Bank Probationary Officer Salary 2018 (Bank PO Salary)
By Anupama Deshpande | March 9, 2018
Bank Probationary Officer (Bank PO) is an officer in the rank of an Assistant Manager of Scale I in a bank. It is a post of a Junior Manager of Grade I scale. He is also called Scale I Officer of a Bank. After his appointment, he is called a probationary officer as he remains under probation period which ay last upto 2 years in some cases.
During this probation period, he goes through and intensive training program in order to understand banking industry, job profile, his functions and activities, risks involved and other such factors in deeper sense. He is explained all the details on multiple verticals covering the areas of banking, finance, accounting, administration, risk management, billing, and so on. He gets acquainted with all the working procedures and functions of the bank that he has to perform. He is also told of his role and responsibilities during probation period.
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Role and Responsibility of Bank Probationary Officer (Bank PO)
Role and responsibility of Bank Probationary Officer (Bank PO) include:
- Performing according to his job profile
- Providing optimal service to its customers
- Maintenance of strong customer relationships
- To keeps business of the bank increasing
- Redressing customer complaints
- Resolving various customer related issues
- He is also responsible for other matters like budgeting, planning, organizing, loan processing, giving proper guidance to subordinates, etc.
Bank Probationary Officer Salary (Bank PO Salary)
Bank POs are very young who have recently completed their graduation and are generally in the age of 21 to 28 years. At this young age, Bank Probationary Officers get very handsome salary. Given below is the Revised Bank PO Salary as per X BPS and Latest Bank PO Allowances after wage revision.
The basic pay of a Probationary Officer is Rs 23,700/-. In addition to this, they also get Dearness Allowance (DA), House Rent Allowance (HRA), City Compensatory Allowance (CCA), Medical Benefits, Mediclaim, Leased Accommodation, Leave, Mediclaim, Travelling Allowance, Transport Allowance, SMART Compensation Package, Miscellaneous Benefits, Group Insurance and Other Monthly Benefits as well.
The gross salary thus amounts to Rs. 40,746 per month and as there are certain compulsory deductions like PF, NPS, . Professional Tax, the net salary amount to appox. Rs. 34,585.
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Latest Salary and Allowances of Bank Probationary Officers (PO) 2018
Pay and allowances of Bank Probationary Officers (PO) are as follows:
Calculation of Pay Scale : Scale I - 23700 - (980 x 7 ) - 30560 - (1145 x 2 ) - 32850 - (1310 x 7) - 42020
So, Gross Salary = 23700 (Basic Pay) + 1837 (Special Allowance) + 12207 (D.A = 47.80% of Basic Pay + Special Allowance) + 870 (CCA) + 2133 (HRA)
Gross Salary: Rs. 40,746
| Bank PO Salary (other than SBI PO/MT) | Class A Cities | Area - I | Other Areas |
|---|---|---|---|
| Basic Pay | 23700 | 23700 | 23700 |
| Special Allowance (7.75% of Basic + Special Allowance) | 1837 | 1837 | 1837 |
| Dearness Allowance (DA) (D.A = 47.80% of Basic) | 12207 | 12207 | 12207 |
| City Compensatory Allowance (CCA) {4% (maximum Rs.870/-) or 3%(Maximum Rs.600/-) or 0% of Basic} | 870 | 600 | 0 |
| Total (without HRA) | 38613 | 38343 | 37743 |
| House Rent Allowance (HRA) (9% or 8% or 7% of Basic) | 2133 | 1896 | 1659 |
| Gross Total (including HRA) | 40746 | 40239 | 39402 |
Deductions
Deductions are as follows (in case of Bank PO other than SBI PO):
- PF = 10% of basic i.e. 2370
- NPS (National Pension Scheme) = 10% of (basic + DA) i.e. 3591
- Professional Tax: 200
- Total Deductions (Compulsory Deductions): 6161
Net Salary : Rs. 34585
More Benefits
Here are some more benefits that Bank PO will get:
(1) Employer's contribution towards PF & NPS will be added: 2370+3591 (employer's contribution) which comes down to Rs. 5961 will be saved each month with compounding interest at ~8.75%.
(2) Bank PO is also eligible for officer's leased accommodation: All officers are entitled for leased accommodation in their place of posting depending upon whether the place is a Metro/Urban/Semi-Urban/Rural. In case of an Urban Area, he will get Rs. 15000 p.m. for Leased Accommodation .
(3) Other Allowances: Apart from above, he will also get entertainment, tea & coffee, reimbursement of newspaper/ magazine bills, etc., which will be nearly Rs. 4000 - 5500 p.m. depending the place of posting.
Final Salary of Bank PO and Cost to Company (CTC)
Hence, the CTC of a SBI PO would be : Rs. 34585 (Net Salary) + Rs. 4000-5500 (Allowances & Goodies) + Rs. 11922 (PF & NPS of both employee and employer) + Rs. 10000-29000 (Leased Accommodation depending upon place)
i.e. appox. 40k in hand (Net Salary+ Allowances) + 11922 (PF & NPS Savings ) + (10000-29000) ( Leased Accommodation) = appox. Rs 62K to 81K p.m. i.e. 7,44,000 to 9,72,000 annual package.
Latest Salary and Allowances of SBI Probationary Officers (SBI PO) 2018
Basic Pay: Scale I - 23700 - (980 x 7) - 30560 - (1145 x 2) - 32850 - (1310 x 7) - 42020 with 4 initial increments only for SBI PO's/MT's (Not all banks)
Hence Basic Pay = 23700 + (4*980) {4 initial increments} = 27620.
