12th Bipartite Settlement (2025): Expected Salary Hike, Pay Scales & Latest Updates

Discover the latest salary revision updates under the 12th Bipartite Settlement. Learn about expected pay hikes, DA merger, pension changes, and key union demands. Stay informed on negotiations, implementation dates, and how this settlement impacts bank employees.

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The 12th Bipartite Settlement is one of the most awaited wage revisions for bank employees in India. Every five years, a bipartite agreement is signed between the Indian Banks’ Association (IBA) and bank employee unions to revise salaries, allowances, and other benefits. With the banking sector playing a crucial role in India’s economic growth, the upcoming wage revision under the 12th Bipartite Settlement is expected to bring significant financial relief and better working conditions for bank employees.

Why Bipartite Settlements Matter for Bank Employees

Bipartite settlements determine the salary structure, dearness allowance (DA), house rent allowance (HRA), and various perks for public sector bank (PSB) employees. These settlements are critical because:

• They ensure fair compensation for bank employees, aligning with inflation and economic conditions.
• They directly impact the take-home salary, pensions, and retirement benefits of lakhs of bank employees.
• Wage revisions under the bipartite agreement set a benchmark for private sector banks and financial institutions.

Key Expectations from the 12th Bipartite Settlement

Bank employees and unions have high expectations from the 12th Bipartite Settlement, especially after the previous agreement (11th BPS) brought a 15% wage hike. Some of the key demands and expectations include:

• Higher salary hikes: Unions are pushing for a 25-30% hike to compensate for rising inflation and increased workload.
• Merger of Dearness Allowance (DA) with Basic Pay: This would increase the basic salary and improve overall benefits.
• Better retirement benefits: A focus on improving pension schemes, gratuity, and provident fund contributions.
• Enhanced allowances: Employees expect an increase in HRA, special allowances, medical benefits, and leave encashment policies.

The upcoming negotiations between IBA and bank unions will determine the final wage revision under the 12th Bipartite Settlement, making it a crucial topic for all banking professionals in India.

Understanding Bipartite Settlements

The Bipartite Settlement is a wage revision agreement between public sector banks (PSBs) and employee unions in India. These settlements, negotiated every five years, determine salaries, allowances, and service conditions for bank employees. The process ensures that banking professionals receive fair compensation in line with inflation and industry growth.

What is a Bipartite Settlement?

A bipartite settlement is a structured wage agreement between the Indian Banks’ Association (IBA) and major bank unions. Unlike government employees, whose salaries are revised by the Pay Commission, bank employees’ salaries are revised through bipartite negotiations. The agreement covers:

• Basic pay revisions based on market conditions and inflation.
• Dearness Allowance (DA) adjustments linked to the Consumer Price Index (CPI).
• Allowances like HRA, transport allowance, and medical benefits.
• Service conditions including work hours, leave policies, and retirement benefits.

Once finalized, the agreement applies to all public sector bank employees, including officers and clerical staff, ensuring uniform wage policies across the sector.

Role of the Indian Banks’ Association (IBA) and Unions

The Indian Banks’ Association (IBA) represents public sector banks in wage negotiations. On the other side, bank employee unions like:

• All India Bank Employees’ Association (AIBEA)
• National Confederation of Bank Employees (NCBE)
• All India Bank Officers’ Confederation (AIBOC)
• Bank Employees Federation of India (BEFI)

play a crucial role in advocating for salary hikes, improved benefits, and better working conditions. These unions negotiate on behalf of employees to ensure that their financial and professional interests are well protected.

How Bipartite Settlements Impact Salary, Allowances, and Benefits

Every bipartite settlement directly influences bank employees’ financial well-being by revising salary structures and benefits. The impact includes:

• Salary Increments: A direct increase in basic pay and gross salary.
• Dearness Allowance (DA) Adjustments: Higher DA leads to better take-home pay.
• House Rent Allowance (HRA): Increased HRA improves living standards.
• Other Perks & Benefits: Better medical insurance, travel allowances, and pension schemes for employees and retirees.

