Salaries in Banking Industry - An Overview
Salaries and other perquisites enjoyed by the bank employees in the past were very low and were not uniform among various banks since they were in private sector. No efforts were made to bring about a comprehensive and uniform system of salary payment. It was also found that the salaries were insufficient as they did not represent the varying degrees of skills required to perform the wide variety of jobs.
The Government of India, for the first time, constituted "The All India Industrial Tribunal” for
the pay fixation of bank award staff under the chairmanship of Sh. P.S.Sastry. .The recommendations of Sastry Tribunal resulted in the enactment of Industrial Disputes (Banking Companies) Decision Act, 1955 and the Industrial Disputes (Banking Companies)
Amendment Act, 1957.
Subsequently, when All India Bank Employees Federation submitted their charter of demands, Government of India constituted a National Tribunal under the chairmanship of Justice Kantilal Desai in March, 1960. Justice Desai gave his Award in June, 1962. The Government extended the period of operation of Desai Award and it was in operation till June, 1965.
The service conditions of bank employees are broadly governed by the bipartite settlements reached at the apex level between the Indian Banks' Association on behalf of member banks and the Bank Employees* Organisation.
The pay and allowances of different cadres of employees are normally decided under the provisions of bipartite settlements which would come into force from time to time. Almost all employees enjoy the same pay and allowances when they are in the same cadre in an nationalized banks* However, there may be differences in respect of other allowances depending on the place of work of an employee.
All awards like Sastry Award, Desai Award and First Bipartite settlement maintained different scales of pay to different areas considering the variance of cost of living in different areas of the country. In fact, workmen representatives in Andhra Bank vehemently opposed different scales on the basis of classification of areas as it was against the principal of ’Equal work - Equal Pay’ and also coming in the way of solidarity of bank employees. As a result of the resistance of employees’ unions against this, the area wise payment of different scales of pay to workmen was abolished in the Second Bipartite Settlement for bringing uniformity in matters of basic pay, dearness allowance and special allowance to all employees. Therefore, classification of areas on the basis of population have no relevance at present except for "City Compensatory Allowance”. Although classification of areas was completely abolished, classification of banks on the basis of working funds continues. It is pertinent to note that from 1st January, 1986, there are only two categories of banks in India viz., * A* Class Banks and 'B* Class Banks against three categories of banks earlier viz., ‘A’, ’B* and 'C'. Pay and allowances and other service conditions vary depending on whether a particular bank is an *A' Class bank or ’B* Class bank.
(Note-The categorization is done on the basis of bank's working funds. Class ’A' Banks include those banks with working funds amounting to Rs.85 crores, and above and all foreign banks. Class 'B' Banks include those banks with working funds below Rs.85 crores.)
Dearness Allowance - Concept & journey through Awards & Bipartites.
Sastry Tribunal’s Observations on DA
“There is also the question whether the rates of dearness allowance should not be progressively decreased as incomes increase, by providing for smaller percentages with or without slabs. Where the upper limit of incomes is considerable and there is a wide range between the lower and the upper limits, such a system will be necessary and proper. We are however concerned only with the case of workmen whose maximum basic salary is not so very high as in the case of officers. We think therefore that it is not necessary to have a complicated structure by providing for varying percentages on basic pay according to the income groups. The scales of pay proposed by banks also adopt a similar course .
# 151. We accordingly award the following rates of dearness allowance for the various
groups of banks and areas as per our classification:-
(a) Clerical Staff
(b) Subordinate staff
Pay means the aggregate of basic pay, special allowance and officiating allowance. If any.
We direct accordingly that if the average figure for each half year i.e. from January to June and from July to December of each calendar year should rise or fall by more than 10 points over 144 the dearness allowance for the succeeding half year should rise or fall by 7.50 per
cent of the basic pay. The figure officially published in the Indian Labour Gazette will be taken as the correct index for calculating dearness allowance. We think that these figures for a half year will be available in the first three or four months of the succeeding half year, and therefore any adjustment which has to be made should be made by the bank during the course of such succeeding half year”.
Desai Award :
Concept of DA neutralization @ 100% for subordinate staff and 75% for clerical staff, with reference to quarterly average of the All-India Average Working Class Consumer Price Index (General), base 1949 = 100, was adopted in the Desai Award.
“I accordingly direct that in the case of the clerical staff, the dearness allowance should be calculated and paid at the rate of three per cent of the pay (i.e. basic pay provided under this award, special allowance, if any, and officiating allowance, if any, payable under this award)
for every rise of four points above 100 in the quarterly average of the all-India average working class consumer price index (general), base 1949 = 100, and in the case of the subordinate staff, the dearness allowance should be calculated and paid at the rate of four per cent of the pay (i.e. basic pay provided under this award, special allowance, if any, and officiating allowance, if any, payable under this award) for every rise of four points above 100 in the quarterly average of the all-India average working class consumer price index (general) base 1949=100. For this purpose ‘quarter’ will mean the period of three months ending on the last day of March, June, September or December
FIRST BIPARTITE SETTLEMENT (Agreement dated 19.10.1966) :
The Government of India encouraged employees represented by Indian Banks’ Association and employees represented by All India Bank Employee Association and the All Bank Employees Federation to have direct talks and arrive at a settlement. After protracted negotiations, a settlement was signed in October, 1966 which was hailed as a historical landmark in the banking industry.
