Saturday, December 9, 2023


Bank Workers' Unity

வங்கி ஊழியர்கள் ஒற்றுமை

What next after MoU of 12th Bipartite Settlement?

December 9, 2023

Bank Workers Unity


On 7th December midnight, the MoU (Memorandum of Understanding) of 12th Bipartite Settlement was signed between IBA (Indian Banks Association) and UFBU (United Forum of Bank Unions) with 8 Unions together and AIBOA separately. The details of the MoU have been given separately.

Some of the significant aspects of this MoU:

For the first time, the MoU has been signed within 14 months of expiry of the previous (11th) Bipartite Settlement and without any agitation. Normally the gap used to be around 24 months and above.

Further the MoU could be reached in the fifth round of the discussions which commenced in July 2023. In between there have been many sub-committee and small committee meetings on other financial demands, service conditions including disciplinary matters. Whereas the MoU for the 11th Bipartite Settlement could be reached only after 44 rounds of discussions.

While the initial offer in the previous two Bipartite Settlements ranged between 0% and 2%, this time the initial offer itself was 15% hike in the Pay slip component.

While the 11th Bipartite Settlement was clinched with 15% increase in the Pay slip component, this MoU provides 17% increase in the Pay slip component amounting to Rs.12449 crores.

This MoU provides for monthly ex-gratia for the pensioners and the family pensioners.

Offer of IBA was conditional

While there has been some positive aspects as mentioned above, IBA was very adamant and negative in not settling many of the core demands of the Unions and Associations.  Many of the important demands that have been raised even during the 11th Bipartite Settlement still remain unsettled in this MoU. The offer of the IBA was conditional. 

While the Unions and Associations chose to arrive at this MoU, the concluding remark of com. Rupam Roy, General Secretary of AIBOC is significant.

“Though I am not totally happy, with my expectations to take care of the issues of the officers, particularly on load (we wanted more) but when we come as UFBU and when we have our retired officers (IBA is thinking to improve their benefits), despite disappointed personally, taking everything into account, we as a team of UFBU, we have no option but to accept it (MoU) with a positive frame of mind that in the further negotiations the issues will be taken in the right spirit so that the aspirations are met”.  

It is clear that this MoU is mixed with certain positive features and at the same time not addressing many of the core issues raised by the Unions and Associations. Hence the leaders of UFBU have to ponder over the expectations of the bank employees and officers and try to clinch them before signing the final settlement which is slated to be done within 180 days from the date of MoU.

The primary demand of all the Unions and Associations of merging Special Allowance along with Dearness Allowance with the Basic Pay has to be clinched. Otherwise, the Special Allowance which is now at 16.4% of the Basic Pay is likely to swell to around 25% and will not be eligible for calculation of any of the superannuation benefits and interest of the retirees during the 10th, 11th and 12th Bipartite Settlements would be severely injured.

Notwithstanding the above primary demand, loading of 3% is too low.

The loading during the 10th Bipartite was 2%, 11th Bipartite was 2.5%.

Hardly 0.5% improvement could be made visa-vis 11th Bipartite Settlement. This is really disappointing. A serious endeavour has to be made to increase the loading substantially (while signing the final settlement) so that there is no room for increasing the Special Allowance from the present 16.4%.

The merger point has to be increased to 8576 instead of 8088. There will not be any additional cost (Not even a rupee) due to this. But the future loss of DA can be averted as happened during the 11th Bipartite Settlement (For Bank Employees it was 0.07%, for Insurance employees it was 0.08%).

“5 days banking” has been one of the important demands of the Unions and Associations for nearly a decade. A firm commitment from the IBA/Government with regard to implementation of this main demand is absent in the MoU. The reply in the Parliament is evasive. While employees and officers of the General Insurance and Reserve Bank have been enjoying 5 days working for so many years, the Life Insurance Corporation has also switched over to 5 days working since April 2021.  This core issue has to be implemented before signing the final settlement.

