To find out how the 5-Day Banking implementation was going, an RTI was submitted. For a while now, the implementation has been delayed. While the DFS claims that the idea is being considered, the IBA claims that it is still pending. However, how much time will it take? An RTI was filed to obtain clarification on the issue, but the government declined to offer any updates. No information may be disclosed until the matter is resolved, according to the response.
In addition to refusing to provide any information, the Appellate Authority received an appeal against the RTI reply. The government has not made a firm decision about the introduction of 5-Day Banking, despite numerous debates. For years, workers and unions have been calling for this reform, but the Department of Financial Services (DFS) and the Indian Banks' Association (IBA) are unable to resolve the issue.
Instead of offering a precise date, the government opted to provide evasive and inconclusive responses when the matter was brought up in Parliament earlier. No progress has been made even after over a year. This delay demonstrates a lack of accountability and seriousness toward the banking staff. Such persistent delays beg the question: Why is the government unable to execute a long-overdue reform like 5-Day Banking if it genuinely cares about the well-being of bank workers and increasing industry efficiency?
The AICPI(IW) for the month of June'25 increases by 1%. & stood at 145. Increase of DA by 1.16% of Pay fm August'25. Total DA 21.13%.Pensioners to also get 781 DA Slabs. Decrease by one(1) DA Slab.
As a result of increased operational efficiency and staff productivity, public sector banks' (PSBs') Business Per staff (BPE) has improved dramatically over time.
Based on data gathered by Business Standard from the most recent PSB annual reports, the BPE of State Bank of India (SBI) increased from Rs.34.10 crore in FY24 to Rs.37.37 crore in 2024-25 (FY25), that of Punjab National Bank (PNB) increased from Rs.23.84 crore to Rs.26.86 crore, and that of Bank of Baroda (BoB) increased from Rs.29.31 crore to Rs.32.53 crore.
A stronger basis for long-term growth and profitability is indicated by the rise in BPE, which shows that each employee is producing more business than previously due to cost reduction, digital adoption, and improved resource use.
This growth can be attributed to two factors. First, the banks have been using technology, digitalization, and training as interventions to improve procedures, including sales activities. Productivity is steadily increasing as a result. Second, as the economy and per capita income expand overall, so do the underlying transaction sizes, which improves results," stated Sanjay Agarwal, senior director at CARE Ratings Ltd.
The BPE of UCO Bank grew from Rs.20.93 crore in FY24 to Rs.24.35 crore in FY25. Likewise, Canara Bank's BPE increased from Rs.25.97 crore to Rs.29.30 crore in FY25. A year-over-year (Y-o-Y) increase in its BPE from Rs.25.87 crore to Rs.28.21 crore was also reported by Bank of India (BoI).
Aggarwal issued a warning, though, saying that banks must make sure that the rush for more productivity doesn't result in employees expecting an intolerable amount of work or in a greater distance from consumers.
Over time, the majority of PSBs have seen a decrease in their workforce.From 52,374 in FY23 to 50,944 in FY24 and then to 50,564 in FY25, BoI showed a steady reduction. The number of employees at Canara Bank similarly declined, going from 84,978 in FY23 to 82,638 in FY24 and finally to 81,260 in FY25.
At 76,513 in FY23, the BoB headcount gradually decreased to 74,227 in FY24 and 73,742 in FY25. Conversely, SBI, the biggest lender, saw a little increase in overall staff numbers to 236,226 in FY25 following a drop from 235,858 in FY23 to 232,296 in FY24. According to their yearly reports, all PSBs now have more branches.In FY23, SBI had 22,405 branches; in FY24, it had 22,542 branches; and in FY25, it had 22,937 branches.
The Reserve Bank of India has warned that there is an increasing risk of over-automation or erosion of credit evaluation standards as a result of a higher reliance on system-driven processes, especially in areas like top-up loans and unsecured lending.
