12th Bipartite Settlement Date, Latest News, Update, Salary

 12th Bipartite Settlement: On March 8, 2024, in Mumbai, the 12th Bilateral Agreement and the 9th Joint Memorandum were signed, marking a momentous day for the Indian banking industry. After months of discussions, the Indian Bankers Association (IBA) and bank staff have reached an accord. This twin agreement is a good outcome of the negotiations, having overcome a number of challenges.





The Indian Banks' Association, which represents the bank management, convened with authorized representatives of the Association of Officers' Union and the Union of Workmen's Unions to deliberate on wage modifications for bank employees and officers. The executives and staff of the Union/Association of the Workmen, along with the management team, concur that for the banking system to meet the demands of stakeholders and consumers. To tackle the issues the banking industry faces, the system must also be made more responsive, productive, and efficient. As a result, a solution was achieved to end the disagreement over wage settlement and complete an MOU.


12th Bipartite Settlement Features

The wage revision is effective from 1/11/2022 for a period of five years.


1. Simplify the five-day work week – the joint memo recognizes all Saturdays as public holidays pending government notification. The revised working hours will come into effect after the government’s announcement, probably within six months.


2. Substantial Increase in Pay – The total increase in pay revision (price ticket component) is more than Rs. 8,284 crowns is 17% of the cost of the salary fund for the establishment of public sector banks.


3. The new salary scales are prepared after adding the dearness corresponding to point 8088 and the related additional burden.


4. With an applied load of 3.22%, the effective load on the post-reunion family allowance @ 30.38% of the basic salary is 4.20%.


Also Read : Salary chart of officers after 12th Bipartite Settlement


5. The long-standing wish of the officer community for two more increments of CAIIB (CAIIB Part II) has been fulfilled.


6. Officers who have passed CAIIB (CAIIB Part II) will get double increment from 01.11.2022.


7. Officers are entitled to three PQPs instead of the previous two PQPs. PQP-I -Rs 1370/-, PQP-II Rs 3425/- and PQP III-Rs 5480/-


8. The actual burden on officers conducting CAIIB will increase significantly.


9. Differences due to additional CAIIB increase are considered.


10. Deviation due to sanction of PQP has also been factored in.


11. The new pay scales range from Rs. 48480/- Rs.173860/- covering all scales I to VII from 01.11.2022.


12. Revision of daily allowance formula in the question: Conversion factor due to consolidation of dearness allowances deleted 0.0549. Instead of rounding up to 0.05, it is increased to 0.06, which extends the benefit to serving and retired officers.


13. Merit compensation index moves from row 1960=100 to row 2016=100, as the conversion factor moves from 0.06 to 0.99 per 2016=100 series benefiting officers with increased value


14. Adjuster 0.99 2016 =100 is converted with the series. 1.00, which increases the added value.


15. there should be additional compensation as percentage compensation according to the above agreed changes.


16. Value support is paid at 1.00% of “salary” per percentage point of the index. As above, DA is paid for any increase or decrease above 123.03 points in the 2016 CPI Quarterly Average for Industrial Workers 123.03 points = 100. 0.01% change in DA “wage” for every other decimal change in the 2016 CPI greater than 123.03 points.


17. Evaluation The above pension reduction is paid semi-annually for each increase or decrease of 123.03 points. All India Industrial Workers CPI-Quarterly Average 2016=100.


18. JM-1 grade officers who have moved to MMG Scale II after reaching the maximum of the higher scale are currently entitled to five stagnant grades. From November 1, 2022, these officers are entitled to seven stop increments every two years, the first two of which are Rs. 2680/- each and the next five are Rs. 2,980/- each.


19. MMG Scale II officers who have been promoted to MMG Scale III after attaining the maximum of the higher scale are currently entitled to five stagnant grades. From November 1, 2022, these officers will be entitled to Rs 2,980 every two years.


20. Senior MMG Scale III officers, viz. those recruited or promoted to MMG Scale III, are currently entitled to six stagnant ranks after reaching the scale maximum. From November 1, 2022, these officers are eligible for eight biennial increments, the first four of which are Rs. 2980/- each and the next four are Rs. 3360/- each.


21. SMG Scale IV officers are currently entitled to two stagnant grades. With effect from November 1, 2022, these officers, after reaching the maximum value of the scale, will be entitled to five stagnant increments, each at an interval of two years, out of which the first stagnant increment will be Rs. 3360/- and the next four are Rs. 3680/- each.


