Friday, August 28, 2020



53 Radha Bazar Lane (1st Floor), Kolkata – 700 001

Circular No.56/2020                                                                  27th Aug 2020

To all Units, Affiliates, Office Bearers, CC & GC Members

Dear Comrades,

Sub: Letter  to 4 Workmen Unions on Meeting of Working Groups 

A meeting of the Working Group for Workmen is  slated tomorrow at Mumbai. As we did not sign the MoU on 22nd July 2020, IBA will not invite us for further discussion was a known outcome. We all know another meeting of the Working Group for Workmen was held on 20th of this month. Meeting of the unions before the negotiation for distribution has been a practice followed till 10th Bipartite Settlement. BEFI was not consulted before any of the meetings. We did not sign the MoU for reasons explained unambiguously. The issues require to be discussed during the distribution have been identified during meetings of the small committee as well as full negotiating committee. On most of the issues IBA agreed to discuss during the distribution of quantum. 

We addressed a letter to the General Secretaries of four Workmen Unions/Associations narrating our views on the subject matters.

Text of the letter is appended below .

With greetings,

Yours comradely,

(Debasish Basu Chaudhury)

General Secretary



“We are aware that a meeting of the Working Group for Workmen was held on 20th of this month and another is slated to be held tomorrow, 28th August 2020. 

As we all know, it had been practice to hold meeting of the unions prior to the negotiation for distribution of quantum to arrive at a common  position. The meeting of tomorrow is going to be held physically at Mumbai and there has not been any intimation so far for holding meeting of workmen Unions, it won’t be possible for the undersigned to attend a Meeting at Mumbai even if it is decided now. 

Moreover, we have already expressed our views on the MoU in a letter addressed to UFBU Convener on 25th of this month with copy marked to all constituents. 

In this backdrop we would like to place our suggestions based on Common Charter of Demands and discussion held so far in Small Committee and Full Negotiation Committee meetings of which  BEFI was  an integral part.

Our views

Not withstanding our reservation on 2.5% loading, we like to point out that IBA has to clarify the basis of arriving at Rs.1155 Cr to be 2.5% of pay after merger of DA at 6352 point of C.P.I. Secondly as per IBA’s letter dt. 13.08.20, only 12.5% (15%-2.5%) of pay slip component is to be distributed on other heads which comes to Rs. 6582 Cr (12.5% of Rs 52655.34 Cr). After utilisation of Rs 1155 Cr for 2.5% loading on BP an amount of Rs 6743 Cr (Rs.7898Cr – Rs.1155Cr) is supposed to be available  for distribution on other heads. Here there is mismatch of Rs 161 Cr (Rs 6743 Cr – Rs 6581 Cr). IBA should not be allowed to pass.

Stagnation  increments  once  in  2  years  without  any  ceiling  for  both clerical and  subordinate  staff. 

(IBA agreed to discuss the matter during distribution of pay slip component)

Entry  level  clerical  cadre  to  include  duties  of  SWO  and  existing  Special pay of Rs.  820 to be clubbed with Basic pay. 

(IBA agreed to discuss the matter during distribution of pay slip component)

Entry  level  Sub staff  cadre  to  include  duties  of  Daftary  and  existing Special  Pay  of  Rs.  560  to  be  clubbed  with  Basic  pay  while  revising  the Pay Scales.

(IBA agreed to discuss the matter during distribution of pay slip component)

On revision  first stage of  PQP/EQP should be equivalent  to  the  first  stage  increment  in  the  pay scale with re-fixation with same proportion at all stages.

(IBA agreed to discuss the matter during distribution of pay slip component)

 Revision  of  FPP  on the  same  lines  of revision  of  basic  pay.

(IBA agreed to discuss the matter during distribution of pay slip component)

Other  posts  of    Special  Pay  to  be  revised  by  merger  of  D.A  and  loading as  in the  case  of Basic  Pay.

(IBA agreed to discuss the matter during distribution of pay slip component)

Further  increase  in  Special  Pay  amount  commensurate  with  the increased  duties,  responsibilities  and  risks  involved  in each post.

(IBA agreed to discuss the matter during distribution of pay slip component. In our opinion increase in duties and responsibilities for any special pay carrying post is not advisable)

Housing accommodation / Quarters to be provided by Banks to all employees.   Wherever not provided, HRA to be paid. 

(IBA agreed to discuss the matter during distribution of pay slip component)

Revision of HRA rates suitably and to be paid on the revised Pay. 

