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12TH BIPARTITE SETTLEMENT HIGHLIGHTS
In this article we will provide the 12TH BIPARTITE SETTLEMENT HIGHLIGHTS.
TRANSITION TO 5-DAY WORK WEEK
Pending government notification, all Saturdays will be recognized as holidays, allowing for a shift to a 5-day work week. The implementation of revised working hours awaits government confirmation.
SUBSTANTIAL SALARY INCREASE
The total wage revision increase surpasses Rs. 8284 crores, representing 17% of the overall expenses for employee pay in Public Sector Banks.
NEW PAY SCALES
The establishment of new pay scales entails merging Dearness Allowance corresponding to 8088 points, along with additional adjustments.
EFFECTIVE LOAD CALCULATION
In the process of merging dearness allowance (DA) with the basic pay, the effective load on the basic pay is determined to be 4.20%.
This calculation takes into account an applicable load of 3.22%, along with the existing dearness allowance standing at 30.38%.
It signifies the adjustment made to ensure that the increase in basic pay adequately reflects the impact of merging the dearness allowance.
CAIIB INCREMENT ACHIEVEMENT
Responding to the longstanding demand from officers, the agreement includes provisions for granting two additional increments for completing CAIIB (Chartered Associateship of Indian Institute of Bankers, Part-II).
This achievement acknowledges the dedication and expertise demonstrated by officers who attain this qualification, providing them with due recognition in terms of career advancement.
CAIIB COMPLETERS’ ELIGIBILITY
Officers who successfully complete the CAIIB (Chartered Associateship of Indian Institute of Bankers, Part-II) are now eligible for two increments.
This eligibility, effective from November 1, 2022, signifies a recognition of the enhanced skills and knowledge acquired through the completion of this professional certification.
It incentivizes officers to pursue further professional development opportunities, contributing to their growth within the banking sector.
BANK OFFICER SALARY 12TH BIPARTITE SETTLEMENT (click on this link)
PQP ENHANCEMENT
Officers can now receive three Professional Qualification Pay (PQP) instead of the earlier two. PQP-I amounts to Rs. 1370/-, PQP-II is Rs. 3425/-, and PQP-III is Rs. 5480/.
This enhancement provides recognition and financial benefits for officers who acquire additional professional qualifications.
INCREASED LOAD FOR CAIIB COMPLETERS
Officers completing the CAIIB (Chartered Associateship of Indian Institute of Bankers) qualification now experience a significant increase in the effective load.
This adjustment acknowledges the value and expertise gained through completing the CAIIB certification, ensuring fair compensation for their enhanced skills.
RESOLUTION OF CAIIB INCREMENT ANOMALY
The agreement addresses the internal inconsistency concerning the additional increment for officers completing the CAIIB qualification.
By resolving this anomaly, the agreement ensures fairness and consistency in the treatment of officers who attain this professional milestone.
ALSO CHECK
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STAGNATION INCREMENT ENHANCEMENT
Officers in various scales are set to benefit from increased stagnation increments, providing a boost to their long-term financial growth and recognition for their continued service and expertise.
SMG SCALE IV
From November 1, 2022, officers in SMG Scale IV will see a significant increase in stagnation increments.
Previously eligible for two increments, they will now receive five increments, each valued at Rs. 3360/- initially, followed by four increments of Rs. 3680/- biennially.
SMG SCALE V
Similarly, officers in SMG Scale V will experience a boost in stagnation increments.
Formerly entitled to one increment, they will now receive four increments from November 1, 2022, valued at Rs. 4000/- each, granted biennially.
TEG SCALE VI
Upon reaching the maximum of TEG Scale VI, officers will now be eligible for three stagnation increments every two years.
The first two increments will amount to Rs. 4000/- each, followed by the third increment of Rs. 4340/-, enhancing their long-term financial prospects.
TEG SCALE VII
Officers reaching the maximum of TEG Scale VII will also benefit from enhanced stagnation increments.
They will receive three increments of Rs. 4340/- each biennially, recognizing their continued dedication and expertise in their roles.
FITMENT ON PROMOTION
When an officer is promoted to a higher position, they will be assigned to a higher stage within the new pay scale.
This ensures that there is at least one increment increase in their pay compared to their previous position. This adjustment addresses any inconsistencies in the process of fitting officers into their new roles after promotion.
SPECIAL ALLOWANCE FOR VARIOUS SCALES
Different scales of officers receive special allowances calculated as a percentage of their basic pay with applicable DA. As of November 1, 2022:
 Junior Management Grade Scale I (JMGS I) officers are entitled to a special allowance of 26.50%.