22. SMG scale V officers are currently entitled to one stagnant grade. From November 1, 2022, these officers will get an increment of four stops after reaching the maximum of the scale. The frequency is Rs.4000 for two years.


23. TEG Scale VI officers are entitled to three stagnant increments at two-year frequency after reaching scale maximum, the first two being Rs.4000/- and the third stagnant being Rs.4340/-.


24. TEG Scale VII officers are entitled to three stagnant levels of Rs.4340/- every two years after reaching the maximum level of each scale.


25. Promotion – Every promoted officer will be installed in a higher rung in the new pay scale with protection equal to at least one step of the pay gap he advanced in the previously promoted group or scale, minus the appropriate deviation.


12th Bipartite Settlement Salary Calculator

The 12th Bipartite settlement for bank employees has been finalized, and now everyone is eager to calculate their new pay based on this increase. The salary hike in banks is set at 17%, which includes a 3% load factor. This means that your overall pay on the payslip will show a 17% increase. The Dearness Allowance (DA) is merged with the current basic pay.




Here’s a breakdown of the as per the 12th Bipartite Settlement Salary Calculator with a 17% hike:


Load Factor Explained: The load factor, considered in the 12th BPS, benefits bank staff by taking into account both BASIC and DA. This load factor of 3% is applied to both BASIC AND DA.


Total Salary Increase: The total salary increase is exactly 17% as per the 12th BPS settlement. For example, the gross salary before the 12th BPS was Rs. 74,125, and after the 12th BPS, it becomes Rs. 89,601, resulting in a 17% increase on the payslip, as stated in the 12BPS final negotiating committee.


The calculation for Officers’ Salaries: A salary chart is provided for an employee who joined the bank in 2021 with a basic pay of Rs. 36,000 in the 11th BPS. The employee, having completed JAIIB and CAIIB certification courses, receives 1 increment for each. With two yearly increments in 2022 and 2023, the total increments are 4 (1+1+1+1). Each increment is Rs. 1490 in BASIC PAY for officers. The chart shows the salary calculation for an Officer employee with CAIIB qualification and 2 yearly increments.


1 Lakh Plus Salary in Banks: An officer in banks with CAIIB qualification and 2 years of experience will receive a gross salary of 89k. With additional allowances like rent and petrol, the gross salary of an officer employee in banks can exceed 1 lakh, which is good news for bank staff.


Salary Slip Components Load Factor: The components of the payslip for an officer employee in banks are BASIC, DA, SPECIAL ALLOWANCE, and LOAD FACTOR. The chart shows the load factor of 3%, calculated for the new basic pay of the 12th BPS and new DA, i.e., 3% of (56212+10286) = 1994.


12th Bipartite Settlement Salary After Wage Revision

Good news for employees of public banks! The 17% salary is due to the 12th Bilateral Agreement between the Indian Bankers Association (IBA) and banking confederations.

The annual salary for all banks, including State Bank of India, is Rs 12,449 crore.

The change will take effect from on November 1, 2022 for five years. The new pay scales allow for a 17 percent increase in pay and benefits, excluding dearness and a 3 percent utilization rate.

The IBA is recommending a five-day work week and unions want it implemented before a final deal is reached next year, 180 days. This follows a 15% increase of around 850,000 bank employees in July 2020.

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Salary chart of officers after 12th Bipartite Settlement


Bank employee unions and the Indian Banks' Association have agreed to a 17% annual wage hike, which will result in public sector banks spending around Rs 8,284 crore more per year. Starting from November 2022, approximately 8 lakh bank employees will benefit from this wage increase. This agreement will lead to significant pay raises for bank employees across India.


A joint note has been agreed upon by the parties to recognize all Saturdays as holidays. However, this is subject to government approval, and the revised working hours will come into effect only after the approval.


Also Read : Salary chart of Award staff after 12th Bipartite Settlement


The new pay scales have been formulated by merging Dearness Allowance corresponding to 8088 points and additional load. The new wage settlement also entitles women employees to one day of sick leave per month without needing a medical certificate.


Additionally, accumulated privilege leave can be encashed up to 255 days upon retirement or in the event of an employee's death while in service.


IBA Chief Executive Officer Sunil Mehta highlighted the significance of the agreement, stating that it marks a milestone for the banking industry. Retired employees are also set to benefit, with the agreement stipulating that a monthly ex-gratia amount will be paid in addition to the pension or family pension provided by Public Sector Banks, including SBI, for those eligible to draw pension on or before October 31, 2022.