Scales of pay were redefined and the DA formula as per the Desai Award remained the same
# 7.2.. The scheme of Dearness Allowance as provided in the Desai Award shall continue to be in force.”
SECOND BIPARTITE SETTLEMENT (Agreement dated 12.10.1970) :
The first bipartite settlement was in force for a period of three years. The talks between Bank
Employee Unions and Indian Banks Association resulted in the signing of an agreement in October, 1970 which was known as second bipartite settlement. This settlement was in operation for three years. Price Index base year was changed from 1949 to 1960
In case of workman other than award staff the dearness allowance should be calculated and paid at the rate of three per cent of the pay (i.e. basic pay provided under this settlement, special allowance, if any, and officiating allowance, if any, payable under this settlement) for every rise of four points above 100 in the quarterly average of the all-India average working class consumer price index (general), base 1960 = 100, and
in the case of the subordinate staff, the dearness allowance should be calculated and paid at the rate of four per cent of the pay (i.e. basic pay provided under this settlement, special allowance, if any, and officiating allowance, if any, payable under this settlement) for every rise of four points above 100 in the quarterly average of the all-India average working class consumer price index (general) base 1960=100. For this purpose ‘quarter’ will mean the period of three months ending on the last day of March, June, September or December
THIRD BIPARTITE SETTLEMENT (Effective from 1st SEPTEMBER, 1978) :
The Indian Banks’ Association had talks with National Confederation of Bank Employees and National Organisation of Bank Workers and a settlement was reached in September, 1978. The third settlement was in operation till July, 1983. DA upto consumer price index 200 merged with the basic pay accordingly revised DA was as under
a. Workman staff 1.5% for every rise of four points above 200 in the quarterly average of the all-India average working class consumer price index (general), base 1960 = 100, and
b. Subordinate Staff, the dearness allowance should be calculated and paid at the rate of 2% percent of the pay (i.e. basic pay provided under this settlement, special allowance, if any, and officiating allowance, if any, payable under this settlement) for every rise of four points above 200 in the quarterly average of the all-India average working class consumer price index (general) base 1960=100.
FOURTH BIPARTITE SETTLEMENT (Agreement dated 08.09.1983) :
The Indian Banks’ Association had talks with AIBEA and NCBE. After protracted discussions, a settlement was reached in September, 1983 This settlement was in force from 1st July,1983 to October,1987.DA upto consumer price index 332 merged with the basic pay accordingly revised DA was as under
# II. Dearness Allowance
In supersession of Clause 6-11 of the Settlement dated 1st August 1979 read with Clause I of the Settlement dated 31st October 1979, the Scheme of Dearness Allowance shall be as follows :
(i) Sub-staff 1.20% of “pay” .(i.e., Basic Pay, Special Allowance if any, and Officiating Allowance, if any, payable under this Settlement) for every rise of 4 points over 332 in the quarterly average of the All India Average Working Class Consumer Price Index (General). Base 1960 = 100;
(ii) Clerical staff 1% of “pay” (i.e., Basic Pay and Officiating Allowance, if any, under this Settlement but not Special Allowance, if any) for every rise of 4 points over 332 in the quarterly average of the All India Average Working Class Consumer Price index (General) Base 1960 = 100, subject to a maximum of Rs. 15.80 for each such rise of four points ;
FIFTH BIPARTITE SETTLEMENT :(Agreement dated 10.04.1989)
Fifth bipartite settlement was signed in April, 1989 between the IBA and AIBEA and NCBE. This settlement was effective from 1st November, 1987 and would be in force for a period of five years..DA upto consumer price index 600 merged with the basic pay accordingly revised DA was as under
# 5. Dearness Allowance
The Dearness Allowance shall be payable as per the following revised rates:
(i) Subordinate Staff 0.67% of ‘pay’ (I.e. Basic Pay, Stagnation Increments Special Allowance if any, and Officiating Allowance, if any, payable under this Settlement).
(ii) Clerical Staff
a) 0.67% of ‘pay’ up to Rs. 1650/- plus,
b) 0.55% of ‘pay’ above Rs.1650/- to Rs. 2835/-plus,
c) 0.33% of ‘pay’ above Rs. 2835/-
‘Pay’ for the purpose of Dearness Allowance shall be Basic Pay, Stagnation Increments and Officiating Allowance, if any, under this settlement, but not Special Allowance, if any.
Note: a) Dearness Allowance in the above manner shall be paid for every rise or fall of 4 points over 600 points in the quarterly average of the All India Average Working Class Consumer Price Index (General) Base 1960 = 100.
b) It is clarified that there shall be no ceiling on Dearness Allowance
OFFICER'S SETTLEMENT
DA scheme for officers would be as under from 1-11-1987.
(i) DA would be payable to officers for every rise or fall of 4 points over 600 points in the
quarterly average of the All India Average working class consumer price index (General)
Base 1960=100.
(ii) DA payment would be at the following rates:
a) 0,67% of pay up to Rs.2,500/- plus
b) 0.55% of pay above Rs. 2,500/- to Rs.4,000/- plus
c) 0.33% of pay above Rs. 4,000/- to Rs.4,260/- plus
d) 0.17% of pay above Rs. 4,260/-.
SIXTH BIPARTITE SETTLEMENT :(Agreement dated 14.02.1995)
Sixth bipartite settlement was signed in February 1995, between the IBA and AIBEA and NCBE. This settlement was effective from 1st November,1992 and would be in force for a period of five years..DA upto consumer price index 1148 merged with the basic pay accordingly revised DA was as under
# 6. Dearness Allowance In substitution of Clause (2) of Bipartite Settlement dated 29th June, 1990, with effect from 1st November, 1992 the dearness allowance shall be payable as per the following revised rates :-
(i) Subordinate Staff 0.35% of ‘pay’
(ii) Clerical Staff
a) 0.35% of ‘pay’ up to Rs.4800/- plus
b) 0.29% of ‘pay’ above Rs.4800/- to Rs.7700/- plus
c) 0.17% of ‘pay’ above Rs.7700/-
Note:a) Dearness Allowance in the above manner shall be paid for every rise or fall of 4 points over 1148 points in the quarterly average of the All India Average Working Class Consumer Price Index (General) Base 1960 = 100.
b) It is clarified that there shall be no ceiling on Dearness Allowance.
c) Dearness Allowance shall be calculated and paid on Basic Pay, Special Allowance, if any, and Officiating Allowance, if any, payable under this settlement in respect of both clerical and subordinate staff.
d) All other existing provisions relating to Dearness Allowance Scheme
shall remain unchanged.
