Salary & Perks of a Bank Probationary Officer (PO)
Many of us have a basic idea of what banks pay to a person designated as a Probationary Officer (PO)/ Assistant Manager but don’t have an in depth knowledge on the exact salary structure. This article will throw light on the various cash and non cash components included in the salary structure of a Bank PO.
Basic Pay
Scale I – Rs 14500 – (600 x 7) 18700 – (700×2) – 20100 (800 x 7) – 25700
The above scale represents the initial basic pay and the increments that follow. As per the first term of the pay scale Rs 14500/- is the initial basic pay. The second term in the pay scale show cases that a PO can get up to 7 increments worth Rs 600/- each. The third term in the pay scale states, once a PO has got all the 7 increments, he can get up to 2 increments worth Rs 700/- rupees. Similarly, the fourth term in the pay scale will mean that a Probationary Officer can get 7 more increments worth 800/- each after a PO has got both the increments stated in third term of pay scale. The last term showcases the maximum basic pay after receiving all these increments. A probationary officer can receive 1 increment for every completed year, 1 increment for completing JAIIB and 1 increment for completing CAIIB.
Dearness Allowance
This component of salary varies once in 3 months with CPI based inflation (price rise) indicator. Thus, this component increases when general prices in the market go up and it decreases if the general prices in the consumer market come down. Thus, this component mostly goes on increasing since price levels come down rarely. Normally, on an average this component rises by 10 percent every year. At present, this component is at 97.5 percent of basic pay.
House Rent Allowance
This varies from 6 percent of basic pay to 15 percent of basic pay depending on the cost of living of the area in which Probationary Officer is posted. This is given only in lieu of bank quarters or lease rent facility. Bank PO prefer quarters among these three options, since the market rate to get a house similar to the quarters are much higher than the lease rent and the house rent allowance provided by the bank. In case the quarter’s facility is not available they go for lease rent reimbursement based on proper receipts. In case of a PO who reside in his own house and cannot produce rental receipts, he can opt for house rent allowance. But, most of the officers rent their own house and go for claiming lease rent as it bigger than house rent allowance.
Hospitalization Reimbursement & Leave Fare Concession
This can be availed by a Probationary Officer if he is hospitalized for any illness. The limit for the room rent reimbursement is Rs 700/- per day. Other than this, he is also eligible for Rs 5100/- as medical aid every year. Leave fare concession can also be availed by him for medical or non medical purposes. Leave fare concession will reimburse travel expenses for 4000 km. This include 1st class A/C train ticket or economy class flight ticket, taxi charges and amount paid to auto if any.
Deputation Allowance
This is given to Probationary Officer in case he is asked to report other branches than the one he is posted for. This may be for various reasons like training, surprise visit or due to temporary staff shortage. This will be approximately Rs 1500/- per day other than the reimbursement of travel expenses incurred by him.
Other Perks
Probationary Officer is also eligible to receive various other small and regular perks every month. This includes petrol expenses up to 35 Litre and news paper expenses up to two newspapers. There are also other reimbursements like telephone and entertainment expenses which are given only by premium banks. Though the pay is constant perks vary widely from bank to bank. There are also one time reimbursements like furniture allowance, briefcase allowance, cheaper loans and life insurance policies. These once again vary with banks.
Points to Note
The above stated pay and allowances are as per the 9th bipartite settlement between bank unions and management. The 10th bipartite settlement is due from 2012 November and talks are going on for the same. Till the talks are over officers continue to receive the salary as per the old settlement. The difference between old and new settlement will be given to them as salary arrears.