Banking News

Highlights of banks wage revision signed between IBA & UFBU on 25.05.2015


The representatives of the unions and IBA inked the BPS/Joint Note, thus ended the long drawn process of wage negotiation in the industry.

The highlights of the 10th BPS/Joint Note signed are :

  1. Shifting the system of arriving at the wage load on Pay slip components instead of the earlier exercise of total overall load on establishment expenses.
  2.  Due to the capping of 2% over 60.15% DA merger with the existing Basic Pay for the purpose of construction of new Basic Pay, a new element/component with a nomenclature as “Special Allowance attracting DA” is introduced. A minimum of 9.75% uniform increase has been ensured to all Officers in the industry.
  3.  The frozen CCA of earlier Joint note has been defrezed /enhanced this time.
  4.  The quantum of HRA due to 163.335% rise in the existing basic pay would automatically enhance the HRA by adding 0.5% in all three areas benefitting 55% of the Officers in the industry.
  5.  There is an increase in FPP, PQP and also in the medical aid available yearly.
  6.  2 nd and 4 th Saturdays will be declared as holidays and in lieu of it 1st and 3rd Saturdays will be full working days. 5 th Saturday of the month will be full working day.
  7.   Insurance backed hospitalization was also brought as a part of the settlement to the total workforce of the industry except to SBI workforce. However the workforce in the industry has to deal with their Bank only.

Medical Insurance Scheme:

Sum Insured: Hospitalization and Domiciliary Treatment coverage as defined in the scheme per annum.

Sum Insured – Officers: Rs.400000, Clerical Staff: Rs.300000, Sub Staff: Rs.300000

The new Scheme as applicable to the officers/ employees in service would be continued beyond their retirement/superannuation/resignation, etc. subject to payment of stipulated premium by them.The new Scheme would also cover the existing retired officers/ employees of the Banks and dependent spouse subject to payment of stipulated premium by them.

CASHLESS FACILITY: The scheme also includes the benefit of cashless treatment facility in in hospitals under a scheme worked by the Banks and the hospitals under a common insurance scheme.

CONTRIBUTION: The officers / employees shall not be required to share the cost of such benefits under the new scheme. However, in the case of officers / employees retiring from the Banks after the scheme is introduced and those who are already retired from the services of the banks and who opt to avail the benefits of the scheme, the amount of contribution by such persons shall be decided at the respective Bank level.

AIBOC communication on stagnation increment

Quote

“Please refer to our last Circular No. 2015/24 dated 20.05.2015, whereby, we had apprised our members about signing of Cost Sheet / Distribution Sheet for Officers under 10th Bipartite Settlement on 20.05.15. The salient features with regard to pay slip component were also highlighted in that circular. However, we would like to clarify that the additional stagnation increments for Scale II and Scale III and one for Scale IV would be made effective from 01.05.2015 only. The dates mentioned in our Circular No. 2015/24 were because of a mistake in the Cost Sheet. However, the contract of stagnation increment has been as per the prevailing practice followed in the past. We would also like to mention that there have been many representations regarding reduction in the pension amount for those retired after 01.11.2012. Let us clarify that with merging of D.A. amount and 2% load, the basic pay has increased substantially whereas, DA amount has reduced. Therefore, the commutation amount also works out higher, leaving the residual pension lesser than the pre-revised salaries. However, we took up the matter with IBA and they have agreed to incorporate a clause to give option to the retirees to choose the percentage of commutation in the arrears payable as per their choice to keep the residual pension not lesser that the earlier one.”

Unquote

There is considerable improvement in the leave facilities. The PL accumulation was restricted to 240 days for the purpose of encashment on retirement. However, the present settlement allows officers to accumulate up to 270 days though encashment is permissible only upto 240 days.
15 Days of paternity leave has been introduced applicable for 2 children. Halting allowance also increased.

RETIREE’S issues: The issues raised on behalf of the retirees have not progressed well but a record of proceedings was signed by all the Negotiating Unions to work out the ways and means to address the pressing problems. Except the Medical Insurance scheme  left to  individual Banks, no other pending demands of pre-1/11/2012 retired Pensioners  have been dealt with in the Settlement!

Related article: (1) Bank officers’s latest salary revision updates  (2) Bank employees’ latest wage revision updates

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