Implication OF DA Merger Date For Bank Staff

IMPLICATIONS OF MERGING DEARNESS ALLOWANCE AT 4440 POINTS

As we are all aware, on 12-08-2013, IBA has made the offer to merge D.A. at 4440 points (60.15%) as on 31-10-2011 with the present Basic Pay, as against merger of D.A. at 4876 points (76.50%) as on 31-10-2012 (This was one of the major demands of UFBU).  Thus, IBA has cleverly reduced the benefit of D.A. merger by one year.

At the time of implementation of 6th CPC recommendations, the entire D.A. of GOI staff as on 31.12.2005 was merged with their Basic Pay.  For GOI employees, their revised pay scales were implemented with effect from 01-01-2006.   

While merging the entire D.A. as on 31-12-2005 with Basic Pay for Central Government employees, the average AICPI for the 12 months ended December, 2005 was 115.76 in 2001=100 series.  The corresponding AICPI in 1960=100 series was 2642 points.  

It must be borne in mind that even at 2642 points merger, the Basic Pay plus Grade Pay of Central Government staff was higher than the Basic Pay of Bank Staff in each grade/scale after 9th BPS, in which merger of D A was done at 2836 points.  Thus, even merging DA at higher AICPI level, we could not derive better benefits than the central government staff.

Thus, the construction of new pay scales itself was faulty and detrimental to us in 9th BPS.  If it is left uncorrected in 10th BPS, the injustice will only exacerbate.

Suppose the D A of 76.50% (basing on the average AICPI for the quarter ended 30-09-2012) is merged with the Basic Pay, the new Basic Pay will be higher by 16.35% without any additional load.

If a modest load of 20% is added to the Basic Pay after DA merger, then the revised Basic Pay will be 19.62% higher than what it will be, if the present offer of IBA for merger at 4440 points (60.15%) is accepted as it is.  In Rupee terms, the loss for each officer will vary from Rs.4,000 to 20,000 every month.

If IBA does not want to advance the cut-off date for merger of D A with Basic Pay from 30-09-2011 to 30-09-2012 as demanded by UFBU, then the UFBU must demand additional load of not less than 30% and also better D.A. compensation package in the new settlement (0.15% for each slab to be continued).

Obviously, we can't expect IBA to merge the total DA prevailing on the date of signing the 10th BPS.

After 01-01-2016 (the date of effect of 7th CPC), a peon in central government will earn more than an officer in JMGS I in banks.

If UFBU cannot achieve 6th CPC scales for bank staff even now, can this be called a wage revision at all?

Think.

Date: 15-08-2013                                                                                                         V Subramanian