Friday, January 17, 2014

Wage Revision & Pay Slip Component By Subramanian

WHAT IS THE DEFINITION OF ‘PAY SLIP COMPONENTS’?

IBA has used the phrase ‘pay slip components’ during the course of negotiations for 10th BPS.  This is the first time this phrase is ever being used in the context of bank staff wage revision.  As I started thinking what exactly IBA meant by this phrase, several things came to my mind. 

First, as a lay man, I thought that all the components of pay and allowances, as they appear on the left side of monthly pay slips, will be covered by this new terminology.

But, as I extended my logic further and further, I stumbled upon these ideas.
  1. All the items that are part of the standard pay slip can be covered by this phrase.  Then, naturally, on the deductions side, pension contribution for ‘Defined Contributory Pension Scheme’ (NPS) of the employee also figures.  So, will that also be counted as a pay slip component?
  2. But, NPS is applicable to only those who joined on or after 01-04-2010.  So, it cannot be the case, I reasoned.
  3. But, if contribution made by the bank for staff under old pension scheme and the contribution matching the DCPS contribution of the employee, as it appears in his pay slip, is also included? 
  4. No, such bank’s contribution is invisible and not reflected in the pay slip.  So, that may not be one of the ‘pay slip components’, logically thinking.
  5. Then, will ‘pay slip components’ include only Basic Pay, Special Allowance if any, D.A, HRA, CCA, PQP and FPP and nothing else?
  6. So, all other benefits, as detailed hereunder will be kept out of reckoning?
(a)    Pension (which includes commuted pension, normal pension and family pension)
(b)    Gratuity
(c)    Leave Encashment
(d)    Quarters and Leased Accommodation facility
(e)    Conveyance Allowance
(f)     Medical Aid
(g)    Hospitalisation Expenses (or Health Insurance Premium as proposed by IBA now)
(h)    LFC
(i)      Halting Allowance
(j)      Compensation on Transfer – Lump sum paid, Travelling Expenses, Transport of Personal Effects etc.
(k)    Telephones
(l)      Staff Welfare measures that include Canteen Subsidy, Newspaper/s, Entertainment Expenses, Educational Allowance/Grant for Children’s education (which is only a pittance), Merit Awards/Scholarships, Maintenance of Holiday Homes, Free Medical Check-up, Reimbursement of cost of spectacles/eye glasses, Residential furniture etc.
(m)  All loans on concessional terms
Let us wait and see how IBA explains this phrase and gives full break up.  We must also see how UFBU is going to respond to IBA’s definition in this regard.  Both IBA and UFBU must battle it out to reach a common ground in finding mutually acceptable meaning for this phrase, before proceeding further on actual wage negotiation.


Date: 17-01-2014                                                                                                         V Subramanian

2 comments:

  1. I feel that the Negotiators from the IBA side also do not know how to define the "Pay Slip Components". Probably, they might have explored all these days and come out with a definition to suit them on 27.01.2014 talks.

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  2. The fools from UFBU should have asked IBA to clear the term before accepting it. As per past record IBA will define it in a way which can give maximum loss to bank staffers.

    Most important thing is that this terminology has been suggested by IBA and one must not forget that this is a negotiation. The IBA can never offer anything which can result in benefit of opposite side.

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