11th BPS Wage Settlement : Expected New Basic Pay : Check Here

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.

Assumptions:

  1. 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).
  2. Accordingly, the DA as on 31-10-2017 on the exiting basic pay will be at 58.40%.
  3. 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.
  4. So, the whole D.A. at 58.40% will be merged with the existing basic pay, at the time of next wage revision.
  5. Then, the Special Allowance with applicable D.A. thereon (introduced in 10th BPS) is also to be merged with the existing basic pay.
  6. 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)
Starting Closing Starting Closing  
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

Note:


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.

 

13 thoughts on “11th BPS Wage Settlement : Expected New Basic Pay : Check Here

  1. Bank employees, please wait till the actual settlement is signed and implemented by IBA. Then only one can believe these expected calculations.

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  3. I was suggested this web site by my cousin. I am not sure whether this post is written by him as no one else know such detailed about my trouble. You’re wonderful! Thanks!

  4. OUR LEADERS SHOULD NOT FORGET RETIRED STAFF WHO HAS CONTRIBUTION IN BANK UPCOMING .THEY SHOULD TAKE FEELINGS N CONDITIONS OF RETIRED STAFF N BETTER PENSION SCHEMES DONT FORGET U PEOPLE R TO RETIRE TOO. SO PL. FIGHT WITH ALL SUPPORT WITH RETIRED FEDERATION. THKS.

  5. In my view the demand is ok.but I want to say one thing that is the difference between an officer and a clerk is growing day by day which seems pure injustice.please try some formula to decrease the gap between officer and clerical cadre so that the moral doesn’t break among the clerk’s and this will only be a dismay to the banks profitability.so please do something for the clerical cadre since everything is same for everyone in today’s banking sector.

    1. staff accountability must be applied to clerical staff too. In addition to that the target has also to be applicable as well.Then only gap in package will be discussed.

    2. I agree. The facilities for the officers are way more than for clerical. Still the duties are not.clerical staffs don’t even get medicine benefits for themselves but in case of officers it’s available to their families also. Clerks are the employees of banks, bank atleast should take care of their health. Please raise this demand plz

  6. Pensioners should not be neglected as it always happens.Auto updation of pension is given to all central as well as state government retirees.
    Our association should give it a priority.

  7. Like previous settlement RETIRED EMPLOYEES should not and must not be ignored. Though many assurance were given.It should be bear in mind that every employee have to retire from the service.

  8. The projected salary package is quite justified .The revision and upgradation of the pension also to be taken up by the unions.

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