With the publication of the IBPS PO notification for 2020, many candidates are eager to register for the exam. The notification states that there are 3517 vacancies across India and that 11 public sector banks will be recruiting candidates through this exam. However, before you register for the exam. It is essential to learn more about the salary of IBPS PO and the duties that it involves.
Structure of IBPS PO Salary
The salary of IBPS PO has several components. The main component is the Basic Pay, which is around Rs. 23,700 across all banks for a newly appointed employee. Apart from this, the other components are:
- Dearness Allowance: It is calculated based on the Consumer Price Index and is 46% of the Basic Pay. It is also directly proportional to inflation. That is, as inflation increases, so does the dearness allowance.
- House Rental Allowance: It is also referred to as the allowance for leased accommodation. This allowance varies based on the job location; it ranges from 7% to 9%, depending on whether the job is in a rural area or a metro area.
- Special Allowance: This component has been added to the salary of IBPS PO recently. For a probationary officer, it is about 7.75% of the basic pay. After that, it increases by Rs. 400 in the first year and by Rs. 500 in the second year.
- City Compensatory Allowance: Based on the location of your job, this allowance is included in the salary structure. It ranges from 3% to 4%, but in some cases, it can be 0%.
What Is the Salary Increment of the IBPS PO?
Although the 11th Bipartite Settlement is proposed, the IBPS PO 2020 will be based on the 10th Bipartite Settlement. According to this settlement, there are provisions for the increment of the basic salary of IBPS PO. The salary increment takes place in stages:
- Initial basic pay is Rs. 23,700, which increases by Rs. 980 annually for seven years.
- During the second increment, the basic pay is Rs. 30,560, which increases by Rs. 1,145 annually for two years.
- The third increment is based on the basic pay of Rs. 32,850, which increases by Rs. 1,310 annually, for seven years.
- The fourth and final increment is based on the basic pay of Rs. 42,020.
What is the 11th Bipartite Settlement?
As mentioned earlier, the salary of IBPS PO increases based on Bipartite Settlement. Public sector bank employees are seeking a 15% hike in their salary. For this, the increment will be based on the sum of the basic pay and dearness allowance.
As wages revision for the public sector bank takes place every five years, the 11th Bipartite Settlement is due from November 2017 and will be in effect till 2022; however, it is yet to be announced.
Learning about the IBPS PO salary is important to help you decide whether you should opt for this exam or not. Depending on the bank and on the job location, an IBPS PO officer’s salary will differ. There are other perks involved in the job and travel allowances, benefits of the New Pension Scheme, Medical Aid, and more.