AIBOC has submitted a note on salary package of bank officers to the Finance Secretary, Government of India for consideration. The same is reproduced below for the readers.
We furnish below the Performance indicators of Public Sector Banks, as on date of last salary revision (2002). due date of salary revision (2007) and present (2009)
( Rs.in Crs.)
2002 2007 % increase 2009 %increase
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
You will please observe that in all parameters be it business, profitability or productivity the Banks have performed exceeding well.
* 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/- per month where as Bank Officers Basic Pay was at Rs. 500/- per month with a difference of Rs.50/- per month-
* On account of Pillai Committee Recommendations during 1979. Bank officers, Basic Pay was fixed at Rs. 700/- per month at par with class I officers of Govt. of India.
* fourth Pay Commission fixed Rs. 2200/- per month Basic Pay for class I officers where as for Bank Officers it was at Rs. 2100/- per month.
* Fifth Pay Commission Scales, further widened the gap between Govt. Officers and Bank officers scales by Rs. 900/- per month. Govt Officers scale was at Rs. 8000/- per month whereas Bank officers scale was fixed at Rs. 7100/- per month.
*In 2004. 50% of D.A was merged with Basic Pay for Govt. Officers and Basic Pay 'was raised to Rs. 12500/- per month. Whereas for Bank Offices w.e.f. 1-11-2002 Basic Pay was at Rs. 10,000/- per month with a difference of Rs. 2500/. per month. In addition for Govt. Officer 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/- with Grade Pay of Rs. 5,400/- totaling Rs. 21,.000/- 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, w.e.f.. 1-11-2007. Bank officers scales would at best be at Rs. 14,000/- per month as against pay scale of class I officers at Rs. 21,000/- (includes grade pay) thus further widening of the gap by Rs. 7,000/- per month in Basic Pay between Govt. and Bank officers
* Out of 17.5% wage increase offered by the IBA, Rs. 1,800/- 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/- 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 w.e.f.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 GREATEST MYTH
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%.
A NOTE ON SALARY PACKAGE OF BANK OFFICERS
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2 comments:
Bank employees wage increase 17.5% pushed the attraction of a bank job far behind than that of a central government job, while compairing stress & strain involved between these two. Definitely unemployed will join in bank for employment, but not brains as it used to be happened in the days of Eighties & Nineties.One should observe that the so called wage hike every five years in banks have been quite minimal during the past decade or so whereas in central govt. there has been a quantum jump this time. As matters stand today the pay package in central govt. is quite high when compared with similar posts in banks. So naturally people who have other choices in hand will not join banks any more. And one should know that in banks now a days people have to toil hard even beyond ofice hours, that too being loaded with heavy risks all the time. In such a condition the present pay package wil not attract talents into banks.
Bank officers must undertake an agitational path to ensure a minimum parity with the Group A officers of the Central Government. Every segment working under the government directly or indirectly ,including the employees of municipal corporations, are getting sixth pay commission wages . The public sector bankers are considered to be most hard working responsible employees among all, still the bipartite discussions have ,so far, hovered around 13 to 17.50 % of wage hikes. In fact , many in the private sector , including the media , still believe that the proposed hike is annual hike settled every five year. The trade unions must organise intense agitation including call for indefinite strike, then only the matter will be resolved. If trade unions settle for peanut wage hike , then they will be instrumental in exodus of young talented people from the PSBs and ultimately will be weakening the PSBs as organisations.
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