SBI PO SALARY: May not be the best bank job in 2021

Are you looking for SBI PO salary?

OR are you looking for the best public bank salary in 2021? They may not be the same.

SBI PO Salary
SBI PO Salary 2021

As TSNR members, we will lay out the complete MATHS behind the SBI PO pay slip. So that you will know

  • how to maximize your pay from the starting
  • how your job profile & salary will progress over years and
  • what is the best entry level job in public banks (in terms of salary)

By the end, you will be able to pinpoint your preparation for the right job in the right direction. In a way, it will be easier to win.

Ready to go?

Let’s begin!

  1. From Basic to Salary in Hand: Trick for a quick increment
  2. UNMATCHED facilities
  3. SBI PO Job profile after some years
  4. SBI PO vs IBPS PO vs RBI Grade B: The best job for starters?
  5. FAQ

Chapter 1: SBI PO Salary in hand

In this chapter, we will explain the complete MATHS behind the Salary slip.

We are going to start with the Basic salary.

From there we will learn the various components and their amounts step-by-step.

And finally, we will figure out the SBI PO salary in hand.

Let us first show you a SBI PO Salary slip.

1.1 SBI PO Salary Slip

Salary Slip of is a confidential document between SBI and the employee.

It should not be shared over internet.

For that matter, we have made a replica with the same figures, as below.

SBI PO Salary Slip
SBI PO Salary Slip

SBI has a beautiful salary structure.

A basic pay of only Rs. 27,620/- can sum up to Rs. 71,000/- in earnings!


In fact, an SBI PO can draw more salary in hand if he understands the tricks fully.


We can only understand when we have a good idea of the salary structure.

1.2 Salary Structure of SBI PO Earnings

Let us first get to the components, like

a) Basic Pay:

Basic pay is the first component in the salary structure.

It is paid to the employee in consideration of his/ her work.

Typically for a Probationary officer, the basic pay starts from Rs. 27,620/-.

But there are opportunities for four quick increments within first two years.

b) Dearness Allowance (DA):

Dearness Allowance is paid to combat the inflation effect. In easy language;

What was available in Rs. 100 in 2018 is available in Rs. 120 now. This is because the value of money is going down. This is called inflation.

Every year the value of money decreases. But the basic pay doesn’t change accordingly.

Government pays dearness allowance so that the employees can combat this effect.

Presently, SBI is paying DA @46.9%.

Some other factors are loaded on top it; making it even 75-81% in cases.

c) City Compensatory Allowance:

The cost of living is higher in cities.

To counter this effect, SBI pays City compensatory allowance to its employees posted in cities.

It normally ranges between 3-4% of the basic pay.

For an SBI PO posted in cities, the present rate is between Rs. 850-900/-.

d) Miscellaneous Payment:

The SBI PO is a transferable profile.

Miscellaneous allowance is paid to help establishment in any location.

It includes newspaper allowance, maid reimbursement etc.

It varies from post to post.

The present rate of Miscellaneous payment is about Rs. 1,000/- per month for POs.

e) SMART Compensation Package:

This component is optional.

As an SBI employee, you get an option to convert perks into equivalent monetary value per month. Such perks include

  • Petrol allowance:, 45L (semi-urban/ rural area), 55L (urban areas) for Bikes & 55L (semi-urban/ rural areas), 65L (urban areas)
  • Furniture allowance: Around Rs.11,000/- per annum
  • Entertainment allowance: Around Rs. 12,000/- per annum
  • Tea/ Coffee allowance: Around Rs. 2,000/- per annum
  • DABBA/ BALTI (utility) allowance: Around Rs. 1,800/- per annum etc.

Then there are furniture maintenance allowance, mobile handset, briefcase allowance and many more.

Altogether SBI pays a PO around Rs. 1,20,000/-+ service tax per annum towards this purchase allowances.

SBI can convert these into equal monthly instalments and add to the SBI PO salary, if an employee requests so.

This is a trick. You can easily increase the gross salary by Rs. 11,000/- to 12,000/- p.m. just by availing the SMART compensation package.

