Pay Fixation of Ex-Servicemen Re-Employed in Public Sector Banks: IBA Letter

Indian Banks’ Association
HR & Industrial Relations

January 30, 2014

Chief Executives of Public Sector Banks

Dear Sir,

Pay Fixation of Ex-Servicemen Re-Employed in Public Sector Banks 

We refer to our letter No.HR&IR/CIR/2012-13/76/589/5850 dated 6.9.2012 regarding re-fixation of pay of ex-servicemen re-employed in Banks on or after 1.1.2006.

2. Keeping in view the fact that all the Public Sector Banks are enjoying autonomy in their HR matters, the Ministry of Finance, vide its letter dated 22nd March, 2013, requested IBA to frame uniform guidelines for fixation of pay of Ex-Servicemen upon their re-employment in PSBs, in consonance with the Government of India’s policy in the matter and the principle of fairness. The letter further stated that the system of re-employment should be reviewed comprehensively to allow Ex-Servicemen to have their pay protected upon re-employment in PSBs. IBA was requested to have these issues considered and examined in consultation with the PSBs and send their considered opinion/comments to the Ministry of Finance, Department of Financial Services for necessary action.

3. Accordingly, IBA constituted a Working Group, consisting of three senior officers drawn from banks and prepared a report. With the approval of the Managing Committee at its meeting held on 6th June, 2013, the Report of the Working Group was sent to DFS for their consideration and to issue necessary guidelines. The Ministry of Finance, vide letter dated 19th July, 2013, advised IBA to take appropriate decision in the matter of pay fixation of re¬employed Ex-Servicemen in PSBs as deemed fit. While doing so, IBA was asked to ensure that such pay fixation is in consonance with DOPT guidelines issued from time to time that all PSBs follow the guidelines uniformly to avoid disparity in pay fixation across PSBs.

4. As desired by DFS, a “draft” guidelines to be issued to PSBs was sent to the DFS vide our letter dated 27th August, 2013 for their examination and their approval.

5. Now, the Ministry of Finance, DFS, vide their letter dated 30th December, 2013 (copy enclosed), has advised that the draft guidelines prepared by IBA generally appear in order. However, before issue of these guidelines to all PSBs, it is desirable to ensure that no decision is contradictory to established Government Policy and that none of these are violative of DOPT or Ministry of Defence (MOD)/Ministry of Finance instructions on this subject.

6. Draft guidelines, approved by the Ministry of Finance, Department of Financial Services with some suggestions were put up to the Management Committee of IBA at its meeting held on 28.1.2014 for approval. The Committee has approved these guidelines as per annexure enclosed for compliance by Banks.
All the Banks are therefore advised to implement these guidelines regarding pay fixation of ex-servicemen on their re-employment on or after 1.1.2006.

Yours faithfully,
( K Unnikrishnan )
Deputy Chief Executive

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  • DEBASIS SAHOO 6 years ago

    It is just a charting and fake site which can't advise / help the ex servicemen on this issue. The Ex servicemen are trapped by the banking sector as a business point of view. If we add the pension and the pay after fitment, then also we find a gap in salary compared to same length of service continued in bank. Then also neither IBA nor MOD is trying to place a suitable solution to this issue. In United Bank of India I faced same problem and asked for the fitment letter from the bank authority several times, which is not attended so far. Different banks follow different procedure for fitment. IBA is not aware of this issue or does not bother to solve the issue.
    Debasis Sahoo email id- [email protected] mob no- 09090029162.

  • Anonymous 7 years ago

    I am also an xsm retired before 2006 and joined bank after 2006 and affected by the same way. i am getting salary as of fresh candidates (basic arond 15,000 and total arond 28,000) and the other xsm retired after 2006 getting the basic around 31,000 Rs (Total Appx 55,000). Is it justified any where ?

  • Unknown 9 years ago

    u may get through court hence connect 9829246316

  • Anonymous 10 years ago

    I am Ex-Sgt R K Jena retired in 2001 and joined in sbi in jan2009 in Bhubaneswar circle.Like me we are hundreds in the same boat.Till now my pay protection has not been done as per DOPT letter.I am getting as freshers get. I have applied but not getting suitable reply from Zonal office stating as e_circular CDO/P&HRD-IR/74/2013-14 DT 18/2/2014 my basic pay rs 7000 w.e.e 05/1/2009.Kindly help me in gmailid- [email protected] & mobile-09937007749. thanks.

  • I'm an XSM (retired from IAF in 2004, joined PSU bank in d yr 2008). Till now my pay as not been fixed as per the DOPT ltr taking into consideration the Notional Basic pay concept as envisaged in the Orders. My juniors who have left IAF recently and joined my Bank have already reached stagnation stage of Basic pay. Somebody kindly guide us (there are several hundred XSMs like me) to get us justice.