Banks salary revision is done every 5 years and the last revision has been due from November 2012. Members of IBA and the members of various bank unions sit together and after much negotiations reach a point where what is given by one is accepted by the other and thus they bring down the curtains on the salary revision process. The process often takes more one and a half year and the amount due is paid as arrears salary to the officers of the bank.
The 10th bipartite settlement is already underway and going by the past some projections can be made relating to what can be expected. During the 8th settlement the basic pay of a Probationary Officer was Rs 10000. This increased to Rs 14500/- during the 9th bipartite settlement. What is clear from this was that there was an increase of 45% in the basic pay. The overall pay does not rise by the same percentage point as the DA is merged and brought down from the existing level to a lower level in consideration to the amount increased in the Basic salary. The overall benefit to an employee is in the range of 13-15 % of the gross salary.
Now assuming the past is an indicator of the future, the basic salary of a newly recruit officer should show a rise of 45% that is it should rise from Rs 14500 to Rs 21025. The increment also should rise by about Rs 100. So from 500 in the 8th settlement to 600 in the 9th to expected Rs 700 in the 10th bipartite. If the settlement takes place now, the DA should fall back from 99.9% (Feb-Mar-Apr 2014) to about 50% after the settlement. Adding the other benefits like 7.5% HRA, 4% CCA, etc the expected salary of a new recruit should be :
These are indicative figures and may vary to a certain extent depending upon what transpires between the parties sitting at the table for discussion and negotiations relating to the same. However the projection should not be very off target.
(checkout our post on Bank PO Salary)
What we all hope now is that the process of salary revision comes to a happy end and all of us get to enjoy some of our hard earned money. Arrears always feels like a windfall gain and brings about the much needed joy to all involved in this profession. Also we would be hoping that the settlement process is completed amicably and there is a substantial increase in the salary as it will inject in this profession the much needed boost to attract bright talent and might stem the rate of retrenchment which this sector is plagued with.