The Department of Financial Services, Ministry of Finance has set the ball rolling for commencement of 11th BPS and they have issued a notification to all the banks that are part of the process, advising them to complete the whole process well before the due date i.e. 1st November, 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). 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.
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.
Some Important Points:
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, the employees are fully justified in demanding the revised Basic Pay at this level and the employees need not feel guilty that their demand may sound unreasonable, impractical and excessive.
Unless the employees themselves convince ourselves regarding the justification in our demands, the employees cannot go the bargaining table with total confidence. This the employees must remember.
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.
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.
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.
