12th Bipartite Settlement 2024: Latest News, Update, Salary Hike, and Expected Date

12th Bipartite Settlement 2024: Exciting developments unfold for public sector bank employees with the latest update on the 12th Bipartite Settlement. This article provides insights into the 12th Bipartite Settlement Date, the latest news and updates, the proposed salary hike, and the anticipated date of its implementation.

class="wp-block-heading">Overview of 12th Bipartite Settlement:

Negotiations and Agreement:

The Indian Banks’ Association, representing the Managements of Banks, engaged in discussions with authorized representatives of the Union of Workmen’s Unions and the Association of Officers’ Unions. The primary focus was on wage revision for Officers and Workmen in the Banks. Both the management and the Union/Association acknowledged the necessity of a robust banking system to address sector challenges and enhance efficiency. An agreement was reached to settle the wage issue and finalize a Memorandum of Understanding (MOU).

Key Demands and Terms:

1. Effective Date: The wage revision will be effective from 1/11/2022 for a period of five years.
2. Salary Increase: An annual increase in salary and allowances is agreed at 17%, amounting to Rs. 12,449 crores for all public sector banks, including SBI.
3. New Pay Scales: New pay scales will be constructed by merging Dearness Allowance and adding a loading of 3%.
4. Distribution of Increase: The distribution of the annual wage increase between Workmen and Officers will be proportionate based on establishment expenses for FY 2021-22.
5. Bipartite Settlement Finalization: The parties aim to finalize the Bipartite Settlement/Joint Note within 180 days from the date of the minutes.

Recent Developments:

• A Memorandum of Understanding was signed on December 7, 2023, and subsequent discussions on January 12, 2024, led to the signing of cost sheets between IBA and UFBU.
• However, details of the cost statement remain undisclosed, leading to speculation and debates about leaked information.

12th Bipartite Settlement Expected Date:

Recent Talks and Delays:

• The meeting on January 12 witnessed limited discussions, and decisions seemed to be made unilaterally within an exclusive working group.
• Certain unions within UFBU expressed concerns, leading to a call for renegotiation of certain provisions. Social media outrage among bankers has also contributed to delays in finalizing and publishing cost data.

12th Bipartite Settlement Salary Hike:

Salary Calculation Details:

• The 12th Bipartite settlement finalizes a 17% salary hike, including a 3% load factor.
• Dearness Allowance is merged with the current basic pay, and the Special Allowance is pending as of 7/12/2023.

Breakdown of Salary Calculation:

• The load factor, considered in the 12th BPS, benefits bank staff by applying a 3% increase to both BASIC AND DA.
• Total salary increase is 17%, reflecting a significant boost in gross salary for bank employees.

Officers’ Salary Calculation:

• A detailed salary chart illustrates the calculation for an officer employee who joined the bank in 2021, considering increments and qualifications.

Salary Slip Components:

• Components of the salary slip include BASIC, DA, SPECIAL ALLOWANCE, and LOAD FACTOR.

Conclusion:

Wage Revision Impact:

• The 17% wage increase under the 12th Bipartite Agreement brings positive news for public bank employees.
• The annual salary for all banks, including SBI, amounts to Rs. 12,449 crores.
• The amendment is applicable from November 1, 2022, for five years, allowing for a 17% increase in pay and allowances, incorporating Dearness Allowance and a 3% load factor.

Recommendations and Future Steps:

• IBA recommends a five-day working week, with unions urging implementation before the final deal expected in the next 180 days.
• This development follows a 15% increase for around 850,000 bank employees in July 2020.

FAQs – 12th Bipartite Settlement:

In conclusion, the 12th Bipartite Settlement brings favorable prospects for bank employees, marking a significant step towards enhanced wages and improved working conditions. The ongoing developments underscore the importance of effective communication between stakeholders for a successful outcome.