11th Bipartite Settlement Latest News July 2020 – 15% salary Hike for Bank Employees

11th Bipartite Settlement Latest News July 2020 – 15% salary Hike for Bank Employees

Indian Banks’ Association

Minutes of the discussions held on 22nd July 2020 between IBA representing Management of banks which are parties to the Bipartite Settlement and Workmen Unions and Officers’ Associations on wage revision

Discussions were held between the Indian Banks’ Association representing Managements of banks and the authorized representatives of Workmen Unions and Officers’ Associations on wage revision for officers and workmen in banks.

The Management and the Unions representing Officers and Workmen staff. acknowledge the need for a robust banking system which is responsive to the challenges facing the country and the need to improve further the productivity, efficiency and responsiveness to the needs of the customers and various stakeholders. With this commitment, it has been agreed to resolve the pending wage settlement issue and enter into an MoU as under-

1. The wage revision will be effective from 1.11.2017.

2. The annual wage increase in salary and allowances is agreed at 15% of the wage bill as on 31-3-2017 which works out to Rs.7,898 crores on Payslip components.

3. The new pay scales will be constructed after merging Dearness Allowance corresponding to 6352 points (average Index point as applicable for the Quarter of June, July, August 2016) and adding thereon a loading of 2.50% on Basic Pay plus Dearness Allowance as on 31st March 2017 amounting to around Rs. 1155/- Crores.

4. Distribution of annual wage increase between Workmen and Officers will be worked separately and proportionately based on breakup of establishment expenses as on 31.3.2017.

5. In today’s Banking scenario, there is stiff competition amongst different category of banks i.e., Public sector, Private sector, Foreign banks. In order to inculcate a sense of competition and also to reward the performance, the concept of Performance Linked Pay is felt to be introduced. After prolonged discussions and deliberations on this matter, it has been agreed to introduce Performance Linked Incentive (PLI) in Public Sector Banks, which will be based on Operating/ Net Profit of the individual bank (optional for private & foreign banks). The PIA is payable to all employees annually over and above the normal salary payable. The PLI matrix decides the amount payable to the employees (in number of days of pay-Basic+DA) depending on the annual performance of the bank. All the employees will get the number of days of pay as incentive depending on where in the matrix the bank’s performance fits in, broadly as per Matrix under :

(The PLI will be applicable from FY- 2020-21)

6. From the calendar year 2020, besides encashment of PL at the time of retirement and during availment of LFC, PL Encashment would be permitted at 5 days every calendar year (7 days in case of employees/officers of 55 years of age and above) at the time of any festival of their choice.

7. It has been agreed to increase the banks contribution to the NPS fund to 14%, i.e. 14% of Pay & Dearness Allowance instead of the present rate of 10% from the prospective date of signing the settlement subject to approval of the Govt.

8. All other issues of the Managements and Unions/Associations discussed during the process of negotiation will be settled to the mutual satisfaction.

9. The parties will meet on mutually convenient dates to draw out a detailed Bipartite Settlement/Joint Note on the various issues on which consensus positions have been reached. The parties will endeavor to finalize the Bipartite Settlement /Joint Note within a period of ninety days from the date of these minutes.

Signed at Mumbai on 22nd July 2020

• For Management – 9 Officers signed
• For Workmen Unions/Officers Associations – 9 Staff side members signed
• Witness: 3 officers signed

11th Bipartite Settlement: Bank Employees Wage Revision effective from 1.11.2017

Annual Salary Hike: The annual wage increase in salary and allowances is agreed at 15%. Distribution of annual wage increase between Workmen and Officers will be worked separately and proportionately based on breakup of establishment expenses as on 31.3.2017. [Click to read more]

Next 11th BPS Meeting – UFBU Meeting with IBA will be held on 22.7.2020

• Next 11th BPS meeting will be held on 22nd July 2020 between Negotiating committee of IBA and United Forum of Bank Unions (UFBU). [Click to read more]

Bipartite talks on 22 July 2020: Bank issues like Merger of Special Allowance with Basic Pay

Expected to talk about the main issues on this meeting.

• Merger of Special Allowance with Basic Pay
• Loading after merger of DA
• 5 day banking
• Improvement of family pension
• Updation of pension.
• Click to read more

Click to download the minutes as pdf

11th Bipartite Settlement News Latest 2020 – IBA Letter to UFBU

Formation of Working Groups consequent to the Signing of MoU dated 22nd July 2020

As per the IBA letter dated 13th August 2020, the total increase in basic pay and merged Dearness Allowance is capped a 2.50%, the remaining amount i.e., 12.50% (15% – 2.5%) needs to be distributed amongst other remaining pay slip components. Such as HRA, CCA, Annual Medical Aid, etc., for both Workmen and Officers, so that the overall cost does not cross Rs. 7898 Crores. [Click to read in detail]

Latest Development on 11th BPS

• LFC for Bank Employees after 11th Bipartite Settlement November 17, 2020
• 11 Bipartite Settlement – Complete Details of New Pay Scale, Increment, DA, HRA, TA and Special Allowance November 15, 2020
• 11th Bipartite Settlement Salary Chart for Workmen and Officer November 11, 2020
• 11th Bipartite Settlement New Pay Scales November 11, 2020
• 11th Bipartite Settlement Officers and Workmen PDF November 11, 2020
• 11 Bipartite Settlement – CC Meeting on 7th November 2020 November 11, 2020
• 11th Bipartite Settlement: 5 day week, Revision of pension in RBI pattern and Uniform DR October 23, 2020
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• 11th Bipartite Settlement News Latest 2020 – IBA Letter to UFBU August 13, 2020
• 11th Bipartite Settlement: Bank Employees Wage Revision effective from 1.11.2017 July 23, 2020
• 11th Bipartite Settlement Latest News: Minutes of meeting held on 22.7.2020 July 23, 2020
• 11th Bipartite Settlement Latest News July 2020 – 15% salary Hike for Bank Employees July 22, 2020
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• Wage Negotiation: Negotiating Committee Meeting with Unions/Associations February 13, 2018
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