Revision of Salary DA Increments HRA and Other Allowances Bank Officers w.e.f 1st Nov 2017: 11th BI-Partite Settlement Dtd. 11 Nov 2020
JOINT NOTE Dated 11.11.2020
SALARY REVISION FOR OFFICERS
Conclusion of Discussions between the IBA and the Officers’ Associations
The Negotiating Committee of Indian Banks’ Association (IBA) representing the managements of banks held several rounds of discussions with the authorised representatives of the Officers’ Associations on salary revision and other issues concerning service conditions for officers in Banks. In the course of the deliberations, common viewpoints have emerged between the two parties. The outcome of the discussions acceptable to both sides is listed in Annexure I to this Note. The representatives of the Officers’ Associations have also agreed that the existing service conditions be modified to the extent what has been stated in Annexure I.
2. IBA agreed that it shall recommend to the Public Sector Banks, as in Annexure II, to initiate the process of amending the Officers’ Service Regulations and Bank Employees’ Pension Regulations, 1995 dated 29th September 1995, in order to implement what is stated in Annexure I. The IBA shall also recommend to the Government of India to approve the amendments and to issue appropriate guidelines necessary for this purpose .
3. IBA shall take steps to recommend to the Private Sector Banks which are listed in Annexure III and which have authorised the IBA in this regard, to give effect to the salary revision for their officers upto Scale III on the same lines as mentioned in Annexure I.
4. The representatives of Officers’ Associations have requested that pending formal amendments to the Officers’ Service Regulations/ Rules as per procedure laid down under Section 19(1) of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980 and the applicable provision of State Bank of India Act, 1955. IBA may advise the banks to disburse immediately an ad-hoc amount, equivalent to the net arrears payable for the period from 1st November 2017 to 31st October, 2020 by deducting ad-hoc amount paid in this connection and continue to pay proposed revised salary and allowances on ad-hoc basis. IBA has agreed to make suitable recommendations to the Government in this regard for its consideration.
5. The Officers’ Associations on behalf of the officer-employees in banks listed in Annexures II & III agree that the understandings reached as detailed in Annexure I hereto are in full satisfaction of their demands.
6. Clarification, etc., in any of the provisions contained herein the Joint Note and its Annexures will be provided by IBA.
7. Representatives of the Officers’ Associations have assured full co-operation on their part, their affiliates and members, in implementation of measures aimed at improving customer service, optimum utilisation of manpower, expansion of banking activities to take on the competition and challenges confronting the industry and maintenance of healthy and harmonious industrial relations in the banking industry.
Mumbai Dated : 21th November 2020
(1) Scales of Pay
|Scale I –||36000||1490||46430||1740||49910||1990||63840|
|Scale II –||48170||1740||49910||1990||69180|
|Scale III –||63840||1990||73790||2220||78230|
|Scale IV –||76010||2220||84890||2500||89890|
|Scale V –||89890||2500||94890||2730||100350|
|Scale VI –||104240||2970||116120|
|Scale VII –||116120||3220||129000|
Fitment: Fitment shall be stage-to-stage, i.e. on corresponding stages from 1st stage onwards and the increments shall fall on the anniversary date as usual.
2) Stagnation Increments
a) Officers in JM Grade Scale I who have moved to scale of pay for MMG Scale II in terms of Regulation 5 (b) after reaching maximum of the higher scale are presently eligible for four stagnation increments. With effect from 1st November, 2017,these officers will be eligible for five stagnation increments. The first four stagnation increments will be released after every two completed years of service, of which first two shall be Rs.1990/- each and next two shall be Rs.2220/- each. The fifth stagnation increment of Rs.2220/- will be released two years after recept of fourth stagnation increment or w.e.f 1st November 2017, whichever is later. Click here to read more………
3) Dearness Allowance
On and from 1.11.2017, Dearness Allowance shall be payable for every rise or fall of four points over 6352 points in the quarterly average of the All India Average Working Class Consumer Price Index (General) Base 1960=100 at 0.07% of Pay.
4) House Rent Allowance (w.e.f. 1.11.2017)
|i)||Major “A” Class Cities and Project Area Centres in Group A||9 % of Pay|
|ii)||Other places in Area I, and Project Area Centres in Group B and State of Goa||8% of Pay|
|iii)||Other places||7% of Pay|
Provided that if an officer produces a rent receipt, the House Rent Allowance payable to him/her shall be the actual rent paid by him/her for the residential accommodation in excess over 0.75% of Pay in the first stage of the Scale of Pay in which he/she is placed with a maximum of 150% of the House Rent Allowance payable as per aforesaid rates mentioned in Column II above.
Note: The claims of officer employees for House Rent Allowance linked to the cost of their ownership accommodation shall also be restricted to 150% of House Rent Allowance as hitherto.
5) City Compensatory Allowance (w.e.f. 1.11.2017)
|i)||Places in Area I and above, and in the State of Goa||Rs. 1400/- p.m.|
|ii)||Places with population of five lakhs and over and State Capitals and Chandigarh, Puducherry and Port Blair||Rs. 1150/- p.m.|
6) Location Allowance (Non-CCA Centres) (w.e.f.1.11.2017)
Effective 1.11.2017 a fixed allowance of Rs. 700/- p.m. is payable to all Officers posted in areas other than the areas that are eligible for CCA. This fixed allowance shall not be reckoned for payment of DA, superannuation benefits, viz, pension including NPS, PF and Gratuity.