Another core demand is updation of pension. It is highly disappointing that there is no commitment from IBA on this demand. This was one of the contentious demands raised by Unions and Associations for quite a few years. As this was not clinched during the 11th Bipartite Settlement, minutes were exchanged between IBA and the Unions and Associations in which this was one of the major demands. In the meantime, Reserve Bank employees and officers got updation of pension twice. Even actuarial calculations were not made with regard to the cost of updation of pension and it is not mentioned in the MoU when the issue is likely to be clinched. In the MoU, only the demand of the Unions/Associations for updation of pension for all retirees is recognized. Beyond that, there is no improvement. While this MoU provides ex-gratia as an interim relief, the core demand of updation of pension has to be clinched before the final settlement.

The other demands like full pension on completion of 20 years of service, last month’s pay or average of last 10 months’ pay whichever is higher for calculation of pension, commutation upto 40%, restoration of commuted amount after 10 years instead of the present 15 years also do not find place in the MoU.  These issues also need to be clinched while signing the final settlement.

Another important demand of the Unions and Associations has been “the scrapping of National Pension Scheme (NPS) and bringing all those covered under NPS to the Defined Benefit Old Pension Scheme”. The young bank employees and officers who joined the industry after 1st April 2010 and on whom the NPS has been thrust are very eager to come out of this scheme as there is no defined benefit in this. Five State Governments have already gone for this Old Pension Scheme scrapping NPS for their employees. Many more State Governments are likely to follow. Even BMS, the Trade Union owing allegiance to the ruling BJP has demanded scrapping of NPS.  Several thousands of employees have conducted massive dharna in New Delhi in the recent past on more than one occasion demanding scrapping of NPS. This demand has to be clinched at the time of the final settlement.

In the service conditions, disciplinary matters etc. many more improvements are needed which have been rightly raised by the Unions and Associations. And those issues have also to be clinched at the time of final settlement.

Genuine demands to be settled.

It is to be noted that in the last 5 years (2018-19 to 2022-23) the amount written off by the Scheduled Commercial Banks amount to Rs.10,57,236 crores. If there is a change in the corporate lending policy and if stringent laws are enacted, it is possible to recover overwhelming majority of the written off amount from the corporates. And if 2% of this written off amount amounting to Rs.21146 crores is allotted for the wage increase of the employees and officers, all the aspirations of the employees and officers can be met.

If IBA/Govt. does not come forward to settle the genuine demands of the employees and officers, they are very much ready to go on struggle to clinch the same.  The retirees are ready to extend their solidarity and support.  Taking the whole situation into consideration, right decision has to be taken by UFBU.

Friday, December 8, 2023


 To all units and members: 

Today there was one more round of negotiations with IBA.

We are happy to inform that MoU has been signed just now with the following understandings:

17% increase in payslip cost, additional loading of 3% after merger of DA,

improvement in pension for all pensioners from 1986 including retirees under proposed 12th BPS.

5 days banking has been recommended to govt for favorable consideration and will be expedited.

 Congratulations to all of you.

It is all due to the unity of bank employees and officers under the banner of UFBU. 

Sanjeev K Bandlish, Convener UFBU.

Tuesday, November 28, 2023

 Creating Opinion for 12th BPS without PENSION UPDATION? 

Wage hike decision for PSB staff likely by mid-December

(According to a source in the finance ministry, the wage revision and change in work days will also be applicable to regional rural banks.) 

Piyush Shukla

November 28, 2023

Employees at public sector banks (PSBs) may see a 15%-20% hike in salaries and implementation of a five-day work week by the middle of December as the 12th bipartite settlement talks between bank unions and associations and the Indian Banks’ Association (IBA) have entered the final stage, four people aware of the development told FE.

“This is the first time in the history of negotiations that the offer (for wage hike) is starting with 15%. It (wage hike) will likely be between 15% and 20%,” sources at the IBA said. They added that the announcement of the five-day work week will either be made along with the wage hike notification or immediately after that by the Centre or the IBA.

The current wage agreement for PSB employees expired on November 1, 2022. The IBA and the unions representing bank employees have been negotiating a new wage agreement since then.

According to a source in the finance ministry, the wage revision and change in work days will also be applicable to regional rural banks.

