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IBA Issues New Fitment Formula for Bank Employees
IBA’s new fitment formula ensures fair pay for promoted staff with JAIIB/CAIIB qualifications, recognising their professional achievements.

Author: Ishna
Published: October 1, 2025
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The Indian Banks’ Association (IBA) has issued a new circular on 30 September 2025, introducing a revised fitment formula for bank employees. This circular, addressed to the Managing Directors and CEOs of all member banks, relates to the implementation of the 12th Bipartite Settlement and the 9th Joint Note signed on 8 March 2024.
Image- Statement By IBA
Key Highlights of the Formula
1. For Clerical Staff Promoted as Officers
- Clerks who hold JAIIB or CAIIB qualifications will now have their pay fitted into the Officer scale in a fairer way.
- Their basic pay will first be adjusted by removing the increments they had received for these qualifications in the clerical grade.
- This adjusted (notional) basic pay will then be fitted into the Officer scale.
- After that, the same number of increments will be added back in the Officer grade so that employees do not lose the benefit of their professional qualifications.
- The next increment date will be fixed as per the 182-day rule.
2. Extension to Sub-staff Promotions
The same method will also apply to sub-staff employees promoted to the clerical cadre, provided they have JAIIB/CAIIB qualifications at the time of promotion.
Purpose of the Change
The IBA has introduced this formula to ensure fairness and uniformity across all banks. The new system rewards employees for their professional efforts, recognises their achievements even after promotion, and creates a smooth transition between different pay scales.
Impact
With this formula, promoted employees will not lose the financial benefits of their qualifications. Instead, their earlier efforts will be carried forward into their new role. This step will also encourage more staff to pursue professional banking courses like JAIIB and CAIIB.
The circular has been signed by Brajeshwar Sharma, Senior Advisor (HR & IR), IBA, and member banks have been requested to apply these guidelines uniformly.
Comments
- GOUTAM BORSE
please provide circular link
Posted on October 1, 2025 - Ricky Kumar Yadav
unable to find the circular in iba website
Posted on October 1, 2025 - Ricky Kumar Yadav
please provide pdf of circular
Posted on October 1, 2025