Middle Management Grade Scale II (MMGS II) and Middle Management Grade Scale III (MMGS III) officers receive a special allowance of 28.30%.
Senior Management Grade Scale IV (SMGS IV) and Senior Management Grade Scale V (SMGS V) officers receive a special allowance of 30.50%.
Top Executive Grade Scale VI (TEG VI) and Top Executive Grade Scale VII (TEG VII) officers are entitled to a special allowance of 31.50%.
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PROPORTIONAL INCREASE IN FIXED PERSONAL PAY
The Fixed Personal Pay has been adjusted in proportion to the applicable Dearness Allowance (DA).
This ensures that officers receive a fair increase in their fixed personal pay in line with changes in the cost of living.
REVISED HOUSE RENT ALLOWANCE (HRA)
House Rent Allowance (HRA) has been updated based on the area of posting.
Officers will now receive HRA at rates of 8%, 9%, or 10% of their pay, depending on the location of their posting.
These revisions aim to provide officers with appropriate housing assistance based on the cost of living in different areas.
INCREASED HOUSE RENT ALLOWANCE (HRA) CAP
The capital cost linked to House Rent Allowance (HRA) has been raised to 12%, 13.5%, and 15%, respectively.
This means officers will receive a higher allowance to cover their housing expenses based on the area of their posting.
ENHANCED CITY COMPENSATORY ALLOWANCE (CCA)
City Compensatory Allowance (CCA) has been boosted to Rs 1900/- per month and Rs 2300/- per month, depending on where officers are posted.
This increase aims to better compensate officers for the higher cost of living in certain cities.
LOCATION ALLOWANCE
Starting from November 1, 2022, a fixed allowance of Rs. 1200/- per month will be given to all Officers stationed in areas not eligible for CCA.
This allowance ensures officers receive fair compensation even if they are posted in areas where CCA is not applicable.
DEPUTATION ALLOWANCE
Officers deputed to serve outside the bank in different locations will receive deputation allowance. The rate is set at 7.75% of Pay, capped at a maximum of Rs. 7500/- per month.
Similarly, officers deputed to another organization at the same location or to a training establishment not owned by the Bank will receive deputation allowance at the rate of 4% of Pay, with a maximum limit of Rs. 3750/- per month.
HALTING ALLOWANCE
During deputation to another office/branch within the same municipal limits/urban agglomeration, or in Metro/Major ‘A’ Class cities where the distance of such deputation is 20 km or more from the parent branch/office, halting allowance shall be provided.
This allowance aims to cover additional expenses incurred during temporary transfers.
HILL AND FUEL ALLOWANCE
Officers stationed in locations with varying altitudes will receive Hill and Fuel Allowance.
The allowance amount depends on the altitude of the location, ranging from 2% to 5% of Pay, with corresponding maximum limits per month.
This allowance aims to compensate officers for the challenges of working in high-altitude areas.
SPECIAL AREA ALLOWANCE
Special Area Allowance has been revised and extended to Central Government employees.
This revision ensures that officers working in special areas receive appropriate compensation for their service.
LEARNING ALLOWANCE
Learning Allowance has been increased to Rs 850/- per month, along with applicable Dearness Allowance (DA). This increase aims to encourage officers to pursue continuous learning and professional development.
OFFICIATING PAY
Starting from April 1, 2024, officers required to officiate in a higher-scale post for a continuous period shall receive officiating pay equal to 15% of the Basic pay of the person officiating.
This provision ensures fair compensation for officers temporarily assigned to higher roles.
ELIGIBILITY FOR BENEFITS
Officers receiving officiating pay will now also be eligible for superannuation benefits, Dearness Allowance, and House Rent Allowance.
This ensures that officers temporarily serving in higher roles receive comprehensive compensation packages.
MID ACADEMIC TRANSFER ALLOWANCE INCREASE
The Mid Academic Transfer Allowance per child has been raised from Rs 1650/- to Rs 2500/- per month.
This increase aims to support officers with academic transfers by providing additional financial assistance for their children’s education during the academic year.
RAISED CLOSING ALLOWANCE
The Closing Allowance has been increased to Rs 1500/- per quarter.
This allowance provides officers with financial support to cover expenses associated with closing duties or tasks at the end of each quarter.
 HALTING ALLOWANCE ENHANCEMENT
Halting Allowance has been increased by 50% across the board. Depending on the officer’s scale, the halting allowance now ranges from Rs 1800/- to Rs 4050/- per day.
This increase aims to better compensate officers for expenses incurred during temporary stays away from their base location.
 LUMPSUM COMPENSATION ON TRANSFER
The lump-sum compensation on transfer has been raised significantly:
 For Scale I to Scale III, the compensation is now Rs 40,000.
