Sunday, March 8, 2015

Where 13% will go?

1. My present Basic Pay is………..
    What will be my new salary?
2.  A. I retired on ……. (Before 01.11.2012)
     Whether I will get any benefit from this 10th B.P.S.?
     B. I retired on……………….. (After 30.11.2012)
    Whether I will get arrears for my commutation/P.L. encashment
    and increase in Pension?
3. What is the effect of point No.3 in the minutes dt.23.02.2015?
    Whether it will affect
    1.our future benefits like P.F/NPS accumulation,
    3.Pension commutation,
    4.Our future D.A. increase?
These are the queries raised thro e-mails sent to me.
I shall try to answer to the best of my knowledge and understandings.

1. Before going for calculations of new salary please go thro’ the chart I posted herewith.
    It shows how loading was distributed in different headings of pay slip in the last settlement.
B.P. loaded by 16%. Spl.Allowance by 9.33%. H.R.A. increased by 54.15. Conv. Allow. By 114.29%
Gross salary increased by 18.11%.
From the above one can understand that loading will not be the uniform/same across
all headings in salary slip.
Also the gross increase 18.11% will not be the same for employees in different stages of Basic Pay.
Loading of % over different stage will not be same.
It is decided on number of employees in different stages and on future combination of employees.
How we can attempt to calculate new salary, without knowing the final figures of B.P./New D.A. percentage/H.R.A % in different centers/amount of conveyance allowance etc., ?
Some comrades have posted projections of new salary in social media with their own assumptions.
It only shows their enthusiasm and mathematical knowledge.
Please keep soft copies/print out of all these chart already posted and compare with final outcome.
I don’t want to comment at this stage.

2. UFBU has proposed three demands of Pensioners to IBA. They are
     1. Uniform D.A. for those who retired before 01.11.2002
     2. Updating  of pension with every wage revision settlement like in Central/State Govt.,
     3. Increase in Family pension for the spouse of a Bank employee, as the present amount is very low.
Only preliminary discussions took place on these subjects. IBA has not committed anything so far.
These demands may be decided in the coming meetings.
Hence Pensioners has to wait for the final outcome keeping their fingers crossed.
For those who retired after 30.10.2012, their Pension will be fixed as per new salary at the time of their retirement. Accordingly Commutation and encashment of Privilege Leave on retirement will be recalculated and will be paid.

3. Regarding the point No.3 , It seems at the first sight, there is shift in policy of uploading of
    Basic Pay by 10% to 17% as was done in previous settlements.
    It is stated that 2% of B.P.+D.A as on March 2012 will the loading factor.
   D.A . as on March 2012 is 63% . Hence 2% of 100+63 is 3.26.
   If we add 100+60.15+3.26=163.41. This will be the new Basic Pay.
  This is what I understand from the minutes. I don’t know what Union leaders will explain?
Now coming to the loading of remaining 13%, we have no clue on which head they are going to load.
13% on B.P is a big amount; hence it can’t be dumped in H.R.A or Convey. Allow.
Therefore a new allowance/pay/ grade pay may be introduced.
The moot question is whether such pay will attract
1.Pension benefit,
2.P.F/NPS contribution and
3. increase in D.A?
If the answer is “Yes”, then there is no problem.
UFBU may have to only explain why they have changed the policy.

If the answer is “No”, then this arrangement may only satisfy the condition that” gross increase is 15%”
But, this will be a huge setback in the history of Bank employees movement.
1. This will not only affect Pension but also commutation of the people retiring from 01.11.2012.
2. NPS contribution will be affected and in the long run maturity amount will be less,
which you can't estimate the loss, which will be huge.
3. Moreover in the next B.P.S.  new basic pay will be constructed from the basic pay of 102%
and not from 115%. Hence not only the present employees but also those who join Banking sector tomorrow will be affected once for all.

If my above assumptions/understanding/calculation proved wrong by UFBU,
I will be the happiest person. I don’t mind if I am defeated.

What can we do to change this arrangement?

