Banking 12th Bipartite Settlement: Empowering Employees with 17% Wage Hike

The Indian Bank Association and Bank unions have finalized the 12th bipartite settlement agreement. The bank employees from the public sector will receive a hike of 17% in their wages. The article explains the details of the finalized 12th bipartite banking settlement.

Banking 12th Bipartite Settlement

The 12th bipartite banking settlement is an agreement signed between the Indian Bank Association and bank unions on salary, service conditions revision, and allowances.

The Association of Workers and the Union of Officers agreed that it is important to strengthen the banking sector by satisfying the requirements of consumers and stakeholders.

After the announcement, bank employees from public sector banks will receive a wage hike of 17% effective from 1 November 2022, which will last for 5 years.

The bank unions and IBA have signed the memorandum of understanding (MoU) for an increase of 17% in the salaries of bank employees and set a timeline of 180 days to finally seal the 12th Bipartite settlement.

Previously in the 11th Bipartite settlement, 850,000 bank employees received a 15% hike in their wages.

Key Points of the 12th Bipartite Settlement

The key points of the 12th Bipartite Settlement that bank employees must be aware of:

The settlement offers an annual hike of 17% in salaries, which leads to an additional amount of around Rs 12,449 crore for public sector banks and the State Bank of India.
The wage hike of 17% and the salary revision will be constructed after the merging Dearness allowances according to the 8088 points to the pay of FY 2022, and there will be a load of 3%, which will amount to Rs 1795 crore.
The wage hike will be effective from 1 November 2022 for 5 years. According to the reports, around 8 lakh employees will benefit from the wage hike.
The All India Bank Officers Confederation has agreed to the off on Saturdays for the bank employees. The government has yet to release the notification about recognizing all Saturdays as holidays. IBA has suggested the government declare Saturdays as holidays in the banking industry law NI Act. So, the revised working hours for the bank employees will be available only after the government notification.

The distribution of the annual salary between Workmen and Officers will commence separately based on the breakup of the establishment expenses for the FY 2021-22.

Under the Settlement, the women employees are allowed to take one leave a month without presenting the medical certificate.
For ex-employees, it was decided that an ex-gratia amount would be given every month to pensioners, family pensioners, and people who became eligible for the pension before or on 31 October 2022.
The 12th Bipartite covers 25 banks in India, of which 12 are public sector banks, 10 are private sector banks, and the rest are foreign banks.

Banking 12th Bipartite Wage revision Expected date

The MoU of the 12th Bipartite banking settlement between IBA and UFBU was signed on 7 December 2023, and the next meeting was held on 12 January 2024.

But it was delayed, now with the final approval, the settlement has been signed finally and the employees can expect the publication of wage revision in April 2024.

Your Salary as per 12th BPS

With the final deal signed, the bank employees must be wondering about the increase in their salary. Below, we have analyzed the salary of bank employees after the 12th bipartite.

Your salary hiked to 17% means your salary will increase by 17% with a load factor of 3%. The load factor will apply to your BASIC pay and Dearness allowances. Remember, the DA is merged to the wage revision.
Calculation of the Officer’s Salary: All the bank employees must have received the BASIC salary chart when they joined the bank with the information of the BASIC pay according to the 11th BPS. The bank employees who have CAIIB (Certified Associate in Insuring and Banking) and JAIIB (Junior Associate of Indian Institute of Bankers) would be eligible for the 1% increment every year. So, as of now, they must have a total 4% increment applicable in their basic pay.
CAIIB certificate officers 1 lakh salary: The CAIIB certificate officers with 2 years of experience can receive a salary of 1 lakh+ with the 12th BPS. The officer also gets a special allowance for rent, travel, etc. to the Officers.

The 12th Bipartite Settlement is finally sealed by the IBA and bank unions, the bank employees can enjoy a hike of 17% in their salaries.