Sunday, October 25, 2009

A note on Salary Package of Bank Officers

(Submitted to the Finance Secretary, Government of India for consideration)

Mr. G D Nadaf, General Secretary, All India State Bank Officers’ Federation and Mr. T N Goel, President, All India State Bank Officers’ Federation met MoS, Labour, Mr. Harish Rawat at Delhi and submitted memorandum for enhancement in Gratuity ceiling to Rs.10 lac from 1.1.2006.
You will please observe that in all parameters; be it business, profitability or productivity the Banks have performed exceeding well.
(In Crore)

2007 %
2009 %
Deposits 9,68,749 19,94,199 105.80 31,12,748 221.31
Advances 4,80,680 14,40,146 199.60 22.60,155 370.19
Total Business 14,49,429 34,34,345 136.94 53,12.903 270.69
Net Profit 8,302 20,398 145.69 34,319 313.38
Business/Employees 1.92 7 .55 290.22 11.37 492.18

Prior to 1979, Bank Officers salary was batter than that of the Group 'A' officers of Govt. of India. Class I officers Basic Pay was at Rs. 450.00 per month where as Bank Officers Basic Pay was at Rs. 500.00 per month with a difference of Rs. 50.00 per month-
On account of Pillai Committee Recommendations during 1979, Bank officers, Basic Pay was fixed at Rs. 700.00 per month at par with class I officers of Govt. of India.
Fourth Pay Commission fixed Rs. 2,200.00 per month Basic Pay for class I officers where as for Bank Officers it was at Rs. 2,100.00 per month.
Fifth Pay Commission Scales; further widened the gap between Govt. Officers and Bank officers scales by Rs. 900.00 per month. Govt Officers scale was at Rs. 8,000.00 per month whereas Bank officers scale was fixed at Rs. 7,100.00 per month.
In 2004, 50% of D.A. was merged with Basic Pay for Govt. Officers and Basic Pay was raised to Rs. 12,500.00 per month. Whereas for Bank Offices wef 1-11-2002, Basic Pay was at Rs. 10,000.00 per month with a difference of Rs. 2,500.00 per month. In addition, for Govt. Officers HRA was at 30% of Basic Pay in Metros as compared to 9% paid to Bank Employees.
As on 1-1-2006 as per 6th Pay Commission Recommendations, Govt. officers. Basic Pay is fixed at Rs. 15,600.00 with Grade Pay of Rs. 5,400.00 totalling Rs. 21,000.00. The HRA for Govt. Officer was retained at 30% of Basic Pay whereas for Bank officers, it is at maximum 8.5% of Basic Pay.
With present offer of 17.5% wage increase for Bank Staff, wef 1-11-2007, Bank officers scales would at best be at Rs. 14,000.00 per month as against pay scale of Class I officers at Rs. 21,000.00 (includes grade pay) thus further widening of the gap by Rs. 7,000.00 per month in Basic Pay between Govt. and Bank officers.
Out of 17.5% wage increase offered by the IBA, Rs. 1,800.00 crores will go towards 2nd option of Pension and incremental cost on Pension and remaining amount is not sufficient to construct scales of Bank officers above Rs. 14,000.00 per month.
Even in next wage revision for Banks, due from 1-11-2012 the gap between Govt. and Bank officers may not be wiped out.
A minimum salary increase of 30% to 40% is ensured to Public Sector undertakings, UGC Staff etc. in tune with 6th Pay Commission Recommendations.
In SBI, Superannuation Scheme will not ensure 50% of last drawn Basic Pay as pension. Commutation formula is also inferior. Those retired before 31-10-2002, are drawing Pension, based on' 1992 scales.
The Gratuity ceiling of Rs. 3.5 lacs is not enhanced for Bank employees wef 1-1-2006.
Bank officers have unlimited working hours with accountability sword hanging on the head even after retirement. As against 5 day working in Govt.; Bank staff virtually works all 7 days with no compensation, undergo greater transferability and accountability.
Bank officers are expected to match performance with professional in private sector and they do; but are paid below municipal employees.

That bank employees are in a high wage island is the

Today a General Manager of Bank draws emoluments less than a Section Officer of the Government of India;
A Probationary Officer of Bank draws less than a Clerk in Government and
A Bank Clerk draws less than a Peon in Government.
Hence, we pray for Pay Scales at par with Group 'A' officers in Government in India and HRA@ 30%.

1 comment:

Anonymous said...

not only salary....the bankers are not in par with the work atmosphire also with the central / state government emplyoees. Just take the example of 5 day week available to the state and centeral govt employees..... we have to demand for the same in the banking industry aswell. considering out work pressure and the risks whioh each employees are taking in the banking sector, we are entitled to have a five day week.....let us demand for the same......