Bank employees get 17.5% wage hike, pension benefit
BS Reporters / Mumbai Nov 28, 2009, 01:01 IST
SBI unions walk out of pact saying interests not served
Banks and unions today settled on a 17.5 per cent hike in the salary of 702,000 public sector employees, besides agreeing to make 332,000 serving and retired employees eligible for pension. State Bank of India employees association representatives, however, walked out of the wage settlement.
According to the decision taken, while the wage hike, effective from November 2007, would cost an additional Rs 4,816 crore annually, the pension scheme would result in an outgo of Rs 6,000 crore.
“Of the gap (Rs 6,000 crore), 70 per cent cost (Rs 4,200 crore) will be borne by banks, while the remaining 30 per cent will be borne by the employees,” Indian Banks’ Association Chairman M V Nair told Business Standard after signing the deal. Nair, who is also the Chairman and Managing Director of Union Bank of India, said that unions had agreed to banks’ outsourcing of some of the tasks. “Banks have also agreed to streamline the allowances for workmen,” he added. IBA would thrash out the details of the increase over the next 90 days. The hike would cost Rs 2,232 crore to meet the additional salary for officers, while Rs 2,584 crore would have to be set aside for workers. Bank chiefs said there would not be an additional burden as the higher pay and pension benefit had been factored in and provided for.
The total burden on commercial banks is estimated at Rs 25,000 crore for the agreement period. The annual profits of listed public sector banks in 2008-09 was Rs 32,530 crore.
This is the second pension option for public sector banks and would cover 272,000 serving employees and 60,000 employees who did not opt for the scheme in 1993 and have since retired.
Those who join public sector banks from April 2010 would be covered by the New Pension Scheme with 10 per cent of their basic salary and dearness allowance deducted as their contribution. Banks would make a matching contribution.
Representatives of SBI employees unions walked out of the deal saying their interests were not protected. But with the United Federation of Banking Unions, the body that represented nine employees associations, signing the minutes of the meeting, the deal is said to have been clinched. Now SBI employees would have to negotiate with the management to ensure that their interests are protected.
THE NEW DEAL
* Average wage hike 17.5% for 702,000 public sector bank staff
* 272,000 serving employees, 60,000 retd personnel to earn pension
* Wage hike to cost Rs 4,816 cr a year
* Staff to bear 30% of pension gap, estimated at Rs 1,800 cr; remaining Rs 4,200cr to come from banks
* Those joining from April 1 to move to contributory New Pension Scheme
Two SBI union representatives — S A Kadri, General Secretary of National Confederation on Bank Employees and G D Nadaf, General Secretary of All India State Bank of India Officers Association — refused to sign the minutes of the meeting. While Kadri, who is also the general secretary of All India State Bank of India Staff Federation, told Business Standard that the future course of action would be decided on Tuesday.
When contacted, Nadaf said that of the proposed 17.5 per cent hike, 4-5 per cent would go towards paying pension expenses of other bank employees. “This is not beneficial to SBI officers as well as employees. It reduces the effective rise in wages to us. Hence, SBI unions decided not to be party to the memorandum.”
Kadri said that union representatives had met SBI Chairman O P Bhatt in the evening and “his response was positive”. Bhatt could not be reached for comment but sources privy to the wage negotiations said that the SBI union representatives had raised the demand for revision of their pension benefits only a few days before the settlement. “We could not accommodate their demand as it would have delayed the process for everyone,” said the source.
With public sector bank employees eligible to receive a defined benefit pension equivalent to 50 per cent of their last salary drawn, SBI unions said they were at a disadvantage since they only received 40 per cent of the last salary drawn in the form of pension. Other banks, however, pointed out that apart from the pension benefit SBI employees were eligible for provident fund and gratuity, which was not available to the employees of the six State Bank associates.
Dear Sir, I was retired on March,2001 under VRS scheme. My parent Bank was Bank of Baroda. My employee code number was 14212. At the time of my retirement, i had opted P. F. option.I may like to request you whether i am eligible for pension as per the latest settlement?If yes, please let me know the pension amount and how much i will have to refund to the bank?
