We are all aware that the Department of Financial Services, Ministry of Finance has set the ball rolling for commencement of 11th BPS Wage Settlement and they have issued a notification to all the banks that are part of the process, advising them to complete the whole process well before the due date i.e. 1st November, 2017.
Before going on further, we must keep in mind that the implementation of new pay scales for central government employees under 7th CPC is already under way. Their new pay scales are expected to be implemented with effect from 1st January, 2016.
Let us now continue to arrive at the new Basic Pay to be fixed in 11th BPS.
- The average All India Consumer Price Index for Industrial workers (Base: 1960=100) is expected to be at 6777 for the quarter ending 30th September, 2017 (assuming that the annualinflationwill be 6% for the next 2 years).
- Accordingly, the DA as on 31-10-2017 on the exiting basic pay will be at 58.40%.
- Unlike last time, it is expected that the full amount of D.A. outstanding as on 31.10.2017 will be merged, as is being done in the case of Central Government Employees.
- So, the whole D.A. at 58.40% will be merged with the existing basic pay, at the time of next wage revision.
- Then, the Special Allowance with applicable D.A. thereon (introduced in 10th BPS) is also to be merged with the existing basic pay.
- Then, on this amount, an increase of 40% (additionalload factor) is given and fixed as the revised Basic Pay. It is then rounded off to the next higher 100.
Now, let us see how much it translates to, so as to arrive at the revised Basic Pay for each staff, depending on his cadre/grade. Variation occurs here, only because of the difference in the rates of Special Allowance fixed for officers in different grades and scales.
(Amount in Rupees)
|S No||Components of Revised Basic Pay||Sub-staff to Officer MMGS III||Officer SMGS IV & SMGS V||Officer TEGS VI & TEGS VII|
|1||Present Basic Pay (Notional)||100.00||100.00||100.00|
|2||Special Allowance as per 10thBPS (excluding D.A. thereon)||7.75||10.00||11.00|
|3||Total of (1) and (2) above||107.75||110.00||111.00|
|4||D.A. as on 31.10.2017 (Projected) calculated on (3) above||62.93||64.24||64.82|
|5||Total of (3) and (4) above||170.68||174.24||175.82|
|6||Revised Basic Pay, after adding 40% additional loadon (5) above||238.95||243.94||246.15|
|Sr.No||Rank/Grade||Existing Basic Pay (Rupees)||Revised Basic Pay (Rupees)||Annual Increment –New (Rupees)|
|1||Sub-staff||9560||18545||24000||44200||900/8 – 1100/8 – 1400/3|
|2||Clerk||11765||31540||30000||68900||1500/3 – 1900/8 – 2400/8|
|3||Officer – JMGS I||23700||42020||57000||104100||2400/7 – 2900/2 – 3500/7|
|4||Officer – MMGS II||31705||45950||73800||111100||2900/2 – 3500/9|
|5||Officer – MMGS III||42020||51490||97100||123000||3500/5 – 4200/2|
|6||Officer – SMGS IV||50030||59170||114600||141400||4200/4 – 5000/2|
|7||Officer – SMGS V||59170||66070||131400||153400||5000/2 – 6000/2|
|8||Top Executive – TEG VI||68680||76520||159400||185800||6000/2 – 7200/2|
|9||Top Executive – TEG VII||76520||85000||185800||217000||7200/2 – 8400/2|
1. The new Basic Pay is arrived, by multiplying the present Basic Pay by the factor as stated above.
2. Then, the new basic pay so arrived at is raised to the next higher 100 Rupees.
3. This figure will be the new Basic Pay.
4. The Basic Pay mentioned above is exclusive of the Stagnation Increments, wherever applicable.
5. Amount of new increment is slightly lower than 4% of the revised Basic Pay at each stage.
6. It must be noted that even the revised Basic Pay at this level is far below the proposed Basic Pay of the Central Government staff, as per 7th CPC.
7. Since the entire D.A. outstanding as on 31.10.2017 is to be merged with the existing Basic Pay, the new D.A. as on 01.11.2017 will be ‘Nil’.
8. Therefore, we are fully justified in demanding the revised Basic Pay at this level and we need not feel guilty that our demand may sound unreasonable, impractical and excessive.
9. Unless we convince ourselves regarding the justification in our demands, we cannot go the bargaining table with total confidence. This we must remember.
Some Points to Remember
1. Already we are far behind the central government employees in pay and perks and if we fail to bridge the gap between them and us at the time of 11th BPS, the gap will keep on widening further and further, with each wage revision.
2. Already the bank jobs have lost their charm, for the highly qualified and meritorious candidates and the attrition rate is also very high as compared to any other sector or industry.
3. Moreover, we must remember that nearly 40% of the existing staff in the banking industry retire in the normal course (on attaining the age of superannuation), in the next 4 years. The exodus will be like a deluge between 2018 and 2020.
4. With the recruitment not taking place at the desired levels, the staff position will only deteriorate, with the indiscriminate branch expansion by all banks in general and public sector banks in particular. With the introduction of new products every now and then, the situation will turn precarious.
5. Therefore, unless we make the bank job a more lucrative and interesting profession, banks especially in the public sector cannot attract good talent and retain it.
6. If the revised basic pay is not at the level projected hereinabove, it will only reflect upon our weak bargaining power and the inability of our union leaders to feel the pulse of the staff especially those in the public sector banks.