(IBA agreed to discuss the matter during distribution of pay slip component. We suggest for substantial increase of HRA rates)

Areas/population group to be re-classified and based on latest census figures.

(IBA agreed to discuss the matter during distribution of pay slip component)

Revision in HRA at project area centres.

(IBA agreed to discuss the matter during distribution of pay slip component)

Additional HRA in difficult and border areas.

(IBA agreed to discuss the matter during distribution of pay slip component)

Treating peripheral areas of metros/satellite towns like Chandigarh/Mohali/Panchkula, New Delhi/Gurgaon/NCR Regions, etc. at par for payment of HRA applicable to metro/satellite town respectively.

(IBA agreed to discuss the matter during distribution of pay slip component)

Reimbursement of HRA based on rent receipt.

(IBA agreed to discuss the matter during distribution of pay slip component)

Payment of HRA on Capital Cost where employee owns the house.

(IBA agreed to discuss the matter during distribution of pay slip component)

HRA on Rent Receipt basis upto 150% of normal entitlement.

(IBA agreed to discuss the matter during distribution of pay slip component)

Adequate  increase  in all existing  Other Allowances  like  Cycle  Allowance, Washing  Allowance,  Split  Duty  Allowance,  Project  Area  Compensatory Allowance,  Paradip  Port  Allowance,  Hill  and  Fuel  Allowance,  Water Scarcity Allowance,  Compensation  on  Transfer,  etc. 

(IBA agreed to increase 15% in all the above mentioned allowances)

Adequate increase  in  Halting  Allowance/  Reimbursement  of  Lodging Expenses  while  on travel on duty.

(IBA agreed in principal to this demand)

Extension  of  allowances  whichever  and  wherever  paid  to  Central/State Government  Employees  like  Disturbed  Area  Allowance,  Island Allowance,  Agency/Tribal  Allowance,  Remote/Difficult  Area  Allowance, etc. 

(IBA agreed to discuss the matter during distribution of pay slip component)

Extension  of  North-East  incentive  as  per  6th  pay  commission  and  as extended  to  RBI  employees  in North-east/Sikkim

(IBA agreed to discuss the matter during distribution of pay slip component)

Far-flung/difficult  areas  in  Uttaranchal,  Himachal/  J&K  to  be  paid Special Area  Allowance  at  par  with  Leh/Ladakh,  etc.

(IBA agreed to discuss the matter during distribution of pay slip component)

Hill  allowance  should  be  given  to  all  Districts  where  State  Governments are  paying  Hill Allowance.

(IBA agreed to discuss the matter during distribution of pay slip component)

All these issues though not exhaustive but needs redressal. This is without prejudice to our stand on MoU.” Unquote

Friday, August 21, 2020

 Bank Employees Federation of India                                                                                                                                                                                                                                                                                        NARESH PAUL CENTRE                                   53 Radha Bazar Lane, (1st Floor), Kolkata – 700 001 