Awaiting for your reply.
Thanks.
G. C. Shah
Mehsana. Gujarat.
My father has passed away on 27-03-2006.As he was spl.asst in his branch. His retirement was due in the month of sep.2006.NOW MY MOTHER IS GETTING FAMILY PENSION.My Q.is how she would be benefitted in her family pension under new /revised salary structure? kindly guide me.
I opted VRS in 2001, my basic pay at the time of retirement was rs 15760+fpa+pqa, and got rs 400000/- as employer share and rs 400000/- as employee share. what is the formula for calculating pension and how much pf amount be refunded. For how many years and how much pension be commuted. with commutation and without commutation how much pension one should get. please reply. thanks.
I got VRS from public sector bank in nov.2000 , I had not opted for PENSION IN 1993,kindly inform if I am eligable for PENSION
Posted by: SURESH
June 15 , 2010, 15:17 IST
Are you a SVRS retired or resigned? If SVRS you get. If not clarify from your Bank basing on your application whether you are treated as retired OR resigned
New agreement has been signed including the New Pension Scheme:
Some querries please"
Officers who opted for VRS in 2001, are the eligible?
If yes when to apply for the pension and the amount of PF to be refunded.
Is any interest on PF to be refunded has to be paid by the retiring officer?
What is the formulae of calculating Pension. i.e.Basic pay at the time of retirement was 15300/+FPA +PQA= Rs.16,ooo/-
Will the pension be caclulated on revised pay and D.A. or otherwise.
Please specifically reply.Thanks
Posted by: suresh
June 15 , 2010, 15:19 IST
Contact your respective Bank Regional Office as it differs from Bank to Bank
LET ME KNOW THE MINIMUM SERVICE ONE HAS TO PUT FOR BECOMEING ELEGIBLE TO TAKE V R S IN BANKS ACCORDING TO 9TH BIPARTIATE SETTELMENT.
SOME PEOPLE SAY 20 YEARS & SOME SAY IT IS 15 YEARS, WHICH ONE IS CORRECT?
I have taken VRS on 31.03.08. Please let me know whether I am eligible for revised Pension, Commutation, ARB, Gratuity, Leave Encashment from 01.11.07 or not.
Posted by: suresh
June 15 , 2010, 15:21 IST
Eligible for pension from Apr2008 and salary arrears till Mar 2008.Pwesion is subject to that you are not resigned ,but retired. Confirm from your Bank Staff sec
In every sector wether they r rlys r companies r getting bonus upto the officer level . but i couldnt understand why these bank unions r not raising a point abt bonus for the employees in wage settlement. even the PTE is also not getting bonus then who else in the bank. i am seeing for the past 25yrs the same rate ???
Please intimate whether the pension of retired pension optees, irrespective of their dates of retirement, is going to be revised with effect from 01 Nov 2007 as per the 9th bipartite settlement signed. If so, please intimate the details.
i am an ex bank employee(private sector) scheduled bank i took vrs( volunteer retirment scheme) in the year 2002 May. I joined the bank on 28th December 1983 and took vrs in the year 202 may. I would like to know whether I am eligible for Pension under recent settlement
My brother is working with HDFc for the last 4 years and his salary is around 32000/-. How will this increase of 17.5% will help him. Can anybody help us in this regard ?
can u plz tell the name of the private sector banks
Posted by: RAVI MISHRA
May 12 , 2010, 19:28 IST
hi swati, i dont know the name of all banks comes under iba(which will get salary hike according to the 9th bipertite) is karnataka bank ltd., federal bank ltd., bank of rajasthan ltd. and some pvt. cooperatives banks r there in the list.....