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Salary chart of Award staff after 12th Bipartite Settlement


 Its great news for Bankers and pleased to announce the successful conclusion of negotiations between the Indian Banks Association’ and the UFBU culminating into signing of the 9th Joint Note on 8th March, 2024.


The new wage settlement entails several benefits aimed at enhancing the overall compensation package for our officers. We believe these provisions not only acknowledge the hard work and dedication of our officers but also serve as a means to attract and retain top talent within the banking industry.


Also Read : Salary chart of officers after 12th Bipartite Settlement





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Latest 12th Bipartite Settlement Updates - 9th Joint Note on Wage Revision signed


Its great news for Bankers and pleased to announce the successful conclusion of negotiations between the Indian Banks Association’ and the All India Bank Officers’ Confederation culminating into signing of the 9th Joint Note on 8th March, 2024.


The new wage settlement entails several benefits aimed at enhancing the overall compensation package for our officers. We believe these provisions not only acknowledge the hard work and dedication of our officers but also serve as a means to attract and retain top talent within the banking industry.


The salient features of the wage negotiations i.e. the 9th Joint Note are as under:


1. Paving the way for 5-day work week – The Joint Note recognizes all Saturdays as holidays, pending government notification. The revised working hours will be effective after notification by the government.


2. Substantial Increase in Salary - The total quantum of wage revision increase (Payslip component) is more than Rs. 8284 crores being the 17% of the cost of Payslip component of establishment expenses of Public Sector Banks.


3. The new pay scales have been constructed, after merging Dearness Allowance corresponding to 8088 points and additional load thereon.


4. With the applicable load of 3.22% the effective load on the basic pay post-merger of dearness allowance @ 30.38% is 4.20%.


5. The long-drawn aspiration of the officers’ community for two additional increments for CAIIB (CAIIB Part-II) is achieved.


6. Officers who have completed CAIIB (CAIIB Part-II) shall be eligible for two increments w.e.f 01.11.2022.


7. Officers shall be eligible for three PQPs instead of two PQPs hitherto. PQP-I -Rs 1370/- , PQP-II Rs 3425/- and PQP III- Rs 5480/-


8. The effective load for officers completing CAIIB shall be increased substantially.


9. Inter se anomaly on account of additional increment for CAIIB is taken care of.


10. Inter se anomaly on account of sanction of PQP has also been taken into account.


11.The new scales of pay ranges from Rs. 48480/- to Rs.173860/- covering all the scales from Scale I to VII, with effect from 01.11.2022.


12.Reworking of the Dearness allowance formula: The conversion factor on account of merger of Dearness Allowances worked out at 0.0549. Instead of being rounded off to 0.05, it is raised to 0.06 extending benefit to serving and retired officers.


13.The index for dearness allowance is shifted from 1960=100 series to 2016=100 series resulting into shifting the conversion factor from 0.06 to 0.99 as per 2016=100 series benefitting the officers with enhanced dearness allowance.


14.The factor of 0.99 as per 2016=100 series is converted to 1.00 improving the dearness allowance further. 


15.Thus, there will be additional benefit in percentage terms in dearness allowance as per the agreed changes negotiated above. 


16.The Dearness Allowance shall be payable as 1.00 % of ‘pay’ per percentage point of Index. The DA in the above manner shall be paid for every variation of rise or fall over 123.03 points in the quarterly average of the All India Consumer Price Index for Industrial Workers Base 2016=100. 0.01% change in DA on ‘pay’ for change in every second decimal place of CPI 2016 over 123.03 points. 


17.Dearness Relief on pension in the above manner shall be paid half yearly for every variation of rise or fall over 123.03 points in the quarterly average of the All-India Consumer Price Index for Industrial Workers Base 2016=100.


18.Officers in JM Grade Scale I who have moved to scale of pay for MMG Scale II after reaching maximum of the higher scale are presently eligible for five stagnation increments. With effect from 1st November, 2022, these officers shall be eligible for seven stagnation increments with frequency of two years each, of which first two shall be Rs. 2680/- each and next five shall be Rs. 2980/- each.


19.Officers in MMG Scale II who have moved to Scale of Pay for MMG Scale III after reaching maximum of higher scale are presently eligible for five stagnation increments. With effect from 1st November, 2022 these officers shall be eligible for seven stagnation increments with frequency of two years each, of Rs.2980/- each.