Prepare wisely. Then apply this trick once you get through.

f) Smart Compensation package (HTC/ LTC):

SBI allows its employees a Leave Travel Concession once in two to four years.

During this leave, an employee can either

  • Travel to outstation (then he is paid the Leave Travel allowance (LTC))
  • or stay in his home, as he wishes. (In that case he is paid the Home travel allowance (HTC))

On return, the employee can claim for a reimbursement of the expenses.

OR he convert the allowable expenses to monthly compensation and then chose to travel on his own expenses.

If this concession is converted into monthly payment, it is called the Smart Compensation package (HTC/ LTC).

This is another trick. By opting for the HTC/LTC smart compensation, you can

  • increase the gross by some Rs. 1,200/- to 1,300/- p.m. as well as
  • be more flexible during vacations without having to worry about bill submission.

Majority of the employees chose to convert this allowance to Smart Compensation package.

g) Special allowance:

Around Rs. 2,000/- to 3,000/- per month in the PO post.

h) House Rent Allowance:

The officers profile are highly transferable in SBI.

After each transfer, you can either

  1. chose to live in the company accommodation or
  2. arrange for a rent yourself and then claim the House Rent allowance (HRA).

The slabs for HRA varies with location and post, like

  • 10% of Basic for Metro cities (population 45L or more)
  • 9% at Urban areas (population 12L to 4L) and
  • 7.5% at Semi-urban or rural areas (population 5L to 12L)

But we will not recommend that you claim for HRA. You can better avail the company accommodation and let go this allowance.

Because even at highest slab, the allowance is only 10% of Rs. 27,620/-, i.e. Rs. 2,762/- in urban areas.

It is very difficult to arrange for a good accommodation within this budget.

It is for this reason, the person whose salary slip we shared didn’t avail HRA.

With this our discussion on earnings is complete.

We will now try to figure out the gross salary.

1.3 SBI PO Gross Salary

By now, we know, the SBI PO salary varies with locations and choices made by the employee. It is highly variable.

For better comprehension, we should rather define the minimum and maximum figures for the gross salary.

  • The minimum SBI PO Gross salary is Rs. 8.02 lacks per annum i.e. around Rs. 66,800/- per month and
  • the maximum gross salary is Rs. 13.08 lacks per annum which is Rs. 1,09,000/- per month.


We have learnt the MATHS in the SBI PO Salary slip and

we also learnt the tricks to maximize the pay very quickly.

It’s time to move over to the to next section.

What matters MOST!

1.4 SBI PO Starting Salary in Hand

From gross salary some deductions are made, like

  • PF contribution – 10% of the basic
  • Professional Tax – Rs. 200/-
  • NPS – 10% on Basic + DA and
  • IT: As applicable.

There are some other deductions too, like

  • Employees credit society subscription
  • Union membership etc.

But these together contribute even less than Rs. 500/- per month.

We will not discuss them here.

We will find out to the SBI PO salary in hand.

The in hand salary is what remains after due deductions are made from the gross salary.

Since, the gross salary is itself variable, the in hand salary is also bound to vary.

Let us again get to the minimum and maximum figures for the in hand salary.

  • The minimum SBI PO salary in hand is Rs. 40,000/- to 45,000/- (if the Smart compensation is not availed +low DA + rural placement) and
  • maximum SBI PO salary in hand is Rs. 60,000/- to 65,000/-.

In nutshell, the SBI PO Starting Salary in hand ranges between Rs. 40,000/- and Rs. 65,000/- during the training period.

We hope we are very clear on the salary part now.

Let us move on to more interesting parts now.

In the next section, we will

  1. discuss the outstanding perks & promotions
  2. compare it with other entry level public bank jobs and
  3. answer some of the most frequently asked questions.

By then you will also figure out the best public bank opportunity and be ready crack the BEST of the BEST!

Chapter 2: SBI PO Salary and perks

Besides salary, the SBI PO position also offers some of the best perks in the industry.

  • Medical Insurance: 100% for the staff and 75% for family, cashless treatment in MANY medical facilities all over INDIA
  • Loan Benefit: UNMATCHED House Loan, Car Loan and Personal Loan interest rates
  • Post retirement Pension.

