10286) = 1994.
12th Bipartite Settlement Salary Following Wage Revision
Good news for staff of public banks! The Indian Bankers Association (IBA) and banking confederations signed the 12th Bilateral Agreement, which resulted in the 17% salary. The total yearly remuneration for all banks, including State Bank of India, is Rs 12,449 crore. The modification will take effect on November 1, 2022 and last for five years. The new pay scales provide for a 17 percent increase in pay and benefits, excluding dearness, with a 3% utilization rate. The IBA recommends a five-day work week, which unions want implemented before a formal agreement is signed next year, 180 days. This follows a 15% rise of around 850,000 bank workers in July 2020.
Advantages of Using the 12th Bipartite Settlement Salary Calculator
These calculators provide several benefits:
- Transparency: Obtain a detailed summary of your wage structure under the changed method.
- Accuracy: Eliminate the possibility of human calculation errors.
- Planning: Estimate your future wage increase and manage your money accordingly.
12th Bipartite Settlement Calculator Excel: Simplify Your Calculations
For individuals who prefer to use Excel for various computations, there is a 12th Bipartite Settlement calculator available in Excel. This calculator has a simple interface that allows you to enter your information and receive precise answers immediately in Excel. Using the 12th Bipartite Settlement calculator in Excel, you can easily determine your income without the need for complicated formulae. This programme simplifies the procedure and allows you to organize all of your computations in one area.
Estimating Your Expected Increase Using the 12th Bipartite Settlement Calculator
While the actual increase varies by individual circumstances, the 12th Bipartite Settlement is expected to result in an overall 17% increase in salary and allowances. Use the offered calculators to determine your specific rise based on your pay structure.
Calculate the 12th BPS Salary: Based on the 12th BPS Memorandum of Understanding (MOU) signed on December 7, 2023, your new Basic Pay will be determined in a simple manner! First, we need to determine your current Basic Pay, which we'll refer to as 'A'. Then we'll add 30.38 percent, designated as 'B'. Next, we'll calculate a load factor by taking 3% of the sum of 'A' and 'B', which will be denoted as 'C'. Finally, your new basic pay will be calculated by adding 'A', 'B', and 'C' together.
To illustrate this method, let's say your current basic wage is Rs. 36,000.
- 36000 x 30.38 = 10936.80
- 36000 + 10936.80 = 46936.80
- (46936.80 x 3)/100 = 1408.10
- 46936.80 + 1408.10 = 48344.90