What is the In-hand Salary and Allowances of IBPS Clerk

Banking is a challenging and rewarding career in India. Every year, lakhs of aspirants appear for IBPS Clerk exam with the hope of getting entry into the banking industry. If you are preparing for the IBPS clerk exam, you would be interested to know the IBPS clerk in hand salary. Here are some details of the in-hand salary and allowance you will get.

Salary Structure of IBPS Clerk

The IBPS Clerk’s salary has several components like Basic, Dearness Allowance, Special Allowance, Transport Allowance, and HRA. The initial basic pay is around 11,765 INR. Here are details of other allowances:

  • Dearness Allowance — Rs. 5311
  • Special Allowance – Rs. 911
  • Transport Allowance – Rs. 425

Every person selected for a clerk position in the bank gets the same basic pay and other allowance. The HRA allowance is dependent on the location. If the bank employee is posted at a place with a population greater than 45 lakhs, they get an HRA allowance equivalent to Rs. 1176.

If the employee is posted at a place with a population lesser than 45 lakhs, the HRA allowance gets equivalent to 1058. If you add the basic pay and all allowances, the IBPS clerk in hand salary is around Rs. 18413, which does not include HRA or any deductions

Basic Pay of IBPS Clerk

After joining the banking sector as a clerk, your initial basic pay is 11,765 INR. You will get a yearly increment of 655 INR for the next three years. After three years of service, your basic is revised, and it reaches 13,730 INR, and you will get a yearly increment of 815 INR for the next three years.

The next basic pay increase comes after six years of service, and your basic pay reaches INR 16,175. For the next four years, you will get a yearly increment of INR 980. After completing ten years of service, your basic reaches INR 20,095, and you will receive a yearly increment of INR 1145 for the next seven years.

After 17 years of service, your basic pay reaches INR 28,110. You will get a yearly increment of INR 2120 for the next year. After completing 18 years of service, your basic pay reaches INR 30,230, and you will receive INR 1310 for the next year. The last basic pay revision comes after completing 19 years of service, and your basic pay reaches the maximum limit that is INR 31,540.

Other Allowances

Dearness Allowance is a crucial component of the IBPS clerk salary. The banking employee gets DA equivalent to 4% of basic pay. The Dearness Allowance is linked to the Consumer Price Index, which is revised by the Indian Government every three months.

The HRA Allowance range is 7% to 9% of the basic pay. Employees posted in Metro cities get a higher HRA allowance. They get HRA equivalent to 8.5% of their basic pay. Employees posted in cities with a population greater than five lakhs get HRA equivalent to 7.5% of their basic pay. Employees posted in other cities get HRA equivalent to 6.5% of their basic pay.

To sum up, the in-hand salary and the allowances of IBPS clerks are better than people working in other sectors.