Written by: Sachin
Fact-checked by: Banking Salary Research Desk
Last Updated: September 2026
Salary data checked against: IBA 12th Bipartite Settlement, IBPS PO/MT-XVI notification 2026, and IBA DA circular dated 3 August 2026
Quick Answer
The starting basic pay of an IBPS Probationary Officer is ₹48,480 per month under the 12th Bipartite Settlement. A representative sample salary calculation using the current DA rate of 27.83% (August–October 2026) gives an illustrative gross monthly salary of ₹84,714 and an estimated illustrative salary before income tax of approximately ₹77,959 after NPS and professional tax deductions.
The exact amount credited to your account can differ because DA is revised quarterly, HRA depends on the applicable area/city classification, and deductions vary by bank and individual profile. The figures below are based on the current pay structure and should be treated as informed estimates, not guaranteed amounts.
Note on terminology: “Illustrative salary before income tax” in this article refers to the estimated cash salary credited to your bank account before income tax (TDS) deduction. Your actual in-hand salary after TDS will depend on your tax situation.
IBPS PO Salary at a Glance
| Salary Detail | 2026 Figure |
|---|---|
| Starting Basic Pay | ₹48,480 |
| Maximum Basic in Scale-I | ₹85,920 |
| Illustrative Gross Salary (Sample) | ₹84,714 |
| Illustrative Salary Before Income Tax | ₹77,959 |
| Probation | 2 years |
| Settlement | 12th Bipartite Settlement |
| Current DA Rate (Aug–Oct 2026) | 27.83% of pay |
IBPS PO Salary Overview 2026
| Particular | Details |
|---|---|
| Post | Probationary Officer / Management Trainee |
| Officer Scale | JMGS-I (Junior Management Grade Scale-I) |
| Starting Basic Pay | ₹48,480 per month |
| Pay Scale | ₹48,480 – 2000/7 – 62,480 – 2340/2 – 67,160 – 2680/7 – 85,920 |
| Illustrative Gross Salary (Sample) | Approximately ₹84,714 per month |
| Illustrative Salary Before Income Tax | Approximately ₹77,959 per month |
| Applicable Settlement | 12th Bipartite Settlement (IBA) |
| Current DA Rate | 27.83% of pay (Aug–Oct 2026) |
| Probation Period | 2 years |
Note: The IBPS PO salary structure follows the Indian Banks’ Association (IBA) bipartite settlement, not the 7th Pay Commission. Bank pay has no pay level, and the scale is negotiated rather than notified. DA is revised quarterly, so readers should check the latest IBA notification for the current applicable rate.
IBPS PO Pay Scale Explained
The IBPS PO pay scale is:
₹48,480 – ₹2,000/7 – ₹62,480 – ₹2,340/2 – ₹67,160 – ₹2,680/7 – ₹85,920
This notation means:
- Starting basic pay: ₹48,480
- Basic pay increases by ₹2,000 for seven increments, reaching ₹62,480
- Basic pay then increases by ₹2,340 for two increments, reaching ₹67,160
- Followed by seven increments of ₹2,680, reaching the maximum basic pay of ₹85,920
The official IBPS PO/MT-XVI notification states a basic pay ranging from ₹48,480 to ₹85,920 along with applicable allowances, benefits, and other perks provided by participating public sector banks.
IBPS PO Salary After 2 Years
After two annual increments within the first seven-year stage:
₹48,480 + ₹2,000 + ₹2,000 = ₹52,480 basic pay
The actual gross and cash salary after 2 years will depend on the prevailing DA rate, HRA, CCA, deductions, and any applicable changes in the salary structure. It is not possible to predict the exact amount two years ahead.
IBPS PO Salary After 5 Years
After five annual increments (within the first seven-year stage):
₹48,480 + ₹2,000 × 5 = ₹58,480 basic pay
The actual cash salary after five years will depend on the DA rate at that time, applicable allowances, tax deductions, and whether the officer has been promoted. It is not possible to predict the exact amount five years ahead.
