8th Pay Commission Announce! What About 13th Bipartite Settlement?

The discussion around the 8th Pay Commission (CPC) has once again gained attention, especially after recent reports suggested that the Government may soon announce its constitution to revise pay, allowances, and pensions for central government employees. With the news spreading quickly, many Public Sector Bank (PSB) employees are also curious: Will the 8th Pay Commission Affect Bank Employees’ Salaries?

The short answer is No. The salary structure of bank employees does not depend on the Central Pay Commission. Instead, it is determined through a Bipartite Settlement – a separate, industry-specific process that governs pay revision in banks. Here’s a clear look at why the 8th Pay Commission will not impact bank employees, how their salary is revised, and what lies ahead in the next wage settlement.

A bipartite settlement is a formal agreement reached between two parties, typically representing management and employees, to define wages, benefits, and working conditions. In the Indian banking sector, this is a recurring negotiation between the Indian Banks’ Association (IBA) and employee unions like the United Forum of Bank Unions (UFBU) to revise salaries and service conditions for bank employees.

Why Is the 8th Pay Commission in the News?

The 8th Central Pay Commission is currently one of the most discussed topics among government employees. It is expected to review and recommend a new pay structure, allowances, and pensions for Central Government staff, Defence personnel, and All India Services officers.

If formed in 2026, the new pay structure would likely take effect from 1st January 2026, following the 10-year cycle of previous commissions (the 7th CPC was implemented in 2016). However, the Pay Commission does not cover PSU Bank employees, as their salary revision follows a different route altogether.

CPC vs. Bipartite Settlement: The Key Difference

The Central Pay Commission (CPC) is established by the Government of India to revise the pay structure of Central Government employees, the Defence forces, and the All India Services. In contrast, bank employees in PSBs follow the Bipartite Settlement, which is negotiated between the Indian Banks’ Association (IBA) and various bank employee unions such as the United Forum of Bank Unions (UFBU). Here’s how both differ:

Feature	Central Pay Commission (CPC)	Bipartite Settlement (BPS)
Applicable To	Central Government Employees, Defence Forces, All India Services	Public Sector Bank Employees
Authority	Constituted by the Government of India	Negotiated between IBA and Bank Employee/Officer Unions
Revision Cycle	Every 10 years	Every 5 years
Effective Authority	Government	Industry-level Negotiation
Purpose	Revises salary, allowances, and pensions	Revises wages, allowances, and service conditions
Latest Implementation	7th CPC (2016)	12th BPS (Effective from 1 Nov 2022)

In summary: The 8th Pay Commission will not impact the salary of bank employees because they are governed by a separate, industry-specific pay negotiation process – the Bipartite Settlement.

The Latest Update: The 12th Bipartite Settlement

The 12th Bipartite Settlement for workmen and the 9th Joint Note for officers were officially signed on March 8, 2024, following extensive negotiations between the Indian Banks’ Association (IBA) and various bank unions. This agreement marks the latest salary revision cycle for employees of Public Sector Banks. The revised pay structure has been made effective retrospectively from November 1, 2022, and will remain valid till October 31, 2027, covering a total duration of five years.

Key Highlights of the 12th BPS

Wage Hike: 17% increase in the payslip component, effective from November 1, 2022.
DA & Load Factor: New pay scales constructed after merging DA corresponding to 8088 points and applying a 3.22% load factor on basic pay.
Five-Day Work Week: All Saturdays as holidays – a major decision pending final Government of India notification.
Stagnation Increments: Enhanced number and value of stagnation increments for officers across scales.
12th Bipartite Settlement: Salary Revisions (Effective from Nov 1, 2022)

Bank Probationary Officer (PO) – Scale I (as per 12th Bipartite Settlement)

Particulars	Details (Approx.)
Previous Starting Basic (11th BPS)	₹36,000
New Starting Basic (12th BPS)	₹48,480
New Pay Scale	₹48,480 – 2000/7 – 62,480 – 2340/2 – 67,160 – 2680/7 – 85,920
Gross Salary (Approx.)	₹78,000 – ₹90,000+ (depending on city & allowances)
In-Hand Salary (Approx.)	₹69,000 – ₹76,000+ (after deductions)
Key Allowances & Benefits	CAIIB Increments: Two additional increments for CAIIB Part II qualified officers. Professional Qualification Pay (PQP): Now three PQPs (earlier two). Dearness Allowance (DA): Revised quarterly based on CPI. Other Benefits: HRA, CCA, Learning Allowance, Medical Aid, etc.

Bank Clerk (Customer Service Associate) (as per 12th Bipartite Settlement)

Particulars	Details (Approx.)
Previous Starting Basic (11th BPS)	₹17,900
New Starting Basic (12th BPS)	₹24,050
New Pay Scale	₹24,050 – 1340/3 – 28,070 – … – 64,480 (over 20 years)
Gross Salary (Approx.)	₹40,000 – ₹47,000+
In-Hand Salary (Approx.)	₹38,000 – ₹43,000+
Key Allowances & Benefits	Special Pay: Enhanced for clerical staff (now Customer Service Associates). PQP: Revised for JAIIB/CAIIB qualified staff. DA & Other Allowances: Updated HRA, Special Allowance, Medical Aid, etc. Graduate Benefit: Graduates get two advance increments, raising their starting basic pay to ₹26,730.

When Will the Next Bipartite Settlement Arrive?

Since the 12th BPS is valid until October 31, 2027, the next wage revision, the 13th Bipartite Settlement, will likely follow the same 5-year cycle.

Charter of Demands: Expected to be submitted by bank unions to IBA in 2027.
Negotiation Period: Typically starts before or after the previous settlement expires.
Expected Signing: Around 2027-2028, with retrospective effect from November 1, 2027.