The current 10th Bipartite Settlement on wages and service conditions of bank employees ended on 31st October 2017. The settlement was sign in May 2015 with 15 percent hike. As the 10th bipartite settlement ended, the new pay scales and other components of wages and service conditions of bank employees need to be revised form 1st November 2017.
What is the bipartite settlement?
Salary is an important factor for every working professional. Everybody wants increment in a regular interval. In the public sector banks pay revision takes place on the basis of bipartite settlement. The settlement takes place between Indian Banks’ Association (IBA) and United Forum of Bank Unions (UFBU). IBA is representing bank managements while United UFBU is representing officers, employees, and staff organizations.
11th Bipartite Settlement negotiation focuses on the merger of Dearness Allowance (DA) and basic pay, the percentage of a hike or the load factor/amount and distribution of the load to different components of salaries.
The expected outcome of the settlement:
Introduction of variable pay: Both parties are likely to introduce variable pay. The banking Union are demanding a salary that is at par with the central government employees with the revision of Seventh Pay Commission. However, some banks like State bank of India and Punjab National Bank said that there should be performance-based remuneration.
Improvement in Pay scale: Revision of Basic Pay by merger of D.A. payable at the average index for the quarter July-September 2017.
Better Gratuity: There is demand of removal of ceiling on gratuity under the Gratuity Act. Last drawn ‘Pay’ or 12 months average Pay, whichever is higher, should be taken for computation of Gratuity.
Dearness Allowance (DA): DA to be paid based on CPI (2001=100) Index Series instead of CPI (1960=100) Series. It should revise on monthly variation in Index.
Children education Allowance: There is demand to be paid Education Allowance to all employees (Maximu 2 children)
More Allowances: There should be increase in all existing other allowances like Cycle Allowance, Washing Allowance, Split Duty Allowance, Project Area Compensatory Allowance, Hill and Fuel Allowance, Water Scarcity Allowance, Compensation on Transfer, etc
Improvements in Service Conditions for Women Employees: Women should be posted to their hometowns or nearby. They should get maternity leave of 2 years in combination with other leave like sabbatical and child care leave.
As per the statement released by Bank Employees Federation of India (BEFI) the 11th bipartite settlement effective from 1st November 2017, will be valid for next three years. This settlement on wage revision will benefit nearly 8-9 lakh bank employees and officers of 21 public sector banks. As the talks between the two parties has begun. The agreement is expected to be finalized soon.