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.
- 13075
- 13730
- 14545
- 15360
- 16175
- 17155
- 18135
- 19115
- 20095
- 21240
- 22385
- 23530
- 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
- 9560 7820
- 9885 8086
- 10210 8352
- 10535 8618
- 10860 8883
- 11270 9219
- 11680 9554
- 12090 9890
- 12500 10225
- 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