Which unions are involved in the 13th Bipartite Settlement negotiations?

The workmen (clerical and sub-staff) side is represented by recognized unions: AIBEA, NCBE, BEFI, INBEF, NOBW, and others. Officer unions (AIBOC, AIBOA, INBOF, NOBW) negotiate a parallel Joint Note covering Scale I to Scale VII officers. The management side is represented by the Indian Banks' Association (IBA).

Will 5-day banking be implemented under the 13th Bipartite Settlement?

Five-day banking was agreed in principle during the 12th Bipartite Settlement but has not been implemented as of August 2026, pending government approval. It is expected to be a high-priority demand in the 13th bipartite negotiations and may finally be formally implemented if government clearance comes through by 2027.

What is the NCBE Charter of Demands for the 13th Bipartite Settlement?

The National Confederation of Bank Employees (NCBE) has formed a special committee to consolidate the Charter of Demands for the 13th Bipartite Settlement. The charter is expected to include demands for a 25–30% wage revision, pension updation for pre-2010 retirees, 5-day banking implementation, enhanced medical benefits, and improvements to the family pension scheme.

Effective 1 Nov 2027DFS 12-Month Deadline SetUpdated Aug 2026

13th Bipartite Settlement 2027

Q: What salary hike is expected in the 13th Bipartite Settlement?

Bank employee unions are expected to demand a wage revision of 25–30% on the total wage bill, higher than the ~17% granted in the 12th Bipartite Settlement. The actual settlement is typically a negotiated figure between union demands and IBA's offer. Final wage load is expected to be in the 17–22% range based on historical patterns.

Q: How does the 13th Bipartite Settlement affect officers?

Officers (Scale I to Scale VII) are not directly covered by the Bipartite Settlement. They are covered by a parallel Joint Note negotiated simultaneously between IBA and officer unions. The wage revision percentage in the Joint Note has historically been aligned with the Bipartite Settlement figure.

Effective Date · Key Demands · Salary Hike Expected · DFS Deadline · NCBE Charter

The 13th Bipartite Settlement is due from 1 November 2027 — when the 12th BPS expires. The Department of Financial Services has set a 12-month deadline for completion. Unions are preparing Charters of Demand with expectations of a 25–30% wage revision, 5-day banking, and pension updation. Here is everything bank employees need to know.

Effective From

1 Nov 2027

Expected Wage Hike

25–30%

DFS Deadline

12 months

Current Settlement

12th BPS

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Latest Development — DFS Directive (20 April 2026)

The Department of Financial Services (DFS) issued a directive on 20 April 2026instructing the Indian Banks' Association (IBA) and member banks to conclude bipartite settlement negotiations within a maximum of 12 months of the settlement becoming due. This is a direct response to the 16-month delay in signing the 12th Bipartite Settlement (effective Nov 2022, signed only in March 2024). It signals that the government wants the 13th bipartite signed by November 2028 at the latest — potentially earlier if negotiations move quickly.

Timeline — From 11th to 13th Bipartite

Settlement	Effective From	Date Signed	Wage Load	Key Highlights
11th	Nov 2007	2012	~17.5%	Special allowance included in PF base; stagnation increments improved
12th	Nov 2012	2015	~15%	Computerisation-era benefits; restructured pay scales; enhanced HRA
12th	Nov 2022	Mar 2024	~17%	Five-day banking in principle; DA base reset to 2016=100; arrears from Nov 2022
13th ★	Nov 2027	Expected 2027–28	25–30% (demanded)	DFS 12-month deadline set; NCBE Charter being prepared; 5-day banking expected to be finalised

★ 13th Bipartite Settlement — indicative details based on union demands and DFS directive. Final terms subject to negotiations.

Expected Key Demands in the 13th Bipartite Settlement

Unions are in the process of finalising their Charter of Demands. Based on NCBE's committee formation, historical patterns, and pending issues from the 12th bipartite, these are the demands most likely to dominate negotiations.

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25–30% Wage Revision

Core Demand

Unions are expected to demand a 25–30% wage load increase — significantly higher than the ~17% granted in the 12th bipartite. Management (IBA) is likely to open at 12–15%. Historical settlements land in the 17–22% range. The final figure will depend on bank profitability data submitted to IBA and the political environment around PSB employees at the time of negotiations.

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5-Day Banking — Full Implementation

Top Priority

Five-day banking was agreed in principle during the 12th bipartite but has not been implemented as of August 2026 — it requires a separate government notification. Unions will push hard for formal implementation in the 13th bipartite. If government approval is obtained before 2027, this could be a pre-settlement win.

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Pension Updation for Pre-2010 Retirees

High Priority

Employees who retired before 2010 under the Old Pension Scheme receive pensions that have not been proportionately revised with each bipartite settlement. Unions have been demanding a one-time updation to align their pensions with current pay scales. This has been a pending demand since the 10th bipartite.

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Enhanced Medical Benefits

High Priority

Medical insurance ceilings for serving employees are expected to see significant upward revision. Unions will also push for better coverage under the IBA group mediclaim scheme for retirees, whose current hospitalisation limits have not kept pace with healthcare inflation.

👨‍👩‍👧

Family Pension Enhancement

Recurring Demand

Family pension for the dependants of deceased employees is a recurring agenda item. Unions will seek an increase in the family pension ceiling and a reduction in the minimum service requirement for enhanced family pension eligibility.

⭐

Special Allowance Revision

Expected

Special Allowance (introduced in the 10th bipartite) is expected to see an upward revision in percentage of basic pay. Unions will also push for it to be fully counted in gratuity calculation, building on the provisions already included in the 12th bipartite.