For Scale IV and above, the compensation has been increased to Rs 50,000. This increase aims to provide officers with greater financial support during transfers.
 TRANSFER BENEFITS
Upon transfer, officers will be entitled to either 15 days of lodging & boarding charges or 15 days of Halting Allowance from the date of joining at the new place.
This provision ensures that officers have adequate support to settle into their new location without financial strain.
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 MEDICAL EXPENSES REIMBURSEMENT
Officers in Junior Management Grade (JMG) and Middle Management Grade (MMG), excluding those in the State Bank of India (SBI), will receive Rs. 13,000/- per annum for medical expenses reimbursement starting from November 1, 2022.
Similarly, Officers in Senior Management Grade (SMG) and Top Executive Grade (TEG) Scales, excluding those in the SBI, will receive Rs. 15,400/- per annum for medical expenses reimbursement from the same date.
 INCOME CRITERION FOR DEPENDENTS
The income criterion for determining a “wholly dependent family member” as per the Definition of Family has been raised to Rs. 18,000/- from the previous Rs. 12,000/-.
This update ensures that more family members qualify for benefits based on their dependency status.
DEPENDENCY STATUS OF PHYSICALLY AND MENTALLY CHALLENGED CHILDREN
Physically and mentally challenged children, regardless of their age or marital status, will continue to be considered dependents as long as they meet the income criteria.
This provision ensures continued support for these dependents within the family structure.
FLEXIBILITY IN DEPENDENCY STATUS
Officers are now allowed to designate any two of their parents or parents-in-law as dependents.
Moreover, they have the flexibility to substitute either or both dependents once in a calendar year.
This change provides officers with greater control over their dependency status and benefits allocation.
ENHANCED ENTITLEMENT DISTANCE
The entitlement distance for travel benefits has been increased:
Officers in JMG-Scale-I, MMG-Scale II & III are entitled to travel up to 5,500 kms (one way).
For officers in Scale IV and above, the entitlement distance has been raised to 6,500 km (one way).
This adjustment accommodates longer travel distances for officers in higher scales, ensuring fair and adequate travel benefits across all levels.
TRAVEL ENTITLEMENTS
Junior Management Grade officers are entitled to travel in AC 1st class on any train, including premium trains like Rajdhani, Shatabdi, Tejas, Vande Bharat, and Amrit Bharat, except luxury trains.
Reimbursement of fare for premium trains (excluding luxury trains) is permitted for all officers.
If an officer’s Leave Travel Concession (LTC) or leave application is declined or deferred after booking tickets in advance, the bank will reimburse the cancellation charges.
Officers who have applied for LTC/leave within the stipulated time but cannot book train tickets in advance can claim reimbursement for tickets purchased under Tatkal or Premium Tatkal schemes.
TRAVEL EXPENSES
GST charges on train fare will be reimbursed over and above the entitlement.
The cost of train tickets charged on the booking date will be reimbursed, considering the dynamic fare system.
LEAVE POLICIES
Employees can avail LTC/Home Town LTC (HTC) independently when both spouses work in the same bank.
Air travel eligibility for distances beyond 500 kms has been reduced from 1000 kms.
Additional reimbursement under LTC will be provided for officers working in areas not connected by train.
SICK LEAVE POLICIES
Sick leave can be availed by a single male parent for the illness of his child aged 8 years and below.
Employees can take sick leave for the sickness of their Special Child aged 15 years and below, for a maximum period of 10 days in a calendar year.
All women employees are entitled to one day of sick leave per month without needing a medical certificate.
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AGE-RELATED SICK LEAVE
Employees aged 58 years and above are now eligible for special sick leave provisions.
 If their spouse requires hospitalization at a location away from the employee’s workplace, they can avail of sick leave for a maximum of 30 days per calendar year.
This provision acknowledges the additional caregiving responsibilities that older employees may face, ensuring they can support their spouses during times of medical need.
SICK LEAVE ENTITLEMENT
Every employee is entitled to sick leave based on their length of service.
For each year of service, they accrue one month of sick leave, up to a maximum accumulation of 720 days throughout their career.
This provision recognizes the importance of providing adequate time off for employees to recover from illness or attend to their health needs without compromising their financial stability.
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MATERNITY LEAVE MODIFICATION
A revision in the Leave Rules addresses specific circumstances related to maternity leave.
In cases where a woman gives birth to more than two children in a single delivery, the duration of maternity leave can be extended up to 12 months.
This modification ensures that mothers facing such exceptional situations have sufficient time to recover and care for their newborns without worrying about returning to work prematurely.
