11th Bipartite Settlement - Charter of Demands
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This is the 1st part of a 3-part series of articles
related to the Charter of Demands for the 11th Bipartite
Settlement by Mr. Pannvalan. Watch out for rest soon !
Click here for part 2
We are all aware that the Department of Financial Services, Ministry of Finance
has set the ball rolling for commencement of 11th BPS 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,
So, I have now been tempted to initiate the process, by making these
Before proceeding further, we must remember 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.
Their new basic pay is expected to vary from 2.57 to
2.78 times their present pay.
Even at the pre-revised level (i.e. 6th CPC level),
their Basic Pay is higher than the revised Basic Pay of the bank staff, after
Alright, let us now proceed to arrive at the new Basic Pay to be fixed in 11th
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 annual inflation will be 6% for the next 2 years).
2. Accordingly, the DA as on 31-10-2017 on the exiting basic pay will be at
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
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% (additional load factor) is given
and fixed as the revised Basic Pay. It is then rounded off to the next higher
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.
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(Amount in Rupees)
Components of Revised
Sub-staff to Officer MMGS
Officer SMGS IV & SMGS V
Officer TEGS VI & TEGS
Present Basic Pay (Notional)
Special Allowance as per 10th
BPS (excluding D.A. thereon)
Total of (1) and (2) above
D.A. as on 31.10.2017 (Projected)
calculated on (3) above
Total of (3) and (4) above
Revised Basic Pay, after adding 40% additional load on (5)
Existing Basic Pay
Revised Basic Pay
900/8 - 1100/8 - 1400/3
1500/3 1900/8 2400/8
Officer JMGS I
2400/7 2900/2 3500/7
Officer MMGS II
Officer MMGS III
3500/5 - 4200/2
Officer SMGS IV
4200/4 - 5000/2
Officer SMGS V
Top Executive TEG VI
Top Executive TEG VII
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.
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Some Important Points 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.
7. If we cannot achieve revision as projected
here, we must demand CPC scales or a separate Banking Pay
Commission. For that to happen, disbanding of UFBU is a sine qua
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