20.Officers in substantive MMG Scale III i.e. those who are recruited in or promoted to MMG Scale III are presently eligible for six stagnation increments after reaching maximum of the scale. With effect from 1st November, 2022, these officers shall be eligible for eight stagnation increments, with frequency of two years each, of which first four shall be Rs. 2980/- each and next four shall be of Rs. 3360/- each.


21.Officers in SMG Scale IV are presently eligible for two stagnation increments. With effect from 1st November, 2022, these officers shall be eligible for five stagnation increments after reaching maximum of the scale, with frequency of two years each, of which the first stagnation increment shall be Rs. 3360/- and next four shall be of Rs. 3680/- each. 


22.Officers in SMG Scale V are presently eligible for one stagnation increment. With effect from 1st November, 2022, these officers shall be eligible for four stagnation increments after reaching maximum of the scale, with frequency of two years each of Rs.4000/- each.


23.Officers in TEG Scale VI shall be eligible for three Stagnation Increments after reaching maximum of scale, with frequency of two years each, out of which first two shall be of Rs.4000/- each and the third stagnation shall be of Rs.4340/-.


24.Officers in TEG Scale VII shall be eligible for three Stagnation Increments of Rs.4340/- each, with frequency of two years each after reaching maximum of scale. 


25.Fitment on Promotion - Every Officer on promotion shall be fitted in a higher stage in the new scale of pay with a protection of a minimum differential of one increment in Pay drawn by him/her in the pre-promoted cadre or scale, removing the anomaly in fitment.


26.The Special Allowance, as percentage of basic pay, carrying the applicable DA thereon, with effect from 01.11.2022 for JMGS I is 26.50%.


27.Disintegration of scales for payment led to higher payment of Special allowance to MMGS II and MMGS III. The Special Allowance, as percentage of basic pay, carrying the applicable DA thereon, with effect from 01.11.2022, for MMGS II and MMGS III is 28.30%.


28.The Special Allowance, as percentage of basic pay, carrying the applicable DA thereon, with effect from 01.11.2022 for SMGS IV and SMGS V is 30.50%.


29.The Special Allowance, as percentage of basic pay, carrying the applicable DA thereon, with effect from 01.11.2022 for Scale VI and Scale VII is 31.50%


30.Fixed Personal Pay has been proportionately increased with applicable DA thereon. 


31.House Rent allowance has been increased to 8%, 9% and 10% of pay, in respect to the area of posting.


32.Capital cost on account of HRA increased to 12%, 13.5% and 15%, respectively.


33.The city compensatory allowance (CCA) has been increased to Rs 1900/- per month and Rs 2300/- per month based on place of posting. 


34.Location Allowance – W.e.f. 01.11.2022 a fixed allowance of Rs.1200 /- p.m. is payable to all Officers posted in areas other than the areas that are eligible for CCA.


35.Deputation allowance - An Officer deputed to serve outside the bank to an organization in a different place other than the present place of posting will be paid deputation allowance @ 7.75% of Pay with a maximum of Rs. 7500/- per month


36.An Officer deputed to another organization at the same place or to the training establishment not owned by the Bank will be paid deputation allowance @ 4% of Pay with a maximum of Rs.3750/- per month.


37.Upon deputation of an Officer to another office / branch within the same municipal limits/ urban agglomeration, in Metro / Major ‘A’ Class cities where the distance of such deputation is 20 km and more from the parent branch / office, halting allowance shall be payable.


38.Hill and Fuel allowance for Places with an altitude of 1000 meters and above but less than 1500 meters will be paid @ 2% of Pay subject to a maximum of Rs. 1450 per month. 


39.Hill and Fuel allowance for Places with an altitude of 1500 meters and above but less than 3000 meters will be paid @ 2.5% of Pay subject to a maximum of Rs. 1900/- per month 40.Hill and Fuel allowance for Places with an altitude of 3000 meters and above will be paid @ 5% of Pay subject to a maximum of Rs. 3750/- per month


41.Special area allowance is revised as extended to central government employees.


42.Learning allowance has been increased to Rs 850/- per month plus applicable DA thereon.


43.Officiating Pay - On and from 01.04.2024, an Officer who is required to officiate in a post in a higher scale for a continuous period of not less than 4 days at a time OR an aggregate of 4 days during a calendar month, shall receive an officiating pay equal to 15% of the Basic pay of the person officiating.


44.Officiating pay will be eligible not only for Superannuation benefits, but also for Dearness allowance and House rent allowance.


