PSU bank employees wage revision finalised after three years of waiting — only a ₹1,100 increase in salary for officers
- The wage revision for public sector bank officers, which has been pending since 2017, has been finalised and signed by the Indian Banks’ Association (IBA) and Workmen Unions.
- The total quantum of wage increase is ₹3,385 crore being 15% of the pay slip component.
- The salary slip, however, will only reflect a real wage increase of ₹1,100 for bank employees.
AdvertisementThe wage revision for public sector bank officers, which has been pending since 2017, has been signed, sealed and delivered. The Indian Banks’ Association (IBA) and Workmen Unions agreed that the total quantum of wage increase is ₹3,385 crore, which is 15% of the pay slip component.
Wage revision due since 1.11.2017 will be signed today 11.11.2020.3 Years & 11 Days later with meagre 2.5% Load o… https://t.co/SPfpuBKj7q— BankersUnited@Official (@Bankers_United) 1605064599000
However, the demand of public sector employees to implement five-day banking was not among the changes announced.
And, more changes may be in the works with Finance Minister Nirmala Sitharaman stating that the public sector banks need to do more to end discrimination in terms of pension against employees who may wish to retire early at the IBA's 73rd annual general meeting yesterday, on November 10.
She hinted at banks adopting the One Rank, One Pension (OROP) scheme, which means no matter the retirement date or the rank of an employee — everyone will get the same quantitative pension.
15% increase in wages for public sector bank employees
For Grade A officers at public sector banks, if there is a 2.5% load factor, a 15% bump is only results in a net increase of ₹1,100 to their in hand salary at an individual level. And, it merges the Dearness Allowance (DA) of 6352 points. This means most of the increase comprises what banker’s are already earning as dearness allowance.
New Basic Salary for Bank Officers effective from 1Nov'17.Bank Scale1 : Rs36,000Grade A Officer: 56,100 (Centra… https://t.co/AhR6ft52hL— Newton Bank Kumar (@idesibanda) 1605073157000
Before and after salaries of Grade A PSU bank officers :
|Existing||After merger of DA of 6352 points||Revised salary with 2.25% loading in Basic Pay|
|Basic pay||₹ 23,700||Basic pay||₹ 35,029||Basic pay||₹ 35,817|
|DA||₹ 12,229||DA||₹ 932||DA||₹ 953|
|Basic + DA||₹ 35,929||Basic + DA||₹ 35,960||Basic + DA||₹ 36,769|
|Special allowance||₹ 1,837||Special allowance||₹ 2,715||Special allowance||₹ 2,776|
|DA on special allowance||₹ 984||DA on special allowance||₹ 72||DA on special allowance||₹ 74|
|Basic + DA + Special allowance||₹ 38,714||Basic + DA + Special allowance||₹ 38,747||Basic + DA + Special allowance||₹ 39,619|
|NPS||₹ 3,871||NPS||₹ 3,875||NPS||₹ 3,962|
|Net salary||₹ 34,842||Net salary||₹ 34,873||Net salary||₹ 35,657|
Family pension shall also now be paid out a uniform rate of 30%, subject to approval by the Government.
“It is agreed that family pension shall be payable at the uniform rate of 30 percent of the Pay of the deceased employee and that there shall be no ceiling on family pension. It is agreed that these provisions, when approved by the Government shall apply to SBI also,” said the IBA’s notification.
Meanwhile, the reimbursement of medical expenses under the medical aid scheme has been restricted to an amount of ₹2,355 per annum.
Public sector banks react to wage hike announcement:
Source: NSE at 12:00 pm
|Public sector bank||Share price change|
|State Bank of India (SBI)||0.58%|
|Bank of India||-0.49%|
|Punjab National Bank (PNB)||-1.18%|
|Bank of Baroda||-2.16%|
India offers income tax relief for home buyers and developers to boost new property sales
Public Sector Banks across India Plan to Strike on November 26
Diwali 2020 Puja time and date
What is Atmanirbhar Bharat Rozgar Yojana and what is benefits of this yojana for employees
Popular on BI
- Flights could get bumpier as climate change makes air turbulence much more frequent
- A Swiggy user from Hyderabad spends Rs 6 lakh ordering idlis in a year
- Repo rate hike will slow down real estate, reverse post-Covid trends, says industry body to RBI
- Small stocks lag behind in FY23; take bigger hit than bluechip firms
- Tamil Nadu says 'nahi to dahi' over Hindi name on curd packets