WHY IT IS GIVEN TO THEM?
HERE IS THE DETAILS AS EXPLAINED BY SBI OFFICERS'S ASSN,(HEDERABAD):
Revised salary and allowances are paid to workmen employees and officers with effect from
1.11.2007, in terms of industry level Settlement and Joint Note respectively, dated 27.04.2010.
2. In the above Settlement/Joint Note it was agreed that, the additional cost of pension on
account of wage revision, in excess of statutory contribution of 10% of pay would be shared
equally between the Management and employees of Banks, and the share of employees so
calculated would be deducted from the agreed wage increase while revising salary. However,
this was not applicable to employees of State Bank of India as they were not required to share
pension cost. As a result, such a reduced distribution resulted in to less than agreed wage
hike of 17.5% to SBI employees.
3. Accordingly, the Indian Banks’ Association advised our Bank that, in terms of the Bipartite
Settlement, the disposal of the balancing cost of pension in respect of SBI shall be decided by
the Bank with the concurrence of Government of India (GOI). The amount of balancing cost of
pension calculated and agreed between the parties are as under:
Workmen Employees Rs.160.49 crore
Officer Employees Rs.129.15 crore
Total Rs.289.64 crore
4. The Indian Banks’ Association, therefore, kept undistributed portion of Salary & Allowance a
sum of Rs.289.64 crore as pension balancing amount out of industry level wage hike of
5. With a view to removing the anomaly for equitable distribution of wage hike of 17.5% for
SBI employees, based on Bank’s recommendation, the Government of India, have now
accorded approval for distribution of balancing amount of Rs.289.64 crore in the form of
allowance, to SBI Employees/Officers, without attracting DA, HRA, CCA and superannuation
6. Accordingly, such balancing amount will now be distributed among all officers and
employees in SBI who were in the permanent appointment of the Bank as on 1.11.2007
(including part-time) in the form of an allowance which may be called “Special Balancing
Allowance”. Such allowance will be payable to officers and employees at 6.5% and 6.4%
respectively, of their revised basic pay, from 1.11.2007.
7. The part-time/full-time medical officers who were in service as on 1.11.2007, and
employees of eSBS who have opted for the terms and conditions of SBI will also be eligible
for the above amount. Although, eSBS merged with SBI w.e.f. 13.08.2008, the staff cost of
these employees were included in the work sheet of IBA, as SBI employees.
8. Comrades, legitimate demand of the both Staff and Officers Federation has been accepted
by the Management/Government. We are thankful to them. We expect the official