With the upcoming 12th Bipartite Settlement, bank employees are expecting a substantial salary revision and enhanced benefits, making it a highly anticipated agreement.

12th Bipartite Settlement: Expected Salary Hike & Pay Scales

The 12th Bipartite Settlement is expected to bring significant salary revisions for public sector bank (PSB) employees in India. With rising inflation and increased workload, bank unions are demanding a higher salary hike compared to previous settlements. If negotiations go as expected, this settlement will ensure better financial security and improved pay scales for bank employees across different grades.

Tentative Salary Hike for Different Bank Grades

Based on initial discussions and union demands, the 12th Bipartite Settlement is expected to offer a salary hike in the range of 20% to 25%. The tentative salary increase for different categories of bank employees is as follows:

The final percentage hike will depend on negotiations between IBA and bank unions, with unions pushing for a minimum 25% salary increase.

Expected Basic Pay Revision

One of the most important components of the 12th Bipartite Settlement is the revision of basic pay. If the proposed merger of Dearness Allowance (DA) into Basic Pay is implemented, the revised pay structure could see a substantial increase.

• The entry-level basic pay for clerical staff, which was around ₹17,900 (11th BPS), may rise to approximately ₹23,000 – ₹25,000.
• The basic pay for officers (Scale I) is expected to increase from ₹36,000 to ₹45,000 – ₹50,000.
• Higher scales (Scale II, III, and above) will also see a proportional rise in their basic salaries.

Comparison with 11th Bipartite Settlement

The 11th Bipartite Settlement (2017-2022) provided a 15% salary hike along with the introduction of a Performance-Linked Incentive (PLI). However, many employees and unions felt that the revision did not fully account for inflation and the increasing workload in the banking sector.

The 12th Bipartite Settlement aims to provide a better salary revision, improved allowances, and stronger financial benefits for bank employees. With ongoing negotiations, employees are hopeful for a higher pay scale and better perks, making this settlement a crucial event in the Indian banking industry.

Key Components of the 12th Bipartite Settlement

The 12th Bipartite Settlement is expected to introduce significant improvements in salary structure and employee benefits. Apart from the anticipated salary hike, key changes in fitment factor, basic pay, Dearness Allowance (DA), House Rent Allowance (HRA), and other perks will play a crucial role in determining the financial impact on bank employees.

Fitment Factor & Basic Pay Fixation

One of the major aspects of the 12th Bipartite Settlement is the fitment factor, which determines how existing salaries are revised.

• In the 11th Bipartite Settlement, the fitment factor was 2.2 times, meaning employees’ basic pay was revised by multiplying their existing basic pay by this factor.
• For the 12th BPS, bank unions are demanding a fitment factor of 2.5 to 2.6 times, which would significantly raise the basic salary and other benefits linked to it.
• A higher fitment factor means a direct increase in pension, gratuity, and other retirement benefits since they are calculated based on basic pay.

If this demand is accepted, it will lead to a substantial improvement in bank employees’ overall compensation.

Dearness Allowance (DA) Merger Impact

The merger of Dearness Allowance (DA) into Basic Pay is another crucial component of the 12th Bipartite Settlement.

• DA is currently paid separately to adjust salaries for inflation.
• If DA is merged with Basic Pay, it will increase the base salary and, in turn, raise allowances like HRA, pension, and gratuity.
• In the 11th Bipartite Settlement, DA was not merged, which led to demands for its integration into the new pay structure under the 12th BPS.

If DA is merged, bank employees will benefit from a higher take-home salary and improved retirement benefits.

House Rent Allowance (HRA) Revisions

HRA is another major component that is expected to see a significant revision under the 12th Bipartite Settlement.

• Currently, HRA ranges between 7% to 10% of basic pay, depending on the location of posting (metro, urban, semi-urban, or rural).
• With a higher fitment factor and DA merger, HRA will also increase proportionally.
• Employees in metro cities may see HRA increase from 10% to 12-15%, while other locations will also receive higher allowances.

An increase in HRA will help bank employees manage rising rental costs, especially in urban and metro areas.