45.Mid Academic Transfer allowance has been increased from Rs 1650/- to Rs 2500 p.m. per child. 


46.Closing allowance has been increased to Rs 1500 per quarter.


47.Halting allowance has been increased by 50% across the board. 


48.For scale I to Scale III, the halting allowance will range from Rs 1800/- to Rs 2925/- per day.


49.For scale IV and V, the halting allowance will range from Rs 2150/- to Rs 3375/- per day.


50.For scale VI and Scale VII, the halting allowance will range from Rs 2150/- to Rs 4050/-per day.


51.Lumpsum compensation on transfer has been increased to Rs 40000 for Scale I to Scale III.


52.Lumpsum compensation on transfer has been increased to Rs 50000 for Scale IV and above. 


53.Upon transfer, either 15 days lodging & boarding charges or 15 days Halting Allowance shall be paid to all officers, from the date of joining at new place.


54.On and from 1st November, 2022, reimbursement of medical expenses shall be Rs. 13000/- p.a. for Officers in JMG & MMG (Other than SBI).


55.Reimbursement of medical expenses shall be Rs. 15400/- p.a. for Officers in SMG & TEG scales(other than SBI).


56.Definition of Family: The income criterion for the term wholly dependent family member has been increased to Rs.18,000/- (improved from 12000/-). 


57.Physically and mentally challenged children, irrespective of age, shall be construed as dependents even after their marriage, subject to income criteria


58.Officers can now have any two of the parents or parents-in-law as dependents. The employee will have the choice to substitute either of the dependents or both once in a calendar year.


59.Entitlement distance increased to 5500 kms (one way) for officers in JMG-Scale-I, MMG – Scale II & III. For scale IV and above the same will be for 6500 Km (one way).


60.An officer in Junior Management Grade will be entitled to travel by AC 1st class by any train including Premium Trains like Rajdhani/ Shatabdi/ Tejas/ Vande Bharat/ Amrit Bharat, etc. (except luxury trains). 


61.Reimbursement of fare by premium trains as mentioned above (except luxury trains) shall be allowed to all officers.


62.Where an officer has applied for LTC/Leave in advance and has also booked the tickets and the LFC is declined or deferred by the management, the cancellation charges will be reimbursed by the Bank


63.Where an officer has applied for LFC/leave as per stipulated time and the same is sanctioned and when advance booking of train tickets is not possible, tickets purchased under Tatkal/Premium tatkal will be reimbursed.


64.GST Charges levied on Train Fare shall be over and above the entitlement. 


65. In view of prevailing dynamic fare system, the cost of train tickets charged on the date of booking will be reimbursed.


66.LTC / HTC can be availed independently where both husband and wife are working in the same Bank.


67.Air travel eligibility for travel beyond 500 Kms (reduced from 1000 kms).


68.Additional reimbursement under LFC for officers working in areas not connected by train.


69.LTC facility shall be allowed for an escort who accompanies an Officer with benchmark disabilities on the journey, subject to certain conditions.


70.A provision will be put in place to record the reason for refusal or postponement of leave by the management.


71.A single male parent can avail sick leave for the sickness of his child of 8 years and below.


72.Employees can avail sick leave for the sickness of their Special Child of 15 years and below for a maximum period of 10 days in a calendar year.


73.All Women employees shall be allowed to take one day Sick Leave per month without production of medical certificate.


74. In case of employees of the age of 58 years and above, sick leave may be granted towards hospitalization of the spouse at a centre other than the place of work and for a maximum period of 30 days in a calendar year.


75.An employee shall be granted sick leave at the rate of one month for each year of service subject to a maximum of 720 days during the entire service.


76. In partial modification of Leave Rules, Annexure VI clause 3 of Joint Note dated 11th November, 2020, the following shall be added as Note 3 - “In case of delivery of more than two children in one single delivery, Maternity Leave shall be granted upto 12 months.


77.Employees shall be granted Bereavement Leave on the demise of the family members (spouse, children, parents and parent-in-law) and number of days of such leave shall be decided by each Bank at their level. 


78.Officers who are Defence Representatives in departmental enquiries will be granted one day special leave for preparing defence submissions, subject to maximum 10 such leaves.


79.Maternity Leave shall be granted once to a female employee for a maximum period of 9 months, for legally adopting a child who is below one year of age, all other conditions remaining the same.


80.Maternity Leave may be granted for In vitro fertility (IVF) treatment subject to production of medical certificate, within the overall limit of 12 months.