OFFICERS SETTLEMENT
On and from 1-7-1993, Dearness Allowance Scheme shall be as under.
# I) Dearness Allowance shall be payable for every rise or fall of 4 points over 1148 points in the quarterly average of the All India Average Working Class Consumer Price Index(General) Base 1960=100.
II) Dearness Allowance shall be payable as per the following rates:
(a) 0.35% of 'Pay' upto Rs. 4800/- Plus
(b) 0.29% of 'Pay' above Rs. 4800/- to Rs. 7700/- plus
(c) 0.17% of 'Pay' above Rs. 7700/- to Rs. 8200/- plus,
(d) 0.09% of 'Pay' above Rs. 8200/-
NOTE (A) Pay for the purpose of Dearness Allowance shall mean Basic Pay including Stagnation increments.
(B) Professional Qualification Allowance/ Professional Qualification Pay as specified in Explanation (c) and (d) to sub-regulation (2) of Regulation 5 shall rank for Dearness Allowance w.e.f. 1.11.1994.
SEVENTH BIPARTITE SETTLEMENT :(Agreement dated 27.03.2000)
Seventh bipartite settlement was signed in March 2000, between the IBA and UFBU. This settlement was effective from 1st November,1997 and would be in force for a period of five years..DA upto consumer price index 1684 merged with the basic pay accordingly revised DA was as under
# 7. Dearness Allowance In Substitution of Clause 6 of Bipartite Settlement dated 14th February, 1995 with effect from 1st November, 1997 the dearness allowance shall be payable as per the following rates :-
(i) Subordinate Staff.. 0.24% of ‘Pay’
(ii) Clerical Staff
a) 0.24% of ‘pay’ upto Rs. 7100/- plus
b) 0.20% of ‘pay’ above Rs. 7100/- and upto Rs. 11, 300/- plus
c) 0.12% of ‘pay’ above Rs. 11300/-
OFFICER'S SETTLEMENT
# (3) On and from 1-4-1998, Dearness Allowance Scheme shall be as under.
I) Dearness Allowance shall be payable for every rise or fall of 4 points over 1684 points in the quarterly average of the All India Average Working Class Consumer Price Index (General) Base 1960=100.
II) Dearness Allowance shall be payable as per the following rates:
(a) 0.24% of 'Pay' upto Rs. 7100/- Plus
(b) 0.20% of 'Pay' above Rs. 7100/- to Rs. 11300/- plus
(c) 0.12% of 'Pay' above Rs. 11300/- to Rs. 12025/- plus,
(d) 0.06% of 'Pay' above Rs. 12025/-
Note:
(A) Pay for the purpose of Dearness Allowance shall mean Basic Pay including Stagnation increments.
(B) Professional Qualification Allowance/ Professional Qualification Pay as specified in Explanation (c) and (d) to sub-regulation (2) of Regulation 5 shall rank for Dearness Allowance
EIGHTH BIPARTITE SETTLEMENT :(Agreement dated 02.06.2005)
Eighth bipartite settlement was signed in June 2005, between the IBA and UFBU. This settlement was effective from 1st November,2002 and would be in force for a period of five years..DA upto consumer price index 2288 merged with the basic pay accordingly revised DA was as under.
Concept of 100% DA neutralization for all pay levels ( subordinate / clerical / officer ) was introduced with effect from 1st February 2005
# 7. Dearness Allowance In substitution of Clause 7 of Bipartite Settlement dated 27th March 2000 with effect from 1st November 2002, the dearness allowance shall be payable as per the following rates:-
1. (i) Subordinate Staff 0.18% of ‘pay’
(ii) Clerical Staff
(a) 0.18% of ‘pay’ upto Rs.9,650/- plus
(b) 0.15% of ‘pay’ above 9,650/- and upto Rs.15,350/- plus
(c) 0.09% of ‘pay’ above 15,350/- and upto Rs.16,350/- plus
(d) 0.04% of ‘pay’ above Rs.16,350/-
2. On and from 1st February 2005, Dearness Allowance shall be payable at
0.18% of Pay.
Note:
Dearness Allowance in the above manner shall be paid for every rise or fall of 4 points over 2288 points in the quarterly average of the All India Average Working Class Consumer Price Index (General) Base 1960=100.
(a) It is clarified that there shall be no ceiling on Dearness Allowance.
(b) Dearness Allowance shall be calculated and paid on Basic Pay, Special Pay, Graduation Pay, Professional Qualification Pay and Officiating Pay, if any, payable under this settlement in respect of both clerical and subordinate staff.
(c) All other existing provisions relating to Dearness Allowance Scheme shall remain unchanged.
