Gross Salary after 11th Bipartite Settlement : Calculations, Arrears, Salary PDF

Published on Mar 04, 2023

Gross Salary after 11th Bipartite Settlement : Calculations, Arrears, Salary PDF

 

Gross Salary after 11th Bipartite Settlement : The annual wage increase in salary and allowances is agreed at 15% of the wage bill as on 31-3-2017 which works out to Rs.7,898 crores on Payslip components.

Discussions were held between the Indian Banks’ Association representing Managements of banks and the authorized representatives of Workmen Unions and Officers’ Associations on wage revision for officers and workmen in banks.

Gross Salary : The date of effect is 01.11.2017 and merger point at consumer price index 6352 have already been decided. It means that 478 slabs will be merged in basic. (6352 - 4440 = 1912 ÷ 4 = 478 slabs) i.e 47.8% d.a as the rate is .10 paise per slab. In r.b.i. if, Govt approves, pensioners will be benefited in updation of pension. If 10% load is approved over 47.8% d.a it comes to 162.58%.(100 + 47.8 = 147.8 × 10% = 162.58) i.e 163.

11th Bipartite Settlement

The following points appear to have been decided so far!

1) 11th Bipartite Settlement 5 Days Working Not Agreed : 5 day per week not agreed yet!

2) 15% wage increase agreed!

3) 47.80% (478 Slabs) DA merger agreed!

4) 2.50% Load Factor on Basic pay agreed!

5) Total increase in Pay @49.80 % agreed!

6) Balance 13% will be distributed in various Allowances agreed!

7) DA rate in future will be @ 0.07 % per slab (now balance of slabs will be 681 - 478 = 203 slabs)

8) From the calendar year 2020, besides encashment of PL at the time of retirement and during availment of LFC, PL Encashment would be permitted at 5 days every calendar year (7 days in case of employees/officers of 55 years of age and above) at the time of any festival of their choice.

9) It has been agreed to increase the banks contribution to the NPS fund to 14%, i.e. 14% of Pay & Dearness Allowance instead of the present rate of 10% from the prospective date of signing the settlement subject to approval of the Govt.

 

NEW BASIC PAY CHART (TENTATIVE)

Prepared By Subhash Chander Gupta, Manager Punjab National Bank, Hongkong Back Office, New Delhi

Bank staff get 15% pay hike; PSB employees get PLI, too

The protracted 11th bipartite wage settlement negotiations between bank unions and the Indian Banks’ Association (IBA) concluded on Wednesday, with both sides agreeing to an annual wage increase and allowances of 15 per cent of the wage bill as on March 31, 2017.

Both sides agreed to the introduction of PLI in PSBs, which will be based on the operating profit/net profit of the individual bank.

For private and foreign banks, PLI is optional. The PLI is payable to all employees annually over and above the salary, as per the minutes of the discussion between the unions and IBA.

Now the formula of new agreement is being discussed in industry and in R.B.I

The date of effect is 01.11.2017 and merger point at consumer price index 6352 have already been decided. It means that 478 slabs will be merged in basic. (6352-4440 = 1912 ÷ 4 = 478 slabs) i.e 47.8% d.a as the rate is .10 paise per slab. In r.b.i. if, Govt approves, pensioners will be benefited in updation of pension. If 10% load is approved over 47.8% d.a it comes to 162.58%.(100+47.8=147.8×10%=162.58)i.e 163.

It means 100 rupee basic pention becomes rs.163. So conversion figure will be 1.63. I have taken 10% load for updation because in last updation 10% load was given to all pensioners irrespective of their date of retirement. If load is less then the conversion factor will come down accordingly. After merger at index 6352 the D.A rate will be 7 paise over and above rs 6352. Arrears will be from the implementation of updation I.e.March 2019.

In today's Banking scenario, there is stiff competition amongst different category of banks i.e., Public sector, Private sector, Foreign banks. Inorder to inculcate a sense of competition and also to reward the performance, the concept of Performance Linked Pay is felt to be introduced. After prolonged discussions and deliberations on this matter, it has been agreed to introduce Performance Linked Incentive (PLI) in Public Sector Banks, which will be based on Operating/ Net Profit of the individual bank (optional forprivate & foreign banks).

The PLI is payable to all employees annuaJiy over and above the normal salary payable. The PLI matrix decides the amount payable to the employees (in number of days of pay­ Basic+DA) depending on the annual performance of the bank. All the employees will get the number of days of pay as incentive depending on where in the matrix the bank's performance fits in broadly as per Matrix under :

Distribution of annual wage increase between Workmen and Officers will be worked separately and proportionately based on breakup of establishment expenses as on 31.3.2017.

From the calendar year 2020,besides encashment ofPL atthe time ofretirement and during availment of LFC, PL Encashment would be permitted at 5 days every calendar year (7 days incase ofemployees/officers of 55 yearsof age and above) at the time ofany festival oftheir choice.

It has been agreed to increase the banks contribution to the NPS fund to 14%, i.e. 14% of Pay& DearnessAllowance instead ofthe presentrate of 10% from the prospective date of signing the settlement subject to approval ofthe Govt.

All other issues oftheManagementsand Unions/Associations discussed during the process ofnegotiation will be settled to the mutual satisfaction.

The parties will meet on mutually convenient dates to draw out a detailed Bipartite Settlement/Joint Note on the various issues on which consensus positions have been reached. The parties will endeavor to finalize the Bipartite Settlement /Joint Note within a period of ninety days from the dateof this minutes.

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