81.Four Half Day Casual Leaves have been introduced for all employees.


82.A total of two days of Casual leave may be availed for half a day on 4 occasions in a year out of which 2 occasions would be in the morning and 2 occasions in the afternoon.


83.Casual Leave under the above category can be availed after applying 24 hours in advance.


84.Special maternity leave upto 60 days shall be granted in case of still born or death of the infant within 28 days of birth.


85.Accumulated privilege leave may be encashed upto 255 days at the time of retirement/upon death of an employee while in service.


86.Leave Bank Scheme - A staff welfare scheme under which provision would be made for voluntary encashment of Privilege Leave by the employees and the monetized value of such leave would be pooled under a Leave Bank system, out of which, special leave would be sanctioned to the employees affected by contingencies who have exhausted all their leaves.


87.All the Banks to evolve and implement a scheme for periodical health checkup of all employees wherever it is not available. 


88.All employees shall be allowed reimbursement of Rs. 500 per year towards annual eye check-up


89.A Committee will be formed to review other provisions of NPS in line with Central Government employees viz. regarding the Choice of Fund Schemes and Fund Managers.


90. An additional amount will be paid as Ex-Gratia per month to all Pensioners. 


91.Monthly ex-gratia amount shall be paid in addition to the pension/family pension paid by the public sector Banks including SBI, to pensioners and family pensioners, who became eligible to draw pension on or before 31st October, 2022 including those who retired on 31.10.2022.


92.Such fixed monthly ex-gratia shall be payable for the month of November, 2022 and onwards during the period 01-11-2022 to 31-10-2027.


93. It has been agreed and already extended the benefit of 100% DA neutralisation for Pre November 2002 pensioners. 


94.DA rates will be on uniform basis of 100% neutralisation as in the case of employees/ officers/ pensioners/ family pensioners.


95.Disciplinary & Appeal Regulations and procedure thereof - Comprehensive Guidelines on Discipline & Appeal Regulations will be brought out after mutual discussion within 3 months from the signing of this joint Note.


96. Special compensatory provisions in respect of State Bank of India for certain benefits as mentioned in the joint note, will be reviewed and settled at bank level.


97. LTC Monetisation Scheme covering air fare on the lines of some other Banks in the Industry, will be evolved for all Banks after further deliberations.Comrades, these are some benefits listed herein. The Joint Note addressed many anomalies with respect to salaries, fitments across the scales, aiming to restore the dignity of officers.


Any achievements or the benefits in the joint note are not only attributable to present negotiations but is also a testament of years of hard work and struggles of AIBOC and its members. We congratulate and thank all our affiliates, past and present leaders, all state units, the AIBOC secretariat team and all the members for having unflinching trust in AIBOC, and for staying united, disciplined and resolute during this entire wage revision exercise. We, thus, dedicate all the achievements of this Joint Note to our dedicated members across the fraternity. 


There are certain issues which could not be taken to a logical conclusion in the current exercise till the signing of the joint note, and which have been minutised as residual issues with IBA. 


These will be further discussed and deliberated upon, for them to become a reality in the days to come.


AIBOC is always determined to achieve the maximum benefits for its members, and we will continue to strive for more. This Joint Note surely heralds a new chapter in our journey, promising a future replete with opportunities for growth, wellbeing, and professional fulfilment. 


Let us embrace these changes with open arms and continue to strive for excellence in all our endeavours. 


More challenges await us as we move forward, yet we are confident that our collective efforts would always lead us to right path.


Joint Note:


Click on right corner of PDF to view large


Officer's joint note:
 
Click on right corner of PDF to view large

 

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12th Bipartite Settlement latest update : Next meeting of Wage revision

 



MoU signed between constituent Unions/Associations of UFBU and IBA representing the management of banks on 7th December, 2023 in which it was agreed that endeavor will be made to finalize the Bipartite Settlement /Joint Note within a period of 180 days from the date of the signing of the minutes.



In this connection, it has been decided, in consultation with the Chairman, Negotiating Committee of IBA - Shri M V Rao, MD & CEO, Central Bank of India to convene a meeting of the constituent Unions/Associations of UFBU and IBA representing the management of banks to conclude the Bipartite Settlement /Joint Note followed by formalizing it by signing the same with the representatives of Constituent Workmen Unions/ Officers' Associations on Monday, 11th March 2024 at 3.00 p.m. onwards in Chennai. Details of the programme and venue shall be informed in due course.