OFFICER'S SETTLEMENT
# (4) On and from 1-11-2002, Dearness Allowance Scheme shall be as under.(Joint Note Dated : 2nd June, 2005)
a. For the period from 1st November 2002 to 31st January 2005, Dearness Allowance shall be payable for every rise or fall of 4 points over 2288 points in the quarterly average of the All India Average Working Class Consumer Price Index (General) Base 1960 = 100 at the following rates :
(i) 0.18% of ‘pay’ upto Rs.9,650/- plus
(ii) 0.15% of ‘pay’ above 9,650/- and upto Rs.15,350/- plus
(iii) 0.09% of ‘pay’ above 15,350/- and upto Rs.16,350/- plus
(iv) 0.04% of ‘pay’ above Rs.16,350/-
On and from 1st February 2005, Dearness Allowance shall be payable for every rise or fall of 4 points over 2288 points in the quarterly average of the All India Average Working Class Consumer Price Index (General) Base 1960 = 100 at 0.18% of Pay
Nothing, in the bipartite agreements for either workmen or officers, was said about the DA payable to “Pensioners”.
NINTH BIPARTITE SETTLEMENT :(Agreement dated 27.04.2010)
Ninth bipartite settlement was signed in April 2010, between the IBA and UFBU. This settlement was effective from 1st November,2007, and would be in force for a period of five years..DA upto consumer price index 2836 merged with the basic pay accordingly revised DA was as under.
# 7. Dearness Allowance
In substitution of Clause 7 of Bipartite Settlement dated 2nd June 2005 with effect from 1st November 2007, the dearness allowance shall be payable as per the following rates:-
Clerical and Subordinate Staff 0.15% of „pay‟
Note: Dearness Allowance in the above manner shall be paid for every rise or fall of 4 points over 2836 points in the quarterly average of the All India Average Working Class Consumer Price Index (General) Base 1960=100.
(a) It is clarified that there shall be no ceiling on Dearness Allowance.
(b) Dearness Allowance shall be calculated and paid on Basic Pay, Special Pay, Graduation Pay, Professional Qualification Pay and Officiating Pay, if any, payable under this settlement in respect of both clerical and subordinate staff.
(c) All other existing provisions relating to Dearness Allowance Scheme shall remain unchanged.
OFFICER'S SETTLEMENT
# 3) Dearness Allowance
On and from 1.11.2007, Dearness Allowance shall be payable for every rise or fall of
four points over 2836 points in the quarterly average of the All India Average Working
Class Consumer Price Index (General) Base 1960=100 at 0.15% of Pay.
Under the following retrograde clause ( with retrospective effect) of Ninth Bipartite Settlement (Agreement dated 27.04.2010), 100% DA Neutralization was denied for pensioners who retired prior to Nov’2002.
# 3. Further to Clause 7(2) of the Bipartite Settlement dated 2nd June 2005, it is agreed between the parties as under:
(i) On and from 1.5.2005, in the case of employees who retired during the period 1.4.1998 to 31.10.2002, dearness relief shall be payable for every rise or be recoverable for every fall, as the case may be, of every 4 points over 1684 points in the quarterly average of the All India Average Consumer Price Index for Industrial Workers in the series 1960=100. Such increase or decrease in dearness relief for every said four points shall be calculated in the manner given below:
TENTH BIPARTITE SETTLEMENT :(Agreement dated 25.05.2015)
Tenth bipartite settlement was signed in May 2015, between the IBA and UFBU. This settlement was effective from 1st November,2012, and would be in force for a period of five years..DA upto consumer price index 4440 merged with the basic pay accordingly revised DA was as under.
# 7. Dearness Allowance
In substitution of Clause 7 of Bipartite Settlement dated 27th April 2010 with effect
from 1st November 2012, the Dearness Allowance shall be payable as per the
following rates:-
Clerical and Subordinate Staff
0.10% of ‘pay’
Note:
Dearness Allowance in the above manner shall be paid for every rise or fall of 4
points over 4440 points in the quarterly average of the All India Average Working
Class Consumer Price Index (General) Base 1960=100.
(a) It is clarified that there shall be no ceiling on Dearness Allowance.
(b) Dearness Allowance shall be calculated and paid on Basic Pay, Special Pay,
Graduation Pay, Professional Qualification Pay and Officiating Pay, if any,
payable under this settlement in respect of both clerical and subordinate staff.
(c) All other existing provisions relating to Dearness Allowance Scheme shall
remain unchanged.
OFFICER'S SETTLEMENT
# 3) Dearness Allowance
On and from 1.11.2012, Dearness Allowance shall be payable for every rise or fall of four points over 4440 points in the quarterly average of the All India Average Working Class Consumer Price Index (General) Base 1960=100 at 0.10% of Pay.
Conclusion Whereas vide agreement dated 02.05.2005 ( Eighth Bipartite Settlement)) Concept of 100% DA neutralization for all pay levels ( subordinate / clerical / officer ) was introduced with effect from 1st February 2005, but vide retrograde agreement dated 27.04.2010 ( Ninth Bipartite Settlement), 100% DA Neutralization was denied for pensioners who retired prior to Nov’2002, thus creating two classes among-est the bank pensioners.
Class 1. Bank pensioners getting 100% DA Neutralization
Class 2. Pre - Nov'2002 bank retirees pensioners getting partial DA Neutralization
Salaries and other perquisites enjoyed by the bank employees in the past were very low and were not uniform among various banks since they were in private sector. No efforts were made to bring about a comprehensive and uniform system of salary payment. It was also found that the salaries were insufficient as they did not represent the varying degrees of skills required to perform the wide variety of jobs.
The Government of India, for the first time, constituted "The All India Industrial Tribunal” for
the pay fixation of bank award staff under the chairmanship of Sh. P.S.Sastry. .The recommendations of Sastry Tribunal resulted in the enactment of Industrial Disputes (Banking Companies) Decision Act, 1955 and the Industrial Disputes (Banking Companies)
Amendment Act, 1957.
Subsequently, when All India Bank Employees Federation submitted their charter of demands, Government of India constituted a National Tribunal under the chairmanship of Justice Kantilal Desai in March, 1960. Justice Desai gave his Award in June, 1962. The Government extended the period of operation of Desai Award and it was in operation till June, 1965.