What about the employees of Union Bank of India who expired on duty in Dec. 2009? Whether their family will get job on companssionate ground in Bank or they will receive monthly pension as per the new settlement made on April 3, 2010. Since it is not possible easily to run a house for a widow having base of 4 family members including Sr. citizen in such a huge inflation rate which is incresing day after day. Is there any solution in new settlement? Please
we reguest please take much efforts for our employees ultimate victory of ours please do the needful thousands of employees pray your did something of our peoples no words says to you sirs
still our great leaders take step solve our banks employees in tamilnadu govt without any consultation very interested state govt employees govt of finance ministers gave good ways to our bank employees still it is not settled hence we reguest our leaders solve the issues very speadly if you do well lot of people prise your achive ments for our banking sector ple do the needful.
even state govt employees without any expect govt give much importance to ownemployees and public people any consult with central govt they achievved lot and earn good name from public still our employess cet any solution our wage revison it is wonder for our co operation in this matter if govt will take steps for our bank people hence we reguest our honourble finance minister take further steps ple do the needful. thanks lot our great leaders also
Three months after signing the Agreement is over. When will the retired employees get pension? What is IBA doing? Is there any progress on the Agreement?
D.A. at one place should be same for one and all irrespective of whether one is a central employee or state employee or otherwise. D.A. concerns the place and not the departmet.
U. N. Saxena
retired staff of State Bank Of India
Allahabad Mobile: 09336180111
WOW..getting a salary hike for being unproductive and lazy.. That is what I like about India..
Posted by: GSaha
December 11 , 2009, 14:47 IST
Somebody's GAIN, Somebody's ENVY. Rahul bhaiyya dont be jealous, your time should also come, till then be patient... it wont take long to find out your unproductive and lazy nature to ensure your salary hike.
Posted by: shankar
December 09 , 2009, 00:03 IST
Mr. Rahu Jain,,,, I do not mind who ever you are, and what ever you are. Dont ever use the word unproductive and lazy towards the bank employees,,, and remember gone all the days when people used to spend sleeping at bank. And have you ever been into your bank, if not do it today, just ask people how are you? i bet they ll literally cry. Hmmm.... you said unproductive, do you know the loss incurred by our country while there was a strike for three days recently, it is approximately Rs. 500 Crores. Remember my friend, it doesnt mean that only you ppl are working hard to earn your daily bread and butter, the policy is same with everyone who works for their family and friends. Atlast, i never mind what ever you say about anyone, but use the right word at the right place to justify your sayings. if you wanna tell the bank employees as unproductive for the country, make an evidence that supports your argument. Right!!!!!
Posted by: BinuHaas
December 05 , 2009, 00:39 IST
I think I agree with Rahul to a certain extent, but not totally..
A career a person chooses, is done knowing the pros and cons. hence when someone joins a bank he knows what his pay wud be and that he would be required to move to different geographies..
Secondly there is something which the private sector pays for, risk. High risk high gain. Bank employees can sit throught there career and not worry about there retirement, they will be provided with a company house, pension and other benefits. If someone wants to make a mark in Mgmt Consul, IT, Invst Banking.. do it by all means. Remember one thing no employee in an sector is paid enough, and if you are paid a large amt of money you don't have to time to enjoy it.
Posted by: venkatesh
December 01 , 2009, 20:59 IST
You find bank employees in every nook and corner of the country...and still earn the dubious distinction of being lazy and unproductive...the only few employees who are regularly (once in 3 years) transferred leaving their kith and kin back...its the management and politicians are to be blamed not the employees
banks can now offer a new vrs or exit polocy for their ageing staff who
continue helplessly and reluctantly unable to cope with the new technologies.
Posted by: Neil
March 16 , 2010, 22:54 IST
No I do not think so. Exit policy is always welcome. But it has nothing to do with the lack of computer skill of aged and senior staff. Bankers need basic knowledge of banking more than computer skills.There are lots of unemployed teenagers with computer skill to take care of the mundane computer work. But it is difficult to replace a senior and knowledgeable banker.
Posted by: raajkumar
February 17 , 2010, 22:00 IST
is any VRS Scheme for bank employees in the offing?
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