Salary Breakdown: Demystifying IBPS Clerk Remuneration

The Institute of Banking Personnel Selection (IBPS) leads the IBPS Clerk exam to recruit aspirants for the clerical cadre in various public sector banks across India. The job of an IBPS Clerk is not only rewarding regarding job security and career growth but also offers a competitive salary package. Understanding the salary breakdown is essential for aspiring candidates to make informed career decisions. This article will demystify the IBPS Clerk salary, covering the various components of the salary package.

Basic Pay

The basic pay is the fixed component of an IBPS Clerk’s salary. It is the foundation on which other allowances and benefits are calculated. The basic pay for an IBPS Clerk may differ depending on the bank and area of the posting. As of 2023, the basic pay for an IBPS Clerk ranges from around Rs. 11,765 to Rs. 31,540 per month. This amount is subject to revisions based on periodic wage settlements.

Dearness Allowance (DA)

Dearness Allowance is a component of an IBPS Clerk’s salary that is revised twice yearly in January and July. DA is calculated as a percentage of basic pay linked to the Consumer Price Index (CPI). The purpose of DA is to offset the impact of inflation on an employee’s purchasing power. As of 2023, the DA for IBPS Clerks is around 75% of the basic pay.

House Rent Allowance (HRA)

HRA is provided to IBPS Clerks to help them with their housing expenses. The HRA amount varies depending on the location of the posting. HRA is typically 8-9% of the basic pay in metro cities, while in other cities, it can range from 7-8%. In rural areas, the HRA may be lower. Employees living in their own houses are also eligible for HRA, but the amount is taxable.

Special Allowance

The Special Allowance is another component of the IBPS Clerk’s salary. It is given to compensate for certain expenses and varies between 7.75% to 10% of the basic pay. The Special Allowance is added to the basic pay to determine the Gross Salary of an IBPS Clerk.

City Compensatory Allowance (CCA)

City Compensatory Allowance is provided to employees working in metropolitan cities to help them cope with the higher cost of living. The CCA amount varies based on the posting location and can range from Rs. 300 to Rs. 600 monthly.

Other Allowances

Besides the above-mentioned components, IBPS Clerks are eligible for various other allowances such as transport, medical, and newspaper. These allowances cover specific expenses and are subject to government policies and bank regulations.


While understanding the salary breakdown is crucial, it is equally essential to be aware of the deductions from the salary. The deductions include contributions to various schemes and programs. Standard deductions include Provident Fund (PF) contributions, Professional Tax (PT), and Income Tax (TDS). The exact amount of deductions depends on the employee’s salary, investment declarations, and other financial aspects.

Take-Home Salary

The take-home salary is the net amount an IBPS Clerk receives after all the deductions. It is the actual amount that reflects in the employee’s bank account. The basic pay, allowances, and other components are added to calculate the take-home salary, and the deductions are subtracted.

Career Progression and Growth

IBPS Clerk’s salary is attractive not only because of its competitive pay package but also due to the growth opportunities it offers. With experience and performance, IBPS Clerks can be promoted to higher clerical positions. The career progression may include promotions to Senior Clerk, Head Clerk, and Single Window Operator. Each promotion comes with an increase in responsibilities and higher salary packages.


An IBPS Clerk salary breakdown includes various components such as basic pay, dearness allowance, house rent allowance, special allowance, and more. Beyond the salary, the job offers other benefits such as job security, work-life balance, and career growth opportunities. It is essential to weigh all these factors before aspiring to become an IBPS Clerk and embark on a promising and rewarding career journey in the banking sector.

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