12th BPS for Bank officers and workmen – all the benefits you should know

On the historic day of 8th March 2024, the IBA and workmen unions of bank signed the 9th joint note of 12th BPS or bi-partite settlement. The wage revision of bank employees occurs every 5 years. It takes usually 1.5 to 2 years in negotiation to conclude the wage revision. IBA on the behalf of member banks discuss all the terms and conditions with all the authorised associations and unions and then sent to the finance department to finalise the matter.

The 12th BPS wage revision will be considered effective from 01.11.2022. And, the updated salary from new basic of 12th BPS has been given since March 2024. So, the arrears for the period from Nov’22 to Feb’24 has been given to the most of the bank employees already. This 12th BPS wage revision will be effective till 31.10.2027 and 13th BPS will be supposed to take over from 01.11.2027.

Expected Dearness Allowances for 12th BPS Bank employees from 1st May 2024

So, what are the things changed in 12 BPS for bank employees ?

1. Increase in basic of the salary and total salary – The overall salary has been increased by 17% for bankers in 12th BPS.
2. The new salary scales under 12th BPS are prepared after adding the dearness corresponding to point 8088.
3. In 12th BPS, With an applied load of 3.22%, the effective load on the post-reunion family allowance @ 30.38% of the basic salary is 4.20%.
4. Officers who have passed CAIIB (CAIIB Part II) will get double increment from 01.11.2022 under 12th BPS wage revision
5. For daily allowance formula, conversion factor has been increased to 0.06, which extends the benefit to serving and retired officers also.
6. DA will be paid for any increase or decrease above 123.03 points in the 2016 CPI Quarterly Average for Industrial Workers 123.03 points = 100.
7. 5-day banking work culture has been introduced, subject to govt. approval. It has not been implemented at present but may come within a year or so.
8. CAIIB Completers’ Qualification: Officials who have finished CAIIB (CAIIB Part-II) become qualified for two additions beginning from 01.11.2022.
9. Enhancement to the PQP: Officers are now eligible for three PQPs, up from the previous two. PQP-I is Rs. 1370, PQP-II is Rs. 3425, and PQP III is Rs. 5480.

Highlights of 12th BPS for bank officers and workmen:

Scales of pay for bank officers:

Scales of pay for bank clerical and subordinate staffs:

Change of designations under 12th BPS banks wage revision:

City Compensatory allowance for bank officers under 12th BPS banks wage revision:

Transport allowance for bank workmen under 12th BPS banks wage revision:

Compensation on transfer for Bank Officers under 12th BPS:

Dearness allowance formula for bank employees under 12 BPS wage revision:

Defined contributory pension scheme (DCPS) or NPS for Bank Officers under 12th BPS:

Deputation allowance for bank officers under 12th BPS banks wage revision:

Deputation allowance for bank workmen under 12th BPS banks wage revision:

Fixed Personal Pay for Bank Officers under 12th BPS:

Hill and Fuel allowance for bank officers under 12th BPS banks wage revision:

Hill and Fuel allowance for bank workmen under 12th BPS banks wage revision:

House Rent Allowance (HRA) for bank officers under 12th BPS banks wage revision:

House Rent Allowance (HRA) for bank workmen under 12th BPS banks wage revision:

Learning allowance for bank officers under 12th BPS banks wage revision:

Location allowance for bank officers under 12th BPS banks wage revision:

Professional Qualification Pay for Bank Officers under 12th BPS:

Revised and existing pay scales (Annexure-III) for Bank Officers of scales I,II,III under 12th BPS:

Revised and existing pay scales (Annexure-IV) for Bank Officers of scales IV, V, VI, VII under 12th BPS:

Special Allowance for Bank Officers under 12th BPS:

Special allowance for bank workmen under 12th BPS banks wage revision:

Disclaimer: Kindly refer official 12th BPS for any clarification.