Improvement in contribution by management for Contributory Pension Scheme for post-2010 employees (those covered by NPS) from 10% to 14%

In view of Government’s changed policy decision to shift from Defined Benefit Pension Scheme (DB) to Defined Contributory Pension Scheme (DC) and implementation of NPS from 2004 for Government employees, there had been attempts to introduce the same in the Banks also and NPS was introduced in the Banks from April, 2010.

In the scheme introduced for the Government employees, besides contribution of 10% of Basic pay by employees, Government would also contribute equal amount of 10%. Recently, the Government amended the scheme for the Government employees and increased their contribution to 14%. Hence this was taken by Workmen Unions in the Charter of Demands for the 11th Bipartite Settlement.

During the negotiations, IBA was initially reluctant to accept this demand, since this would add to the cost of establishment expenses and total wage bill. After a lot of persuasion and arguments, IBA Negotiating Committee agreed to the same but explained that it requires approval of the Government. Accordingly, in the final Settlement signed on 11-11-2020, the following provision was made.

Clause 18 (a) : In partial modification of Clause 15 (d) of Bipartite Settlement dated 27th April, 2010, in the case of all employees who have joined the Bank on and from 1st April, 2010 and who are governed and covered by the New pension Scheme/ Defined Contributory Pension Scheme, while the employee will continue to contribute 10% of Pay plus Dearness Allowance, the bank (including SBI) will make a contribution of 14% of Pay and Dearness Allowance from the date of settlement subject to approval of Government.

In terms of the above, the IBA had duly recommended the matter to the Government for their approval. We are happy that after due process, the Government has given its approval vide its communication to IBA dated 25-8-2021.

Thus, for all employees who have joined the Banks on and from 1-4-2010 and are governed by the Defined Contributory Pension Schemes (NPS), while their contribution will remain at 10%, management’s contribution will be increased to 14% w.e.f. 11-11-2020.

We are happy that we could secure this substantial benefit for our young employees who have joined the Banks in the last one decade.

  1. 13075
  2. 13730
  3. 14545
  4. 15360
  5. 16175
  6. 17155
  7. 18135
  8. 19115
  9. 20095
  10. 21240
  11. 22385
  12. 23530
  13. 24675
10695
11231
11898
12564
13231
14033
14834
15636
16438
17374
18311
19247
20184

23770 2377 24961 2469 26443 2644 27924 2792 29406 2940 31188 3119 32969 3297 34751 3475 36533 3653 38614 3861 40696 4069 42777 4278 44859 4486

19900 4736 20900 4974 22130 5267 23360 5560 24590 5852 26080 6207 27570 6562 29060 6916 30550 7271 32280 7683 34010 8094 35740 8506 37470 8918

24636
25874
27397
28920
30442
32287
34132
35976
37821
39963
42504
44246
46388

For the month of November, 2020 – CLERKS

Stage

BASIC PAY IN 10TH BPS

DA 81.8%

BP + DA

10 %

BASIC PAY IN 11th BPS

DA 23.8%

BP + DA

14 %

Addl. Monthly Contri- bution

3449

1072

3622

1153

3835

1191

4049

1257

4262

1322

4520

1401

4778

1481

5037

1562

5295

1642

5595

1734

5950

1881

6194

1916

6494

2008

For the month of November, 2020 – SUBSTAFF

Stage

BASIC PAY IN 10TH BPS

DA 81.8 %

BP + DA

NPS @ 10 %

BASIC PAY IN 11TH BPS

DA 23.8 %

BP + DA

NPS @ 14 %

Addl. Monthly Contri- bution

2513

775

2600

803

2686

830

2773

858

2860

886

2966

917

3073

950

3179

981

3286

1014

3393

1046

  1. 9560 7820
  2. 9885 8086
  3. 10210 8352
  4. 10535 8618
  5. 10860 8883
  6. 11270 9219
  7. 11680 9554
  8. 12090 9890
  9. 12500 10225
  10. 12910 10560

17380 1738 17971 1797 18562 1856 19153 1915 19743 1974 20489 2049 21234 2123 21980 2198 22725 2272 23470 2347

14,500 3451 15,000 3570 15,500 3689 16,000 3808 16,500 3927 17,115 4073 17,730 4220 18,345 4366 18,960 4512 19,575 4659

   17951
   18570
   19189
   19808
   20427
   21188
   21950
   22711
   23472
   24234

Yours comradely,

C.H. VENKATACHALAM GENERAL SECRETARY