What is the Salary of a Bank PO in 2017?
The salary of a Bank PO depends upon the officer’s seniority, rank and place of posting. The scale is same across almost all the public sector banks. However, SBI and its associates are little different from the rest. They pay more. Most of the private sector banks also follow the same pay scale, though reputed foreign banks generally pay higher.
Pay scale of the public sector banks are determined by the bipartite settlements. The current salary scheme is settled by the 10th bipartite settlement 2012, which actually started from 25th May, 2015.
The Salary Scale of a Bank PO
I know, it seems all Greek to you. All right, I am going to explain what these formulas mean. Scale I has the initial basic pay of Rs 23700. After that the incumbent will get an increment of Rs 980 each year for 7 years in a row. After getting the 7th increment, his basic pay will be 30560. From the next year of his service life, his increment rate will be 1145/yr for two years. I hope that you need not be explained more.
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Which job is better?
Why there is different scales, I mean Scale I, II etc?
It is because of the promotional schemes. Scale I is the initial stage of the career of a PO. After that he or she got promoted to Scale II. The officer jumps to the higher scales according to his or her seniority and merit.
Scale I is for JMG (Junior Manager Grade), II and III is for MMG (Middle Manager Grade), IV and V is for SMG (Senior Manager Grade), VI and VI I is for the Top Management Grade.
If you still have doubt in mind regarding the working of these pay scales, feel free to ask me via comments box and I’ll try to answer.
Starting Salary of a Newly Employed Bank PO
Ok, so how much are going to get at the starting of your career as a Bank PO? Do you have any idea?
If you have read the above sections of this article then you can tell the basic pay. Yes, the starting basic pay will be Rs 23700. But you will get some extra as different allowances.
Special Pay: Every officer will be given a special pay. Actually, special pay is the grade pay of Bank PO or its equivalent. It is fixed with the employee’s basic scale. It is the 7.75% of the basic pay for Scale I, II and III (10% for Scale IV, V and 11% for VI, VII). So, for the beginner it will be Rs 1837.
DA (Dearness Allowance): DA is given to protect the employees from the ever increasing cost of the things in the market. The rate of DA is linked with the consumer price index. If the index rises, DA also rises and if it falls the DA also falls. It changes from time to time. As in April, 2016 the DA is 43% of the Basic and Special pay.
HRA(House Rent Allowance): HRA is one of the largest portion of a Bank PO’s salary. The rate of HRA depends upon the city of posting. The cities are categorized into 3 groups – A Class, B and C Class.
If your posting is in a A Class city, i.e. in a Metro, the HRA will be 9% of your basic. If it is in a B class city (other major cities or state capitals), the HRA rate is 8%. For the rest of the mortals the HRA is 7%.
CCA (City Compensatory Allowance): CCA is another allowance linked with the place of posting. It is 4% or Rs 870 max for A class cities. For B class cities that allowance is 3% with a ceiling of Rs 600. For other stations you will get nada.
Other Perks: There will be some more perks. Most important among them is the Leased accommodation. You can apply for leased accommodation in exchange of your HRA. In that case, the bank will pay the house rent directly to the owner of the house. The maximum limit of the LA is Rs 29500 in Mumbai.
The officer will also get allowance to buy fuel for car/motorbike. The fuel allowance is Rs 3000 per month for a PO.There is free medical treatment for self and the family. He or she will also get newspaper allowances, travelling allowances etc. The PO will also get interest free loan for house furnishing. There is some canteen subsidy too.
So, after calculating major parts of the salary, the emoluments of the newly employed PO is (in April 2016) :
Place of Posting: Metro City
Basic Pay: 23700
Special Pay: 1837
DA (@ 43%): 10191
DA on Special Pay: 790
HRA (@9%): 2133
Gross Salary: INR 39521
Professional Tax: Rs 150
DCPS (Pension Scheme): Rs 3389
POP: Rs 20
Total: Rs 3559
Salary in-Hand: [Gross – Deductions]= Rs 35962.
Bank PO Salary Table
A Class Citie
B Class Cities
DA on SP
How Much Salary a Senior Bank Manager Gets
It depends upon how many promotional ladders he can achieve in his service life. The probation period is two years. The trainee officer has to learn the inside secrets of his trade during this period. After that,the officer will start at the JMG Scale I. In due time, he will get promotions to next higher scales and grades. If he/she can get the top most scale i.e. TEG Scale VII then his/her basic pay will be Rs 76520. So what will be the gross salary?
Place of Posting: Metro City
Basic Pay: 76520
Special Pay: 8417
DA (@ 43%): 32904
DA on Special Pay: 3619
HRA (@9%): 6887
Gross Salary: Rs 129217
The Executive Directors, Chairpersons and Managing Directors earn more than that. But very few of the highly talented officers can go to that level.
Bank PO Salary After 7th Pay Commission
We all know that the 7th central pay commission has increased the salaries of the central government employees. So, what is its effect on emoluments in banks?
Bank employees are not central government staffs. So, 7th CPC does not have any direct effect on their salary. But there is indeed some indirect effect. The salary rise of the government employees will create similar demands from the bank employees. In fact, 11th bipartite settlement must consider 7th CPC revisions before drafting the new salary scales.
Bank PO is a hectic job. There is too much pressure and stress in the job. The banks try to compensate for these with good salaries. As the central government salaries are going to be increased due to the 7th Pay commission, the bank employees will also get another pay hike soon. 11th Bipartite settlement will be done soon.
Feel free to ask anything you did not find out in this article. If you have any doubt, do not hesitate to ask me, I’ll answer you. But please try to write in correct English with right spellings and grammars. Avoid that annoying SMS languages at all cost, otherwise your comments can be deleted.