The Bank PO/Clerk salary breakup, Pay revision 2017

All government Banks employees are waiting for their next pay revision which is due from 01.11.2017. Last pay revision was issued by Indian Banking Association in the month of May 2015 which was applicable from 01.11.2012. For the next round of wage revision talks for 11th bipartite settlement has already been started. In this article, we will see the present pay scales for the Bank Officers and Clerks various allowances applicable to them.

Bank Officers Pay Scales

All the newly recruited Probationary officers are placed in the following scale on the first stage but some banks like SBI, Union Bank, PNB and other public sector banks have their own different start for POs.

The start pay of any bank PO is fix, but the allowance may differ from according to the posting area or city. So the metro city PO will definitely get High allowance and wages.

Basic pay is the main amount paid by any organization to an employee with any allowances are added. As this is the biggest part of the salary, HRA is linked to Basic pay and it is taxable so it is very important.

The basic pay of major a class city for the IBPS PO 23700 and SBI PO is INR 27620. Basic pay of IBPS Clerk and SBI Clerk is INR 11765.

If we talk about the Group B jobs, RBI Group B officers get INR 21,000 as basic pay.

Read: SBI PO Salary in hand

SBI PO Recruitment 2018

Allowances for the officers

Different allowances are given to cover additional expenses incurred. it is depended on the city of posting and Given as a percentage of basic salary.

Dearness Allowance

DA is the cost of living adjustment allowance given to the Government and Public sector employees. DA is revised each 3 months based on the CPI which decides the inflation of the quarter. DA is directly related to inflation and goes up with an increase of inflation and dropped with down of inflation.

The current quarter Dearness allowances rate is 45.6%.

House Rent Allowances

The House Rent Allowance is given to cover the rental expenses of employee’s accommodation. According to Income Tax Rule 2A, the employees do not need to pay any tax on HRA.

Generally, HRA is around 7-8% of the Basic Pay and if living in a metro city (Mumbai, Kolkata, Chennai or Delhi ) it will 9% of the basic salary so again it depends on the place of posting.

HRA is classified based on the city groups. The HRA rates according to the city are as below:

Group A or metro city    =    9%

Group B                        =    8%

Group C                        =    7%

And if any PO takes a leased accommodation then there is a separate criteria for HRA. Say for an example the limit for leased accommodation for an SBI PO is as

Group A or metro city    =    INR 30000/-

Group B                        =    INR 18000/-

Group C                        =    INR 10000/-

Special Allowance:

Special Allowance -also known as performance bonus paid over the basic salary. Government banking sector employees are eligible for special allowances/performance bonus. The Officers of Scale I-III get around 7.75% of basic pay as Special allowances.

CCA: Compensatory City Allowance is paid for covering the extra cost of living in an expensive city. CCA is paid at 3% to 4% or 0% depending on the place of the job posting.

Apart from this main pay and allowances, Bank officers also eligible for provident fund and pension scheme.

with these, they also get Medical Benefits of  8000/- per month, Leave traveling concessions, Professional qualification pay, Hill & Fuel charge pay, Mid academic year transfer allowances( if applicable), Split duty allowances and more.

The gross salary of Bank PO will have the all above mentioned components i.e. Basic Pay, DA, HRA (Leased Rent), Special Pay, CCA, Medical benefits, etc. Some of the parts are dependent on the location of posting henece gross salary of a PO may vary from a place to other place.

In total, for fresher/newly recruited Bank PO compensation will be around 6 lac/annum minimum to maximum of 12.95 lac/annum depending on the Bank, posting city and allowances applicable to that post. Bank Officers also gets annual increment and promotion which increase their salary time to time.

The pay revisions in banks are implemented at every 5 years, so if you are on this post, you will get the benefit of revision of pay after each 5 years.

with these, they also get Medical Benefits of  8000/- per month, Leave traveling concessions, Professional qualification pay, Hill & Fuel charge pay, Mid academic year transfer allowances( if applicable), Split duty allowances and more.

Bank Clerk Job Profile

We have seen the salary breakup details of Bank PO, Now lets see the same for the clerk cadre.

If you are preparing for Bank Clerk/Jr. Associate, you need to know the job profile and operations that are going to be handled by you as a Clerk.

No doubt, different banks may provide separate CTC to clerks. The SBI clerk gets best compensation among government sector,  but before that let discuss the job profile of Clerk.

At any bank either private or PSU, the first person who interacts with all the customer inquiries and to provide guidance is always Bank Clerk.

The primary responsibility of Clerk is to deal with customer inquiries by communicating with customers, resolving their doubts and providing guidance.

Clerks handle all activities at the deposit counter and cash withdrawal work is assigned. And sometimes Bank Clerks also need to work as a single window operator.

Bank Clerk works on documentation and back-office work like balance tallying, data entry etc. and also responsible for the signing of pertinent documents and clearing cheque & demand drafts.

Bank Clerk Pay Scales & Grades

The basic pay of Fresher Bank Clerk is 11765 INR and after adding all allowances you will get around 20000/- INR in hand salary. (Note that salary & allowances are depended on the Job location and may vary by city)

Pay Scale

11765 (655/3) – 13730 (815/3) – 16175(980/4) – 20095 (1145/7) – 28110 (2120/1) – 30230 (1310/1) – 31540.

Let’s take a look at SBI Clerk salary.

As per the SBI Clerk Notification, the total starting salary of Clerk employee at the Metro (Like Mumbai or Delhi) will be approximate of 20,950/- per month that includes All allowances like Dearness Allowance, HRA, etc.

If we see the in-hand salary by Class of city, SBI Clerk posted in Class Y cities will get: 20,000/- INR and posted in Class z cities will get 19000/- INR in total.

Allowances for the Bank Clerks

Clerk’s starting Basic pay is 11765 but after adding all the allowances it becomes a big figure. Let’s talk about the allowances the SBI Clerk gets.

DA: Clerk profile is eligible for Dearness Allowance and it is around 5365/- INR. Dearness allowance depends on the inflation and rise and drops by the rate of inflation and it is some percentage of the Basic pay so it is dependent on Basic pay. The DA rate is same for all irrespective of cadre of an employee.

HRA: Clerk gets general HRA of 1176/- and this number is dependent on the Posting City. If posting is in the metro city, HRA will be high compared to other cities.

Group A or metro city    =   10%

Group B                             =    9%

Group C                             =    7.5%

Special Allowance: Clerk Associates also gets the Special Allowance of 7.75% of Basic Pay and added to the total in-hand salary figure.

Apart from these, Bank Clerk also gets other perquisites like Transport Allowances, Special Pay, Furniture Allowance, House Maintenance Allowance, Briefcase Allowance, Books and Magazine Allowance etc.


With the latest pay revision that will be out in a current year, if you Get Cleared for Bank Clerk post, you will definitely get high Salary, will eligible for all the allowances and Perks by the Bank.

On another side, the competition for Clerk posts also high because of PSU attraction.

If you are still not sure about the clerk post, let me give you some more Perks with SBI Clerk job profile you will get,

Best is the working timing, you will get Flexible work hours and working in shifts, No door-to-door sales, Stable work environment and you can Encash privilege leaves.

Next pay revision or 11th bipartite settlement

Department of Financial Services has issued a notification to all the banks that are part of this process and advised them to complete the whole process before the due date that is 1st November 2017.

The expected Basic pay increment will be around 2.57 to 2.78 times of current pay. Pay revision rolled out each 5 years and so base on that, you can count the salary of Clerk after 1 or 2 revisions. And with an increase of Basic pay, all other allowances related to Basic pay naturally high compare to current one.

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