Felicitous news for all the current and future bank employees as they can hope to get an increased pay from November 1st, 2017.

The salary of bank employees is all set to get an increase as the Government of India has issued a notification about the next wage revision talks (11th Bipartite Settlement). Although there is demand to join banking sector, public sector bank jobs salary are still not par with other Government jobs. With 7th pay commission also to be implemented, the upcoming wage revision for banks is expected to address the issues presented in the 11th Bipartite Settlement.

 

Why Salary Revision for Banks Again?

As only in May 2015, an agreement was reached on 15% increase in salary for bankers, this question can strike most of your minds, “why again and why so soon?”

Then the quite straight forward answer is that hike in May 2015 was part of the 10th Bipartite Settlement which should have been completed in the year 2012 itself.

But the negotiations between Indian Bankers Association (IBA) & Employee unions broke down regularly dragging it for nearly 3 years. Finally it was signed in May 2015.

These settlements are valid only for 5 years following which a new committee is formed which will meet & discuss about the demands.

The new salary structure for bank jobs shall be effective from November 1, 2017 as the previous agreement was dated Nov 2012.

 

Technical Details about the Raise:

Following were the issues raised by Mr Pannvalan in Charter of Demands in 11th Bipartite Settlement.

Assumptions:

  • The average All India Consumer Price Index for Industrial workers (Base: 1960=100) is expected to be at 6777 for the quarter ending 30th September, 2017 (assuming that the annual inflation will be 6% for the next 2 years).
  • Accordingly, the DA as on 31-10-2017 on the exiting basic pay will be at 58.40%.
  • Unlike last time, it is expected that the full amount of D.A. outstanding as on 31.10.2017 will be merged, as is being done in the case of Central Government Employees.
  • So, the whole D.A. at 58.40% will be merged with the existing basic pay, at the time of next wage revision.
  • Then, the Special Allowance with applicable D.A. thereon (introduced in 10th BPS) is also to be merged with the existing basic pay. 
  • Then, on this amount, an increase of 40% (additional load factor) is given and fixed as the revised Basic Pay. It is then rounded off to the next higher 100.

 

Note:

  • The new Basic Pay is arrived, by multiplying the present Basic Pay by the factor as stated above.
  • Then, the new basic pay so arrived at is raised to the next higher 100 Rupees.
  • This figure will be the new Basic Pay.
  • The Basic Pay mentioned above is exclusive of the Stagnation Increments, wherever applicable.
  • Amount of new increment is slightly lower than 4% of the revised Basic Pay at each stage.
  • It must be noted that even the revised Basic Pay at this level is far below the proposed Basic Pay of the Central Government staff, as per 7th CPC.
  • Since the entire D.A. outstanding as on 31.10.2017 is to be merged with the existing Basic Pay, the new D.A. as on 01.11.2017 will be ‘Nil’.
  • Therefore, we are fully justified in demanding the revised Basic Pay at this level and we need not feel guilty that our demand may sound unreasonable, impractical and excessive.
  • Unless we convince ourselves regarding the justification in our demands, we cannot go the bargaining table with total confidence. This we must remember.

 

New Salary Scale for Bank Jobs & Demands:

With the Govt. setting up the stage for 11th wage revision talks, now IBA & Employee union associations must start the formal process.

S. No.

Rank/Grade

Existing Basic Pay(Rupees)

Revised Basic Pay(Rupees)

Annual Increment –New (Rupees)

Starting

Closing

Starting

Closing

 

1

Sub-staff

9560

18545

24000

44200

900/8  - 1100/8 - 1400/3

2

Clerk

11765

31540

30000

68900

1500/3 – 1900/8 – 2400/8

3

Officer – JMGS I

23700

42020

57000

104100

2400/7 – 2900/2 – 3500/7

4

Officer – MMGS II

31705

45950

73800

111100

2900/2 – 3500/9

5

Officer – MMGS III

42020

51490

97100

123000

3500/5 - 4200/2

6

Officer – SMGS IV

50030

59170

114600

141400

4200/4 - 5000/2

7

Officer – SMGS V

59170

66070

131400

153400

5000/2 – 6000/2

8

Top Executive – TEG VI

68680

76520

159400

185800

6000/2 – 7200/2

9

Top Executive – TEG VII

76520

85000

185800

217000

7200/2 – 8400/2

There are a total of 11 employee associations working across India for the welfare for bank employees, who will take part in the process of preparing the charters of demands.

This salary hike will encourage even more candidates to apply for Bank Jobs in 2016 as a Government Bank job will become one of the best paying jobs of the country in this scale. Those preparing must gear up their preparation as you have to compete with over 20 lakh candidates. The competition is fierce! Good luck!

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