There are numerous other perks like newspaper allowance, maid reimbursement, House maintenance allowance, furniture allowance, petrol allowance, Tea/ Coffee allowance, entertainment allowance, Utility allowance, Leave Travel Concession/ Home travel concession etc. These are all convertible to monetary value per month through Smart Compensation Package. We have already discussed them in the earlier sections. We are not going to discuss them again.

In one word, SBI PO salary & perks are very LUCRATIVE.

The job also offers quick promotions.

Chapter 3: SBI PO job profile

3.1 Training Period

The training/ probation period will last for two years.

SBI is the only Fortune 500 bank in India. It has a huge learning & development infrastructure with 47 dedicated learning centers and 5 apex institutes across India.

Regarding courses, they have tied up with the best management institutes in the world. For example, 30 out of the 300 e-lessons taught during training, are created by the Harvard Business School.

The training program is unique and extensive!

It is a mix of classroom and on job learning.

On joining, you will pass through a week long program on leadership and six weeks of intensive classes in 6 functional areas

  • General Banking
  • Credit
  • Marketing
  • Investment Banking
  • Rural Banking and
  • IT.

In the remaining period, the you will be rotationally placed in different operations.

At the end you have to undergo a stringent screening.

There is a predetermined Standard & a pass standard.

  • If you achieve the predetermined standard, you will placed as a Officer Middle Management (Grade Scale-II) and
  • if you secure the pass marks but fall short of the predetermined standard, you will be posted as a Officer Junior Management (Grade Scale-I).

This will be your first promotion.

3.2 Promotion & Career Path

Starting from the PO position, one can assume the highest post in the bank.

The promotion policy in SBI offers brilliant scopes to reach the Top Management profile very quickly.

Let’s have a look at the career path.

SBI PO Salary Promotions
SBI PO Salary: Promotions

In addition SBI also offers international posting over 190 offices in 36 countries. Usually, the posting happens for 3-5 years.

And when it comes, it comes with more promises of perks to make sure you lead a VERY comfortable life there.

SBI is always praised for its outstanding HR policy. The policy is made to offer

  1. Clear measurable goals for every role
  2. visible performance score every month
  3. Frequent discussions for grooming
  4. rewards for high achievement and
  5. hand picked custom roles for high achievers.

3.3 Job responsibility

During probation, you need to handle multiple operations, like finance, accounting, billing, investment, revenue collection, etc.

The general responsibility is to generate revenue, take cost-effective decisions, maintain operations and compliance.

After training the bank has more than 1000 different roles to offer.

It is not possible to mention all of them here. We better look at the 4-5 most desired positions very quickly;

  • Manager – Money Market & Derivatives
  • Branch Manager – Retail
  • Dy. General Manager – Project Finance
  • Dy. General Manager – Mobile Banking
  • Relationship Manager – Mid Corporate Banking
  • Govt. treasury dealing.

The SBI PO position is a gateway to one of the most diversified banking career in India.


Chapter 4: Which one is the best entry level Public Bank Opportunity?

SBI PO salary is lucrative. The job profile is also quite rewarding.

But there are other jobs too in public banking.

There are two more jobs which are equally sought by the candidates;

  • IBPS (Institute of Banking Personnel Selection) Probationary Officer post and
  • RBI (Reserve Bank of India) Grade B officer post

We will show their salary pattern and then discuss the Pro’s and Cons of the SBI PO post in that light.

4.1 SBI PO Salary vs IBPS PO Salary

The starting salary of a IBPS PO is shown below.

IBPS PO Salary 2021
BasicRs. 23,700/-
Special allow.Rs. 1,837/-
DARs. 10,164/-
CCARs. 870/-
Total Pay (excl. HRA)Rs. 36,569/-
HRARs. 2,133/-
Gross salary per month (incl. HRA)Rs. 38,702/-
SBI PO salary vs IBPS Po salary

**The DA/CCA/HRA may change from place to place. We have considered an average value for the sake of the discussion.

So, we can see that SBI PO salary is more rewarding than IBPS PO.

Job profile wise also, SBI offers more intense and diversified career.