7) Learning Allowance
With effect from 1.11.2017, Officers shall be paid Learning Allowance of Rs.600/- together with applicable Dearness Allowance thereon.
8) Special Allowance (w.e.f. 1.11.2017)
With effect from 1.11.2017, officers shall be paid Special Allowance as under:
|Scale I-III||16.40% of Basic Pay + applicable Dearness Allowance thereon|
|Scale IV-V||19 % of Basic Pay + applicable Dearness Allowance thereon|
|Scale VI-VII||20 % of Basic Pay + applicable Dearness Allowance thereon|
Note: The special allowance with applicable DA thereon shall not be reckoned for superannuation benefits, viz, pension including NPS, PF and Gratuity
9) Pension (including State Bank of India)
a. As per extant regulations, pension payable to officers is based on the average of the emoluments drawn in the last ten months preceding the retirement of the officer in terms of Regulations 2 and 38 of the Pension Regulations. For the purpose of payment of pension, the Pay of the officer retiring on or after 1st November, 2017 will be taken on the basis of the Pay as is provided under this Settlement. However, in the case of officers who have retired from the services of the Banks, on or after 1st November, 2017 but before 31st August, 2018, since the period of preceding ten months will constitute Pay both under this Settlement as well as pertaining to Settlement dated 25th May, 2015, in such cases, the following procedure will be adopted for determining Pension payable to them.
(a) For the period of ten months falling on and from 1st November, 2017, the actual Pay drawn by the officer under this Settlement: and
(b) For the period falling prior to 1st November, 2017, the actual Pay drawn by the officer plus Dearness Allowance at the rate of 47.8 percent thereon will be notionally reckoned as Pay for e purpose.
With effect from 1st November 2017, the Pay as defined under Clause 6 of this Settlement and drawn by the officers who are members of the Pension Fund shall be taken into consideration for the purpose of calculation of pension as per the Pension Fund Rules/ Regulations in force.
b. Option not to claim incremental commutation on revised basic pension
Officers in service of the Banks as on 1st November 2017 and who – have retired thereafter but before the date of this Settlement and who had opte for conimutation of pension will have an option not to claim incremental commutation on revised basic pension.
c. Dearness Relief on Pension
With effect from 1st November, 2017, in respect of officers who retired or died while in service on or after 1st November, 2017, Dearness Relief shall be payable at 0.07 % per slab on the Basic Pension or Family Pension or Invalid Pension .or compassionate allowance as the case may be. Dearness Relief in the above manner shall be paid half yearly for every rise or fall of 4 points over 6352 points in the quarterly average of the All India Consumer Price Index for industrial workers in the series 1960=100.
10) Provident Fund
a) The Officers who are presently covered – under the Bank Employees’ Pension Regulations, 1995/96 shall continue to contribute 10% of the Pay towards Provident Fund and there shall be no matching contribution.
b) Officers of State Bank of India will continue to be covered by Contributory Provident Fund Scheme as hitherto.
c) Officers who are presently covered under Contributory Provident Fund Scheme who did not opt for Pension Scheme available under Joint Note dated 27th April 2010 shall continue under the Contributry Provident Fund Scheme as hitherto.
11) New Pension Scheme
a) Officers except in State Bank of Indiawho are governed by New Pension Scheme w.e.f. 01.04.2010, will continue to contribute 10 % of pay plus Dearness Allowance and the bank will make a contribution of 14% of pay Plus Dearness Allowance from the date of signing of Joint Note subject to approval of the Government.
b) Officers in State Bank of India who are governed by New Pension Scheme w.e.f 01.08.2010 will continue to contribute 10% of the pay + Dearness Allowance and the bank will make a contribution of 14% of Pay + Dearness Allowance from the date of signing of the Joint Note subject to approval of the Government
c) The service charges by the Service Provider/Fund Manager of NPS will be borne by the bank from the FY 2021.
12) Medical Aid (other than State Bank of India)
On and from 1st November 2017, reimbursement of medical expenses shall be as under:
- Officers in JMG & MMG Scales – 10,300/-p.a.
- Officers in SMG & TEG Scales – 12,300/-p.a.
13) Recovery of House/Furniture Rent
(i) House rent recovery shall be @ 0.50% of the first stage of the scale of pay in which the officer is placed or the standard rent for the accommodation, whichever is less.
(ii) Furniture rent recovery shall be @0.10 % of the first stage of the scale of pay in which the officer is placed.
14) Fixed Personal Pay (w.e.f. 01.11.2017)
Fixed Personal Pay together with House Rent Allowance shall be at the following rates and shall remain frozen for the entire period of service.
|Increment Component (Rs)||DA as on 01.11.2017 (Rs)||Total F.P.P. payable where bank’s accommodation is provided (Rs)|
(i) F.P.P. as indicated in “C” above shall be payable to those officer employees who are provided with bank’s accommodation.