 Circular No. 51/2020   

 Dt. 20th Aug 2020 

To all Units, Affiliates, Office Bearers, CC & GC Members 

 Dear comrades,  

 Meeting of the Working Group for Workmen held with IBA  today  You are all aware that two Working Groups, one for the officers and the other for Workmen, have been formed for distribution of the corpus allotted for the Officers/Workmen amongst pay-slip components and working out other issues, if any, after discussion and agreement of Officers/Workmen Associations. BEFI has not been included in the Working Group for Workmen, as anticipated, after our refusal to sign the Memorandum of Understanding (MoU) on 22.07.2020.  First meeting of the Working Group for Workmen was held today at Mumbai. There was no consultation within UFBU, prior to the meeting. We are coming across several communications issued in the name of different organizations severally and jointly. So far Workmen Unions are concerned no discussion took place with BEFI; neither prior to the meeting nor after.   We apprehend that in the meetings of the Working Groups separately for Workmen and Officers, the IBA will discuss only the issues related with allotments of corpus amongst the pay-slip components apart for reconstruction of the pay scale as per agreed loading. We assume that IBA will not discuss issues regarding increased loading; merger of special allowance with basic pay; 5 day banking; updation/revision of pension in line with RBI formula with the Working Groups separately unless the participating Unions put pressure.  Demanding improvement in MoU signed on 22.07.2020, we addressed letter to the Union Finance Minister and organized country wide protest demonstrations on 6th August 2020. Our observation is that the MoU miserably failed to fulfill minimum expectations of common employees and officers. The IBA, during the course of negotiation, did not consider the exemplary services rendered by common employees and officers in trying times and remained obstinate in their stand on many sensitive issues of our charter of demands, some of which are listed above. Our Units printed  posters consisting of  demands  which were  displayed  in branches/offices.  Some  of  the  Units  printed  booklets  in  vernacular explaining  the  reasons  of  our  not  signing  the  MoU;  also prepared  short videos  for  the  employees.  From  the  Head  Quarters  we  have  prepared  two campaign  videos,  one  in  English  and  the  other  in  Hindi. We  have  already  given  a  call  to  all  employees  and  officers,  working  as well  as  retired,  for  signing  an  online Peti tion addressed  to  the  Chairman of  Indian  Banks’  Association  and  the  Secretary  of  Ministry  of  Finance,  GoI. We  are  observing  that  employees  and  officers,  irrespective  of  union affiliations,  are  spontaneously  signing  the  Petition.  Quite  a  good  number of  our retired  colleagues  submitted  the  Petitions  to  the  recipients.  The comments  written  by  most  of  the  Petitioners  upheld  the  demands  we raised. From  our  Office  Bearer  and  Central  Committee  meeting  we  advised  our Units  and  Affiliates  to  hold  their  meetings,  pr eferably  in  virtual  form,  as many  of  our  comrades  may  not    be  able  to  attend  the  meetings  physically. We  are  informed  that  many  of  our  Units  and A ffiliates  have  already  held their  meetings  and  the  process  to  be  continued.  All  others,  who  are  yet  to initiat e,  are  requested  to  hold  their  meetings  immediately.  We  must  try  to reach  all  employees  and  officers  including  the  retirees  with  our  appeal  to submit  Petition  demanding  improvement  of  MoU.  We  have  introduced  our You  Tube  Channel on  74 th Independence  Day  wh ere  we  are  uploading various  campaign  materials.  All  our  members/activists  are that  for  mobilizing  support  on  the  demands  raised  by  us. We  have  decided  to  observe Demands Day on  the to make  use  of days  of  meetings of  Working  Group  highlighting  our  demands  for  improvement  of  MoU  by wearing  badges  and  displaying  posters/banners/flex etc.  The specimen of  badge/poster  will  be  sent  separately.  The  Units  are  requested to  initiate  preparations  immediately  in  this  regard. 

With  greetings, 

Yours  comradely, .

(Debasish  Basu  Chaudhury) General  Secretary


Tuesday, August 18, 2020

Tuesday, August 11, 2020

Comparision of 3 retirement benefits

 Highlights/comparison of 3 types of retirement benefits:

(Each of the schemes has its own plus and minus factors)

1. Contributory P.F. Scheme:

*Bank will contribute 10 % of Basic Pay towards P.F account .

Employee will also contribute 10%

*Funds will be managed by respective Banks themselves.

Bank in turn will invest the money as per Govt. guidelines.

Interest/Income earned will be distributed to employees.

Return is around 8%.

*At the time of retirement at 60 years Bank will pay the accumulated sum along with interest to employee.

* If employee leaves the job before 5 years of service , Banks contribution will not be paid. Those who switch job within 5 years will get nothing.

* If the employee leaves the job after 5 years, accumulated amount along with interest will be given to the employee.

* Similarly any employee dies during service, the accumulated amount will be given to the spouse / successor.

If employee died in younger age his family will get meagre amount only, as accumulation will be less.

* Since lump sum amount is given at the time of retirement, it is difficult for some employees to invest prudently and earn returns. Also, one may have to give money to his kith and kin for their needs, thereby loosing the principle amount and regular income for his livelihood.

*A special Assistant after 35 years of service retiring this month Aug 2020 is getting 

Rs.18,00,000 +Rs.18,00,000

as P.F. accumulation by employee and employer under this scheme.

2. Defined Pension Scheme:

*Instead of contributing to P.F. through out the service of the employee, Bank will start giving Pension after employee retires or on death.

*Pension will be based on the Basic Pay drawn at the time of retirement based on a fixed formula.

Hence amount of Pension is pre determined or guaranteed.

*Computation, i.e. encasing a portion of Basic Pension in advance . Of course at a discounted rate.

By opting for computation, employee will get a lump sum, and can utilise it for his family commitment.

Moreover employee will get regular monthly income by way of Pension.

Pension amount will increase as and when D.A. increases.

*After death of the employee during service, Bank will give only Family Pension to the spouse, which is much less than the Pension of employee.

Spouse will not get any lump sum, as computing facility is not there for family pensioner.

In this situation , Bank gains and employee/spouse looses.