Other Perks & Benefits

Apart from salary and allowances, the 12th Bipartite Settlement is expected to introduce new perks and enhanced benefits for bank employees. Some of the key expectations include:

• Medical Benefits: Higher medical insurance coverage for employees and their families.
• Leave Benefits: Improved casual leave, sick leave, and maternity/paternity leave policies.
• Travel Allowances: Increased reimbursement for official and personal travel expenses.
• Performance-Linked Incentives (PLI): Revised PLI structure for rewarding high-performing employees.
• Pension & Gratuity Benefits: Higher pension and increased gratuity limits for retired employees.

The 12th Bipartite Settlement is expected to introduce a comprehensive financial package that not only enhances salaries but also improves overall working conditions for bank employees. With ongoing negotiations, unions are strongly pushing for these demands to be included in the final agreement.

Latest Negotiation Updates & Timeline

The 12th Bipartite Settlement (BPS) has been a focal point for bank employees and unions, aiming to revise wages and service conditions in India’s banking sector. Understanding the current status of negotiations, anticipated implementation timelines, and the challenges faced during discussions is crucial for all stakeholders.

Current Status of Talks Between IBA and Unions

Negotiations between the Indian Banks’ Association (IBA) and the United Forum of Bank Unions (UFBU) have been ongoing to finalize the terms of the 12th BPS. A significant development occurred on March 8, 2024, when both parties signed a Memorandum of Understanding (MoU), marking a pivotal step towards concluding the settlement.

Key highlights from the MoU include:

• Salary Revision: An agreed 17% increase in salary and allowances for bank employees, effective from November 1, 2022.
• Pension Enhancements: Improvements in pension benefits for retirees, addressing long-standing demands of the workforce.

While the MoU signifies progress, certain residual issues remain under discussion. Both IBA and UFBU have committed to resolving these matters amicably within six months of signing the settlement.

Expected Implementation Date of the 12th BPS

The revised salary structures and benefits outlined in the 12th BPS are set to be effective retroactively from November 1, 2022. However, due to the timing of the agreement’s finalization, the updated salaries began reflecting in paychecks starting March 2024. Employees are also slated to receive arrears for the period between November 2022 and February 2024, with disbursements expected in a phased manner.

Challenges & Roadblocks in Negotiations

Several challenges have surfaced during the negotiation process:

• Five-Day Banking Week: One of the primary contentions has been the proposal for a five-day workweek. While unions advocate for this change to enhance work-life balance, it has been a significant roadblock in finalizing the joint note.
• Timely Conclusion of Negotiations: Historically, wage revisions have faced delays, leading to frustration among employees. Efforts have been made to expedite the process, but aligning the interests of all parties remains complex.
• Government Approvals: Post-negotiation, the agreed terms require governmental approvals, which can further delay implementation. The Finance Ministry’s involvement is crucial in this context.

Addressing these challenges is imperative to ensure that the benefits of the 12th BPS are realized promptly by bank employees across the nation.

Note: The information provided reflects the status as of April 2025. For the most current updates, stakeholders are advised to consult official communications from the IBA and respective bank unions.

Impact of 12th BPS on Different Employee Categories

The 12th Bipartite Settlement (BPS) will have a significant impact on all categories of public sector bank employees, including clerical staff, officers, retired employees, and new recruits. The revised salary structure and allowances are expected to improve financial security and overall job satisfaction across the banking sector.

Clerical Staff vs. Officers Salary Hike

The salary hike under the 12th BPS will vary depending on the employee’s grade and designation. Here’s a comparison of the expected salary increments:

• Clerical staff will see a higher basic pay, leading to increased allowances such as HRA and transport benefits.
• Officers (Scale I-III) will benefit from higher DA, performance-linked incentives (PLI), and improved pension contributions.
• Senior officers (Scale IV & above) are expected to receive larger salary increments, along with additional benefits such as revised travel allowances and executive perks.