The service conditions of bank employees are broadly governed by the bipartite settlements reached at the apex level between the Indian Banks' Association on behalf of member banks and the Bank Employees* Organisation.
The pay and allowances of different cadres of employees are normally decided under the provisions of bipartite settlements which would come into force from time to time. Almost all employees enjoy the same pay and allowances when they are in the same cadre in an nationalized banks* However, there may be differences in respect of other allowances depending on the place of work of an employee.
All awards like Sastry Award, Desai Award and First Bipartite settlement maintained different scales of pay to different areas considering the variance of cost of living in different areas of the country. In fact, workmen representatives in Andhra Bank vehemently opposed different scales on the basis of classification of areas as it was against the principal of ’Equal work - Equal Pay’ and also coming in the way of solidarity of bank employees. As a result of the resistance of employees’ unions against this, the area wise payment of different scales of pay to workmen was abolished in the Second Bipartite Settlement for bringing uniformity in matters of basic pay, dearness allowance and special allowance to all employees. Therefore, classification of areas on the basis of population have no relevance at present except for "City Compensatory Allowance”. Although classification of areas was completely abolished, classification of banks on the basis of working funds continues. It is pertinent to note that from 1st January, 1986, there are only two categories of banks in India viz., * A* Class Banks and 'B* Class Banks against three categories of banks earlier viz., ‘A’, ’B* and 'C'. Pay and allowances and other service conditions vary depending on whether a particular bank is an *A' Class bank or ’B* Class bank.
(Note-The categorization is done on the basis of bank's working funds. Class ’A' Banks include those banks with working funds amounting to Rs.85 crores, and above and all foreign banks. Class 'B' Banks include those banks with working funds below Rs.85 crores.)
Dearness Allowance - Concept & journey through Awards & Bipartites.
Sastry Tribunal’s Observations on DA
“There is also the question whether the rates of dearness allowance should not be progressively decreased as incomes increase, by providing for smaller percentages with or without slabs. Where the upper limit of incomes is considerable and there is a wide range between the lower and the upper limits, such a system will be necessary and proper. We are however concerned only with the case of workmen whose maximum basic salary is not so very high as in the case of officers. We think therefore that it is not necessary to have a complicated structure by providing for varying percentages on basic pay according to the income groups. The scales of pay proposed by banks also adopt a similar course .
# 151. We accordingly award the following rates of dearness allowance for the various
groups of banks and areas as per our classification:-
(a) Clerical Staff
Bank
|
Area
|
Rate
|
Minimum
|
Maximum
|
A, B, C & D
|
l
|
33-I/3% of pay
|
35
|
70
|
A, B, C & D
|
l l
|
33-I/3% of pay
|
30
|
60
|
A, B, C & D
|
l l l
|
33-I/3% of pay
|
25
|
40
|
(b) Subordinate staff
Bank
|
Area - l
|
Area - l l
|
Area - l l l
|
A
|
Rs. 35 flat p.m.
|
Rs. 30 flat p.m
|
Rs. 25 flat p.m.
|
B
|
Rs. 25 flat p.m.
|
Rs. 22-8-0 flat p.m.
|
Rs. 20 flat p.m.
|
C
|
Rs. 15 flat p.m.
|
Rs. 12 flat p.m.
|
Rs. 10 flat p.m.
|
D
|
Rs. 13 flat p.m.
|
Rs. 12 flat p.m.
|
Rs. 10 flat p.m.
|
Pay means the aggregate of basic pay, special allowance and officiating allowance. If any.
We direct accordingly that if the average figure for each half year i.e. from January to June and from July to December of each calendar year should rise or fall by more than 10 points over 144 the dearness allowance for the succeeding half year should rise or fall by 7.50 per
cent of the basic pay. The figure officially published in the Indian Labour Gazette will be taken as the correct index for calculating dearness allowance. We think that these figures for a half year will be available in the first three or four months of the succeeding half year, and therefore any adjustment which has to be made should be made by the bank during the course of such succeeding half year”.
Desai Award :
Concept of DA neutralization @ 100% for subordinate staff and 75% for clerical staff, with reference to quarterly average of the All-India Average Working Class Consumer Price Index (General), base 1949 = 100, was adopted in the Desai Award.
“I accordingly direct that in the case of the clerical staff, the dearness allowance should be calculated and paid at the rate of three per cent of the pay (i.e. basic pay provided under this award, special allowance, if any, and officiating allowance, if any, payable under this award)
for every rise of four points above 100 in the quarterly average of the all-India average working class consumer price index (general), base 1949 = 100, and in the case of the subordinate staff, the dearness allowance should be calculated and paid at the rate of four per cent of the pay (i.e. basic pay provided under this award, special allowance, if any, and officiating allowance, if any, payable under this award) for every rise of four points above 100 in the quarterly average of the all-India average working class consumer price index (general) base 1949=100. For this purpose ‘quarter’ will mean the period of three months ending on the last day of March, June, September or December
FIRST BIPARTITE SETTLEMENT (Agreement dated 19.10.1966) :
The Government of India encouraged employees represented by Indian Banks’ Association and employees represented by All India Bank Employee Association and the All Bank Employees Federation to have direct talks and arrive at a settlement. After protracted negotiations, a settlement was signed in October, 1966 which was hailed as a historical landmark in the banking industry.