In July 2020, around 850,000 bank employees got a 15% increase in their salary packages, with the IBA and the United Forum of Bank Unions signing a memorandum of understanding to settle the three-year-long contentious issue of wage revision.

Another source who is part of the negotiation process said the IBA and the bank unions will soon have a final meeting where the two parties will sign a memorandum of understanding, which will subsequently be sent to the finance ministry for the final approval.

“The salary hike will be somewhere above 15%. We are negotiating hard as the PSU banks have to take a final hit on the balance sheets,” sources said. The finance ministry initially asked public sector lenders to complete negotiations by December 1.

The implementation of the five-day work week will lead to branches remaining closed on weekends. To compensate for lost working hours, employees may be required to work for extended hours during week days, the first source quoted above said.

“Business hours will start early on weekdays and close 30-45 minutes late than the current working hours,” they said. Customers who wish to withdraw or transfer cash could do so from automated teller machines, and the only challenge will come with regard to deposit of cheques.

“Collection of cheques will be affected for these two days. I think we should be ready for that as it does not make major difference and usage of cheques is increasingly getting reduced as people are opting for digital banking services,” one source said.

With employees at insurance companies and certain state governments and the central government having a five-day work week, providing the same option to bankers is a move in the right direction, sources said.

The closure of branches would also result in savings in terms of fuel used for travel and electricity. “The discomfort to customers is more than outweighed by savings and other factors. Employees also need more family time,” they said.

Saturday, November 11, 2023

 Bank Workers' Unity!

வங்கி ஊழியர்கள் ஒற்றுமை!

12th BP Settlement: 

The primary demand has to be clinched first.

November 11, 2023

Bank Workers Unity


On 27th October 2023, the fourth round of 12th bipartite discussions was held between the Negotiating Committee of IBA (Indian Banks Association) led by its Chairman Mr. M.V. Rao (MD & CEO of Central Bank of India) and the UFBU (United Forum of Bank Unions). IBA offered an increase of 15% on Pay slip cost. UFBU could not agree to this offer as the same was inadequate to reach a finality. Hence UFBU requested IBA to further improve its offer.  It is learnt that in the meantime the establishment cost of the employees and officers as on 31.03.2022 with the stage-wise details has been shared by IBA with the Unions and Associations. During the fifth round of discussions held on 9th November 2023, IBA improved its offer to 16% of the Pay slip cost.

Welcome gesture

During the 10th Bipartite Settlement and the 11th Bipartite Settlement negotiations, the initial offer of IBA ranged between 0% to 2% increase on the Pay slip cost, whereas this time it is really a welcome gesture on the part of the IBA to have made an initial offer of 15% increase on the Pay slip cost. UFBU has rightly demanded an improved offer.

First clinch the primary demand!

At this juncture, the UFBU has to clinch its “primary demand” towards the wage revision. The common charter of the four workmen unions namely AIBEA, NCBE, INBEF & NOBW has clearly raised the pertinent demand which reads as: “Existing Special Allowance and DA thereon to be added to Basic Pay before working out revised pay scales”. Similarly, BEFI has also raised the demand as: “Revision of Basic Pay w.e.f.1.112022 by merger of Special Allowance along with D.A. payable on Basic Pay and Special Allowance at the average index for the quarter July-September 2022”.  Before clinching this, the talks have gone to the next stage of offer of Pay slip cost.

From overall load to Payslip cost

The approach of all the Unions and Associations till the 9th Bipartite Settlement was to discuss the percentage increase in the overall wage cost of the employees and officers. That overall wage cost included not only the cost of revision of Basic Pay, HRA, CCA, Special Pay, Graduation Pay etc. (whatever that appears in the Pay slip) which form Pay slip cost but also the cost of superannuation benefits like PF, Gratuity, Pension etc. As the increased per cent of the overall wage cost till the 9th Bipartite settlement included cost of superannuation benefits, the net increase of salary got reduced.  Therefore, the Unions changed the approach and demanded the increase only in the Pay slip cost with a clear understanding that the resultant cost of superannuation benefits has to be borne by the Managements over and above the increase in the Pay slip cost.