Special Benefits for Retired Bank Employees

The 12th BPS is also expected to introduce better post-retirement benefits, addressing long-pending demands of retired bank employees. Some of the key improvements include:

• Pension Revision: The revised salary structure will positively impact pension calculations, ensuring higher payouts for retirees.
• Improved Gratuity & Provident Fund: Increased basic pay will lead to higher gratuity and provident fund contributions, offering better financial stability for retired employees.
• Medical Benefits: Many retired employees rely on medical benefits provided by banks. The 12th BPS is expected to enhance group medical insurance coverage.
• Commutation Benefits: The revised pay scales will improve commuted pension calculations, resulting in a higher lump sum payout for retirees.

These updates will help thousands of retired employees secure a better financial future and improved quality of life.

Impact on New Recruits in Public Sector Banks

The 12th Bipartite Settlement will also have a significant impact on new recruits joining public sector banks. Some key benefits for new employees include:

• Higher Starting Salary: Entry-level employees, particularly clerical staff and probationary officers (POs), will receive a higher basic pay, making bank jobs more attractive.
• Improved Job Security & Growth Prospects: With better salary structures, more candidates may opt for banking as a long-term career, strengthening the talent pool in the sector.
• Enhanced Allowances & Perks: New recruits will enjoy improved HRA, travel allowances, and medical benefits, making public sector banks a competitive employer compared to private financial institutions.
• Performance-Linked Incentives (PLI): The revised incentive structure will reward high-performing employees, encouraging productivity and efficiency.

Overall, the 12th BPS is expected to enhance salaries, benefits, and work conditions for both existing and newly recruited employees, making banking a more attractive career choice in India.

Comparison: 12th vs. 11th Bipartite Settlement

The 12th Bipartite Settlement (BPS) introduces several changes compared to the 11th BPS, particularly in terms of salary structure, allowances, and overall employee benefits. This section highlights key differences, major gains, and how the final settlement aligns with employee expectations.

Salary Structure Differences: 12th vs. 11th BPS

The salary hike under the 11th BPS (2017-2022) was around 15%, while the 12th BPS (2022-2027) has secured a 17% increase in pay and allowances. Here’s how the salary structures compare:

• The 12th BPS introduces a higher salary increase than the 11th BPS, ensuring better financial security for employees.
• The potential merger of DA with Basic Pay will increase pension benefits and allowances.

Major Gains or Losses in Allowances

The 12th BPS has addressed several concerns regarding allowances and benefits. Here’s a breakdown of the major gains and changes compared to the 11th BPS:

• The 12th BPS offers higher HRA, which will benefit employees in metro and urban areas.
• Medical benefits have been expanded to provide better coverage for employees and retirees.
• Performance incentives (PLI) are likely to see higher payouts, rewarding high-performing employees.

Employee Expectations vs. Actual Settlements

The United Forum of Bank Unions (UFBU) and other employee groups had demanded a 25% salary hike, but the final settlement secured a 17% increase. While this falls short of expectations, other positive developments include:

• Higher Fitment Factor: Unions pushed for a 2.5 to 2.6 fitment factor, and though the final number is still being discussed, it is expected to be higher than the 2.2 factor of the 11th BPS.
• Dearness Allowance (DA) Merger: One of the most anticipated changes, DA is expected to be merged with Basic Pay, ensuring higher pensions and gratuity.
• Five-Day Banking Week: Discussions are ongoing, but employees were expecting a complete shift to a five-day workweek, which remains a roadblock in negotiations.
• Shortfall in Salary Hike: Many employees expected a higher pay increase (20-25%), but the final settlement secured 17%.

Final Verdict: 12th BPS vs. 11th BPS

The 12th BPS is better than the 11th BPS in terms of salary hikes, allowances, and retirement benefits. However, the lower-than-expected salary increase and pending five-day banking approval remain key concerns for employees.

Overall, the 12th Bipartite Settlement offers progressive changes, making public sector banking jobs more financially rewarding and attractive in India.

Government & RBI’s Role in Wage Revision

The wage revision process in the banking sector is not solely determined by bank unions and the Indian Banks’ Association (IBA). The Government of India and the Reserve Bank of India (RBI) play a crucial role in shaping salary structures, allowances, and overall employment policies in public sector banks.