The Dearness Allowance (DA) for bank employees for the period of May 2025 to July 2025 is expected to be 19.90% based on the average CPI-IW index of 142.93 for the current quarter. This is a slight decrease compared to the 21.20% paid in the previous quarter. The calculation is based on the 12th BPS, and the DA is expected to be 20.17% from May 2025.
On the basis of CPI data announced by the Govt for the months of Oct'24 to Dec'254 DA payable for the period Feb'25 to Apr'25 is 21.20% as per 12th BPS.
Expected DA Calculation Updated on 06.01.25 on the basis of CPI for the month of Nov'24 with the assumptions of CPI for the next month (Dec'24) as mentioned hereunder, as per the DA calculation norms of 12th BPS on revised basic pay. The CPI for the month of Nov'24 which was due to be released on 06.01.25 announced on 06.01.25 as 144.50 without any change in CPI from Oct'24.
On assumptions if there is an increase of CPI index by 0.90 points in the month of Dec'24, keeping in view of on going regular rise in prices of commonly required daily needs / items and commodities which is making month over month difficult to manage family budget. Accordingly, on this assumption, we may expect there would be an increase of 1.94% DA in terms of 12th BPS on revised pay. Total 21.77% DA will become payable from Feb'25.
On assumptions if there is an increase of CPI index by 0.70 points each in the next months, we may expect there would be an increase of 1.87% in terms of 12th BPS on revised pay. Total 21.70 percentage of DA will become payable from Feb'25.
On assumptions if there is an increase of CPI index by 0.60 points in the month of Dec'24, we may expect would be an increase of 1.84% in terms of 12th BPS on revised pay. Total 21.67 percentage of DA will become payable from Feb'25.
Today i.e. on 04.11.24 Govt declared CPI for the month of Sep'24 as 143.30 with an increase of 0.70 points from the previous month i.e. Aug'24. . Bankers DA calculator is updated hereunder on the basis of CPI for the month of Jul'24 to sep'24. Earlier the Govt vide their notification dated 22.10.20 (click to view the letter) has changed the Consumer Price base year from 2001=100 to 2016=100 for Industrial Workers.
On the basis of CPI data announced by the Govt for the months of Jul'24 to Sep'24 DA payable for the period Nov'24 to Jan'25 is 19.84% as per 12th BPS.
Expected DA calculation updated today on 01.10.24 on the basis of CPI announced by the GOI for the month of Aug.'24 and with the assumptions of CPI for the month of Sep.'24 as mentioned hereunder.
The CPI for the month of August, 2024 announced today as 142.60 points decreased by 0.10 points only from 142.70 points in July, 2024.
1. On assumptions if there is a decrease of 0.50 points of CPI in the month of Sep.'24, on this assumption, we may expect that there would be an increase of 2.24% DA only and the total tentatively revised DA would be 19.44% from Nov.'24 in terms of 12th BPS.
2. On assumptions if there is no increase/decrease of any points of CPI in the month of Sep.'24, on this assumption, we may expect that there would be an increase of 2.40% DA only and the total tentatively revised DA would be 19.60% from Nov.'24 in terms of 12th BPS.
3. On assumptions if there is an increase of 0.50 points of CPI in the month of Sep.'24, on this assumption, we may expect that there would be an increase of 2.57% DA only and the total tentatively revised DA would be 19.77% from Nov.'24 in terms of 12th BPS.
Good news for bank employees! The Dearness Allowance (DA) has been increased for the period from August to October 2024. This adjustment aims to help employees cope with rising living costs. Keep reading to find out the new DA rates and how this change will affect your salary.
In a significant policy shift, the Centre has postponed the privatisation of two public sector banks (PSBs), according to sources. This decision comes amidst indications that the government is reassessing its approach to merging PSBs in the fiscal year 2025 (FY25). The disinvestment pipeline, as per sources, will be influenced by the prevailing market conditions.
Earlier on Wednesday, Finance Secretary TV Somanathan stated that the government will avoid pre-announcing its divestment plans for FY25 to ensure the optimal valuation of public companies. The Union Budget, for the second consecutive year, omitted any mention of ‘disinvestment’, highlighting the Modi 3.0 Government’s focus on enhancing the value of Central Public Sector Enterprises (CPSEs) rather than reducing its equity holdings.