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Current DA Rate for Bank Employees
Dearness Allowance (DA) for bank workmen and officer employees is revised every quarter by the Indian Banks’ Association (IBA) based on the Consumer Price Index for Industrial Workers (CPI-IW, Base 2016=100).
For the quarter August, September, and October 2026, the IBA has notified DA at 27.83% of pay under the 12th Bipartite Settlement. The previous quarter DA rate (May–July 2026) was 25.70% of pay, representing a net increase of 2.13%. The confirmed All India Average CPI-IW for the quarter ended June 2026 was 150.86, which gave 27.83 points over the 123.03 reference base.
IBPS PO Salary Structure: Component-Wise Sample Calculation
The following is a sample calculation based on the current DA rate of 27.83% applicable for August, September, and October 2026. Special Allowance at Scale I is 26.5% of Basic Pay and attracts applicable DA under the settlement. HRA is assumed at 9% of basic pay for this illustrative major-city calculation.
| Component | Amount (₹) | Basis |
|---|---|---|
| Basic Pay | 48,480.00 | JMGS-I starting basic |
| Special Allowance | 12,847.20 | 26.5% of basic pay |
| Dearness Allowance (DA) | 17,067.00 | 27.83% of applicable DA base |
| House Rent Allowance (HRA) | 4,363.20 | 9% of basic (illustrative major city) |
| City Compensatory Allowance (CCA) | 870.00 | Applicable CCA rate |
| Learning Allowance | 850.00 | Fixed |
| Learning Allowance DA | 236.50 | Applicable DA |
| Gross Salary | 84,713.90 | Total earnings |
DA calculation shown: (₹48,480 + ₹12,847.20) × 27.83% = ₹61,327.20 × 27.83% = ₹17,067 approximately.
DA base note: For the main DA calculation, DA is applied to Basic Pay plus Special Allowance. Learning Allowance separately carries applicable DA under the settlement. HRA and CCA are excluded from the DA base.
HRA note: For this illustrative major-city calculation, HRA is assumed at 9% of basic pay. Actual HRA depends on the applicable city/area classification and bank rules. Under the 12th Bipartite Settlement, HRA rates are 10%, 9%, or 8% of basic pay for Area 1, 2, and 3 cities respectively.
IBPS PO In-Hand Salary: Sample Deductions
| Deduction | Amount (₹) | Treatment |
|---|---|---|
| Employee NPS Contribution | 6,555.00 | Sample assumption (see note) |
| Professional Tax | 200.00 | Deducted from salary |
| Income Tax (TDS) | Not deducted here | Depends on tax regime |
| Total Deductions | 6,755.00 | |
| Illustrative Salary Before Income Tax | 77,958.90 | Gross minus deductions |
NPS contribution note: The illustrative salary before income tax of ₹77,959 is calculated using a sample NPS assumption of ₹6,555. The employee NPS contribution is calculated according to the applicable NPS rules and eligible pay components. The exact deduction can vary based on the bank’s payroll treatment of special allowance and other components. Readers should verify the exact deduction on their own salary slip.
The NPS contribution is matched by the bank’s own contribution into the pension account. Income tax is not deducted above — it depends on your regime choice, declared investments, and total income. Union subscription, professional tax, and any bank-specific deductions are also excluded. The value of concessional staff loans, medical cover, and leased accommodation may have financial value but are not included in the monthly cash-salary calculation.
Important: These are illustrative estimates. The actual amount credited depends on the bank you are allotted to, your posting city, NPS contribution, applicable tax deductions, professional tax in your state, whether the bank offers leased accommodation instead of HRA, and the DA rate applicable in that quarter.
