Salary of a Bank PO - Explained and Calculated

The very much important answer to know for any bank job aspirants in India is the “ How much does a bank PO- Probationary Officer earn when he joins the bank. Well your answer is right here.

First one should know the structure of salary followed to pay bank PO. Which is s for scale Rs. 14500 - (600x7) 18700  - (700x2) -  20100  (800x7) -  25700     ( Under Revision from November 2012 )

Please keep in mind that the above salary structure is under revision which is due from November 2012 and when the final settlement called in Public sector parlance as 10^th Bipartite Wage Settlement .

Now we have to extract the Scale of payment as 14500 - (600x7) 18700  - (700x2) -  20100  (800x7) -  25700  

Here 14,500 is the basic Salary Upon which DA ( Dearness Allowance is given which is currently for May, June, July 2014 is 97.5%.

So now salary is 14,500 + 14, 137.5 = 28,637.5/-

Plus CCA in Metor Cities is 540/- =  29,177.5/- ( Please note that this CCA is City Conveyance  Allowance  varies from city to city and can become Zero also in Rural Branches )

Now 600 x 7 Mean Your salary will keep on increasing by 600 Plus DA that is your basic salary will become 15,100 after one year , say if you Joined in August 14, then in August 15 your basic will be 15,100. And keeps on increasing till 7 increaments.

Afterwards when your basic becomes 18,700 then it starts to increase by 700 for next two years i.e. 18700-19400-20,100

Now your basic becomes 20100 and onwards every year increases by 800 for 7 Years.

Please note that this if you are continuing in scale I if you take promotion to Manager Scale II then you basic and pay structure changes.

So your gross salary if you join bank PO today shall be in Metro City 29,177.50.

Now coming back to deductions. As from April 2010 onwards those who have joined the bank fall under NPS – New Pension Scheme- National Pension Scheme, where in employee contribute 10% of basic + DA to the NPS account as well as equal amount is contributed by employer bank.

Please note that no PF is given under NPS and all the amount contributed in put in fund as opted by employer or employee.

HRA is another component which is added to the salary of bank employee which varies from 8.5-12.5 % depending upon the city and type of accommodation in which staff resides ( as house is on loan or not )

Here, if employee is residing in his own house he will get the HRA here we take it as 10% which is equal to 1450 of basic.

Above we have not calculated it in the Gross salary as if Bank accommodation is provide then HRA is not give also if bank pays rent for your accommodation then also HRA is not given , the lumpsum rent is given according to the bank and city rules which varies from bank to bank and city to city as metro or tier II city or rural. Which may range from INR 4,500 to INR 32,000.

So Now In hand salary of a bank PO shall come to 29177.5 – 2863.75 = INR 25, 773.75

Here we have considered that a PO is residing in bank quarter or given rent to reside. As most of them are given away posting form home.

If you are in some affliated association or union then there may be some deduction also in range of 50-300 Pm.

So in all our in hand salary for Newly recruited bank PO is around 25,500 Plus Home rent Plus Allowance like News paper , Petrol, entertainment allowance ( These vary from bank to bank and vary in the range of 500 to 7500 ).

So if we consider gross salary including all in terms of CTS it comes around 50,000 or 6 Lac PA and SBI it comes higher if you consider all the maximum allowance which is appx 8 Lac .

But the realistic view is that it is around 6 Lac Per annum.

Hope we have solved your many queries relating to the salary of a Bank PO in Public Sector bank if you have more query then do comment or reply to this post.