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Bank unions go ahead for 5-day week before Bipartite settlement

 


A five-day work week in banks is something that the United Forum of Bank Unions, a coalition that represents bank employee unions, has urged in a letter to Finance Minister Nirmala Sitharaman. As per the terms of a 2015 settlement, banks are currently closed on the second and fourth Saturdays of every month.


The United Forum of Bank Unions(UFBU) guarantees in its proposal that there would be no decrease in the total number of hours that customers can bank or that officers and workers can work if the switch to a five-day workweek is approved. This position is consistent with the agreement that was made with the Indian Banks' Association.

The union has requested that the finance minister take a positive perspective of the situation and instruct the Indian Banks' Association to move forward with the necessary steps. The five-day workweek is already popular in RBI and LIC, according to the United Forum of Bank Unions. It was agreed upon during the 2015 settlement, according to the bank staff union, to "consider our demand for declaring remaining Saturdays as holidays at a later stage after implementing the provision for holidays on two Saturdays in a month."

On December 7, 2023, the Indian Banks' Association and bank unions signed a memorandum of understanding over pay revision and improvements to bank employees' service conditions.

The United Forum of Bank Unions notes the prompt completion of discussions made possible by the memorandum of understanding between bank unions and the IBA, and thanks the finance minister and government for taking their concerns into consideration.

"You are fully aware of the mounting pressure that the bank employees face while carrying out their duties. Therefore, it would be appropriate to declare the remaining Saturdays as holidays as well. The United Forum of Bank Unions stated, "We will appreciate it if you will take a favorable view of the situation and advise the IBA to move forward in this area.

The Indian Banks' Association and bank employee unions came to an agreement last year on a memorandum of understanding (MoU) that increased pay in all public sector banks in India by 17%, or Rs 12,449 crore. About nine lakh workers, including 3.8 lakh officers, from PSU banks like SBI and a few older private banks will gain from this increase. Following discussions between the Indian Banks' Association and labor union officials on December 7, 2023, the Memorandum of Understanding was signed, pledging to complete the pay revision within 180 days.


According to the terms of the Memorandum of Understanding, both parties must gather together in order to prepare a thorough Bipartite Settlement/Joint Note based on problems that have been mutually agreed upon. The procedure must be completed within the allotted time limit. One of the agreement's main features is the implementation of a five-year salary revision starting on November 1, 2022. Based on the fiscal year 2021–22 pay slip expenses, the 17% rise in salary and benefits comes to Rs 12,449 crore for all public sector banks, including the State Bank of India. Furthermore, a total increase of Rs 1795 crore will be achieved by combining Dearness Allowance with basic pay with an extra 3% loading.

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Enhancement and expansion of the duties of Clerks would impact in 12th Bipartite Settlement


It is learnt through social media that the two Unions of workmen i.e. AIBEA & NCBE have entered into an understanding with the IBA (Indian Banks Association) in the meeting of working group to enhance the duties and responsibilities of the clerical cadre indiscriminately and disproportionately making them vulnerable and accountable. All the clerks including the probationers are to be assigned supervisory job right from day one and that too independently.

It has already been pointed out in the earlier article of Bank Workers’ Unity on 4th November 2023 that in the case of officers, all the three organizations participating in the negotiations namely AIBOC, INBOC, NOBO take part in all the meetings of the working groups which deal with the service conditions like leave, disciplinary action etc. Whereas in the case of workmen, only two Unions namely AIBEA and NCBE participate in the meetings of the working groups leavingout the other three other Unions namely BEFI, INBEF & NOBW.  

Enhancement of Duties and Responsibilities of Clerks

According to that understanding 

Single Window Operator A’s duties are proposed as under:

  • Passing power of cash cheque / other like instruments independently proposed to be increased from Rs. 10000/- to Rs.50000/- (5 times)
  • Clearing / transfer vouchers / other like instruments independently proposed to be increased from Rs. 15000/- to Rs.100000/- (more than 6 times)
  • Issuance of pre-signed DD etc. independently proposed to be increased from Rs.15000/- to Rs.50000/- (more than 3 times)
  • Cash receipt and authorization independently proposed to be increased from Rs. 15000/- to Rs.50000/- (more than 3 times)
  • Receipt of cash (Dedicated Cash Counters) – No limit
  • Clearing / transfer vouchers / other like instruments jointly with another Clerk / Officer more than Rs.1,00,000/- and less than and equal to Rs.2,00,000/- (New concept)

From this, it can be easily understood that the duties and responsibilities of Head Cashiers and Special Assistants would have also been steeply increased.