Finance Minister Nirmala Sitharaman has set a disinvestment target of Rs 50,000 crore for 2024-25. However, the Interim Budget presented in February revised the disinvestment estimate for 2023-24 down to Rs 30,000 crore. The Interim Budget for FY2025 included a general category named ‘Miscellaneous Capital Receipts’ under capital receipts, which did not specifically mention ‘disinvestment’. This category comprises receipts from managing equity investments and public assets through various mechanisms.
The government aims to generate Rs 50,000 crore from disinvestment and asset monetization in the current fiscal year, according to DIPAM Secretary Tuhin Kanta Pandey. At a press conference following the Union Budget presentation, Pandey emphasized, “Our focus is on value creation.” This Rs 50,000 crore target under ‘Miscellaneous Capital Receipts’ encompasses various types of receipts, including disinvestment and asset monetization.
In a pre-Budget report, SBI Research suggested that the government should establish a clear policy on PSB disinvestment. The report stressed the importance of a concrete roadmap to attract capital and boost confidence in financial institutions. Additionally, a recent report from CareEdge Ratings highlighted a substantial disinvestment capacity of approximately Rs 11.5 trillion, based on current market capitalizations. This figure assumes the government maintains a minimum 51 percent stake in the public enterprises.
The decision to stay the privatisation of PSBs reflects the government’s strategic shift towards maximizing the value of its public sector enterprises rather than immediate divestment. With a significant disinvestment target and a focus on market conditions, the Centre’s approach aims to balance fiscal goals with market stability and investor confidence.
The Dearness Allowance (DA) for Bank Officers, Clerical and Substaff has been increased as per 12th Bipartite Settlement. DA from May 2024 is as follows:
The salary of a bank officer can vary depending on factors such as the country or region where they work, the size and type of the bank, their level of experience, and their educational qualifications. In general, bank officers typically earn a competitive salary that reflects their responsibilities and expertise.
As of my last knowledge update, in the India, the average salary for a bank officer ranged from around Rs.7,00,000 to Rs. 30,00,000 per year, depending on the factors mentioned above. Senior bank officers or those working in larger banks or financial institutions may earn salaries at the higher end of this range.
It's important to note that salaries can vary significantly based on the factors mentioned earlier, so it's best to consult up-to-date sources like job listings, salary surveys, or official data from government agencies or banking associations to get a more accurate picture of current salary ranges for bank officers in your area or the specific bank you are interested in.
Sample Salary Slip of Scale- 1 Officer in PSU Banks
The demand for a 5-day work week by bank employees is likely to be fulfilled soon, as an agreement in this regard has already been signed between the Indian Banks’ Association (IBA) and employee unions. Now, just the government’s approval is pending, which the bank employees expect to get through later in 2024.
Bank employee unions, like the United Forum of Bank Unions, have been pushing for a 5-day workweek with .......
In
a landmark decision, the Indian Banks’ Association (IBA) and workers’ unions
recently inked an agreement to enhance the salaries of employees in public sector banks by a substantial 17%, totaling a staggering Rs 12,449 crore. This
momentous decision, affecting approximately nine lakh employees, including 3.8
lakh officers in PSU banks like SBI, marks a significant leap in the financial
well-being of the banking sector workforce. The agreement, reached on December
7, 2023, through detailed discussions, promises a positive change in the lives
of countless bank employees. According
to the press release: “The joint note declares all Saturdays
as public holidays until the government announces. The
revised working hours will come into effect after the announcement. The Indian Bankers Association(IBA) and the Bank Officers’ Associations. The staff and the
employees’ unions successfully reached a major wage agreement that
will ensure a significant 17 percent increase
in wages for officers and employees wage revision
and a total of 12.589 billion across 12
public banks participating in the 12th Bipartite Settlement.