* To match P.F. contribution by Bank in contributory P.F scheme, by getting Pension, employee should live up to around 65 years.

i.e. benefit of Defined Pension scheme over Contributory P.F depends on the life time of the employee.

*If an employee want to take VRS, minimum 20 years of service is required.

Those who want to change/switch job before 20 years ,say 15 years, will not get single rupee from Bank. 

Only amount contributed by employee will be paid with accumulated interest. 

*A special Assistant after 35 years of service retiring this month Aug 2020 is getting 


as P.F. accumulation by employee.

Rs.10,00,000 as computation.

Rs.31000 as Pension per month.

3. New Pension Scheme:

It is a combination of Contributory P.F. and Defined Pension scheme.

* Bank wil contribute 14% on Basic Pay plus D.A., (10% on Basic Pay only in Contributory P.F. system.)

Employee's contribution will be 10% only on Basic pay plus D.A .

Example: Basic pay =Rs.100

D.A =Rs. 77.5

Old contribution at 10% will be Rs.17.75 +17.75=35.5 by employee and Bank.

New revised contribution in new pension scheme will be Rs.17.75+24.85

(14% of 177.5)=42.60

In contributory P.F. scheme , 10% each by both employee and Bank on Rs.100 will be Rs.20 only.

Therefore corpus acrued in NPS at the time of retirement will be higher by 2.13 times of Contributary P.F. scheme.

* Every month contribution by employee as well as employer will be transfered to Pension Fund chosen by the Bank.

Pension fund will invest the money in equity/Govt. Bonds/debt instruments as per guidelines.

Returns on investment is not guaranteed and depend on market fluctuations. 

Experience so far is, returns are  around 9% to LIC, SBI,UTI Pension funds.

*Out of total corpus amount, 60% will be paid to employee.

(Like employee's PF+computation of pension).

40% of corpus will be utilised for buying annuity.

i.e. to pay Pension .

Here , return from corpus of 40% will be paid as pension, and the corpus amount 40% will remain in employees account only.

*On death of the employee entire corpus standing at that time will be paid to the spouse.

Or Spouse may opt to continue to get pension, and get the corpus later on.

Spouse will get the same amount of pension.

No question of family pension.

* Those who want to switch to other jobs at any time, may continue the same NPS account with the new job.

i.e. Amount in the employee's account will be carry forwarded.

No condition of 5 years or 20 years service.

No loss of accumulated amount.

Friday, August 7, 2020

Proposed Increase in Family Pension

 AIBEA has issued a circular regarding improvement in Family Pension.

Copy of circular and a table of calculation related 10th BPS, and formula for Family Pension is attached here for your reference.

In the table it is stated that Family Pension, for clerk at maximum scale of pay

 i.e.Rs.42020, will increase from Rs.11087 to Rs.22174.

A 100% increase.

According to my calculation it is only 48%.

Let me explain how it is.

As per table new Family Pension amount on Basic Pay of Rs.42020 will be Rs.22174.

Yes, I accept it.

30% of 42020 =12606

D.A for July 2020 at 75.9%= 9568



What about present Family Pension?

They have taken 15 % on entire amount of 42020 as basic pension.

That is Rs.6303 

D.A. will be @75.9%=4784


Here, I differ.

The % of 30%,20%,15% on basic pay should be calculated on slab system as per formula and not on straight line method.

If calculated on slab system, result will be 

Up to 11000@30%=3300

Next 11200@20%=2240

Remaining 19820@15%=2973

Total Basic Pension=8513

D.A @75.9%=6461


Present family pension of 14974 will become 22174.

Increase will be 48% only.

(This 48% will increase for those whose Basic Pay was more than 42020, particularly officers, as excess amount will fall in 15%slab and that amount will be increased to 30% now) .

Those who are drawing Family Pension may check my calculation and reply.

Purpose of my writing about this calculation is, we should not give false hope to Family Pensioners.

If my calculations are proved wrong, I am ready to accept and correct my understanding.

Thursday, August 6, 2020

Loading on Basic Pay

How loading on Basic Pay changes in every BPS?

Please read the attached table 1.

You may see that loading is different in different stages of increments, ranging from min.10.97% to max. 17.81%.
(Column 3/ Column 2.)

Conversion factor ( column 3/column 1) is not uniform in all stages, it differs in different stages.

Matrix of different loading % is based on how many employees are there in each stage and whom to be given max. loading?

Since 9th BPS is signed on 2010, and Banks are recruiting new employees, loading was given more in initial stages.

