12th Bipartite Settlement Date, Latest News, Update, Salary

12th Bipartite Settlement

The Indian Banks’ Association representing the Managements of the Banks held a meeting with the authorised representatives of the Union of Workmen’s Unions and the Association of Officers’ Unions to discuss wage revision for the Officers and the Workmen in the Banks. The management and the Union/Association of the Workmen’s staff and officers agree that a strong banking system is needed that can respond to the challenges faced by the banking sector and that there is a need to further enhance the efficiency, productivity and responsiveness of the banking system to meet the needs of customers and various stakeholders. As a result, it was agreed to settle the issue of wage settlement and conclude a Memorandum of Understanding (MOU) as follows:

12th Bipartite Settlement Demands

The wage revision will be effective from 1/11/2022 for a period of five years.

Annual increase in salary and allowances is agreed at 17 %, of the annual pay slip expenses for FY 2021-22, which works out to Rs. 12,449 crores for all public sector banks including SBI.

The new pay scales will be constructed after merging Dearness Allowance corresponding to 8088 points (average Index point as applicable for the Quarter of July, August and September, 2021) to the basic pay as on 31.10.2022, and adding thereon a loading of 3 %, amounting to Rs 1795 crore.

Distribution of annual wage increase between Workmen and Officers will be worked out separately and proportionately based on breakup of establishment expenses for FY 2021­-22.

The parties will meet on mutually convenient dates to draw out a detailed Bipartite parties will endeavor to finalize the Bipartite Settlement /Joint Note within a period of 180 days from the date of this minutes.

IBA has already recommended to the Government for declaration of all Saturdays as holidays under NI Act for Banking industry in line with earlier negotiations with unions /associations and the same will be pursued. The unions/associations urged for implementation of the same before signing of the final bipartite agreement/ joint note.

12th Bipartite Settlement Date

A Memorandum of Understanding was signed on 7 December 2023 by UFBU and IBA in the framework of bilateral negotiations which have been ongoing for a year. The next meeting was held on 12 January 2024, and after a long discussion that lasted until late at night the cost sheets were signed between IBA and UFB. However, a veil of secrecy over the details of the cost statement remains in place from official sources. As a result, speculation and debates have arisen as to whether the information leaked is circulating.

12th Bipartite Settlement Expected Date

The bipartite talk held on 12 January witnessed limited discussions, and decisions appear to be made unilaterally within an exclusive working group.

According to reliable sources, there has been a call for renegotiation of certain provisions in the agreement based on concerns by some unions within the UFBU about what they perceive as an arbitrary approach and social media outrage among bankers. Consequently, the finalisation and publication of the cost data has been delayed.

12th Bipartite Settlement Salary

The 12th Bipartite settlement for bank employees has been finalized, and now everyone is eager to calculate their new pay based on this increase. The salary hike in banks is set at 17%, which includes a 3% load factor. This means that your overall pay on the payslip will show a 17% increase. The Dearness Allowance (DA) is merged with the current basic pay. The Special Allowance, calculated on basic pay and DA, which was 16.4% in the 11th Bipartite settlement, is still pending as of 7/12/2023.

Here’s a breakdown of the 12th BPS salary calculation with a 17% hike:

  1. Load Factor Explained: The load factor, considered in the 12th BPS, benefits bank staff by taking into account both BASIC and DA. This load factor of 3% is applied to both BASIC AND DA.
  2. Total Salary Increase: The total salary increase is exactly 17% as per the 12th BPS settlement. For example, the gross salary before the 12th BPS was Rs. 74,125, and after the 12th BPS, it becomes Rs. 89,601, resulting in a 17% increase on the payslip, as stated in the 12BPS final negotiating committee.
  3. Calculation for Officers’ Salaries: A salary chart is provided for an employee who joined the bank in 2021 with a basic pay of Rs. 36,000 in the 11th BPS. The employee, having completed JAIIB and CAIIB certification courses, receives 1 increment for each. With two yearly increments in 2022 and 2023, the total increments are 4 (1+1+1+1). Each increment is Rs. 1490 in BASIC PAY for officers. The chart shows the salary calculation for an Officer employee with CAIIB qualification and 2 yearly increments.
  4. 1 Lakh Plus Salary in Banks: An officer in banks with CAIIB qualification and 2 years of experience will receive a gross salary of 89k. With additional allowances like rent and petrol, the gross salary of an officer employee in banks can exceed 1 lakh, which is good news for bank staff.
  5. Salary Slip Components Load Factor: The components of the payslip for an officer employee in banks are BASIC, DA, SPECIAL ALLOWANCE, and LOAD FACTOR. The chart shows the load factor of 3%, calculated for the new basic pay of the 12th BPS and new DA, i.e., 3% of (56212+10286) = 1994.

12th Bipartite Settlement Salary After Wage Revision

  • Good news for employees of public banks! The 17% wage increase is due to the 12th Bilateral Agreement between the Indian Bankers Association (IBA) and the Bankers Unions.
  • Annual salary of all banks including State Bank of India is 12,449 crores.
  • The amendment will apply from November 1, 2022 for five years. The new pay scales allow for a 17 percent increase in pay and allowances, subject to Dearness Allowance and a 3 percent load factor.
  • The IBA is recommending a five-day working week and unions want it implemented before a final deal is expected in the next 180 days. This follows a 15% increase of around 850,000 bank employees in July 2020.
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