Bank: IBA clarification on Stagnation Increments to Non-Subordinate Employees

IBA has released a Clarification circular on 6th, 7th, 8th Stagnation Increments on 19.09.2015. Note: it is a clarification circular only.  There is no change in the provisions already signed.

HR & INDUSTRIAL RELATIONS

IBA CIRCULAR

As per the provisions of 10th Bipartite Settlement, it has been agreed to reduce the periodicity of 6th stagnation increment from 3 years to 2 years and to introduce 8th stagnation increment w.e.f. 13th May, 2015. 8th stagnation increment is to be released after two years on receipt of 7th stagnation increment or from 19th May, 2015 whichever is later. Keeping in view the cost constraints, it was further agreed that the consequential financial benefit to the employees could be released from 13th May, 2015. There is no change in periodicity of releasing the 7th stagnation increment and 7th stagnation increment is released after two years on receipt of 6th stagnation increment. In other words, an employee would be eligible for 8‘“ stagnation increment, 6 years after receipt of 5th stagnation increment or w.e.f. 18th May, 2015, whichever is later.

However, the employees who have got 6th and 7th stagnation increments on or after 18th November, 2012 but before 13th May, 2015 as per 9th Bipartite Settlement, would get 8th stagnation increment, 7 years after receipt of 5th stagnation increment, if the weightage of one year on account of reduction of periodicity of 6th stagnation increment from 3 years to 2 years as per 10th Bipartite Settlement is not given to such employees. As a result, these employees would be placed in a disadvantageous position vis-a-vis the employees junior to them.

2. The Workmen Unions have therefore, requested us to clarify the position without any ambiguity.

3. We have examined the matter and clarify that the employees who have completed two years or more as on 15th November, 2012, after receipt of 5th stagnation increment, would be eligible for 6th stagnation increment w.e.f. 1st November, 2012, notionally, however, monetary benefit to such employees will be given 3 years after receipt of 5th stagnation increment or w.e.f. 1st May, 2015 whichever is earlier. Similarly, 7th stagnation increment will be released notionally 2 years after notionally release of 6th stagnation increment and monetary benefit of 7th stagnation increment will be released 2 years after receipt of monetary benefit of 6th stagnation increment or w.e.f. 1st May, 2015 whichever is earlier. 8’h stagnation increment will be released 2 years after notionally release of 7th stagnation increment or w.e.f. 1st May, 2015 whichever is later. The case may be clearly understood by following illustrations: