12th Bipartite Settlement Expected Salary Calculator
Estimate your new basic pay for bank employees based on the expected hike from the 12th Bipartite Settlement.
Understanding the 12th Bipartite Settlement
Estimate your new basic pay based on the expected hike from the 12th Bipartite Settlement for bank employees. This calculator helps employees of Public Sector Banks in India get a clear idea of their potential salary revision.
Key Factors Explained
- Basic Pay (as on 31.10.2022): Your basic salary on the date the previous settlement ended. This is the foundation for the calculation.
- Dearness Allowance (DA) Merger: A crucial part of the settlement is the merger of the existing Dearness Allowance (DA) with the basic pay. This calculation uses the DA rate of 38.92% applicable for the quarter ending October 2022.
- Loading/Hike Percentage: This is the expected percentage increase that will be applied to the combined total of your Basic Pay and the merged DA. This 'loading' factor determines the total increase amount.
The Formula
The calculation determines the total increase (loading) on the pay slip components as of October 2022 and adds it to the existing basic pay.
Pay Slip Component = Basic Pay + (Basic Pay × DA %)
Increase Amount = Pay Slip Component × Hike %
New Basic Pay = Basic Pay + Increase Amount
Frequently Asked Questions (FAQ)
What is the 12th Bipartite Settlement?
The Bipartite Settlement is a wage revision agreement signed between the Indian Banks' Association (IBA), representing bank management, and the United Forum of Bank Unions (UFBU), representing bank employees. It revises the salary, allowances, and service conditions for employees in Public Sector Banks, typically every five years.
What is the 'loading effect'?
The 'loading effect' refers to the method of calculating the total salary increase. Instead of applying the hike percentage only to the basic pay, it is applied to the sum of Basic Pay and the Dearness Allowance that is being merged. This results in a higher overall increase.
Is this calculator official?
No, this is an estimation tool based on the common assumptions and calculation methods discussed during the settlement negotiations. The final, official salary structure, including revised allowances and pay scales, will be detailed in the joint note signed by the IBA and UFBU.
For a more in-depth guide, read our detailed article on this topic.