Scales of pay were redefined and the DA formula as per the Desai Award remained the same
# 7.2.. The scheme of Dearness Allowance as provided in the Desai Award shall continue to be in force.”
SECOND BIPARTITE SETTLEMENT (Agreement dated 12.10.1970) :
The first bipartite settlement was in force for a period of three years. The talks between Bank
Employee Unions and Indian Banks Association resulted in the signing of an agreement in October, 1970 which was known as second bipartite settlement. This settlement was in operation for three years. Price Index base year was changed from 1949 to 1960
In case of workman other than award staff the dearness allowance should be calculated and paid at the rate of three per cent of the pay (i.e. basic pay provided under this settlement, special allowance, if any, and officiating allowance, if any, payable under this settlement) for every rise of four points above 100 in the quarterly average of the all-India average working class consumer price index (general), base 1960 = 100, and
in the case of the subordinate staff, the dearness allowance should be calculated and paid at the rate of four per cent of the pay (i.e. basic pay provided under this settlement, special allowance, if any, and officiating allowance, if any, payable under this settlement) for every rise of four points above 100 in the quarterly average of the all-India average working class consumer price index (general) base 1960=100. For this purpose ‘quarter’ will mean the period of three months ending on the last day of March, June, September or December
THIRD BIPARTITE SETTLEMENT (Effective from 1st SEPTEMBER, 1978) :
The Indian Banks’ Association had talks with National Confederation of Bank Employees and National Organisation of Bank Workers and a settlement was reached in September, 1978. The third settlement was in operation till July, 1983. DA upto consumer price index 200 merged with the basic pay accordingly revised DA was as under
a. Workman staff 1.5% for every rise of four points above 200 in the quarterly average of the all-India average working class consumer price index (general), base 1960 = 100, and
b. Subordinate Staff, the dearness allowance should be calculated and paid at the rate of 2% percent of the pay (i.e. basic pay provided under this settlement, special allowance, if any, and officiating allowance, if any, payable under this settlement) for every rise of four points above 200 in the quarterly average of the all-India average working class consumer price index (general) base 1960=100.
FOURTH BIPARTITE SETTLEMENT (Agreement dated 08.09.1983) :
The Indian Banks’ Association had talks with AIBEA and NCBE. After protracted discussions, a settlement was reached in September, 1983 This settlement was in force from 1st July,1983 to October,1987.DA upto consumer price index 332 merged with the basic pay accordingly revised DA was as under
# II. Dearness Allowance
In supersession of Clause 6-11 of the Settlement dated 1st August 1979 read with Clause I of the Settlement dated 31st October 1979, the Scheme of Dearness Allowance shall be as follows :
(i) Sub-staff 1.20% of “pay” .(i.e., Basic Pay, Special Allowance if any, and Officiating Allowance, if any, payable under this Settlement) for every rise of 4 points over 332 in the quarterly average of the All India Average Working Class Consumer Price Index (General). Base 1960 = 100;
(ii) Clerical staff 1% of “pay” (i.e., Basic Pay and Officiating Allowance, if any, under this Settlement but not Special Allowance, if any) for every rise of 4 points over 332 in the quarterly average of the All India Average Working Class Consumer Price index (General) Base 1960 = 100, subject to a maximum of Rs. 15.80 for each such rise of four points ;
FIFTH BIPARTITE SETTLEMENT :(Agreement dated 10.04.1989)
Fifth bipartite settlement was signed in April, 1989 between the IBA and AIBEA and NCBE. This settlement was effective from 1st November, 1987 and would be in force for a period of five years..DA upto consumer price index 600 merged with the basic pay accordingly revised DA was as under
# 5. Dearness Allowance
The Dearness Allowance shall be payable as per the following revised rates:
(i) Subordinate Staff 0.67% of ‘pay’ (I.e. Basic Pay, Stagnation Increments Special Allowance if any, and Officiating Allowance, if any, payable under this Settlement).
(ii) Clerical Staff
a) 0.67% of ‘pay’ up to Rs. 1650/- plus,
b) 0.55% of ‘pay’ above Rs.1650/- to Rs. 2835/-plus,
c) 0.33% of ‘pay’ above Rs. 2835/-
‘Pay’ for the purpose of Dearness Allowance shall be Basic Pay, Stagnation Increments and Officiating Allowance, if any, under this settlement, but not Special Allowance, if any.
Note: a) Dearness Allowance in the above manner shall be paid for every rise or fall of 4 points over 600 points in the quarterly average of the All India Average Working Class Consumer Price Index (General) Base 1960 = 100.
b) It is clarified that there shall be no ceiling on Dearness Allowance
OFFICER'S SETTLEMENT
DA scheme for officers would be as under from 1-11-1987.
(i) DA would be payable to officers for every rise or fall of 4 points over 600 points in the
quarterly average of the All India Average working class consumer price index (General)
Base 1960=100.
(ii) DA payment would be at the following rates:
a) 0,67% of pay up to Rs.2,500/- plus
b) 0.55% of pay above Rs. 2,500/- to Rs.4,000/- plus
c) 0.33% of pay above Rs. 4,000/- to Rs.4,260/- plus
d) 0.17% of pay above Rs. 4,260/-.
SIXTH BIPARTITE SETTLEMENT :(Agreement dated 14.02.1995)
Sixth bipartite settlement was signed in February 1995, between the IBA and AIBEA and NCBE. This settlement was effective from 1st November,1992 and would be in force for a period of five years..DA upto consumer price index 1148 merged with the basic pay accordingly revised DA was as under
# 6. Dearness Allowance In substitution of Clause (2) of Bipartite Settlement dated 29th June, 1990, with effect from 1st November, 1992 the dearness allowance shall be payable as per the following revised rates :-
(i) Subordinate Staff 0.35% of ‘pay’
(ii) Clerical Staff
a) 0.35% of ‘pay’ up to Rs.4800/- plus
b) 0.29% of ‘pay’ above Rs.4800/- to Rs.7700/- plus
c) 0.17% of ‘pay’ above Rs.7700/-
Note:a) Dearness Allowance in the above manner shall be paid for every rise or fall of 4 points over 1148 points in the quarterly average of the All India Average Working Class Consumer Price Index (General) Base 1960 = 100.
b) It is clarified that there shall be no ceiling on Dearness Allowance.
c) Dearness Allowance shall be calculated and paid on Basic Pay, Special Allowance, if any, and Officiating Allowance, if any, payable under this settlement in respect of both clerical and subordinate staff.
d) All other existing provisions relating to Dearness Allowance Scheme
shall remain unchanged.