 Mere posting a comment condemning the unions will do ?
Resigning from unions? (This will make things bad to worst)
No.  We should take some sincere steps to change.
There is 90 more days to complete the settlement. Anything is not final. Anything can be changed.
Hitherto you might not have participated in any of the struggle programme for the past 27 months.
You might have posted as many comments as you can scolding unions.
I know most of the bad comments coming from officers that too from P.O. who are not at all
taking struggle programmes seriously.
Now , let us push  our difference to a corner and plunch in to direct action.

If You really want to have 15% loading in Basic Pay then write to your Union/Association
“expressing your dissatisfaction and request them to retain 15% benefit on Pension benefit, P.F/NPS contribution and D.A.”
Don’t write to All India Unions  like AIBEA or AIBOC or BEFI. It is of no use.
Don’t sent e-mails . It is also of no use.
Write to your Bankwise, State Unit of the Union, because your subscription goes to them only.
Address can be taken from circulars received from them.
Only hard copies reaching the Union office will have effect.
If thousands of posts reach Bankwise/Statewise units, definitely, pressure will be created on them.
That may result in change of approach on the subject.

If you don’t’ do anything , be ready to digest whatever you receive.  


R K Satpathy said...

As nothing final why not we demand for merger of on 01/11/2012 that is to start our new salary with 0% of all central pay commission????
May be % load on New basic pay will be over 163.41% of old basic pay???????

Unknown said...

Dear sir kumar
You rightly pointed out that most of the comments are made by po thats right but its also true that they are the most who suffer at the branch who are left to suffer who have high hope for their future ...dd introspection is needed in the management on the issue of young bankers who will be the future .

Rajeev Kumar said...

A very nice,well researched and balanced article.You have given all the available information at present,with insightful and lucid analysis.Thank you.

Unknown said...

You have rightly pointed out to write every bankers a letter to their state unit about the impact of new settlement if only 2% load factor is on basic.This agreement will be disastrous to present/ future generations of bankers.

Anonymous said...

Dear Kumar Sir
Now two weeks passed, sin ce mou singed. What will be next step in finalising settlement.Is there any communication between the two sides or any formal meeting planned. It seems something fishy going on in there mind which is not good for us. How can they finalise everything once no progress is made in two weeks.

As rao said...

it seems to be a magic and we wil be fooled for ever (normally only in april month). if it is same, we must threaten/protect taking any levy from bank staff by the unions.

ashok jindal said...

In the 10th BPS my understanding of the minutes on fixation of basic pay is that Basic Pay will be constructed in such a way that due to DA load factor basic pay will not increase more than 2% after Basic Pay+60% DA. This is natural since there will be adjustments in the increments also and such adjustments should not result into increase in BP by more than 2% after BP+60% DA asjustments. Thereafter there will be increase in 15% in BP and other pay slip components.

Anonymous said...

Union people are not reacting since they themselves do not know what would be quantum of increase as they are signing on the dotted lines.What a fate to have leaders like this.

Anonymous said...


Anonymous said...

Dear Mr.Kumar. I thought that we have elected & selected the geniuses as leaders to get our privileges. But the normal bankers like Shri.Indian bank kumar, Shri. Rajesh Goel, Shri. Paan Valan and so in is able to analyse the better and best why not these knowledgeable leaders? I think those days in bank exams analytical, reasoning and rationale questions are not asked. OK. Anyway please forward this article to our leaders. Both parties are not having convenient date till now in past two weeks.

Anonymous said...

Nice insight on the developments

Unknown said...

As if they are very much engaged in other very very very important works, specifically, other than the much debated Xth BPS, The IBA is giving lot of time gap inbetween any of it's 2 meets with UFBU. However, as it is our members' dire need and right for upgraded scales, the show is being continued. Let us hope that the BASIC PAY will be properly fixed.

Anonymous said...

shri ashok Jindal ji...can u explain in details what you want to say....I did not get much...

Anonymous said...

Delay delay delay.The magic mantra of IBA

Anonymous said...

I really dont know whats this fuss about.I mean after 28 months why do they need 90 more days.Well my point is if there are so many things to be discussed then why on earth they need almost 25 days to fix a meeting after the outcome of talks on 23rd.Maybe they are preparing themselves after seeing the reactions of the members.

Anonymous said...

What will be DA % after the merger.