IBPS PO Salary Slip: What It Shows
A representative Scale-I salary calculation can include the following structure:
| Salary Slip Section | Typical Components |
|---|---|
| Earnings | Basic Pay, Special Allowance, DA, HRA, CCA, Learning Allowance, Learning Allowance DA |
| Gross Earnings | Total earnings before deductions |
| Deductions | NPS (employee contribution), Professional Tax, TDS, other deductions |
| Net Pay | Gross Earnings minus Total Deductions |
A representative bank officer salary slip generally separates earnings, deductions, and net pay in this manner. The gross salary on the slip is the total of all earnings before deductions. The net salary is what is credited to the bank account.
IBPS PO Salary After 10 Years
By year 10, an officer who has not been promoted would be at a higher stage in the Scale-I pay scale. Officers may be promoted to Scale-II (MMGS-II) depending on the bank’s promotion policy, eligibility, performance, and vacancy availability.
After promotion to Scale-II, the basic pay and allowances increase substantially. The special allowance rate also increases at Scales II and III. The actual salary after 10 years depends on whether the officer has been promoted, the prevailing DA rate, and the applicable allowance structure at that time.
IBPS PO Promotion Policy
IBPS POs have a structured promotion ladder. Promotions from JMGS-I to MMGS-II are governed by bank-specific policies developed in consultation with officer associations. Historically, some promotion frameworks have specified minimum service periods for JMGS-I officers, and promotion channels typically include a seniority-cum-performance channel and a merit channel based on written tests, performance appraisal, interview, and CAIIB qualification.
The officer scales progress as follows:
- JMGS-I (Junior Management Grade Scale-I) — Probationary Officer
- MMGS-II (Middle Management Grade Scale-II) — Manager
- MMGS-III (Middle Management Grade Scale-III) — Senior Manager
- SMGS-IV (Senior Management Grade Scale-IV) — Chief Manager
- SMGS-V — Assistant General Manager
- SMGS-VI — Deputy General Manager
- SMGS-VII — General Manager
Designation names can vary by bank. Promotion timelines depend on bank rules, vacancy availability, performance, and the channel through which the promotion is sought.
IBPS PO Salary vs SBI PO Salary
| Particular | IBPS PO | SBI PO |
|---|---|---|
| Starting Basic Pay | ₹48,480 | ₹48,480 |
| Pay Scale Source | IBA 12th Bipartite Settlement (JMGS-I) | IBA Scale-I, with SBI-specific enhancements |
| Approx. Annual CTC | Estimated ₹10.5 – ₹11.5 lakh | Notification figure: ₹21.97 lakh at Mumbai Centre |
| In-Hand Salary | Illustrative estimate: ₹74,000 – ₹76,000 (metro) | Estimated: ₹80,000 – ₹82,000 (metro) |
| Probation Period | 2 years | 2 years |
Both roles have a starting basic pay of ₹48,480 in the figures compared here, but SBI PO has its own service conditions, allowances and benefits. SBI PO offers a higher CTC because the SBI PO 2026 notification confirms an approximate annual CTC of ₹21.97 lakh at the Mumbai Centre. The in-hand monthly pay for SBI PO continues to fall in the range of ₹80,000–₹82,000 depending on place of posting and applicable allowances; this is an estimate, not a notification figure. IBPS PO salary is based on the IBA 12th Bipartite Settlement, and the CTC is lower because it does not include additional SBI-specific benefits. The in-hand figures shown for SBI PO are estimates and should not be treated as official notification figures.
Read More: IPS Salary 2026: Complete Rank-Wise Pay Scale, Allowances, and In-Hand Salary
IBPS PO Job Profile & Responsibilities
An IBPS PO joins as a Scale-I officer. During probation, POs may receive training and rotational exposure across areas such as retail banking, rural banking, operations, credit, and other banking functions, depending on the bank.
