Revised Family Pension for Bank Employees
United Forum of Bank Unions (UFBU) -umbrella of nine bank unions- have signed MOU with IBA on 22nd July 2020. Chairman IBA is reported to have informed at the meeting that IBA is agreeable to Family Pension at 30% without ceiling subject to discussions of modalities.
|Bank Wage Revision 22 July 2020|
Important features of MOU are:
- 15 percent wage bill as on 31-3-17 hike for the five year period between 2017 and 2022. which works out to Rs.7,898 crores on Payslip components.
- Date of effect: November 1, 2017
- The new pay scales will be constructed after merging Dearness Allowance corresponding to 6352 points (average Index point as applicable for the Quarter of June, July, August 2016) and adding thereon a loading of 2.50% on Basic Pay plus Dearness Allowance as on 31st March 2017 amounting to around Rs.1155/- Crores.
- 47.80% DA merger– 478 slabs will be merged in basic. (6352-4440) =1912÷4=478 slabs). DA rate in future will be @ 0.07 % per slab. Balance slabs come to (681-478)=203.
- Distribution of annual wage increase between Workmen and Officers will be worked separately and proportionately based on breakup of establishment expenses as on 31.3.2017.
- Performance Linked Incentive (PLI)-introduced–
- It will be based on Operating/Net Profit of the individual bank (optional for private & foreign banks). The PLI is payable to all employees annually over and above the normal salary payable. The PLI matrix below decides the amount payable to the employees (in number of days of pay (Basic+DA) depending on the annual performance of the bank. All the employees will get the number of days of pay as incentive depending on where in the matrix the bank’s performance fits in.
|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*|
|*3rd & 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)|
In addition to existing PL encashment, PL Encashment would also be permitted at 5 days every calendar year ( 7 days in case of employees/officers of 55 years of age and above) at the time of any festival of their choice.
The rate of banks contribution to the NPS fund increased to 14% (of Pay & DA) instead of the present rate of 10%, subject to approval of government.
- 11th Bipartite Settlement/Joint Note is to be signed with in 90 days.
- This MOU paves way for commencement of wage negotiations in RBI.
The revision in wages will impact employees across 35 banks,
AIRBIOPF congratulates all bank employees and UFBU for the wage revision which was overhanging.