12th Bipartite Settlement (bps) Date Latest News Clerk and Officer Salary Calculator Note pdf download

12th Bipartite Settlement Bank New Update 2024 For Bankers

Imagine a negotiation table set up in a conference room. On one side are representatives from the bank employee unions. These unions act as the collective voice of the bank employees, advocating for their rights and interests. On the other side sits the Indian Banks’ Association (IBA), representing the various public sector banks in India. The purpose of this meeting? To hammer out an agreement on salaries, benefits, and other work-related issues. This agreement is called the bipartite settlement, as it’s a compromise reached by the two parties involved.

The 12th Bipartite Settlement 2024

After much back-and-forth, the IBA and bank unions seemed to have reached a tentative agreement on the 12th bipartite settlement. This could mean a significant 17% increase in salaries for employees

Primary Demand: Salary Increase

  • Unions demanded a significant increase in overall salary and allowances.
  • The agreed-upon solution is a 17% increase in annual pay slip expenses for the financial year 2021-22. This translates to roughly ₹12,449 crores for all public sector banks, including SBI.
  • This increase will be implemented through a two-pronged approach:
    • Merging a fixed amount of Dearness Allowance (DA) with the basic pay. This DA amount is likely based on an average index point from a specific quarter.
    • Adding a loading factor (a percentage increase) to the new base pay (which includes the merged DA). The agreed-upon loading factor is around 3%.

Additional Demand: Five-Day Work Week

  • This was an additional demand championed by the unions. Currently, most public sector banks function on a six-day work week.
  • Implementing a five-day week would provide better work-life balance for employees.
  • The government has expressed support for the idea, but it’s not yet a confirmed part of the final settlement.

12th Bipartite Settlement Expected Date

The United Forum of Bank Unions (UFBU) sent a letter dated March 4, 2024, reference number HR&IR/UFBU/XIIBPSJ0869, proposing a meeting on March 11th, 2024 in Chennai to finalize and sign the Bipartite Settlement agreement with the Indian Banks’ Association (IBA).

12th Bipartite Settlement Agreement Reached latest news update

Following negotiations, the UFBU and IBA have agreed on most key demands for the 12th Bipartite Settlement.

Salary and Allowances:

  • 17% increase in wages
  • 3% loading factor added to base pay (affects future DA calculations)
  • 2.25% increase in special DA
  • 25% increase in LTC encashment limit
  • Uniform HRA code for all employees
  • Increased medicine allowance
  • Special incidental allowance (1% of DA) introduced
  • Uniform annual allowance for officers and staff
  • Post-study scholarship program for employees
  • Newspaper allowance increased by 50% per quarter
  • Special officer refreshment allowance (2% of base pay) added

Other Improvements

  • RFA/Leased Accommodation Revision: These benefits will be brought in line with what central government employees receive.
  • 5-Day Banking Implementation (within 6 Months): This long-awaited change will improve work-life balance for employees.
  • LFC Encashment (every 1.5 years): This increases the frequency of Leave Fare Concession encashment.
  • Retiree Pension Update (post-2004): This ensures fair treatment for recently retired employees.

Bipartite Settlement Highlights: 9th Joint Note Summary (08-03-2024 Today update)

Salary and Allowances:

  • 17% Increase in Salary: A significant boost in take-home pay for public sector bank employees.
  • New Pay Scales: These scales incorporate a merged Dearness Allowance (DA) and an additional load factor, resulting in long-term benefits.
  • Increased DA Formula: The conversion factor for DA calculations is adjusted for improved benefits for serving and retired officers.
  • Special Allowance Hike: The percentage of special allowance based on basic pay is increased.
  • Fixed Personal Pay Increase: This is accompanied by a corresponding DA increase.
  • House Rent Allowance (HRA) Increase: HRA is tiered based on the area of posting, with a range of 8% to 10% of pay.
  • Increased City Compensatory Allowance (CCA): This allowance varies based on posting location (Rs 1900 or Rs 2300 per month).
  • Location Allowance: A fixed allowance of Rs 1200 per month is introduced for all officers not receiving CCA.

Benefits and Allowances

part 1

  • Increased Stagnation Increments: The number and value of stagnation increments for officers in various pay scales are improved.
  • Fitment on Promotion: Minimum pay differential is protected upon promotion, eliminating fitment anomalies.
  • Learning Allowance Increase: This allowance is raised to Rs 850 per month with applicable DA.
  • Officiating Pay: Officers officiating in higher positions will receive an officiating pay equal to 15% of the basic pay in that role. This pay is eligible for superannuation benefits, DA, and HRA.
  • Mid-Academic Transfer Allowance: This allowance is increased from Rs 1650 to Rs 2500 per child.

part 2

  • Closing Allowance, Halting Allowance, and Lump Sum Transfer Compensation: All three allowances are increased significantly.
  • Medical Expense Reimbursement: This reimbursement is raised based on officer pay scale (JMG & MMG vs. SMG & TEG).
  • Expanded Dependent Definition: The income criterion for “wholly dependent family member” is increased, and physically/mentally challenged children are considered dependents regardless of age (subject to income criteria).
  • Increased LTC Entitlement Distance: This allows officers to travel further using Leave Travel Concession (LTC).
  • Improved LTC/LFC Benefits: These benefits include reimbursement for premium train fares, cancellation charges under certain circumstances, and air travel eligibility for journeys exceeding 500 km (reduced from 1000 km).

Leave Policies:

  • Sick leave eligibility is expanded for various scenarios (single parents, special needs children, women, spouses’ hospitalization).
  • Maternity leave provisions are enhanced, including leave for adopting a child under one year and for IVF treatment.
  • Four half-day casual leaves and a special maternity leave for stillbirth/infant death are introduced.
  • Leave encashment limits are increased.
  • A Leave Bank scheme for employees facing emergencies is proposed.

Health and Wellness:

  • Banks will implement periodic health checkups for employees.
  • Annual eye checkup reimbursements are introduced (Rs 500 per year).


  • Ex-Gratia Payment for Pensioners: A monthly ex-gratia amount will be paid to pensioners who retired before November 2022 for a five-year period.
  • 100% DA Neutralization for Pre-November 2002 Pensioners: This ensures full DA benefits for these pensioners.

Additional Benefits:

  • Two Additional Increments for CAIIB (CAIIB Part-II): Officers who have completed CAIIB (CAIIB Part-II) are eligible for two additional increments, effective November 1, 2022.
  • Increased PQP Allowances: The number of Performance Linked Incentives (PQPs) is increased from two to three, and the value of each PQP is also raised.
  • Newspaper Allowance Increase: This allowance is increased by 50% per quarter.
  • Special Refreshment Allowance: A new allowance of 2% of basic pay is introduced for officers.
  • Retirees Pension Update (post-2004): This ensures fair treatment for recently retired employees.

Overall, this is a positive development for public sector bank employees. The agreement includes a substantial salary increase, improved allowances, and enhanced benefits.

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