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Many Ex-servicemen asking for clarification for thier fitment of salary in Bank. Here is the latest clarification/circular issued by IBA/Govt. You may calculate your fitment amount and represent to your bank, if u r eligible for an higher Pay.
Indian Banks’ Association
HR & Industrial Relations
January 30, 2014
To Chief Executives of Public Sector Banks
Pay Fixation of Ex-Servicemen Re-Employed in
Public Sector Banks
We refer to our letter No.
HR&IR/CIR/2012-13/76/589/5850 dated 6.9.2012 regarding re-fixation of pay
of ex-serviceman re-employed in Banks on or after 1.1.2006.
2. Keeping in view the fact that all the Public Sector Banks
are enjoying autonomy in their HR matters, the Ministry of Finance, vide its
letter dated 22nd March, 2013, requested IBA to frame uniform
guidelines for fixation of pay of Ex-Servicemen upon their re-employment in
PSBs, in consonance with the Government of India’s policy in the matter and the
principle of fairness. The letter further stated that the system of
re-employment should be reviewed comprehensively to allow Ex-Servicemen to have
their pay protected upon re-employment in PSBs. IBA was requested to have these
issues considered and examined in consultation with the PSBs and send their
considered opinion/comments to the Ministry of Finance, Department of Financial
Services for necessary action.
3. Accordingly, IBA constituted a Working Group, consisting
of three senior officers drawn from banks and prepared a report. With the
approval of the Managing Committee at its meeting held on 6th June,
2013, the Report of the Working Group was sent to DFS for their consideration
and to issue necessary guidelines. The Ministry of Finance, vide letter dated
19th July, 2013, advised IBA to take appropriate decision in the
matter of pay fixation of re-employed Ex-Servicemen in PSBs as deemed fit.
While doing so, IBA was asked to ensure that such pay fixation is in consonance
with DOPT guidelines issued from time to time that all PSBs follow the
guidelines uniformly to avoid disparity in pay fixation across PSBs.
4. As desired by DFS, a “draft” guidelines to be issued to
PSBs was sent to the DFS vide our letter dated 27th August, 2013 for
their examination and their approval.
5. Now, the Ministry of Finance, DFS, vide their letter
dated 30th December, 2013 (copy enclosed), has advised that the
draft guidelines prepared by IBA generally appear in order. However, before issue
of these guidelines to all PSBs, it is desirable to ensure that no decision is
contradictory to established Government Policy and that none of these are
violative of DOPT or Ministry of Defence (MOD)/Ministry of Finance instructions
on this subject.
6. Draft guidelines, approved by the Ministry of Finance,
Department of Financial Services with some suggestions were put up to the
Management Committee of IBA at its meeting held on 28.1.2014 for approval. The
Committee has approved these guidelines as per annexure enclosed for compliance
All the Banks are
therefore advised to implement these guidelines regarding pay fixation of
ex-servicemen on their re-employment on or after 1.1.2006.
Deputy Chief Executive
cc to: Chief Executives of Private Sector Banks –
Guidelines for Pay Fixation of Ex-Servicemen/Ex-ECOs/SSCOs Re-employed
in Public Sector Banks on or after 1.1.2006
of pay of ex-servicemen in Public Sector Banks is governed by the
guidelines/instructions issued by the Government of India from time to time.
Accordingly, based on the Government Guidelines/instructions in force, issued
vide DoPT O.M. No. 3/19/2009-Estt. (Pay II) dated the 5th April,
2010 and clarification given vide O.M. No. 3/19/2009-Estt. (Pay-II) dated the 8th
November, 2010, fitment of pay of ex-servicemen / ex-ECOs/SSCOs, who have been
appointed in the Bank on or after 1.1.2006 is to be done as under:
joining in workmen cadre
Pay fixation of an ex-serviceman would be
through protection of pay plus D.A. drawn by him at the time of released from
Armed Forces. As per the instructions issued by the Ministry of Defence vide
their letter No. 1/69/2008/D (Pay/Service) dated the 24th July, 2009
and advised by DoPT vide OM No. 3/19/2009-Estt. (Pay II) dated the 8th
November, 2010, pre-retirement pay has been defined as under:
(i) In respect of re-employment taking
place on or after 1.1.2006, pre-retirement pay for those who retired after
1.1.2006, means the pay in the pay band plus
grade pay but inclusive of non-practicing Allowance (NPA) if any,
last drawn before retirement.
(ii) In case of officers who retired
before 1.1.2006 and also those who retired after 1.1.2006 in the pre-revised
pay scales without opting for the revised pay scales promulgated on or after
1.1.2006 the pay will be basic pay
including stagnation increment and Rank
Pay plus Dearness Pay and Dearness Allowance drawn at the time
of retirement. As such, the figure of pay plus D.A. admissible in the Bank will
be fixed with reference to this protection i.e. pay as mentioned above plus
D.A. and relevant stage of the basic pay in the re-employed scale will be
determined after deducting DA admissible in the Bank from the figure protected.
For the purpose of fixation of pay on re-employment, the pay would mean the
basic pay plus the special allowance /special pay as the case may be, attached
to the re-employed post (where applicable). As the MSP has not been included in
pre-retirement pay as per the definition given by the Ministry of Defence vide
letter No. 1/69/2008/D (Pay/Service) dated 24.7.2009, the protection of the
component of MSP in re-fixation of pay in Bank has been excluded. Moreover, the
ex-servicemen on re-employment in the banks are allowed to draw entire pension
i.e. entire pension is ignored and not reduced from the re-fixed pay. As such,
they will get the benefit of the component of Military Service Pay (MSP), if
any, in their pension from the Government.
(iii) In addition to the pay so fixed, as
aforesaid, pension and other retirement benefits may be allowed to be drawn.