Introduction of Special Allowance:

While the 10th Bipartite talks were in concluding stage, IBA became very adamant and was not ready to go beyond 2% increase in the Basic Pay in order to reduce cost of the superannuation benefits to be borne by the Managements of the Banks. As a result, a new component by name Special Allowance which attracted only D.A. (Dearness Allowance) was introduced and was fixed at 7.7% of the Basic Pay.  

This Special Allowance was not taken into account for calculating any of the superannuation benefits. This has caused negative impact in the superannuation benefits (particularly in the quantum of pension and commutation) of those retired during the period of operation of 10th Bipartite Settlement.

Basic Pay increased only by 2.5% during 11th BP Settlement:

During the 11th Bipartite Settlement, the primary demand of all the Unions and Associations was to add this 7.7% Special Allowance D.A. thereon to the Basic Pay before working out revised pay scales. But this did not happen.

Even after 44 rounds of discussions and series of agitation programmes which included strikes on several days, IBA was adamant and not ready to increase the Basic Pay beyond 2.5%.  During Covid period, the MoU was suddenly concluded in July 2020 with 2.5% increase in the Basic Pay. 

 As this was one of the contentious issues, BEFI opted out of signing the 11th Bipartite Settlement.

Due to the adamant attitude of IBA, the Special Allowance component increased from 7.7% to 16.4% which attracted only D.A. and was not taken into consideration for calculation of the superannuation benefits. Again, those who retired during this period of 11th Bipartite Settlement were put to more loss with regard to superannuation benefits.

This is a serious anomaly.  While UFBU has been pressing for pension updation in order to render justice to those retired during the earlier settlements, currently those who retired during the 10th and 11th Bipartite Settlements are denied their due share in their pension and commutation.

Rectify the anomaly with retrospective effect:

This time also, if the Payslip cost is clinched and Basic Pay is not loaded proportionately, the Special Pay is bound to increase beyond 16.4% which would not be considered for the superannuation benefits.  This will for ever injure the interest of the employees and officers and the future Trade Union movement will find it very difficult to rectify the resultant anomalous position that would arise.

Hence in this Settlement itself, the anomaly of 7.7% Special Allowance in the case of retirees during the 10th BP Settlement and 16.4% in the case of retirees during the 11th BP Settlement has to be rectified with retrospective effect.  The Basic Pay for the 12th BP Settlement has to be constructed after adding the Special Allowance of 16.4% and DA thereon as demanded unanimously by all the Unions and Associations in UFBU.


Tagged with Bank, BWU, IBA, UFBU

November 2023


Saturday, November 4, 2023


Bank Workers' Unity

12th Bipartite Settlement – a few concerns

November 4, 2023

Bank Workers Unity


Subsequent to the third round of Negotiating Committee Meeting held on 29th September 2023, meetings of the working groups on

1. Special Pay Posts and duties,

2. Revised DA formula,

3. Disciplinary Action & Procedures for workmen,

4. Officers’ Disciplinary Procedure Conduct Rules and

5. Leave and LFC rules

were held on 11th, 12th, 13th and 26th October 2023. A meeting of Core Committee was also held on 25th October 2023. The fourth round of the Negotiating Committee Meeting was held on 27th October 2023. Various demands submitted in the charter of demands were discussed in these meetings. Truly the negotiations are progressing well at a good pace unprecedentedly. However, a few issues as narrated below have come to the fore which need to be addressed.

Discrimination in workmen subcommittees

In the case of officers, all the three organizations participating in the negotiations namely AIBOC, INBOC, NOBO take part in all the meetings of the working groups which deal with the service conditions like leave, disciplinary action etc. 

Whereas in the case of workmen, only two Unions namely AIBEA and NCBE participate in the meetings of the working groups leaving out the other three other Unions namely BEFI, INBEF & NOBW.  This discrimination has been pointed out by BEFI in its communication to the UFBU (United Forum of Bank Unions) on 4th October 2023.  “We appreciate inclusion of all 3 Officers Associations.  In the Sub Committee related with Dearness Allowance which is a common issue, 3 representatives from Officers Associations and Workmen Unions have been included. 