(ii) F.P.P. for officers eligible for House Rent Allowance shall be “A” + “B” plus House Rent Allowance payable on the last increment of the relevant scale of pay.
(iii) The increment component of F.P.P. shall rank for superannuation benefits .
(iv) Only officers who were in the service of the bank on or before l.11.93 will be eligible for F.P.P one year after reaching the maximum scale of pay they are placed.
15) Professional Qualification Pay (PQP) (w.e.f. l.ll.2017) Click here to read more………
16) Other Allowances
Revised Rate of Deputation Allowance, Hill and Fuel Allowance, Halting Allowance, Special Area Allowance, Project Area Allowance, Mid Academic Year Transfer Allowance (w.e.f. 1.11.2020), Split Duty Allowance, Compensation on Transfer (w.e.f. 1.11.2020) Click here to read more………
21) Privillege Leave (as per annexure VI)
22) Maternity Leave (as per annexure VI)
Maternity leave, which shall be on substantive pay, shall be granted to a female officer for a period not exceeding 6 months on any one occasion and 12 months during the entire period of her service.
23) Paternity Leave (as per annexure VI)
With effect from 1.6.2020, male officer employees with less than two surviving children shall be eligible for 15 days paternity leave during his wife’s confinement. This leave may be combined with any other kind of leave except casual leave. The leave shall be applied upto 15 days before or upto 6 months from the date of delivery of the child.
List of Public Sector Banks
- Bank of Baroda (e-Vijaya Bank & e- Dena Bank)
- Bank of India
- Bank of Maharashtra
- Canara Bank (e- Syndicate Bank)
- Central Bank of India
- Indian Bank (e-Allahabad Bank)
- Indian Overseas Bank
- Punjab & Sind Bank
- Punjab National Bank (e- Oriental Bank of Commerce & e- United Bank of India)
- UCO Bank
- Union Bank of India (e-Corporation Bank & e-Andhra)
- State Bank of lndia
List of Private Sector Banks
I. The Federal Bank Ltd. (upto Scale III)
2. The Karnataka Bank Ltd.
3. The Jammu & Kashmir Bank Ltd
4. The South Indian Bank Ltd (upto Scale III)
5. The Karur Vysya Bank Ltd.(upto Scale III)
7. The Nainital Bank Ltd
8. Kotak Mahindra Bank Ltd. (upto Scale III)
9. The Dhanalakshmi Bank Ltd.
10. IDBI Bank (upto Scale III)
Foreign banks (only workmen)
I. Bank of America N.A.
2 Standard Chartered Bank
3. Sonali Bank Limited (Workmen/Officers -upto scale III0
4. Citibank, N.A
5. BNP Paribas
6. The Bank of Tokyo Mitsubishi UFJ, Ltd.
7. The Hongkong & Shanghai Banking Corporation Ltd.
Annexure-IV – Special Area Allowance Click here to read more………
Annexure – V
1. Annual encashment of Privilege Leave:
From the calendar year 2020, Privilege Leave encashment shall be permitted at the rate of 5 days for each calendar year at the time of any festival of the employee’s choice. Employees who have completed 55 years of age as on 01.01.2020 and above shall be entitled to encash at the rate 7 days for each calendar yeas, till retirement as a one times measure.
2. Performance Linked Incentive Scheme:
The wages settled during wage revision at industry level are paid by all Banks uniformly, irrespective of the size of the Banks and their financial strength. In Today’s challenging environment, where there is stiff competition among Banks, a genuine need is felt to allow Banks to pay their employees something extra by way of encouragement as per the profitability and financial soundness of the respective Bank. In order to inculcate a sense of competition and also to reward the performance, the concept of Productivity Linked Pay was discussed and after discussions between the parties, it is agreed to introduce Performance Linked Incentive Scheme in Public Sector Banks which will be based on Operating Profit/Net Profit of the individual bank (optional for private and foreign banks). The PLI shall be payable to all employees annually over and above the normal salary payable. The PLI matrix shall decide the amount payable to the employees (number of days of pay = Basic + DA) depending on the annual performance of the Bank. All the employees shall get the minimum number of days of pay as incentive depending on where in the matrix the Bank’s performance fits in, broadly as per Matrix as under:-
|Sr.No.||YoY Growth in Operating Profit||No. of days for which Salary (Basic + DA ) shall be paid|
|2||5% to 10%||5 days|
|3||> 10% to 15%||10 days*|
|4||> 15%||15 days*|
|*3rd and 4th slabs are payable only if the Bank has Net Profit. If a Bank has growth in Operating Profit of 5% & more, but there is no Net Profit, then minimum 2nd slab of 5 days will be payable.|
(The PLI will be applicable from FY-2020-21)
3. Family Pension
Subject to approval by the Government, It is agreed that family pension shall payable to the uniform rate of 30 percent or the Pay of the deceased employee and that there shall be no ceiling on family pension. It is agreed that these provision, when approved by the Government shall apply to SBI olso.
LEAVE RULES – Privilege Leave, Unavailed Casual Leave, Maternity Leave Paternity Leave,Sick Leave, Special Casual Leave, Extraordinary Leave: Click here to read more………