Bringing an end to long-drawn negotiations, the Indian Banks’ Association (IBA) on Tuesday signed a wage revision pact with nine bank unions, which will lead to an additional wage burden of Rs 5,200 crore for 46 banks.
The revision will be effective retrospectively from November 2007 and will be effective for five years, benefiting 775,000 employees and officers.
The pact also gives an option of pension to existing employees who did not choose it earlier.
The All India Bank Employees Association (AIBEA) in a statement said 26 public sector banks would have to shell out Rs 4,816 crore additionally. Old private banks (12) and foreign banks (8) will shoulder a burden of Rs 400 crore. This increase represents 17.5 per cent of additional load on the wage bill as existed in March 2007.
Under the settlement, the pay of Scale I-VII officers will range from Rs 14,500 to Rs 52,000. From May 1, the scale for clerks will range from Rs 7,200 to Rs 24,900, and for subordinate staff, it will range from Rs 5,850 to Rs 11,350.
The deal also provides 260,000 existing employees and 50,000 retired personnel an option to join the existing Defined Benefit Pension Scheme in lieu of the contributory provident fund. Employees joining April 2010 onwards, would now be joining the Contributory Pension Scheme as available to government employees, the release said.
“We are sure this agreement on wage increases coupled with the long-awaited another option to join the existing pension scheme will bring relief to employees and would be a motivation to improve efficiency in our services to customers," Vishwas Utagi, secretary of AIBEA, said. The revision also covers those employees who have opted for the voluntary retirement scheme. The wage revision also enhances benefits such as house rent allowance, leave fare concession, reimbursement of hospitalisation, among others.
Retirement benefits such as gratuity and pension will also improve in line with higher pay scales.
please detailedexplanation reg employs who expired during seviceand did not receive any benifit from bank whether his /her next of kin eligble for pensoin schme which recently sighned by indian bank associa tion .thanks mohan
This settlement is really a very historic settlement because it is worst ever. It is first settlement where no amount is being paid as arrears in case of those who will opt pension now. This settlement is for only retiree people and it is because our mostly leaders are retired. Employee should think about this negative feature at earliest and change the leadership as early as possible.
this hype of 17.5% is total injustice with bank employees. Deal struck is a not only conspiracy against us by the union and IBA but also voilation of pillai committee which had equaled the salary of bank officers with class 1 officers. today a new joinee PO get 21000 appr against 40000 of goi officres.( Please see pycommission blogspot or allbankingsolution website for comparitice study.)
This salary settlement will have highly demoralising effect on bank employees as government of india wished. and in due course business will flee away beacause of non availaibility of quality satffs in PSBs.
cheers to private/foreign bank.. you will get business without much hardwork and good people at lower salary.
Posted by: Mahendra
May 09 , 2010, 11:55 IST
I fully agree. We have f0rmed AKHIL BHARTIYA BANK KARMCHARI JAGRUK SANGHARSH SANGH at Luckn0w. we have started a c0mpaign against the settlement. Pl see Hindi paper "Hindustan" dtd 9/5/2010 & 2/5/2010 f0r details. We request all the like minded pe0ple t0 c0me f0rward & intensify the m0vement.
The increase is moderate at 17.5 percent and the big attraction is the option for pension scheme for many Bank officials.It is unlikely to put much burden on Banks' resources and profitability. The PSB officers and Managements will now strive to match the private sector in profitability.
This is the WORST Settlement that ever happened in the Banking industry. Firstly, NO PF optees or very few want Pension. As per extant rules, Pension in banks is payable at 50% of last drawn salary. This has tempted many to switch to pension scheme. But, the existing pension scheme is valid only till next settlement. After which, all employees from all major industries (State, Central, PSU & Pvt) will be covered under New Pension System. The pension from NPS will be much lower than what retired bankers draw now. So, my fellow bankers do not get carried away by rosy pension look. Take an informed decision.
The Bipartite Settlements signed between the Bank Unions and IBA reflect the weekness on the part of workmen bank unions as they compromise service conditions of their staff and allow the banks outsourcing. Even if we go by this settlement dated 27.04.2010, passing powers are conferred to the workmen staff. What will the officers do in the banks?
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Bringing an end to long-drawn negotiations, the Indian Banks’ Association (IBA) on Tuesday signed a wage revision pact with nine bank unions, which will lead to an additional wage burden of Rs 5,200 crore for 46 banks.