Key responsibilities include:
- Customer service: Handling queries, account opening, cheque clearance, fund transfers, and ATM issues
- Bank operations: Managing cash, verifying documents, authorising transactions, and ensuring KYC compliance
- Loan processing: Assessing eligibility, verifying documents, credit checks, and follow-up on recovery
- Government schemes: Promoting PM Jan Dhan Yojana, Mudra Loans, Atal Pension Yojana, and PM Awas Yojana
- Accounts and audits: Maintaining records, preparing reports, and supporting internal audits
- Back-end supervision: Preparing daily balance sheets, coordinating between departments, and supervising clerical staff
Factors That Affect IBPS PO In-Hand Salary
- City of posting: Metro cities have higher HRA and CCA
- Bank allotted: Different banks may have slight variations in allowances
- DA rate: Revised quarterly; changes your salary every 3 months
- Tax regime: Old vs new regime affects TDS
- NPS contribution: Reduces in-hand but builds retirement corpus
- Leased accommodation: Some banks provide accommodation instead of HRA, changing the structure
Final Takeaway
IBPS PO salary 2026 offers a structured package for entry-level banking roles. With a starting basic pay of ₹48,480, an illustrative gross salary of approximately ₹84,714 at the current DA rate, and a corresponding illustrative salary before income tax of approximately ₹77,959, the overall compensation structure includes basic pay, allowances, retirement-related benefits and opportunities for career progression. Always verify the latest DA rate and your specific bank’s allowance structure before making financial decisions.
Sources
- Pay scale and DA structure: IBA 12th Bipartite Settlement / 9th Joint Note dated 8 March 2024 — confirmed in IBPS PO/MT-XVI notification 2026
- DA rate (Aug–Oct 2026): IBA circular dated 3 August 2026 — DA set at 27.83% of pay for August, September, and October 2026
- IBPS PO/MT-XVI notification 2026: Basic pay range ₹48,480 to ₹85,920
- SBI PO 2026 notification: Approximate annual CTC of ₹21.97 lakh at Mumbai Centre; in-hand ₹80,000–₹82,000 (estimate)
- HRA classification: 12th Bipartite Settlement — 10%, 9%, or 8% of basic pay for Area 1, 2, and 3 cities
- Special Allowance: 26.5% of basic at Scale I; attracts applicable DA under the settlement
- NPS contribution: Calculated per applicable NPS rules on eligible pay components
FAQs
1. What is the starting basic pay of IBPS PO in 2026?
Answer: The starting basic pay is ₹48,480 per month under the JMGS-I pay scale, as per the 12th Bipartite Settlement.
2. What is the IBPS PO in-hand salary per month?
Answer: The illustrative salary before income tax is approximately ₹77,959 for the sample calculation shown above, after NPS and professional tax deductions. Other postings and individual tax/deduction profiles can produce a different take-home amount. Your actual in-hand salary after TDS will depend on your tax situation.
3. Does IBPS PO salary follow the 7th Pay Commission?
Answer: No. IBPS PO salary follows the Indian Banks’ Association (IBA) bipartite settlement, not the 7th Pay Commission. Bank pay has no pay level, and the scale is negotiated rather than notified.
4. What is the IBPS PO salary after 2 years?
Answer: After two annual increments, the basic pay rises to ₹52,480. The actual cash salary depends on the DA rate, allowances, and deductions at that time.
5. What is the IBPS PO salary after 5 years?
Answer: After five annual increments, the basic pay rises to approximately ₹58,480. The actual cash salary depends on the DA rate, allowances, and deductions at that time.
6. What is included in the IBPS PO salary slip?
Answer: The salary slip shows basic pay, special allowance, DA, HRA, CCA, learning allowance, and other earnings on the credit side, and NPS, professional tax, and TDS on the deduction side. The net pay is the amount credited to the bank account.
7. Can an IBPS PO earn ₹1 lakh per month?
Answer: An IBPS PO’s cash salary can reach or exceed ₹1 lakh at higher stages of the banking career, depending on promotion, prevailing DA, allowances, posting and deductions. It should not be treated as a guaranteed salary at a particular year of service.
8. What is the current DA rate for IBPS PO in September 2026?
Answer: The DA rate applicable for August, September, and October 2026 is 27.83% of pay, as notified by the IBA. DA is revised quarterly, so readers should check the latest IBA circular for the current rate.
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