How Government Policies Influence Settlements

The Government of India (GoI), through the Ministry of Finance, holds significant control over public sector bank operations, including bipartite wage settlements. Key ways in which the government influences these revisions include:

1. Budget Allocations & Financial Constraints

• Public sector banks are largely owned by the government, which means wage revisions depend on the financial health of these banks.
• If the government is focused on controlling fiscal deficits, salary hikes may be moderated to ensure banks remain profitable.
• The government’s annual budget and economic policies set the tone for wage negotiations, particularly in relation to inflation, growth, and banking sector reforms.

2. Approval of Final Wage Agreements

• Even after negotiations between IBA and bank unions, the final wage settlement requires approval from the Finance Ministry.
• Policy decisions, such as merging Dearness Allowance (DA) with Basic Pay or implementing a five-day workweek, often depend on the government’s green signal.

3. Public Sector Bank Privatization & Wage Reforms

• With privatization discussions ongoing for certain public sector banks, the government strategically balances wage revisions to maintain operational efficiency while controlling costs.
• The push for performance-based pay structures in the 12th Bipartite Settlement aligns with the government’s vision of making PSU banks more competitive.

4. Five-Day Banking Week Proposal

• While unions have demanded a five-day banking week, the government has delayed approval, citing concerns over customer service and economic productivity.
• This decision directly affects employee work-life balance and banking sector reforms.

Role of the Reserve Bank of India (RBI) in Wage Structures

The Reserve Bank of India (RBI) plays an indirect but critical role in shaping wage structures for public sector banks. While RBI does not directly negotiate salaries, it influences wage settlements through its monetary policies and banking regulations.

1. Inflation & Monetary Policy Impact on Wage Hikes

• RBI’s monetary policy decisions, such as changes in repo rates and inflation control measures, influence the cost of living, directly impacting wage negotiations.
• If inflation is high, unions push for higher DA and basic pay revisions to protect employees from rising expenses.

2. Banking Profitability & Salary Revisions

• The RBI regularly reviews the financial health of banks, ensuring they remain profitable while granting wage increases.
• If banks are reporting losses or facing capital constraints, RBI cautions against excessive salary hikes that could weaken their financial stability.

3. Regulations on Employee Benefits & Perks

• The RBI enforces regulations on pension fund management, allowances, and retirement benefits, ensuring banks comply with financial discipline while offering competitive salaries.
• For instance, changes in gratuity limits, provident fund rules, or pension scheme structures are often influenced by RBI’s financial policies.

4. Digital Banking & Workforce Adjustments

• With RBI pushing for digital banking transformation, there is a shift towards technology-driven banking, leading to discussions on performance-based pay structures.
• This shift impacts how future wage settlements are structured, balancing traditional salary components with digital banking incentives.

Government & RBI’s Influence on Wage Revision

While bank unions and the IBA negotiate salaries, the final implementation depends on the government’s economic policies and RBI’s regulatory framework.

Thus, the 12th Bipartite Settlement is not just a result of labor negotiations but is deeply connected to India’s economic and banking policies, ensuring that wage revisions align with the country’s financial stability and banking sector growth.

Employee Reactions & Union Demands

The 12th Bipartite Settlement (BPS) has been a subject of intense debate among bank employees, with unions actively pushing for better pay and benefits. Over the past few months, employee unions have organized negotiations, protests, and strikes to demand a fair wage revision that meets rising living costs and inflation.

Key Demands of Bank Employee Unions

The United Forum of Bank Unions (UFBU), along with other major banking unions, has presented a list of demands to the Indian Banks’ Association (IBA) during the 12th BPS discussions. Some of the key demands include:

1. Higher Salary Hike (Above 20%)

• Unions initially demanded a 25% hike, but IBA proposed 17%, which led to dissatisfaction among employees.
• Bank employees argue that the cost of living and inflation have increased significantly, requiring a higher salary revision.