Read table 2

In10th BPS loading is only 2%
and loading was uniform through all stages at 2% 
conversion factor is uniformly at 1.63.
Column 3/ Column 2

In 11 BPS , loading is only 2.5%, and how the loading will be given is to be seen.
If loading is uniform, then conversion factor will be 1.51.
New Basic will be 
Column 3×1.51 of table 2

Tuesday, August 4, 2020

Reduction of Pension

Employees (Award Staff) retired at the stage of attaining 6th stagnation in each of 9th, 10th and 11th BPS will draw Pension as follows:
                     9th.     10th.    11th
B.Pay       24100  39400  59494
B.Pen.     12050. 19700.  29747
Comp.(-)   4016.    6566.   9915
D.A.  (+).  21256. 15267.   6184
Pension.   29290. 28401 26016

One simple question:
Up to 9th BPS, employees got more computation amount and more Pension than the one who retired in previous/earlier BPS.
Now in 10th and 11th BPS employees get more computation amount, but less Pension than one who retired in the previous/earlier BPS.
Why? What is the reason?

Everybody, except UFBU, knows it is because of loading at a small percentage in Basic Pay.
Attention those who retired after 01.11.2017!!

Your present pension amount will going to be reduced.
Excess Pension amount paid from your date of retirement to date will be calculated and will be recovered from your arrears payment.

A sample case is as follows:
A special assistant who's B.P.40710+1930+1310+800= 44750 is drawing Pension Rs.32257 (Aug,2020) now,  will draw Pension Rs.29548 only after implementation of 11th BPS.

Good luck for those who are all going to retire in 12 BPS😆😆😆

Saturday, August 1, 2020

New Pension Scheme: Is it beneficial?

New Pension Scheme!

Some comrades asked me why not you write about NPS scheme?


When you join the scheme through your Bank, you might be provided with details of the scheme.  Also there is a detailed FAQ in Pension portal website.


As per my calculation if an employee ( Graduate clerk) on joining, the Bank  contribution, repeat, Bank contribution of Rs. 3350 per month (11 th BPS numbers) for 35 years, the return at the rate of  8% is= xx.xx lacs

 ( By recurring deposit calculation method)

Calculate the maturity amount yourselves.

This monthly subscription will vary

1.    1.  every 3 month due to increase in D.A,

2.   2.    by every year  as he will be getting one increment per year,

3.  3.    and by every 5 year, as there will be a wage revision.


Therefore the total return will be much much higher, even after taking into account
inflation over years.


Improvements are made in NPS from time to time as follows.

1.      Withrawals allowed during service period like P.F. .

2.      No Tax on maturity amount on retirement on par with P.F..

3.      Can encash 60% of the maturity amount instead of 40% earlier.

Remaining 40% may be invested towards pension.

4.      Contribution by Bank is increased from 14% from 10%  on Basic Pay +D.A 

Therfore benefit wise it is not a bad scheme.

Then why we oppose this scheme?

We have doubts about
1. Whether the funds will be stable and steady?
(i.e. whether our funds will be safe?)
2. Whether it will give minimum return of 8% i.e equal to P.F. ?

Now Central Govt., and State Govt., employees are fighting for reversal of this scheme and demand for converting all employees to old Pension Scheme.

(West Bengal is the only state that didn’t implement NPS)
In my view it is a distant possibility.

From 2004 lack of employees were recruited in Central, State Govt., and in PSBs.
Fund collected from these employees were deposited with Pension Funds , and in turn it has been invested in different instruments like Equity ,Debentures, and Govt., Bonds.
Taking out all these investments at a time and re-credit to respective departments and in turn crediting the individual employees is not possible.

Moreover It is a policy decision taken by the Govt.,

Both Congress and B.J.P support this in one voice.

 Then What will be the remedy?

My suggestion is to demand the Govt.,

1.      A.  to give Guarantee for our Principle amount and

2.     B.  for a minimum return say 8%.

 If we take the struggle towards this direction the Comrades under NPS will be benefitted.

Asking for total reversal from NPS to old Pension Scheme may not yield desired result, in my view.
Govt., at one stage on pressure from opposition parties come forward to give guarantee for minimum return %,
In the meantime Govt., changed.

The above is my view.

You may not accept it.

Opinion always differs.
Comrades may express their views.




Estimated starting new Basic pay and D.A for a Graduate clerk:

Basic Pay after merger of 47.85% D.A and loading of 2.5% thereon

=13075+6250=19325=>19808+(New D.A @0.07%on 297 slabs) 4118=23926

Bank contribution 14% on 23926=3350