11th Bipartite Settlement Latest News 2020: Bank Employees Wage Revision effective from 1.11.2017
Salary Revision from 1.11.2017
The wage revision will be effective from 1.11.2017 for Bank employees.
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.
Merger of DA with Basic Pay
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.
Introduction of Performance Linked Incentive (PLI)
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 pay Matrix under :
PLI Matrix Table
|SI. No.||YoY Growth in Operating Profit||No. of days for which Salary (Basic + DA) all be paid|
|2||5% to 10%||5 days|
|3||>10% to 15%||10 days*|
|*3rd & 4th slabs are payable only if the Bank has Net Profit. If a Bank has growth in Operating Profit of 5% & more, but there is no Net Profit, then minimum 2nd slab of 5 days will be payable|
LFC and PL Encashment
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.
National Pension System (NPS)
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.
Also Check: Central Government Pay Matrix Table 2022 PDF