2. Merger of Dearness Allowance (DA) with Basic Pay

• Unions are demanding the merger of DA into basic pay to improve retirement benefits such as pension, gratuity, and provident fund contributions.
• Merging DA would increase overall earnings and provide better financial security.

3. Five-Day Banking Week

• Unions are strongly pushing for a five-day workweek, similar to government offices.
• While discussions are ongoing, the government and IBA have not yet approved this demand, citing concerns over customer service.

4. Improvement in Pension & Retirement Benefits

• Pension revision for retirees has been a major demand, as many retired employees struggle with low pension amounts.
• Unions are requesting higher commutation benefits and an increase in bank-funded medical insurance for retired employees.

5. Better Work-Life Balance & Reduction in Work Pressure

• Employees are demanding better working conditions, reduced work pressure, and fair promotions to create a healthier workplace.
• Workload in PSU banks has increased due to digital banking expansion and government schemes, but salaries have not grown proportionally.

Strikes, Protests, and Negotiations

Due to slow negotiations and unsatisfactory responses from IBA, bank employees have organized strikes and protests across India.

1. Nationwide Bank Strikes

• Several one-day and two-day strikes have been observed in the past year, led by UFBU, AIBEA, and AIBOC.
• Employees have protested in major cities like Delhi, Mumbai, Kolkata, and Chennai, demanding a better wage settlement.
• The threat of an indefinite strike remains if negotiations fail to meet union expectations.

2. Protests at IBA & Government Offices

• Unions have held protests outside IBA offices and Finance Ministry buildings, urging faster implementation of the 12th BPS.
• Memorandums have been submitted to the Finance Ministry and RBI, highlighting employees’ concerns.

3. Ongoing Negotiations & Deadlock

• The IBA and bank unions continue to negotiate, with multiple rounds of discussions held over the past year.
• While some demands like salary hikes and DA merger are under consideration, issues like five-day banking and pension revision are still unresolved.
• The final agreement is expected to be signed in 2025, but delays in finalizing negotiations have frustrated employees.

Current Status & What’s Next?

• Salary Hike: Negotiations have led to a 17% salary increase, but unions are still pushing for higher increments.
• DA Merger: Likely to be implemented, which will benefit long-term earnings and retirement benefits.
• Five-Day Workweek: Still pending approval from the government.
• Pension Revision: Yet to be finalized, with retired employees continuing to demand higher pensions.

Bank employees and unions remain unhappy with slow progress, and more strikes may be organized if their demands are not met. The final settlement will depend on further negotiations, and employees are hoping for a fair wage revision that meets inflation and cost-of-living challenges.

Will 12th BPS Meet Expectations?

The 12th Bipartite Settlement (BPS) is a crucial wage revision that will impact lakhs of bank employees across India. With ongoing negotiations between bank unions and the Indian Banks’ Association (IBA), employees are eager to know if the final agreement will meet their expectations in terms of salary hikes, benefits, and work conditions.

Possible Final Salary Hike Percentage

Based on the latest negotiation updates, the tentative salary hike under the 12th BPS is expected to be around 17% to 20%, but this is still under discussion. Here’s a breakdown of what employees can expect:

If unions successfully negotiate a higher increment, the final percentage could cross 20%, but it depends on financial approvals and government backing.

How This Settlement Will Shape Future Wage Revisions

The 12th Bipartite Settlement will set the tone for future bank wage negotiations, and several key trends may emerge:

1. Shift Towards Performance-Based Pay

• There is a growing push for performance-linked salary components, especially for bank officers.
• Future settlements may introduce merit-based salary increments rather than uniform hikes across all employees.

2. Digital Banking & Workforce Restructuring

• With banks moving towards automation and digital banking, future settlements may restructure job roles and affect salary increments.
• Employees in IT and digital banking roles may receive higher pay revisions compared to traditional banking roles.

3. Possible Five-Day Workweek in Future Settlements

• Although the 12th BPS may not finalize a five-day banking week, it remains a major demand for future wage agreements.
• Employee unions are expected to push harder for its approval in the 13th Bipartite Settlement.