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DA Mechanism Review

Under Discussion

The 12th bipartite reset the DA base to AICPI 2016=100. Unions may push for a review of the slab rate formula to ensure quarterly DA revisions fully neutralise cost-of-living increases. A partial DA merger into basic pay is also a possibility at the time of settlement, as has happened in previous rounds.

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Work from Home Policy

New Demand

Post-COVID work patterns have created expectations for a formal WFH policy for bank employees, particularly for knowledge-worker roles in head offices, back offices, and IT departments. This is a new generation of demand not seen in earlier settlements.

How the Negotiation Process Works

Charter of Demands

Each recognised union prepares and submits a Charter of Demands to IBA — typically 6–12 months before the settlement expiry date. NCBE has already formed a special committee for this. The charter covers wage revision, allowances, service conditions, and policy demands like 5-day banking.

IBA Mandate

IBA aggregates the demands and seeks a negotiating mandate from member banks — essentially the maximum wage load percentage banks are willing to offer. For the 12th bipartite, IBA sought a mandate of around 15% before settling at ~17%.

Bipartite Negotiations

Formal negotiation sessions begin between IBA and union representatives. These can run for months — the 12th bipartite took 16 months from effective date to signing. The DFS directive now caps this at 12 months.

Signing the Settlement

Once agreed, the settlement is signed by IBA on behalf of member banks and by all recognised unions. It becomes effective retrospectively from the due date (1 November 2027 for the 13th BPS). Arrears from the effective date are paid in instalments.

Arrears Payment

Banks pay arrears covering the period between the effective date and the actual date of implementation. For 12th bipartite (Nov 2022 → March 2024 signing), arrears were released in 2–3 phased instalments. The DFS mandate hopes to reduce this gap.

13th Bipartite vs 8th Pay Commission — Is There a Link?

The 8th Pay Commission has been announced for central government employees — a development bank employee unions are watching closely. While bank employees are not covered by the Pay Commission (they are covered by IBA bipartite settlements), the 8th Pay Commission revision is expected to benchmark the salary expectations for bipartite negotiations.

Historically, when central government salaries see large revisions (as happened with the 7th Pay Commission in 2016), IBA faces pressure to match the pace — and bank unions use government pay hikes as a reference in their Charter of Demands. This could push the 13th bipartite wage revision demand higher than the typical 20–22% range.

Key point: Bank employees follow IBA bipartite settlement, not Pay Commission. But the Pay Commission sets the political and economic context within which IBA and unions negotiate.

What the 13th Bipartite Could Mean for Your Salary

Conservative scenario (17% wage load)

Clerk starting basic: ₹20,943Scale I officer starting: ₹42,120

Similar to 12th bipartite — if bank profitability remains moderate and negotiations are contentious.

Base scenario (20% wage load)

Clerk starting basic: ₹21,480Scale I officer starting: ₹43,200

Likely midpoint — DFS pressure for timely settlement may push management toward a faster, higher offer.

Optimistic scenario (25% wage load)

Clerk starting basic: ₹22,375Scale I officer starting: ₹45,000

If 8th Pay Commission comparisons dominate negotiations and unions hold firm.

* Indicative estimates based on current 12th bipartite starting basics + wage load applied to total wage bill. Actual revisions depend on negotiated outcome. Use the salary calculator to see your current 12th bipartite salary.

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Current Salary Under 12th Bipartite

See your current grade-wise take-home — basic, DA (27.83%), HRA, special allowance, PF deduction — before the 13th bipartite comes into effect.

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Frequently Asked Questions — 13th Bipartite Settlement

When is the 13th Bipartite Settlement effective from?▼

The 13th Bipartite Settlement will be effective from 1 November 2027, when the 12th Bipartite Settlement (Nov 2022 – Oct 2027) expires.

What salary hike is expected in the 13th Bipartite Settlement?▼

Unions are expected to demand 25–30% wage revision. Based on historical settlement patterns, the final agreed wage load is likely to land in the 17–22% range after negotiations between IBA and unions.

Has the government set a deadline for negotiations?▼

Yes. The Department of Financial Services (DFS) issued a directive on 20 April 2026 instructing IBA and banks to conclude negotiations within 12 months. This was in response to the 16-month delay in finalising the 12th bipartite.

Which unions are negotiating the 13th Bipartite?▼

Workmen unions: AIBEA, NCBE, BEFI, INBEF, NOBW. Officer unions (parallel Joint Note): AIBOC, AIBOA, INBOF, NOBW. IBA represents the management of public sector banks.

Will 5-day banking finally be implemented?▼

Five-day banking was agreed in principle in the 12th bipartite but pending government notification. It is the top priority demand for the 13th bipartite and is expected to be formally implemented — either as a pre-settlement government order or as part of the 13th BPS agreement.

How does the 13th Bipartite Settlement affect officers?▼

Officers (Scale I–VII) are covered by a parallel Joint Note — not the bipartite settlement directly. The Joint Note is negotiated simultaneously and the wage revision percentage is typically aligned with the bipartite figure.

What is NCBE doing to prepare for the 13th Bipartite?▼

The National Confederation of Bank Employees (NCBE) has formed a special committee to prepare and consolidate the Charter of Demands for the 13th bipartite. Other unions are expected to submit their demands before formal negotiations begin in 2027.

Related — Bipartite Settlement Resources

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Complete Bipartite Settlement Guide

All 12 settlements, DA mechanism, HRA, pay scales explained

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12th Bipartite Salary Calculator

Grade-wise take-home — basic, DA 27.83%, HRA, PF

→

JAIIB Exam Hub

Chapter notes + mock tests for all 4 JAIIB papers

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PPB Chapter Notes