February 27, 2015

NEW BASIC AND ARREAR FOR BANK OFFICERS

Basic+ 60.15% = New Pay * 2% = New Basic &
13% will be distributed as HRA, CCA & other salary slip components .......
Old BP New NP Incrse Arrear
14500 26700 5127 138429
15100 27800 5332 143964
15700 28900 5538 149526
16300 30000 5744 155088
16900 31100 5949 160623
17500 32200 6156 166212
18100 33300 6361 171747
18700 34400 6566 177282
19400 35700 6829 184383
20100 37000 7091 191457
20900 38500 7410 200070
21700 40000 7728 208656
22500 41400 7914 213678
23300 42900 8233 222291
24100 44400 8551 230877
24900 45900 8870 239490
25700 47300 9055 244485
26500 48800 9374 253098
27300 50300 9693 261711
28100 51800 10011 270297
28900 53200 10197 275319
29700 54700 10515 283905
30600 56400 10890 294030
31500 58200 11189 302103
Exclusive of Arrear for sat...

‪‎Wage‬ ‪‎Revision‬ ‪‎X Bipartite‬ ‪‎Settlement‬ : Calculations

Old ‪#‎Basic‬ ‪#‎Pay‬ + Add 60.15% ‪#‎DA‬ as ‪#‎Merger‬ + 2% Load = New Basic
‪#‎HRA‬ will be increased by 10 bps approximately
New ‪#‎Allowance‬ may be introduced for rest 3% or other ‪#‎Salary‬ ‪#‎Slip‬Allowance may be hiked
‪#‎Officers‬ having ‪#‎Leased‬ ‪#‎Accomodation‬ will not see much increase
‪#‎Banks‬ ‪#‎Management‬ will get benefitted as ‪#‎PF‬ to be deduct only on Basic & Only 2% hike in Basic
‪#‎Staff‬ retiring up to 31.10.17 will be in loss as ‪#‎Pension‬ calculates on last 12 month basic and only 2% increase in basic will not affect much to them
‪#‎Award‬ staff see higher growth as HRA will increased in salary slip.
#DA ‪#‎slabs‬ to be reduced to 0.10 from 0.15
Only benefit we got 2 Saturday off.... One step towards ‪#‎5DayBanking‬
Ask your leaders if not believe.....

UNDERSTANDING ‎DA‬ ‪‎MERGER‬ AND ‪‎WAGE‬ ‪‎REVISION‬ PROCESS!!

UNDERSTANDING ‪#‎DA‬ ‪#‎MERGER‬ AND ‪#‎WAGE‬ ‪#‎REVISION‬ PROCESS!!
________________________
In the meeting 12.08.2013 it is decided to merge 4440 points of CPI with Basic pay.
What does it mean?
As on 01.11.2011 CPI was 4440 for D.A calculation i.e 401 slabs, 60.15%(@0.15% per slab)
As on 01.11.2012 CPI was 4876 for D.A calculation i.e 510 slabs, 76.50% (@0.15% per slab)
Now after merging 4440 points D.A. for balance 436 points i.e 109 slab will remain.
This 109 slab will not be calculated @ 0.15% as it will lead to giving D.A on D.A +basic.
Hence it will be reduced.
To what extent?
In 8 th bi-partite settlement D.A. merger was at 2288 points. % per slab was 0.18%
In 9th bi-partite settlement D.A. merger was at 2836 points. % per slab was 0.15%
How 0.18 became 0.15?
It is simple maths. (2288/2836)*0.18=0.145=0.15%
Likewise this time it will be (2836/4440)*0.15=0.0958=0.10%
This rate is not announced officially, but this is the method of calculation.
What is the effect of merging D.A with Basic Pay?
Example:
On 01.11.2012 Basic Pay =8000. D.A. (old)=6120 (@76.50%)
Total=14120
On 01.11.2012 Basic Pay=12812. (160.15% of 8000).D.A. (New)=1396.50(109*0.10%)
Total=14208
Now, Basic pay of 8000 becomes 12812.
IBA has not revealed the % of wage increase yet.
Any % announced will be calculated on 12812 and not on 8000.
This is the effect of D.A.merger.
All our benefits like ‪#‎HRA‬, ‪#‎CCA‬, ‪#‎PF‬ ‪#‎CONTRIBUTION‬, ‪#‎PENSION‬,‪#‎COMMPUTATION‬,‪#‎LOAN‬ ‪#‎ELIGIBILITY‬ etc.,are calculated on the basis of basic pay only. Hence we have to increase Basic pay substantially.
Therefore this merger point is a good one.
Effective date from 01.11.2012 and its importance:
In previous ‪#‎settlements‬ effective date was postponed by an year or so and different heads like B.P, D.A.,Spl.Allow, etc., was given effect on different dates therby loosing the arrears substantially.
This time it is achieved from the day one.
Posted as received.

February 25, 2015

Payment Banks - 5 Day Banking

RBI has invited applications for Payment Banks, just tried to analyse the impact of these banks on us (PSB’s).  Both positive and negative aspects have emerged and also very high probability of five day banking.
According to RBI, payment banks can perform the following
  • Open CASA accounts, initially they will be restricted to a maximum balance of 1.00 lac. ( RBI says initially later on they may withdraw this ceiling )
  •  Act as a Business Correspondent for other Banks.
The above two are the most important features for detailed guidelines please visit RBI websitehttp://rbi.org.in/scripts/bs_viewcontent.aspx?Id=2900.
SBI,  Reliance Joint Venture for payment bank, SBI with its vast experience in banking and reliance known for its ability to roll out world class  projects within stipulated time is a deadly combination. Within a span of 5 years, their Kiosks, and BC’s( In number ) will exceed our branches.
Positive side of this, No crowd in branches.  Each bank will have a tie up with one or other payment bank for acting as a BC.  They will handle all our receipts and payments. Our role will be confined to taking care of lending.  We can focus on more profitable avenues, No Jandhan accounts headache.
Negative side, we will loose our importance, no further recruitment, bargaining power of unions will come down, we may even see cost to company, variable pay etc.,  Common man will not be affected even if we go on strike for one month. It will be easy for the government to merge the banks.  No promotions because banks will stop opening new branches.  Stagnation in career for all young bankers. Biggest of all our CASA will come down drastically, and accordingly our profitability.
Now being private these payment banks may even work 24*7 with shift. Their employees will be mostly locals with a salary of 10 to 15k.  I expect that stand alone BC’s with an HHM ( Hand Held Machines ) will even work for 12 hours per day.  As per RBI guidelines, payment banks can render their services through their own branches, ATM’s, and Business Correspondents.
Now with all payment banks coming in and taking care of Cash Management, we can certainly hope for a 5 day week.  We are busy in our wage revision no union has opposed introducing payment and small banks which are going to take on us in a big way.  Imagine the situation where in the maximum limit of 1.00 lacs is removed our CASA  will go down drastically draining our profits.  We may get our 5 day banking, but think about our future, its bleak.  We are the strongest lot in the financial sector, many may not know the fact that the insurance  wage settlement is based on our bipartite.  Payment and small banks are going to weaken us. ( Public Sector Banks ).  Time to think,  hope unions will take care of this after the bipartite.

10 th Bipartite Arears Chart

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