Custom Search

Monday, May 25, 2015

Bank wage accord: 15% rise in salary and allowances

Salaries and allowances of bank employees will increase by 15 per cent as Bank unions and industry body Indian Banks’ Association (IBA) have formally signed the agreement.

After years of long negotiations between the UFBU (United Forum of Bank Unions), an umbrella of nine unions and the IBA, the wage revision will be effective retrospectively from 1 November 2012 and will benefit about 10 lakh employees from public sector banks, old private banks and some foreign banks.

On February 23 this year, the parties had announced a deal under which employees would be given 15 per cent wage hike on pay-slip components, which will result in an additional salary burden of Rs. 4,725 crore per year to the banking system.

With the additional provisioning towards superannuation costs and other benefits (towards retired staff) the outgo comes to Rs. 8,370 crore.

Following the wage revisions, the scale of pay of officer-level employees has been revised from Rs14,500 – Rs. 52,000 to Rs. 23,700–Rs.85,000, including special allowance and dearness allowance.

The scale of pay of workmen -- non-subordinate staff has been revised from Rs. 7,200 – Rs. 19,300 to Rs. 11,765 – Rs. 31,540, while the scale of subordinate staff has been revised from Rs. 5,850 – Rs. 11,350 to Rs. 9,560 – Rs. 18,545, including allowances, IBA Chairman TM Bhasin said.

Saturday holidays

The wage settlement also includes a medical insurance scheme for the families of employees and additional holidays on the second and fourth Saturdays of a month. The first and third Saturdays will be regular full working days.

The cash and transfer transactions will take place as per banks’ operations by individual banks but RTGS, NEFT and other clearing functions will not be available on 2{+n}{+d} and 4{+t}{+h} Saturdays and other notified holidays.

The RBI has given an in-principle approval for the Saturday holidays and it is expected to start by July after the approval from the Government and the Law ministry.

Medical reimbursement

The medical insurance will cover 100 per cent reimbursement for self and dependent in the staff’s family as against earlier 90 per cent and 70 per cent respectively. “Now, we also have a consolidated policy from four public sector non-life insurance companies which gives Rs. 4 lakh and 3 lakh as a floater cover for the family,” Bhasin said.

He added that for workmen, the arrears will be given up to May 31 immediately. For officers, there will be a requirement of Board and Government permission and the arrears will be equivalent to the DA and basic payable to them. They should get this in the June salary payable in July. Prior to that, it will be anyways given as an ad-hoc subject to approval.

“Since, government is on the same page, we hope to get the approval soon. Usually, the revision of officers’ service regulation takes about 4-6 months,” Bhasin said.

Source : Thehindubusinessline


Post a Comment

Popular Posts

Desi Google | A2Z Famous Quotes | What's Cooking America | Joke Site