BEREAVEMENT LEAVE
To support employees during times of personal loss, bereavement leave is granted upon the death of certain family members, including spouses, children, parents, and parents-in-law.
The exact duration of bereavement leave is determined individually by each bank, allowing flexibility to accommodate varying needs and circumstances among employees.
This provision recognizes the importance of providing compassionate support to employees facing the emotional challenges associated with the loss of a loved one.
SPECIAL LEAVE FOR DEFENCE REPRESENTATIVES
Officers serving as Defence Representatives in departmental inquiries now receive special leave to prepare their defense submissions.
They are granted one day of special leave for this purpose, with a maximum limit of 10 such leaves.
This provision recognizes the additional responsibilities and time required for officers fulfilling this role, ensuring they have adequate preparation time to represent themselves effectively.
MATERNITY LEAVE FOR ADOPTION AND IVF TREATMENT
Female employees are eligible for maternity leave when legally adopting a child below one year of age.
They can avail of maternity leave for a maximum period of 9 months under this circumstance, with all other conditions remaining unchanged.
Additionally, maternity leave may also be granted for In vitro fertility (IVF) treatment, provided a medical certificate is produced. This allowance is within the overall limit of 12 months of maternity leave.
INTRODUCTION OF CASUAL LEAVE
A new provision introduces Four Half Day Casual Leaves for all employees, providing flexibility in managing personal and professional commitments.
Employees can avail of a total of two days of casual leave for half a day on four occasions throughout the year, with two occasions permitted in the morning and two in the afternoon.
This initiative aims to enhance work-life balance and accommodate occasional personal needs.
SPECIAL MATERNITY LEAVE FOR TRAGIC CIRCUMSTANCES
Special maternity leave of up to 60 days is now granted in case of a stillborn or the death of an infant within 28 days of birth.
This compassionate provision recognizes the emotional and physical toll of such tragic circumstances, providing affected employees with additional time off to grieve and recover.
PRIVILEGE LEAVE ENCAHSMENT AND LEAVE BANK SCHEME
Employees can now encash accumulated privilege leave up to 255 days at the time of retirement or in case of death while in service.
Additionally, a Leave Bank Scheme has been introduced as a staff welfare initiative. This scheme allows employees to voluntarily encash their privilege leave, with the monetized value pooled under a Leave Bank system.
Special leave is sanctioned to employees facing contingencies who have exhausted all their regular leaves, ensuring they receive support during challenging circumstances.
PERIODICAL HEALTH CHECKUP SCHEME
All banks are mandated to develop and implement a scheme for the regular health checkups of their employees, especially where such provisions are currently unavailable.
This initiative aims to promote employee wellness and ensure early detection of any health issues.
ANNUAL EYE CHECK-UP REIMBURSEMENT
Employees will now be entitled to reimbursement of up to Rs. 500 per year for an annual eye check-up.
This measure emphasizes the importance of eye health and encourages employees to undergo regular screenings for early detection of eye-related issues.
REVIEW OF NPS PROVISIONS
A committee will be established to review the provisions of the National Pension Scheme (NPS) in alignment with those applicable to Central Government employees.
This review will particularly focus on aspects such as the choice of fund schemes and fund managers to enhance the benefits provided under the NPS for bank employees.
ADDITIONAL EX-GRATIA FOR PENSIONERS
An additional ex-gratia amount will be disbursed monthly to all pensioners, in addition to their regular pension or family pension provided by public sector banks, including the State Bank of India (SBI).
This extra payment aims to provide further financial support to pensioners during their retirement years.
UNIFORM DA NEUTRALIZATION FOR PENSIONERS
Pensioners will receive Dearness Allowance (DA) rates on a uniform basis with 100% neutralization, similar to the rates applicable to current employees, officers, and family pensioners.
This ensures equitable treatment and financial stability for all pensioners.
GUIDELINES ON DISCIPLINARY PROCEDURES
Comprehensive guidelines on Disciplinary and Appeal Regulations will be formulated through mutual discussions within three months from the signing of the joint note.
These guidelines aim to streamline disciplinary procedures and ensure fairness and transparency in handling disciplinary matters.
REVIEW OF SPECIAL PROVISIONS FOR SBI
Special compensatory provisions applicable to the State Bank of India (SBI) for certain benefits, as outlined in the joint note, will be reassessed and resolved at the bank level.
This review aims to ensure equity and consistency across all banks regarding employee benefits.
LTC MONETIZATION SCHEME
A scheme similar to the Leave Travel Concession (LTC) Monetization Scheme implemented by other banks in the industry will be developed for all banks, covering airfare expenses.
Further deliberations will be conducted to evolve this scheme, providing employees with additional flexibility in utilizing their leave benefits.