This will, however, be subject to limitation that the aggregate of re-employed
pay and pension on re-employment of ex-servicemen would not exceed the minimum
of the scale of pay of the General Manager in the Bank as per Ministry of
Finance letter No. F4/1/98-SCT(B) dated 2.9.1998.
Commissioned Officer/Short Service Commissioned Officer – Joining in Officers
Pay of an Ex-ECO/SSCO will be
fixed at the minimum of the pay scale. Thereafter, he will be allowed as many
increments as the completed years of service he has put in the Armed Forces
subject to the condition that the total emoluments in the re-employed post do
not exceed the total emoluments excluding HRA and CCA he was drawing at the
time of his release from the Armed Forces. In case this total exceeds to total
emoluments drawn at the time of release from Armed Forces, the basic pay in the
re-employed post will be fixed at such a stage, where the total emoluments
would be either equal or just less than the total emoluments he was drawing at
the time of his release from the Armed Forces. The benefits of pay fixation as mentioned
above will be available to those EX-ECOs/SSCOs who join in Junior Management
Grade Scale-I (i.e. the lowest rank in Officers’ cadre). If the officer is
inducted in a higher pay scale as compared to the lower scale applicable to
officers in the Bank, it may be ensured that he gets at least the benefit in
pay which would have accrued to him by giving him the weightage of the number
of years of service put in as ECO/SSCO with reference to the minimum of the
lowest scale i.e., JMGS-I.
ECOs/SSCOs during the
pre-commissioned training period are neither given the rank of Commissioned
Officer nor they are allowed the scale of pay. Therefore, the period spent on
pre-commissioned training by ECOs/SSCOs cannot be taken into account for the
purpose of pay fixation on their re-employment.
Officer Joining in Workmen Cadre:-
In terms of Ministry of Finance
letter No. 202/8/7/86-SCT(B) dated the 22nd March, 1988, there is no
bar to any Ex-Service Officer joining the workmen’s cadre in the Bank in which
case his pay may be fixed as under:
(i) In case where the entire pension and
pensionary benefits are not ignored for pay fixation, the initial pay on
re-employment shall be fixed at the same stage as the last pay drawn before
retirement. If there is no such stage in the re-employed post, the pay shall be
fixed at the stage below that pay. If the maximum of the pay scale in which a
pensioner is re-employed is less than the last pay drawn by Ex-Service Officer
before retirement, his initial pay shall be fixed at the maximum of the
(ii) If the minimum of the scale of pay in
which a pensioner is re-employed is more than the last pay drawn by him before
retirement, his initial pay shall be fixed at the minimum of the scale of pay
at the re-employed post. However, in all these cases, the non ignorable part of
the pension and pension equivalent of retirement benefits as prescribed from
time to time shall be reduced from the pay so fixed. The pay for this purpose
will exclude compensatory allowances e.g., HRA, CCA, etc.
(iii) Those ECOs/SSCOs who are appointed in
clerical cadre in the Bank will also be given the benefit of number of years of
service put in by them as ECOs/SSCOs with reference to the pay point
corresponding to the minimum of the scale applicable to the clerical
cadre/posts in the Bank.
(iv) Ex-Servicemen who are graduates may be
given increments for graduation irrespective of the fact whether they have
passed graduation before joining the service of the bank or afterwards.
However, if the ex-serviceman had been given some benefit for graduation which
was reflected in the pay drawn by him while in the armed services, the fitment
in the Bank’s scale has to be done after withdrawing such additional benefit
and thereafter the two increments for graduation must be given.
(v) An ex-serviceman whose qualification
is treated as equivalent to that of a graduate is not be treated as a graduate
to earn the benefit of increments in terms of Awards/Settlements. In other
words this benefit will be available to an ex-serviceman only if he has passed
civil examination equivalent to graduation.
File No. 4/3/2012-SCT(B)/Welfare
Ministry of Finance
Department of Financial
Jeevan Deep Building,
Parliament Street, New Delhi.
Dated 30th December, 2013
World Trade Centre
Cuffe Parade, Mumbai – 5
Alleged discrimination in the matter of pay fixation of Ex-servicemen
re-employed in Public Sector Banks.
I am directed to refer to
your letter No. HR&IR/KSC/GOVT/589/7746, dated 27th August, 2013
sending therewith ‘Draft Guidelines’ regarding pay fixation of ex-servicemen
/Ex-ECOs/SSCOs in a uniform way to avoid disparity in pay fixation across
Public Sector banks and to say that draft guidelines generally appear in order.
2. However, before issue of these guidelines to all Public
Sector Banks, it is desirable to ensure that no decision is contradictory to
established government policy and that none of these are violative of
Department of Personnel & Training (DOP&T) or Ministry of Defence (MOD)
instructions on this subject. Therefore, adding a supporting clause below each
decision clarifying. “These provisions have been drawn in terms of GoI,
DOP&T’s OM/MoD/DFS letter No. ……………… dated …………..” would be in the fitness
of things. For example, “Definition of ‘Pre-retirement Pay’ is as per MoD’s
letter No. 1/69/2008/D (Pay/Service) dated 24th July, 2009”.
3. Further, the fact whether additional increments to
ex-servicemen for acquiring graduation would also be available or not to those
who are awarded ‘Certificate equivalent to Graduation’ by their previous
employer also needs to be clarified. Proposed revised guideline should also
include a para clarifying the concept of ‘not reckoning ‘MSP’ and ‘X-pay’ for the
purpose of pay fixation in respect of those Ex-servicemen who have retired from
the armed forces and re-employees in PSBs on or after 1.1.2006’.
4. The date of implementation of these guidelines,
prospective or retrospective and the mode of tackling effect of financial
implications, if any also needs to be clarified.
5. Keeping in view above suggestions, kindly issue necessary
guidelines at the earliest.