OFFICERS SETTLEMENT
On and from 1-7-1993, Dearness Allowance Scheme shall be as under.
# I) Dearness Allowance shall be payable for every rise or fall of 4 points over 1148 points in the quarterly average of the All India Average Working Class Consumer Price Index(General) Base 1960=100.
II) Dearness Allowance shall be payable as per the following rates:
(a) 0.35% of 'Pay' upto Rs. 4800/- Plus
(b) 0.29% of 'Pay' above Rs. 4800/- to Rs. 7700/- plus
(c) 0.17% of 'Pay' above Rs. 7700/- to Rs. 8200/- plus,
(d) 0.09% of 'Pay' above Rs. 8200/-
NOTE (A) Pay for the purpose of Dearness Allowance shall mean Basic Pay including Stagnation increments.
(B) Professional Qualification Allowance/ Professional Qualification Pay as specified in Explanation (c) and (d) to sub-regulation (2) of Regulation 5 shall rank for Dearness Allowance w.e.f. 1.11.1994.
SEVENTH BIPARTITE SETTLEMENT :(Agreement dated 27.03.2000)
Seventh bipartite settlement was signed in March 2000, between the IBA and UFBU. This settlement was effective from 1st November,1997 and would be in force for a period of five years..DA upto consumer price index 1684 merged with the basic pay accordingly revised DA was as under
# 7. Dearness Allowance In Substitution of Clause 6 of Bipartite Settlement dated 14th February, 1995 with effect from 1st November, 1997 the dearness allowance shall be payable as per the following rates :-
(i) Subordinate Staff.. 0.24% of ‘Pay’
(ii) Clerical Staff
a) 0.24% of ‘pay’ upto Rs. 7100/- plus
b) 0.20% of ‘pay’ above Rs. 7100/- and upto Rs. 11, 300/- plus
c) 0.12% of ‘pay’ above Rs. 11300/-
OFFICER'S SETTLEMENT
# (3) On and from 1-4-1998, Dearness Allowance Scheme shall be as under.
I) Dearness Allowance shall be payable for every rise or fall of 4 points over 1684 points in the quarterly average of the All India Average Working Class Consumer Price Index (General) Base 1960=100.
II) Dearness Allowance shall be payable as per the following rates:
(a) 0.24% of 'Pay' upto Rs. 7100/- Plus
(b) 0.20% of 'Pay' above Rs. 7100/- to Rs. 11300/- plus
(c) 0.12% of 'Pay' above Rs. 11300/- to Rs. 12025/- plus,
(d) 0.06% of 'Pay' above Rs. 12025/-
Note:
(A) Pay for the purpose of Dearness Allowance shall mean Basic Pay including Stagnation increments.
(B) Professional Qualification Allowance/ Professional Qualification Pay as specified in Explanation (c) and (d) to sub-regulation (2) of Regulation 5 shall rank for Dearness Allowance
EIGHTH BIPARTITE SETTLEMENT :(Agreement dated 02.06.2005)
Eighth bipartite settlement was signed in June 2005, between the IBA and UFBU. This settlement was effective from 1st November,2002 and would be in force for a period of five years..DA upto consumer price index 2288 merged with the basic pay accordingly revised DA was as under.
Concept of 100% DA neutralization for all pay levels ( subordinate / clerical / officer ) was introduced with effect from 1st February 2005
# 7. Dearness Allowance In substitution of Clause 7 of Bipartite Settlement dated 27th March 2000 with effect from 1st November 2002, the dearness allowance shall be payable as per the following rates:-
1. (i) Subordinate Staff 0.18% of ‘pay’
(ii) Clerical Staff
(a) 0.18% of ‘pay’ upto Rs.9,650/- plus
(b) 0.15% of ‘pay’ above 9,650/- and upto Rs.15,350/- plus
(c) 0.09% of ‘pay’ above 15,350/- and upto Rs.16,350/- plus
(d) 0.04% of ‘pay’ above Rs.16,350/-
2. On and from 1st February 2005, Dearness Allowance shall be payable at
0.18% of Pay.
Note:
Dearness Allowance in the above manner shall be paid for every rise or fall of 4 points over 2288 points in the quarterly average of the All India Average Working Class Consumer Price Index (General) Base 1960=100.
(a) It is clarified that there shall be no ceiling on Dearness Allowance.
(b) Dearness Allowance shall be calculated and paid on Basic Pay, Special Pay, Graduation Pay, Professional Qualification Pay and Officiating Pay, if any, payable under this settlement in respect of both clerical and subordinate staff.
(c) All other existing provisions relating to Dearness Allowance Scheme shall remain unchanged.