Pitifully, in related to the matters of Workmen, we observed that representatives only 2 Workmen Unions, viz. AIBEA and NCBE, out of 5 have been included in the Sub Committees. This is

 absolutely ridiculous and illogical” stated BEFI in the said communication.

It is learnt that all the issues that have been discussed in the Sub-Committee meetings would be placed before the UFBU meeting for approval before entering into any formal understanding with the IBA (Indian Banks Association).

Why should Union raise Management’s demand?

One more issue that is causing concern is that one of the Workmen Unions namely AIBEA in its Central Committee Meeting has decided as: “The CC approved the broad approach to be taken in the negotiations for an early and adequate wage revision without compromising on any of the fundamental service conditions and that efforts should be made to make the workmen cadre more and more utility oriented with suitable enhancement of the duties and responsibilities” (emphasis added).

 So far, we have seen that the Management only used to place a counter-demand seeking enhancement of duties and responsibilities of workmen cadre. But it is strange that a workman union is placing such a demand.   

The same CC of AIBEA observed: “In many branches employees are unable to complete their daily routine work within the office hours and are compelled to sit late.  This is resulting in work-related stress and employees find it difficult to cope up with the same”.  AIBEA union has given agitation call including strike actions to redress this issue.  Our question is when the employees are already unable to complete their daily routine within office hours and resultantly undergoing work-related stress, how would they manage with enhanced duties and responsibilities? Further, it is strange that only two Workmen Unions, namely AIBEA and NCBE take part in the meetings of Working Groups that discuss Special Pay Posts and Duties.

Why does the UFBU raise the demand for change of base year to 2016?

The UFBU Circular No. UFBU/2023/16 dated 28-10-2023 states that “We had demanded that in the new Settlement, after such merger of DA, the DA scheme should be switched from 1960=100 Index Series to 2016=100 Index Series. The Working Group has agreed to recommend the same to the Negotiating Committee where final decision would be taken”. Here we need to be cautious. Already, Central Trade Unions have registered their protest over the change of base year from 2001 to 2016 on many grounds. CITU (Centre of Indian Trade Unions) has raised serious concern over this, stating “The Labour Bureau deliberately ignored the very fact that even in the midst of economic slowdown, the prices of essential items, food items in particular always remain on the rise and did not hesitate to arbitrarily as well as drastically reduce the weight assigned to food items in the standard consumption basket from 46.2% to 39% for the purpose of computation of consumer price index”. Further it has said “Manipulation by the Govt with a dubious intent does not end here. It is also done in the linking factor for converting the numbers of 2016 to 2001 series equivalent to suppress the impact of actual price rise. Two previous changes of base year witnessed a higher linking factor of 4.93 (1960 to 1982 -22 years gap) and 4.63 (1982 to 2001—19 years gap); now a 16 years gap (2001 to 2016) entailed a linking factor of only 2.88”.

From the above it is obvious that the Union Government has changed the weightage in the basket for computation with an intent to suppress the real increase in the CPI (Consumer Price Index) commensurate with the price rise and secondly the conversion factor from the base year 2001 to 2016 is grossly less compared to those of the previous times. Presently only the CPI with the base year of 2016 is published with the conversion factor of 2.88.  The issues raised by the Central Trade Unions need to be addressed. 

At this juncture, why should UFBU demand change of base year to 2016? There is also a talk that it would entail some cost.  If so, one fails to understand what benefit would accrue to the bank employees and officers by accepting the change of base year to 2016 for some cost. It is for the leaders in the Negotiating Committee to ponder over and clarify this to the general bank employees and officers.

Tuesday, October 31, 2023

 D.A increase from

Nov.2023 to Jan.2024:

+61 slabs (+4.27%)

Total: 693 slabs (48.51%)

(No change for Pensioners.)

Sunday, October 29, 2023


70 Hours Work Week? Here's The 'Work Hours' Of 15 Best Tech Companies Of 2023

Curated By: Debashis Sarkar

Youngsters need to work 70 hours a week, says Infosys founder Narayana Murthy.

Youngsters need to work 70 hours a week, says Infosys founder Narayana Murthy.