Move on to the RBI Grade B post then.

4.2 SBI PO Salary Vs RBI Grade B Salary

The gross salary of an RBI grade B officer is Rs. 77,208/-.

RBI Grade B Officer
ScaleRs. 35,150-1,750 (9)-50,900-EB-1,750 (2)-54,400-2,000 (4)-62,400
BasicRs. 35,150/-
Allowancesi) DA
ii) Local allowance
iii) HRA
iv) Family Allowance
v) Grade allowance
Gross monthly salaryRs. 77,208/- (approx.)
SBI PO Salary vs RBI Grade B Officer Salary

**Once again, the average values are taken in DA/ Local allowances/ HRA etc.

Therefore, RBI offers more salary in the starting to its Grade B officers.

In fact, RBI Grade B officers are the most premium entry level jobs in the public banking. We will publish a comprehensive guide on the RBI Grade B officer opportunity.

We will post a link here as soon as it is published.

Coming back, there are some other advantages in starting as a SBI PO;

  1. The job profile is more intense with direct market interaction with variety of industry segments
  2. From the PO position, you can assume the highest post in SBI in just 27 years (at-least there is no policy restriction). Becoming the RBI governor is a totally different ball game.
  3. The chances of getting an international posting is higher in SBI compared to RBI.
  4. The awards/ recognition and learning resources are very easily available in SBI.

To conclude, if the salary is your only motivation RBI grade B officer is a better opportunity for you. Whereas SBI PO is your best bet, if you desire for a challenges and dynamic corporate profile.

Know your best motivation and prepare wisely.

Subscribe and be the first to know when SBI releases PO exam notification.

You can also time to time check our bank job page for more related vacancies. (**We have listed ALL active bank vacancies in India. The table is like excel. You can search, filter and sort to get just what YOU need. We think you will love it.)

Thanks for being so long. We have a FAQ section after this.

The questions are the one we frequently receive. Post comments if you have any doubt too.

Stay tuned! Wish you all the best!

Chapter 5: FAQ

5.1 What is the SBI bank PO salary after 7th pay commission?

7th commission is binding for direct government employees. SBI PO salary is not under its purview. There is no change in SBI bank PO salary after 7th pay commission.

But the government as a whole intends to offer similar life to officers in similar grades across its various institutions. Therefore, if the pay commissions recommend increments in the salary structure, govt banks also come up with a better proposition. That is the only way they can be called related.

5.2 What is SBI PO salary after 11th bipartite settlement?

The article describes the SBI PO salary after 11th bipartite settlement only.

5.3 What is SBI PO salary in Delhi?

Delhi being a metro city (more than 45L population), the HRA is payable at highest rate (10% of basic). The city allowance is Rs. 850/- to 900/-.

Other-wise the salary structure is same.

The gross salary will be between Rs. 67,090/- to Rs. 1,09,000/- depending on whether or not you avail Smart Compensation package.

The salary in hand will be between Rs. 40,250/- to Rs. 65,000/- in the starting.

5.4 What is SBI PO salary in Mumbai?

Same as the above answer.

5.5 What is SBI PO training period salary?

SBI PO salary during training is as follows;

  • Gross salary per month: Rs. 66,800/- to Rs. 74,000/- depending on your posting location, whether or not you avail SMART Compensation package etc.
  • Salary in hand will be around Rs. 40,000/- to Rs. 66,000/- accordingly.

5.6 What is SBI PO salary after 5 years?

SBI PO is a probationary post for two years. End of the probation period (training, the officer is confirmed in Middle management or Junior management.

After 5 years, he is supposed to have assumed the role of a Deputy Manager.

The CTC will be around Rs. 15L to a9L per annum.

5.6 In one word, what is the salary of SBI PO?

  • The pay scale is Rs. 23,700 – 980/7- 30,560 – 1,145/2 – 32,850 – 1,310/7 – 42,020/-
  • Basic Pay Rs. 27,620/-
  • Annual CTC between Rs. 8.2L to 13.08 L
  • Gross salary between Rs. 66,800/- to Rs. 1,09,000/- per month.

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