A career as an IBPS Clerk within Indian public sector banks is a perfect opportunity for graduates looking for a firm and secure position with good growth potential. The in-hand salary in this position is a huge draw, especially after the latest 12th Bipartite Settlement, and other benefits provided by the government. The importance of knowing the real take-home remuneration, benefits, and further possibilities before applying for the IBPS Clerk 2025 recruitment cannot be underestimated.
Comprehensive IBPS Clerk Salary Structure (2025)
- Basic Pay New Clerk: ₹24,050 per month
- Annual Increment: At uniform intervals and a fixed amount for a structured salary growth.
Pay scale progression:
The pay scale follows a progressive increment model linked to years of service ;
Service Years | Basic Pay (₹) | Increment (₹) |
0–3 | 24,050 | 1,340 annually |
4–6 | 28,070 | 1,650 annually |
7–10 | 33,020 | 2,000 annually |
11–17 | 41,020 | 2,340 annually |
18 | 57,400 | 4,400 |
19 | 61,800 | 2,680 |
Max | 64,480 | - |
Impact of 12th Bipartite Settlement:
The 12th Bipartite Settlement has increased the scales, increments, and allowances, creating a consequent rise in take-home pay and annual benefits making the IBPS Clerk salary package very competitive compared to previous years.
In-Hand IBPS Clerk Salary 2025
The in-hand salary is the money transferred to the employees bank account every month after all of the regular deductions (PF, income tax, union fees, pension contributions) and the addition of allowances given by the bank.
Typical In-Hand Salary:
- New IBPS Clerk: ₹39,000 - ₹42,000 per month (depending on city and deduction)
Pay Breakdown:
- Gross Pay:
- Basic Pay: ₹24,050
- Dearness Allowance (DA): Usually 40% - 42% of basic
- Special Allowance: As per the settlement
- House Rent Allowance (HRA): Based on city category (see next section)
- Transport Allowance
Other allowances/perks as per bank policy
Typical Deductions:
- PF (12% of basic + DA)
- National Pension Scheme (NPS)
- Professional tax
- Union fees and income tax (if applicable)
The in-hand salary is likely to be higher for those who start at the metro (X) cities due to the bigger HRA and lower for those who start at Z category cities, because of the lesser HRA.
Benefits and Allowances
IBPS Clerks receive a number of allowances, in addition to their base salary which contribute to an increase in overall compensation.
Major Allowances:
Dearness Allowance (DA):
- This is indexed to inflation, ~40% of base, and issued quarterly.
House Rent Allowance (HRA):
- For X Cities (metropolitan): 8.5% of base
- For Y Cities (major cities): 7.5% of base
- For Z Cities (rural/ semi rural): 6.5% of base
- Special Allowance: Fix amount (base for entry level officers in 2025 ₹7,083)
- Transport Allowance: Approx. ₹850/ month; contributes to transportation cost.
- Medical Allowance: in 2025, ₹2,000/ year towards medical expenses.
- Other Perks: Additional allowances such as leave travel concession, paid leaves, festival advance, staff loan facilities and welfare facilities subject to the regulations of your bank.
City -Wise allowance Table
The following table outlines the allowance details categorized by different cities.
Allowance Type | X Cities | Y Cities | Z Cities |
HRA (₹) | ~₹2,044 | ~₹1,804 | ~₹1,563 |
DA (₹) | ~₹9,620 | ~₹9,620 | ~₹9,620 |
5. Salary Slip Example
A monthly salary slip for an IBPS Clerk will show his/her Earnings, Deductions and Net Pay. The slip will contain:
Earnings
- Basic Pay
- Dearness Allowance,
- House Rent Allowance,
- Special Allowance,
- Transport Allowance,
- Any arrears or other allowances
Deductions
- Provident Fund (PF)
- NPS contribution
- Professional Tax
- Union subscription
- Income Tax (if applicable)
Net Salary:
- In-Hand Amount: The total sum less deductions, which is the actual amount credited to your account.
- Some clerks see pay slips every month; this helps them see the upward trend in salaries and what allowances/deductions were reduced on the pay slip.
Career Progression and Increment
The position of clerk in a bank follows a transparent progression which is as follows:
Route of Promotion:
Clerk → Officer (PO) → Officer Scale II/III
- After minimum years of service (normally 2 – 3 years), a candidate is eligible to write for internal promotional examinations.
The Pay Method and Increments
- Annual Increment - The Bank pays you a basic salary which rises automatically over the years as stipulated by the salaries and wages agreement. This means that every year you receive a higher gross and in-hand salary.
- Promotional Increment - The further you move up the ladder, the higher the salary and responsibility every increment will be.
- Training Opportunities - Banks also provide banks with training and certification opportunities to develop skills personally and professionally.
Selecting an IBPS Clerk career in 2025 means selecting a stable, well-paid sector with predictable increase in salary, good allowances, and great potential for upward mobility. With a lucrative salary and substantial financial stability and a well-known professional identity, this is one of the best entry-level jobs in the Indian government job industry.