From the proposal, one can understand that out of the whole transactions more than 90% would fall within the powers of the Clerks either independently or jointly. Thus, the Clerks will have to perform supervisory job henceforth and manage the entire counter work either independently or along with another clerk.

Maker – Checker concept gone

The strength of the flawless Banking system is due to the Maker-Checker concept adopted since inception. That is, the Clerk used to initiate (make) the transactions and the Officer used to check and authorize them. The possibility of mistakes/frauds would be greatly eliminated due to this system.  Presently the independent power is limited from Rs. 10000/- to Rs. 15000/-. Now as per the new proposal, if a Clerk is independently assigned with huge powers, he/she alone has to post (make) and authorize (check).  Thus, the decades-old time-tested practice which led to flawless banking is given a go-bye for a large number of transactions. This will make the Clerks very much vulnerable.  Due to the pressure of time and volume, mistakes are likely to happen exposing the Clerks to disciplinary action besides instant recovery of money that may be lost due to inadvertent credit to a wrong account/ excess credit etc.

More than an officer’s job

With the independently assigned huge powers to the clerical cadre, they have to perform more than an officer’s job. Presently officers are not at all required to perform both the jobs of posting and authorizing cash/clearing /transfer/other like vouchers. They are required to only authorize whatever job initiated by the Clerks. But in this proposal Clerks are assigned with such an enormous power forcing them to perform more than an officer’s job with the clerical salary.

Expanding duties of Clerks

The duties and responsibilities of Clerks do not end here.  They further expand:

  • Capturing account holder signature
  • KYC, e-KYC (Know Your Customer)
  • Recovery
  • Marketing including digital marketing and sensitizing customer about digital products/lending, Alternative delivery channels
  • Feeding data of credit proposals and loan products
  • Clearing, filling up ATM, Cash Deposit Machines and other similar machines and other related Alternate delivery channels
  • It was agreed to clarify and reiterate that the workman entrusted with duties attracting Special Pay is required to perform routine duties of his cadre.

Many of the duties hitherto assigned with the Officer cadre are now likely to be shifted to Clerical cadre according to this understanding. If this comes into force, hereafter the Clerks would be forced to go outside the premises to perform their jobs like marketing, recovery of loans etc. In that case, the counters will be left with no other person severely affecting the customer service. Further Clerks would be forced to complete the left-over jobs while they were away on duty. When the Clerks are in no way responsible for the loan sanctioned, they would be forced to go for recovery making them vulnerable.

Increased work load

With the heavy shortage, already the Clerks are suffering from huge work load.  With the expansion of their duties and increased powers and responsibilities, they would not be able to complete their job on time.  With the implementation of five-day banking, the working hours on all days are likely to increase by 40 minutes each day. Even today when they are forced to sit beyond their working hours by half-an hour to one hour, the extra 40 minutes will force them to stay further.  This would put the Clerks into greater strain and stress.

AIBEA CC seeks enhancement of the duties and responsibilities of workmen cadre

The Central Committee meeting of AIBEA held at Guwahati on 10th and 11th September 2023 has on the one hand observed that in many branches employees are unable to complete their daily routine work within the office hours and are compelled to sit late resulting in work-related stress and on the other hand decided that efforts should be made to make the workmen cadre more and more utility oriented with suitable enhancement of the duties and responsibilities. Normally only IBA used to place the demand for enhancement of the duties and responsibilities. But this time strangely the leadership of a particular Union is placing this demand.

Work-life balance of Clerks would be disturbed

The 12th Bipartite Settlement has many positive features like 17% increase in the pay-slip component, 5 days banking, improvement in leave rules, allowances etc. as understood.  The basic issues like merger of Special Allowance (this time with the accepted load of 3% in Basic Pay, Special Allowance is likely to increase from 16.4% to more than 25%), updation of pension, bringing all employees and officers covered by NPS (National Pension System) under defined Old Pension Scheme, merger at a higher point of Consumer Price Index etc. remain to be addressed.

Additionally, the increased powers & responsibilities and expansion of duties of Clerks, as proposed, will have serious negative impact.  The work-life balance of Clerks would be disturbed and is likely to increase their work-related stress multi-fold. If this would be the state of affairs of Clerks, the position of the Officers would be more pathetic. Hence, we appeal to the UFBU leaders to resist increased duties & responsibilities and expanded duties of the Clerks in the interest of all.

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