The recent conversion between Infosys founder NR Narayana Murthy with former Infosys CFO Mohandas Pai in a YouTube show divided netizens and drew sharp backlash from employees across India after Narayana Murthy mentioned that today’s youth must work for 70 hours a week to help India compete with developed countries like China.

Soon after the show aired, it became viral quickly with people highlighting that IT companies in India have simply become sweatshops where employees are expected to work for 70 hours a week but the salary is kept the same. Many pointed out that the starting salary package of Infosys is still Rs 3.5 lakh per annum and hasn’t changed much in decades despite inflation, pandemic and general increase of costs of living.

On the other hand, a lot of people highlighted that working for 70 hours a week will drain any employee physically, mentally and the person will have no personal time for family and self improvement. Considering most IT companies in India follow a 5-days work in week rule, this means employees may have to stay 14 hours in the office. Considering the travel time for work, anyone would easily spend around 16 hours a day at work, barely leaving 5-6 hours for sleep.

Narayana Murthy claimed that the work productivity of Indians are among the lowest in the world and unless Indians improve productivity, reduce corruption in government departments and reduce delays in bureaucratic decision-making, India may not be able to compete and use the potential of the youngsters to the fullest.

77-years old Murthy said in the show, “So therefore, my request is that our youngsters must say, ‘This is my country. I’d like to work 70 hours a week.’"

Now, coming to the question- is working for 70 hours a week the only way to be at the top? Forbes has come out with the “World’s Best Employers" report and among the top 15 best tech companies to work, none of them have a requirement to work for 70 hours.

According to Forbes World’s Best Employers report, the 15 best tech companies of 2023 has mandates the maximum official work hours for employees at 45 hours a week. Going by Reddit posts, in some crucial situations for few roles where work pressure is more, the maximum work hours that employees usually clocked for a 5-days work week was around 52.


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Here’s the list of 15 Best Tech Companies Of 2023, according to Forbes.

Samsung Electronics: Official work hours are 45 hours a week.

Microsoft: The minimum requirement is around 40 hours a week.

Alphabet: 8 hours a day and 40 hours a week.

​Apple: 8 hours a day and 40 hours a week. Some employees may work for less than 8 hours a day while few may have to put in around 10 hours, depending on the role.

IBM: 8 hours a day.

Adobe: 8 hours a day and 40 hours a week.

Cisco Systems: According to a statement, “Working hours should not exceed the maximum set by local by law. Further, a workweek should not be more than 60 hours per week, including overtime, except in emergency or unusual situations, and all overtime must be voluntary. Workers should not work more than 6 consecutive days without at least one day of rest."

Dell Technologies: 8 hours a day and 40 hours a week.

PayPal: 8 hours a day. However, some employees reported that its usual to work around 9 hours a day.

Sony: 9 hours a day and 45 hours a week.

Intel: 40 hours a week is the minimum expectation.

Siemens: Anywhere between 40 to 50 hours a week as per requirement.

Amazon: A fixed minimum of 40 hours a week is required.

Netflix: 8 hours or less and there’s no 9 to 5 schedule.

Oracle: 8 hours or less with a minimum requirement of 20 hours a week.

Saturday, October 7, 2023

Thursday, June 22, 2023


RBI retirees retired before 2017 get Pension updation/revision of 10% for BPS dt. 01.11.2017.

It is to be noted that for RBI employees (retired under various BPS) pension has been updated already.

For us (PSBs) updation of Pension itself is not done till date.


Wednesday, March 1, 2023

 _Date: 28.02.2023_

_Dear Comrades,_

_I am still receiving anxious queries about the proposal to introduce in piecemeal Pension updation.  I give my personal views on this._ 

_1) Pension is not Charity but a Right. That too, a Right under Pension Regulation, a subordinate Legislation and is therefore a Statutory Right._ 

_2) Pension is an entitlement to receive a prescribed sum under Bank Employees Pension Regulations (BEPR) and hence a Property protected under Article 300A of the Constitution. So Pension is a Constitutional Right too._

