If you’re looking to attempt the IBPS PO examination and land a job as a probationary officer, you must be wondering what the salary is. As with other bank exams, there is a lot of jargon and abbreviations involved; these consist of allowances and other benefits.
This article breaks down the IBPS PO salary and lets you know what to expect as a probationary officer.
IBPS PO Salary
The salaries of bank employees are revised from time to time. The last time it was revised was in November of 2017, formed on the 11th bipartite settlement. Based on the settlement, there are different components to the PO salary.
But first, you must learn about the basic salary. As per the 10th bipartite settlement, the IBPS PO basic pay is around 23,700 – (980*7) – 30,560 – (1145*2) – 32850 – (1310*7) – 42020. Let’s break this down.
Initially, your base salary will be 23,700 per month. After seven years of service, your base salary will be 30,560. And it will get revised to 32,850 after two years. After seven more years, you can expect a package of 42,020.
Components of a PO Salary
As mentioned earlier, the components of a PO Salary are:
The HRA or House Rent Allowance varies from city to city. It is usually between 7-8% of your base salary.
- Dearness Allowance
It is also known as DA and is a percentage of your salary you’ll receive from the government for your service. The allowance is revised every three months as per the All India Consumer Price Index Data.
- Special Allowance
You’ll be receiving 7.75% of your base salary as a special allowance. The amount is awarded for meeting specific requirements. It is exempt from any taxes, but savings are taxable.
- City Compensatory allowance
The CCA allowance can range from 0% to 4% based on the type of city you’re living in. If you live in Class X cities, you’re likely to have a higher CCA than Class Z cities.
By doing the calculations, you’ll get the following figures for the first seven years of working as a PO:
- Basic Pay – 23,700
- Special Allowance – 1,836
- DA – 10,163
- CCA – 870
- HRA – 2133
- Total (without HRA) – 36,570
- Gross – 38,703
So for the first seven years, your gross salary will be around 38,703. Bank employees received a salary hike of almost 15% on the 11th bipartite settlement. So the gross will now be about 44,508. This depends on the bank you’re working with and your location of work.
SBI PO vs IBPS PO Salary
IBPS PO does the same job as an SBI PO. So you must be wondering if there’s a difference between their salaries. Yes, there is a significant difference. SBI offers a better compensation package to its employees than other banks.
SBI POs earn a minimum of 7.55 lacs per annum, depending on the place of posting. It can go as high as 12.93 lacs per annum. Basic pay for SBI probationary officers is around 27,620 per month. They’re also entitled to receive four extra increments at the time of joining. All of these push the monthly salary to over 60,000.
The subsequent bipartite settlement is expected to be in 2022. If things go well, then bankers will receive another 10-15% hike in their salary. So you can expect a higher wage from next year onwards.
You’ll find the allowances mentioned in your payslips. So, refer to them when you land your job as an IBPS probationary officer to get the exact details. It’s also advised to stay updated on the changes that could affect the IBPS PO salary. Many forums and websites publish such information regularly. Subscribe to them and go through the articles from time to time.