OFFICER'S SETTLEMENT
# (4) On and from 1-11-2002, Dearness Allowance Scheme shall be as under.(Joint Note Dated : 2nd June, 2005)
a. For the period from 1st November 2002 to 31st January 2005, Dearness Allowance shall be payable for every rise or fall of 4 points over 2288 points in the quarterly average of the All India Average Working Class Consumer Price Index (General) Base 1960 = 100 at the following rates :
(i) 0.18% of ‘pay’ upto Rs.9,650/- plus
(ii) 0.15% of ‘pay’ above 9,650/- and upto Rs.15,350/- plus
(iii) 0.09% of ‘pay’ above 15,350/- and upto Rs.16,350/- plus
(iv) 0.04% of ‘pay’ above Rs.16,350/-
On and from 1st February 2005, Dearness Allowance shall be payable for every rise or fall of 4 points over 2288 points in the quarterly average of the All India Average Working Class Consumer Price Index (General) Base 1960 = 100 at 0.18% of Pay
Nothing, in the bipartite agreements for either workmen or officers, was said about the DA payable to “Pensioners”.
NINTH BIPARTITE SETTLEMENT :(Agreement dated 27.04.2010)
Ninth bipartite settlement was signed in April 2010, between the IBA and UFBU. This settlement was effective from 1st November,2007, and would be in force for a period of five years..DA upto consumer price index 2836 merged with the basic pay accordingly revised DA was as under.
# 7. Dearness Allowance
In substitution of Clause 7 of Bipartite Settlement dated 2nd June 2005 with effect from 1st November 2007, the dearness allowance shall be payable as per the following rates:-
Clerical and Subordinate Staff 0.15% of „pay‟
Note: Dearness Allowance in the above manner shall be paid for every rise or fall of 4 points over 2836 points in the quarterly average of the All India Average Working Class Consumer Price Index (General) Base 1960=100.
(a) It is clarified that there shall be no ceiling on Dearness Allowance.
(b) Dearness Allowance shall be calculated and paid on Basic Pay, Special Pay, Graduation Pay, Professional Qualification Pay and Officiating Pay, if any, payable under this settlement in respect of both clerical and subordinate staff.
(c) All other existing provisions relating to Dearness Allowance Scheme shall remain unchanged.
OFFICER'S SETTLEMENT
# 3) Dearness Allowance
On and from 1.11.2007, Dearness Allowance shall be payable for every rise or fall of
four points over 2836 points in the quarterly average of the All India Average Working
Class Consumer Price Index (General) Base 1960=100 at 0.15% of Pay.
Under the following retrograde clause ( with retrospective effect) of Ninth Bipartite Settlement (Agreement dated 27.04.2010), 100% DA Neutralization was denied for pensioners who retired prior to Nov’2002.
# 3. Further to Clause 7(2) of the Bipartite Settlement dated 2nd June 2005, it is agreed between the parties as under:
(i) On and from 1.5.2005, in the case of employees who retired during the period 1.4.1998 to 31.10.2002, dearness relief shall be payable for every rise or be recoverable for every fall, as the case may be, of every 4 points over 1684 points in the quarterly average of the All India Average Consumer Price Index for Industrial Workers in the series 1960=100. Such increase or decrease in dearness relief for every said four points shall be calculated in the manner given below:
Scale of Basic Pension per month
|
The rate of Dearness Relief payable as a
percentage of Basic Pension
|
(i) Upto Rs. 3550
|
0.24 percent
|
(ii) Rs.3551 to Rs.5650
|
0.24 percent of Rs.3550 plus 0.20 percent of
the basic pension in excess of Rs.3550
|
(iii) Rs.5651 to Rs.6010
|
0.24 percent of Rs.3550 plus 0.20 percent of the
difference between Rs.3550 and Rs.5650
plus 0.12 percent of basic pension in excess
of Rs. 5650.
|
(iv) Above Rs.6010
|
0.24 percent of Rs. 3550 plus 0.20 percent of
the difference between Rs.3550 and Rs.5650
plus 0.12 percent difference between Rs.5650
and Rs.6010 plus 0.06 percent of basic pension
in excess of Rs.6010
|
TENTH BIPARTITE SETTLEMENT :(Agreement dated 25.05.2015)
Tenth bipartite settlement was signed in May 2015, between the IBA and UFBU. This settlement was effective from 1st November,2012, and would be in force for a period of five years..DA upto consumer price index 4440 merged with the basic pay accordingly revised DA was as under.
# 7. Dearness Allowance
In substitution of Clause 7 of Bipartite Settlement dated 27th April 2010 with effect
from 1st November 2012, the Dearness Allowance shall be payable as per the
following rates:-
Clerical and Subordinate Staff
0.10% of ‘pay’
Note:
Dearness Allowance in the above manner shall be paid for every rise or fall of 4
points over 4440 points in the quarterly average of the All India Average Working
Class Consumer Price Index (General) Base 1960=100.
(a) It is clarified that there shall be no ceiling on Dearness Allowance.
(b) Dearness Allowance shall be calculated and paid on Basic Pay, Special Pay,
Graduation Pay, Professional Qualification Pay and Officiating Pay, if any,
payable under this settlement in respect of both clerical and subordinate staff.
(c) All other existing provisions relating to Dearness Allowance Scheme shall
remain unchanged.
OFFICER'S SETTLEMENT
# 3) Dearness Allowance
On and from 1.11.2012, Dearness Allowance shall be payable for every rise or fall of four points over 4440 points in the quarterly average of the All India Average Working Class Consumer Price Index (General) Base 1960=100 at 0.10% of Pay.
Conclusion Whereas vide agreement dated 02.05.2005 ( Eighth Bipartite Settlement)) Concept of 100% DA neutralization for all pay levels ( subordinate / clerical / officer ) was introduced with effect from 1st February 2005, but vide retrograde agreement dated 27.04.2010 ( Ninth Bipartite Settlement), 100% DA Neutralization was denied for pensioners who retired prior to Nov’2002, thus creating two classes among-est the bank pensioners.
Class 1. Bank pensioners getting 100% DA Neutralization
Class 2. Pre - Nov'2002 bank retirees pensioners getting partial DA Neutralization
No comments:
Post a Comment