_3) Pension Updation has been made mandatory by amendment in 2003. It is incumbent upon IBA/Govt/Banks to incorporate Updation formulae for every Wage Revision. Having followed the Updation formula of the Govt., when BEPR was framed, the Govt. Updation formulae of subsequent Pay Commissions may be followed. Inasmuch as, RBI too followed the Govt. Updation formula when it framed its Pension Regulations and hence both RBI and BEPR had identical Updation formulae when Pension was introduced. RBI Updation formulae for subsequent periods may be followed. Whatever be the formula, incorporating Updation formula is a must because updation is Mandatory in terms of Regulation 35 (1) which reads as *“Basic pension and additional pension. wherever applicable SHALL BE UPDATED  as per the FORMULAE GIVEN in Appendix I*.”_

_4) Please refer to Regulation 37(1) which reads as - *“ Dearness relief SHALL BE GRANTED  on Basic Pension or Family Pension or Invalid Pension or on Compassionate allowance in accordance with the RATES SPECIFIED in Appendix II.”*  Can IBA/Banks stop specifying the rates in Appendix II and hence no DA becomes payable and UFBU will also not press for it on cost consideration and tell in every platform that DA is NOT payable because rates are not specified in Appendix II. What is sauce for the goose is sauce for the gander too! If Regulation 37(1) makes DA mandatory and consequently publication of rates in Appendix II is mandatory, so also when Regulation 35(1) makes Updation Mandatory, publication of Updation formulae too becomes Mandatory._

_5) Cost can be a consideration only for introduction of a new Benefit, but, never for implementation of an EXiSTING Benefit. Pension updation in terms of Regulation 35(1) is an existing entitlement._

_6) Right to Pension and so also Right to Pension Updation gets vested in every Pensioner  as soon as he/she Retires.  A Right already vested in every Pensioner cannot be abridged, altered or abolished even by a mutually agreed settlement because this vested Right is a constitutionally protected Right to Property._

_7) Pensioners being one homogenous class, they cannot be subdivided and there can be no piecemeal implementation of a vested Right through any arbitrary sub-division._

_8) it is welcome that UFBU has now spelt out after AIBPARC’s notice to CLC that Pension Updation will be for all those who retired upto 31/10/2017, implying thereby Pension will be Updated upto the Wage Revision of XI Bipartite. But IBA is yet to make its stand clear about what it means by Past Retirees._

_9) Even for argument’s sake, a piecemeal implementation is proposed, is it of any use? For instance, if Updation is extended only to those who Retired before 1/11/2002, they are all (barring VRS pensioners) past 80 now and almost reached the actuary presumed Life expectancy. Statistically speaking Updation for the Retirees up-to 31/10/2002 should therefore require no funding. Further their Pension can be Updated only to the wage revision of 1/11/2002 and NOT beyond. One cannot update the Pension of those Retired before 1/11/2002 to the Wage Revision of 1/11/2007 and beyond WHILE not updating the Pension of those Retired between 1/11/2002 and 31/10/2007. Does a meagre Updation to the Wage Revision of 1/11/2002 after 36-20 years make any sense? Is it not a mockery and rubbing salt into our wounds? Does it not amount to treating the Senior Citizens as senile fools? In fact, 100% DA neutralization itself would bring more benefit to pre-Nov 2002 Retirees than this ridiculous insulting proposal of piecemeal implementation of Pension Updation. It has to be rejected lock, stock and barrel._

_10) How are we to stop it? Let us all be first convinced  that:_

_a) there shall be no piecemeal Updation,_ 

_b) Pension Updation is mandatory and consequently publishing Updation formulae in Appendix I is also Mandatory,_


_c) Pension Updation is already a vested Right which cannot be altered, abridged, abolished or bypassed by any Bipartite settlement. Further, this matter is already before the SC (sub judice) and IBA/DFS/Banks cannot unilaterally change adversely the subject matter of writ appeals (ie prayer for implementation Pension  Updation in terms of Regulation 35 (1) by publication of formulae as per Appendix I)._ 

*_Conrades, We have to fight arbitrary adverse proposals on the Streets and in Court Halls while continuing to request negotiating parties and Govt. to implement Pension Updation gracefully keeping with the tradition of this Nation that Respects Elders._*