So, Gross Salary = 27620 + 12677 (D.A = 42.6% of Basic + Special Allowance) + 2140 (Special Allowance) + 870 (CCA) + 2486 (HRA)
Gross Salary: Rs. 47,341
| Bank PO Salary (SBI PO/MT) | Class A Cities | Area - I | Other Areas |
|---|---|---|---|
| Basic Pay 23700 + (4*980) {4 initial increments} | 27620 | 27620 | 27620 |
| Special Allowance (7.75% of Basic) | 2140 | 2140 | 2140 |
| Dearness Allowance (D.A = 47.80% of Basic + Special Allowance) | 14225 | 14225 | 14225 |
| City Compensatory Allowance (CCA) {4% (maximum Rs.870/-) or 3%(Maximum Rs.600/-) or 0% of Basic} | 870 | 600 | 0 |
| Total (without HRA) | 44855 | 44585 | 43985 |
| House Rent Allowance (HRA) (9% or 8% or 7% of Basic) | 2486 | 2210 | 1933 |
| Gross Total (including HRA) | 47341 | 46795 | 45919 |
Deductions
Deductions are as follows (in case of SBI Bank PO):
- PF = 10% of basic i.e. 2762
- NPS (National Pension Scheme) = 10% of (basic + DA) i.e. 4185
- Professional Tax: 200
- Total Deductions (Compulsory Deductions): 7147
Net Salary : Rs. 40,194
More Benefits
Here are some more benefits that SBI PO will get:
(1) Employer's contribution towards PF & NPS will be added: An amount of Rs. 2762 + Rs. 4185 (employer's contribution) which comes down to Rs. 6947 will be saved each month with compounding interest at ~8.75%.
(2) Bank PO is also eligible for officer's leased accommodation: All officers are entitled for leased accommodation in their place of posting depending upon whether the place is a Metro/Urban/Semi-Urban/Rural. In case of an Urban Area, he will get Rs. 15000 p.m. for Leased Accommodation.
(3) Other Allowance: Apart from above, he will also get entertainment, tea & coffee, Cleaning & Labour and Newspaper allowances which will be nearly Rs. 4000 - 5500 p.m. depending the place of posting.
Final Salary of SBI PO and Cost to Company (CTC)
Hence, the CTC of a SBI PO would be : Rs. 40194 (Net Salary) + Rs. 4000-5500 (Allowances & Goodies) + Rs. 13894 (PF & NPS of both employee and employer) + Rs. 10000-29000 (Leased Accommodation depending upon place)
i.e. appox. 45k in hand (Net Salary+ Allowances) + 13894 (PF & NPS Savings ) + (10000-29000) (Leased Accommodation) = appox. Rs 69K to 87K p.m. i.e. 8,28,000 to 10,44,000 annual package.
Explaining Allowances and Other Benefits
One needs to understand about the allowances that the Bank Probationary Officers (Bank PO) get:
- Dearness Allowance (DA)
Dearness Allowance (DA) is based on the Consumer Price Index (CPI) as declared by Government of India on quarterly basis. It is revised every quarter i.e. in February, May, August, and November every year. When inflation is high, DA goes up and when inflation falls, DA goes down. It is calculated as some% of the Basic Pay.
- Housing Allowance (HRA)
Housing Allowance (HRA) is given towards rental accommodation as a part of their package. If bank isn't able to provide accommodation to its PO, it compensates by providing a housing allowance.
- City Compensatory Allowance (CCA)
City Compensatory Allowance (CCA) is given to employees in an metros and urban cities which are more expensive cities. CCA compensates officers for the high cost of living in metros and urban cities.
- Leased Accommodation
Many banks allow for availing leased accommodation in lieu of HRA. The amount of leased accommodation varies from bank to bank and is dependent upon the place of posting. It approximately lies between Rs 10,000 and Rs 29,000 p.m.
- Medical Benefits
Bank always takes care of the health of its employees and their families by offering the reimbursement of medical expenses to its employees. In case of SBI Pos, medical benefits (100% for the employee and 75% for dependent family members) form a key component of the overall package.
- Travel Allowance (Leave Travel Concession)
Bank PO is eligible to avail leave travel concession (LTC) to visit places within India. Home visit is also allowed. Bank also provides accommodation at its guest houses, if they are available in the cities where employee is visiting. It is generally allowed once in 2 years.
- Group Insurance
The Bank provides group insurance of all of its POs at very low rate. Three fourth of the premium is paid by the employer in this case.
- Other Monthly Benefits
Bank Probationary Officers are also eligible for various perquisites like reimbursement of newspaper bill or newspaper allowance, entertainment allowance, books and magazine allowance, briefcase allowance, reimbursement of telephone bills are some of the perquisites provided by the bank to the employee.
- Miscellaneous Benefits
To bank officers, banks provide Housing Loan, Car Loan & Personal Loan at a concessionary rate of interest.
- SMART Compensation Package
SBI plans to offer a SMART Compensation Package which would give employees the choice to monetize specific elements of the salary package. It is under process and is still subject to necessary approvals.
About Anupama Deshpande
Anupama is a Co-Founder of CodeForBanks.com. She is an MBA (Finance) and Chartered Financial Analyst (CFA). She also carries a Fellowship degree in Life Insurance Sector and is a Master of Computer Application (MCA). She is an expert in Finance Field with an experience of over 18 years on different managerial positions in finance industry including Stock Market, Depository and Mutual Fund Sectors. Apart from that she has remained for few years in the field of marketing as well. Her suggestions and advice for investments have been very useful to many people.Her vast interest & expertise in the field of finance have encouraged her to write the articles so that others can also get benefitted out of them. She never loses any opportunity to learn and be creative. She is a valuable asset for CodeForBanks.com & important resource to all those around her.