IBPS PO: Salary Structure and Promotions

Dear Readers,

IBPS has declared the final Result of IBPS PO V Exam. The candidates are now curious about the Salary and Promotion of IBPS PO. So here is an article on Salary and Promotion of IBPS PO.

Salary of IBPS PO:

In most of the public sector banks, Salary of PO is more or less the same. The latest revision of Bank PO’s salary as per 10^th Bipartite settlement, took place on Nov 2012; however the final agreement was signed in May 2015. According to which the revised salary of Bank PO will come into effect from 1^st January 2016.

The revised basic pay of PO thus becomes –

23700 – (980 x 7) – 30560 – (1145 x 2) – 32850 – (1310 x 7) – 42020

Here Rs. 23700 is the revised basic pay of Bank PO as applicable on
1^st January 2016. Thus the new entrant in a Bank as PO is liable to get Rs. 23,700 as basic pay.

Rs. 980 is the annual increment that a Bank PO will get and it will be applicable for a period of 7 years.

Besides the basic pay, a PO is entitled to receive following Allowances:

1. Dearness Allowance (DA): In Banks, DA is revised quarterly and is based on the CPI data as revealed by Government of India.

The last Revised DA for the quarter of November and December, 2015 and January, 2016 is 39.80% of the Basic Pay.

Since it depends on CPI, DA can go up with higher Inflation and vice versa.

2. Special Allowance: In the latest revision, a special allowance has been added to the salary structure of Bank PO.

And it is 7.75% of the Basic Pay.

3. House Rent Allowance: This varies according to Bank PO’s place of posting and can be 9.0% or 8.0% or 7.0% depending upon metros, big cities and other locations.

4. City Compensatory Allowance: This also depends on the place of posting and can be either 4% or 3 % or 0%.

Hence the total Salary (without HRA) of Bank PO becomes Rs. 35,700 – 36,570. While considering the HRA into account, it becomes Rs. 37,360 -38,700.

Perks:

1. Leased Accommodation:  this facility is available to Bank PO in place of HRA. At some places, banks provide Official Bank Accommodation/Bank Quarter as leased accommodation. This amount is not available as cash component and will directly go to the house owner – you have got leased.

2. Traveling Allowance: Few banks provide fixed Traveling Allowance whereas others allow reimbursement of petrol bills i.e. officer must own scooter / car at the place of posting.

3. Newspaper Reimbursement: A fixed monthly amount is paid towards the cost of one newspaper.

4. Medical Aid: A fixed annual amount is paid by most of the banks (Revised amount is Rs8000/- p.a.)

5. Benefits under New Pension Scheme.

Promotions:

There is a well-defined career progression path in each public sector bank. Performance and potential are key elements which determine this career progression. Most senior officials in public sector banks started their career as scale I officer only.

In tune with the time banks have reviewed their promotion policy and now for bright, hardworking and knowledgeable employees it takes less time to move to higher scales.

In many banks a person who joined as an officer may reach to the position of General Manager in 14 years. After that one can aspire for the position of executive director or chairman of a bank. These are very high positions, nomination to which is decided by the Government and not by the individual banks.

Many public sector banks have a network of foreign branches. Thus, joining a public sector bank gives you the opportunity of working abroad also. Transferability in a bank job provides you the chance of seeing different parts of the country.

Career progression for Officers in Banking Sector:

Junior Management Grade – Scale I: Officer i.e. PO

Middle Management Grade – Scale II: Manager

Middle Management Grade – Scale III: Senior Manager

Senior Management Grade – Scale IV: Chief Manager

Senior Management Grade Scale V: Assistant General Manager

Top Management Grade Scale VI: Deputy General Manager

Top Management Grade Scale VII: General Manager

Executive Director (ED)

Chairman and Managing Director (CMD)

Above are the perks, allowances and salary as provided by Public Sector Banks along with promotion structure for which the entry point is Scale I Officer.

Congratulations to the selected candidates