This move, subject to necessary
approvals from the Centre and the Reserve Bank of India, aims to enhance the
work-life balance of bank employees.
Bank Employees Salary Revision Latest News:
After a prolonged wait, the IBA and bank unions have settled
on a 17% annual salary increase for five years, commencing from the fiscal year
2021-22. This eagerly anticipated wage revision will be effective from November
1, 2022. However, the prospect of a 5-day work week remains uncertain, as
unions advocate for the declaration of all Saturdays as public holidays for
banks. The distribution of annual wage increases for bank employees will be
meticulously calculated, taking into account the fiscal year 2021-22
expenditures.
Bank Employees Salary Hike:
Both parties are committed to finalizing a detailed
agreement within 180 days from the signing of the Memorandum of Understanding
(MoU). The IBA has recommended declaring all Saturdays as holidays for the
banking industry under the NI Act, a proposal currently awaiting clarity. The
ongoing negotiations encompass various issues, including the implementation of
this recommendation before signing the final agreement.
Key Points on the 12th Bipartite settlement
1. * The new pay rates commence from November 1, 2022, and will
remain in effect for five years.
2. * A substantial 17% increase in salary and allowances,
amounting to Rs 12,449 crore for all public sector banks, including the State
Bank of India.
3. * The calculation of the new pay involves merging Dearness
Allowance points up to 8088 with the basic pay as of October 31, 2022, plus an
additional 3%, totaling Rs 1795 crore.
4. * Annual wage increases for workers and officers will be
determined separately based on the fiscal year 2021-22 expenditure breakdown.
5. * Ongoing discussions regarding pension updates for retirees,
with a one-time ex-gratia amount agreed upon for pensioners and family
pensioners as of October 31, 2022.
6. * Applicability of the ex-gratia for retirees of the current
settlement period to be discussed later, unaffected by other allowances.
7. * Recommendation to declare all Saturdays as holidays for the
banking industry under the NI Act, with an unclear status.
8.Resolution of all matters raised during negotiations,
including ex-gratia payments for pensioners of private sector banks and foreign
banks.
Bank Employees Salary Hike Calculator:
With the 12th Bipartite settlement for bank employees
finalized, employees are eager to calculate their new pay. The 17% salary hike,
including a 3% load factor, will result in a comprehensive increase on the
payslip. The Dearness Allowance is merged with the current basic pay, and the
Special Allowance is pending as of 7/12/2023.
Here’s
a breakdown of the 12th
BPS salary calculation with a 17% hike:
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.
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.
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.
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.
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.
Bank
New Salary After Wage Revision
Good
news for public sector bank employees! A 17% wage hike is on the way,
following the agreement between Indian Banks’ Association (IBA) and
bank unions on the 12th bipartite settlement.
The
total annual salary for all banks, including the State Bank of India, is
set at Rs
12,449 crore.
The
revision will be effective from November 1, 2022, for five years. New pay
scales will consider a 17% increase in salary and allowances, with the
Dearness Allowance and a 3%
loading factor.
IBA recommends a five-day
work week, and unions want its implementation before the final agreement,
expected in the next 180 days. This follows a 15% hike in July 2020 for
around 850,000 bank
employees.
FAQ
How much salary will increase after the 12th Bipartite Settlement?
The salary increase after the 12th
Bipartite Settlement is a substantial 17%, totaling Rs 12,449 crore for all
public sector banks, including the State Bank of India.
What
is the period of the 12th Bipartite Settlement?
The 12th Bipartite Settlement is
effective for five years, starting from November 1, 2022.
What
is the salary revision in banks?
The salary revision in banks, as per
the 12th Bipartite Settlement, involves a 17% increase in salary and allowances
for a period of five years.
What
is the load factor in salary?
The load factor in the salary
calculation for the 12th Bipartite Settlement is 3%. This factor is applied to
both Basic and Dearness Allowance, contributing to the overall salary increase.
