The eagerly awaited 12th Bipartite Settlement is a pivotal event in the banking sector, slated for November 1, 2022. It holds the key to determining salaries and various wage components for employees in both public sector banks and select private sector banks. These decisions are the result of negotiations between two central parties: the United Forum of Bank Unions (UFBU) and the Indian Banks’ Association (IBA).

Duration of Bipartite Settlement Talks

Typically spanning 2 to 3 years, these negotiations ultimately lead to salary increases and the payment of arrears to bankers.

Implementation Timeline

Despite the high expectations, it's crucial to understand that the actual implementation of these salary increases resulting from the 12th Bipartite Settlement is not expected until 2025.


Please find below our projected figures, which we will continue to update as we gather more information regarding the progress of the 12th Bipartite Settlement discussions and other factors like Dearness Allowance.


Please note that these figures are speculative and are subject to change. We will update them as soon as we have more information regarding the 12th Bipartite Settlement discussions and any other influencing factors, such as Dearness Allowance.

Understanding the DA Merger

A significant aspect of this settlement is the merging of dearness allowance (DA) with basic pay, encompassing up to 8088 points of the price index. The precise increment resulting from this merger is yet to be determined, but initial indications suggest a potential 15% increase, consistent with previous settlements.

Accelerated Negotiations

The government has urged the Indian Banks’ Association (IBA) to commence negotiations for the 12th Bipartite Settlement without delay.

Benefits of Early Wage Revision

An early wage revision holds the promise of improving working conditions and providing attractive incentives to employees in the banking sector.

Reflecting on the Past Agreement

In November 2020, the IBA reached an agreement with bank unions, securing a 15% increase in pay for bank employees. This increase was spread over a five-year period, from November 2017 to October 2022.

Embracing Performance Linked Pay

A notable development in this settlement is the introduction of Performance Linked Pay. This innovative concept aims to encourage healthy competition and reward exceptional performance among employees in the banking sector, marking its debut in the industry.


While the precise details of the 12th Bipartite Settlement remain uncertain, it undoubtedly occupies a crucial position in the trajectory of the banking sector. Bank employees can anticipate salary revisions, although the realization of these revisions may be a few years away. Stay tuned for further updates, as we will keep you informed about the progress of these discussions and any alterations to the expected salary estimates.

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