Introduction: In this post I am going to tell about IBPS PO Salary as well as difference between IBPS PO Salary and SBI PO Salary. IBPS or Bank Probationary Officer is one of the most popular jobs of India. In this post I am going to tell you in details about the IBPS PO salary. I will also tell you difference between IBPS PO Salary and SBI PO Salary because it is being said that in SBI the salary of PO is higher. So we will analyze where exactly is the difference.
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IBPS PO Salary – Pay Scale
First let us talk about pay scale. Bank PO is JMGS I grade post and the applicable pay scale for this grade is Rs. 23700 – 980 – 30560 – 1145 – 32850 – 1310 – 42020. This indicates that the starting basic of a Bank Probationary Officer is Rs. 23700. We have told you that in SBI the salary of the Bank PO is higher. In SBI the starting basic will be Rs. 23700 + 4 additional increments of Rs. 980. Therefore the basic salary of SBI PO will be Rs. 27620.
Since many of you are students and may not be aware about the concept of pay scale. I am explaining here so that you can understand it better.
Pay Scale refers to the basic pay representing to a particular grade with annual increment of pay. For example the pay scale of a Bank PO is Rs. 23700 – (980 x 7) – 30560 – (1145 x 2) – 32850 – (1310 x 7) – 42020. It means that the starting basic salary is Rs. 23700, thereafter there will be 7 increments of 980 every year.
The increment amount will increase to Rs 1145 (2 increments) and Rs 1310 (7 increments) over the years and the final basic of this scale after 16 years will be Rs 42020. It means that if one does not get any promotion throughout his or her life the final basic at the end of the scale after 16 years it will be Rs 42020.
The scale represents the basic pay only and Dearness allowance, HRA, CCA etc will be taken as percentage of the basic fixed.
IBPS PO Salary – Dearness Allowance
Dearness Allowance or DA is another major component of the salary. In Central Government jobs the dearness allowance is revised half yearly. However in banks the dearness allowance is revised on a quarterly basis. Dearness allowance is based on the CPI data as revealed by Government of India.
The dearness allowance is applied on basic pay as well as on special allowance. The current DA rate is 67.80% (August 2019). It is revised every quarter.
Remark: The Dearness Allowance (DA) is a cost of living adjustment allowance paid to Government employees, Public sector employees (PSU) and pensioners. It is calculated as a percentage of basic salary to mitigate the impact of inflation on people.
IBPS PO Salary – Special Allowance
In the last revision effective from November 2012 a special allowance was added to the salary structure of Bank PO. Special Allowance is 7.75% of the basic pay. Dearness Allowance is also applicable on the special allowance. So this is the extra benefit added at the time of last salary revision of the banks. Before the last salary revision there was no such concept of Special Allowance.
IBPS PO Salary – House Rent Allowance
House Rent Allowance varies according to Bank PO’s place of posting and can be 9.0% or 8.0% or 7.0% depending upon metros, big cities and other locations. However, either HRA or Leased Rental is payable to Probationary Officer. Lease Rental facility is very attractive in banks. In this facility entire rent of your house is paid by the bank directly to the land lord. Ceiling of the leased rent is attractive in most of the banks. In SBI Leased Rental facility is most attractive and one can take a very good house on rent under those ceiling.
IBPS PO Salary – CCA
City Compensatory Allowance depends on the place of posting and can be either 4% or 3 % or 0%. Apart from these standard allowances there are various perks and facilities which are available to a Bank Probationary Officer. Now I will discuss about those perks and benefits. In the conclusion part we will analyze about the total salary or package of the Bank Probationary Officer.
IBPS PO Salary – Perks & Benefits
Now let us discuss about the perks and other benefits which an IBPS PO and SBI PO gets.
Leased House Facility:
As I have earlier told you that leased accommodation is one of the best facilities which bank provides. Leased house facility is available to Bank PO in lieu of HRA. Under this facility bank allow you to take a rental house of your choice as per your entitlement. The entire rent will be paid directly by bank to the landlord of the house. The rental ceilings are quite attractive and one can get a very good house on rent. In SBI the rental ceilings are very high and leased house facility of SBI is considered as most attractive.
Conveyance Allowance:
Under this facility you are given reimbursement of the petrol expenses. On the basis of the vehicle which you are having for e.g. two-wheeler or four-wheeler, banks fix a monthly limit of reimbursement of petrol expenses. The monthly ceilings are based on the place of postings. Normally you will get perks of Rs. 4000-5000 through this facility.
Other Important Perks:
You will also be entitled for perks such as Newspaper and Magazine allowance, Servant allowance, Cleansing material allowance, entertainment allowance etc. The monthly value of these perks varies from bank to bank. You will get Rs. 3000-4000 from this perks on a monthly basis. Again in SBI the perks are higher compare to other banks.
But this is not all there are many things to go. You will also get Medical facility for yourself and your dependent family members. In SBI contributory PF is also there. In all the banks there are concessional loans for its employees. There is LFC facility and HTC facility in which the banks paid you fare for travelling to your home or for going to visit tourist spots. Bank also provides furniture and fixtures to its officers. Further your mobile as well as landline phone bills are also being paid by the bank as per your entitlement. There is insurance cover for the employees and gratuity facility is also there.
Conclusion: So you can see that although bank jobs have lost the old charm but still there is very good and attractive salary as well as facilities in bank jobs. Let us also calculate the gross salary of an IBPS Bank PO. We are calculating it at the minimum:
IBPS PO Salary
Basic Salary: Rs. 23700
Special Allowance: Rs. 1777
Dearness Allowance: Rs. 17273
CCA: Rs. Rs. 711
Leased house facility: Rs. 10000 (Approx)
Value of other Perks: Rs. 6000
Total Gross Salary & Perks: Rs. 59461
Gross salary of a SBI PO
Basic Salary: Rs. 27620
Special Allowance: Rs. 2071
Dearness Allowance: Rs. 20130
CCA: Rs. 828
Leased house facility: Rs. 15000 (Approx)
Value of other Perks: Rs. 9000
Total Gross Salary & Perks: Rs. 74649
So with this calculation you can see the difference between salary of IBPS Bank PO and SBI PO.
FAQs
Question: When the Dearness Allowance of Bank Employees is being revised and what is the basis of it?
Answer: Dearness Allowance of Bank Employees is calculated every quarter. These quarters are February to April, May to July, August to October and November to January. Normally the DA keeps on increasing every quarter. However very rarely there are instances when the DA has reduced in comparison to the earlier quarter. DA is based on CPI data announced by the Government.
Question: When the wage revision of Bank Employee’s take place?
Answer: The wage revision is due every five years. The next wage or salary revision is due from November 2017. Therefore the salary of Bank Employees are under revision.
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