_S. B. C. Karunakaran_

_Note : The above write up is by Com. S.B.C Karunakaran, President of our AIBPARC Tamilnadu State Unit, General Secretary, ARISE (IOB Retirees Association affiliated to AIBPARC and Working President of our National Organisation AIBPARC_ 

_Forwarded by_ 

_K. Chandrasekaran, Secretary, AIBPARC Tamilnadu State Unit,_

_Chairman All India Indian Bank Pensioners and Retirees Association (AIIBPARA)_

_Vice President of AIBPARC_

Wednesday, February 1, 2023

 Points to note in the proposal of Income Tax for F.Y 2023-24:

* In Old Regime of Tax, No changes made in any of the following provisions like

 Basic exemption limit.i.e Rs.2,50,000,

Slabs, Rate of tax, deduction under various sections like 80C

 Rebate, Senior citizen benefit etc.,

*All the changes announced are in New Regime only.

Also New Regime is made as default type.

Hence Old Regime tax system is made to loose its attraction in due course.

* Though the rates are attractive in New Regime, Savings habit of employees might diminish.

All the money after paying Income Tax, will be at the disposal of employee.

Intention to save by way of , Buying Residential property, taking Insurance policy (including various instruments under 80C)  making additional contribution to NPS,

Taking Health Insurance policy,

 etc., may decrease in due course.

* Still Basic exemption limit is only Rs.3,00,000 and not Rs.5,00,000 as promised by the present rulers in 2014.


Personal Income Tax as proposed for Financial year 2023-24 in the Budget tabled on 01.02.2023:

145. Now, I come to what everyone is waiting for -- personal income tax. I have five major announcements to make in this regard. These primarily benefit our hard-working middle class. 

146. The first one concerns rebate. Currently, those with income up to  Rs.5 lakh do not pay any income tax in both old and new tax regimes. I propose to increase the rebate limit to  Rs.7 lakh in the new tax regime. 

Thus, persons in the new tax regime, with income up to Rs. 7 lakh will not have to pay any tax.  

147. The second proposal relates to middle-class individuals.  I had introduced, in the year 2020, the new personal income tax regime with six income slabs starting from Rs.2.5 lakh. I propose to change the tax    structure in this regime by reducing the number of slabs to five and increasing the tax exemption limit to Rs.3 lakh. 

The new tax rates are:

 *Rs.0-3 lakh Nil 

*Rs.3-6 lakh 5 per cent 

*Rs.6-9 lakh 10 per cent 

*Rs.9-12 lakh 15 per cent 

*Rs.12-15 lakh 20 per cent 

Above Rs.15 lakh 30 per cent  

148. This will provide major relief to all tax payers in the new regime. An individual with an annual income of 

Rs.9 lakh will be required to pay only  Rs.45,000/-. 

This is only 5 per cent of his or her income. 

It is a reduction of 25 per cent on what he or she is required to pay now, ie.Rs.60,000/-. 

Similarly, an individual with an income of Rs.15 lakh would be required to pay only  Rs1.5 lakh or 10 per cent of his or her income, a reduction of 20 per cent from the existing liability of Rs.1,87,500/.  

149. My third proposal is for the salaried class and the pensioners including family pensioners, for whom I propose to extend the benefit of standard deduction to the new tax regime. Each salaried person with an income of 

Rs. 15.5 lakh or more will thus stand to benefit by Rs.52,500. 

150. My fourth announcement in personal income tax is regarding the highest tax rate which in our country is 42.74 per cent. This is among the highest in the world. I propose to reduce the highest surcharge rate from 37 per cent to 25 per cent in the new tax regime. This would result in reduction of the maximum tax rate to 39 per cent. 

151. Lastly, the limit of Rs.3 lakh for tax exemption on leave encashment on retirement of non-government salaried employees was last fixed in the year 2002, when the highest basic pay in the government was Rs.30,000/- pm. In line with the increase in government salaries, I am proposing to increase this limit to Rs.25 lakh. 

152. We are also making the new income tax regime as the default tax regime. However, citizens will continue to have the option to avail the benefit of the old tax regime.