Sunday, February 6, 2011

“SPECIAL BALANCING ALLOWANCE"

WHAT   IS   “SPECIAL BALANCING ALLOWANCE"  FOR SBI EMPLOYEES?
WHY IT IS GIVEN TO THEM?
HERE IS THE DETAILS AS EXPLAINED BY SBI OFFICERS'S ASSN,(HEDERABAD):
DATED 28.01.2011
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
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Total                               Rs.289.64 crore
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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 
Rs.4816 crore.
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 
benefits. 
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 
communication shortly       

3 comments:

raja said...

thanks for such a useful information for banking community

Anonymous said...

y it is not given for employees who join in sbi after 01/11/2007 ?

Girishan.V, SBI Elathur, Calicut(KC) said...

Dear Sir,

As the Balancing cost of pension amount in other bank when distributed to the officers and employees of State Bank of India only will make them get benifitted of the 17.5% (please refer paragraph 3 above)what is the logic of exclusion of Officers and employees joind inthe same bank after 1.11.2007. Are they now benifitted of the 17.5% hike of revision ?, Are they not representing the same organisation ? And upon what logic the employees and officers joined (and also still joining after 1.1.2007 in banks other than SBI is getting the pension benifit which is catered under the 17.5% hike. So why this discremination.??, Shall they approach court for this denial of justice ..?? If any body can give clarification please come out.

Girishan.V
Asst (Accts/Cash)
State bank of India
Elathur Branch
Kozhikode
Kerala Circle