Expected DA Calculation Updated on 29.12.23 on the basis of CPI for the month of Nov'23 with the assumptions of CPI for the next month as mentioned hereunder. The CPI for the month of Oct'23 announced today as 139.10 (as per revised base year 2016) (The base year was changed from Oct 2020)
To calculate Bankers Dearness Allowance for the month of February 2024, we need know about CPI (Consumer Price Index) for the month October 2023, November 2023 and December 2023. We get this CPI index subsequent month.
October 2023 CPI index we get on 30th November 2023 and November 2023 CPI index we get on 31st December 2023 and December 2023 CPI index we receive on 31st January 2024.
This CPI index always we get one month late.
In last year February 2023 CPI Index increased on an 2.24 percent. On this basis we can expect for the month of October 2023 and November 2023 and December 2023 expected CPI Index will be.
October 2023 CPI Index will be 138.40 November 2023 CPI Index will be 139.10 December 2023 CPI Index will be 138.80.
Now we need to add October 2023 to December 2023 CPI Index figures
1. Build a home earlier. Be it a rural home or an urban home. Building a house at 50 is not an achievement. Don't get used to government houses. This comfort is so dangerous. Let all your family have a good time in your house.
2. Go home. Don't stick at work all the year. You are not the pillar of your department. If you drop dead today, you will be replaced immediately and operations will continue. Make your family a priority.
3. Don't chase promotions. Master your skills and be excellent at what you do. If they want to promote you, that's fine if they don't, stay positive to your personal development.
4. Avoid office or work gossip. Avoid things that tarnish your name or reputation. Don't join the bandwagon that backbites your bosses and colleagues. Stay away from negative gatherings that have only people as their agenda.
5. Don't ever compete with your bosses. You will burn your fingers. Don't compete with your colleagues, you will fry your brain.
6. Ensure you have a side business. Your salary will not sustain your needs in the long run.
7. Save some money. Let it be deducted automatically from your payslip.
8. Borrow a loan to invest in a business or to change a situation not to buy luxury. Buy luxury from your profit.
9. Keep your life, marriage, and family private. Let them stay away from your work. This is very important.
10. Be loyal to yourself and believe in your work. Hanging around your boss will alienate you from your colleagues and your boss may finally dump you when he leaves.
11. Retire early. The best way to plan for your exit was when you received the employment letter. The other best time is today. By 40 to 50 be out.
12. Join work welfare and be an active member always. It will help you a lot when any eventuality occurs.
13. Take leave days and utilize them by developing your future home or projects..usually what you do during your leave days is a reflection of how you'll live after retirement. If it means you spend it all holding a remote control watching series on Zee World, expect nothing different after retirement.
14. Start a project whilst still serving or working. Let your project run whilst at work and if it doesn't do well, start another one till it's running viably. When your project is viably running then retire to manage your business. Most people or pensioners fail in life because they retire to start a project instead of retiring to run a project.
15. Pension money is not for starting a project buying a stand or building a house but it's money for your upkeep or to maintain yourself in good health. Pension money is not for paying school fees or marrying a young wife but for looking after yourself.
16. Always remember, when you retire never be a case study for living a miserable life after retirement but be a role model for colleagues to think of retiring too.
17. Don't retire just because you are finished or you are now a burden to the company and just wait for your day to die. Retire young or energetic to enjoy waking up for a cup of coffee, enjoying the sun, receiving money from your business, visiting nice places that you missed, and spending a good time with family. Those who retire late, spend about 95% of their time at work than with their family and that's why they see it difficult to spend time with their family when they retire but end up looking for another job till they die. If they don't get another job, they die early.
18. Retire at your house than at government accommodation so that when you retire you can easily fit into the society that raised you. It's not easy to adjust to living in a location after spending more years at a company house or at a government house.
19. Never let your employment benefits make you forget about your retirement. Employment benefits are just meant to make you relax, and get finished whilst time is moving. Remember when you retire no one will call you boss if you don't have a viable business.
20. Don't hate to retire because one day you will retire either voluntarily or involuntarily.
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