4. Government & RBI’s Influence Will Continue

• The Finance Ministry and RBI will remain key players in determining salary hikes and benefits.
• Any privatization efforts in the banking sector may impact future wage settlements and introduce variable pay structures.

Will the 12th BPS Satisfy Bank Employees?

Pros:

• Salary hike expected in the 17-20% range, improving overall earnings.
• DA merger with Basic Pay could lead to better retirement benefits.
• HRA and special allowances likely to increase, improving take-home pay.

Cons:

• Five-day workweek may not be approved in this settlement.
• Pension revision is still uncertain, causing concerns for retired employees.
• Final implementation may be delayed if negotiations face roadblocks.

While the 12th BPS is likely to bring significant improvements, not all demands may be met fully. However, it will serve as a stepping stone for future wage revisions, and employees can expect better pay structures and work benefits in the coming years.

Conclusion

The 12th Bipartite Settlement (BPS) is a highly anticipated wage revision that will impact public sector bank employees across India. As negotiations continue between the Indian Banks’ Association (IBA) and employee unions, here are the key takeaways and what employees should expect next.

Key Takeaways from the 12th BPS

• Expected Salary Hike: The final wage revision is likely to fall between 17% to 20%, with some allowances seeing further improvements.
• DA Merger with Basic Pay: A major change that will increase the overall basic salary and improve long-term benefits like pension and gratuity.
• HRA & Special Allowances: Revisions are expected, providing a better in-hand salary for employees.
• Retirement Benefits & Pension Revision: Still under discussion; retired employees and unions are pushing for an enhanced pension structure.
• Five-Day Banking Week: While a top demand, the government has not yet approved it, but discussions may continue in future wage settlements.
• Government & RBI’s Influence: The Finance Ministry and RBI will play a key role in finalizing salary structures, ensuring banks remain financially stable while increasing wages.
• Performance-Based Pay: There may be new salary structures for officers, linking a part of their pay to performance and productivity.

What Bank Employees Should Expect Next?

• Final Agreement in 2025: The final settlement signing is expected in mid-to-late 2025, though delays may occur if negotiations take longer.
• Possible Strikes & Protests: If unions feel the final wage hike is unsatisfactory, there may be more strikes and protests to push for higher increments.
• Future Wage Revisions: Even if some demands are not met now, they may be addressed in the 13th Bipartite Settlement in the coming years.

A Step Forward, But More Needed

The 12th Bipartite Settlement is expected to bring substantial salary hikes and benefits, but not all union demands may be fulfilled. Employees should stay updated on negotiation developments and prepare for possible future protests if discussions stall.

While this settlement improves salary structures, future wage agreements will be even more crucial in addressing long-term issues like work-life balance, pension revision, and job security.

FAQ

What is the 12th Bipartite Settlement?

The 12th Bipartite Settlement (BPS) is a wage revision agreement between Indian Banks’ Association (IBA) and employee unions for bank staff salary hikes.

What is the expected salary hike under the 12th BPS?

The salary hike under the 12th BPS is expected to be between 17% and 20%, with revisions in basic pay, allowances, and perks for bank employees.

Will the 12th BPS include DA merger with basic pay?

Yes, the merger of Dearness Allowance (DA) with basic pay is one of the key demands of unions and is expected to be implemented in the 12th BPS.

What are the major demands of bank unions in the 12th BPS?

Unions are demanding a higher salary hike, DA merger, pension revision, a five-day banking week, and better work-life balance for employees.

When will the 12th Bipartite Settlement be implemented?

The 12th BPS is expected to be finalized in 2025. However, delays in negotiations may push the implementation date further.

How does the 12th BPS compare to the 11th BPS?

The 12th BPS is expected to offer a higher salary hike, better allowances, and improved pension benefits compared to the 11th BPS.

Will bank employees get performance-based pay under the 12th BPS?

There are discussions about introducing performance-linked pay for officers, but it is not yet confirmed for all employees.

Is the five-day banking week approved in the 12th BPS?

Although bank unions are demanding a five-day banking week, it has not yet been officially approved by the government.