Press Information Bureau
Government of India
Ministry of Finance

Banks’ contribution to NPS Corpus of PSU Bank employees to be enhanced to 14%

Mumbai, 25 August 2021

In a bid to provide relief to families of bank employees, the Government has approved the Indian Banks’ Association’s (IBA) proposal to increase the family pension to 30% of last salary drawn. This move would make family pension go up to as much as Rs 30,000 to Rs 35,000 per family of bank employees. This was announced by the Secretary, Department of Financial Services, Ministry of Finance, at a press meet addressed by Finance Minister Smt. Nirmala Sitharaman in Mumbai.

Secretary, DFS informed that, in continuation of the 11th bi-partite settlement on wage revision of public sector bank employees, which was signed by the IBA with the unions on November 11, 2020, there was a proposal for enhancement of family pension and also the employers’ contribution under the NPS. This has been approved by the Finance Minister, he said. Shri Panda further said that “earlier the scheme had slabs of 15, 20 and 30 percent of the pay that a pensioner drew at that point of time. It was capped subject to a maximum of Rs 9,284/-. That was a very paltry sum and Finance Minister Smt. Sitharaman was concerned and wanted that to be revised so that family members of bank employees get a decent amount to survive and sustain”.

The Government has also approved the proposal to increase employers contribution under the NPS to 14% from the existing 10%.

Thousands of families of PSU bank employees will be benefited by the enhanced Family Pension, while increase in employers contribution will provide increased financial security to the bank employees under the NPS.

Finance Minister, as part of her two day visit to Mumbai reviewed the performance of the public sector banks and launched EASE 4.0 reform agenda for smart banking.

PIB

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Mumbai, May 22: Employees of public sector banks, old generation private sector banks and some foreign banks will be a happy lot as they will soon get 15 per cent pay hike, arrears for the last 30 months, and other benefits as part of a deal that the unions and bank managements have reached.

Unions, under the aegis of the United Forum of Bank Unions, and bank managements, represented by the Indian Banks’ Association, have worked out a detailed Bipartite Settlement/ Joint Note and the same will be formalised on May 25.

The benefits that about 7.50 lakh bank employees stand to get are a special pay, a new hospitalisation scheme backed up by insurance and holiday on every second and fourth Saturday in a month.

The back wages (arrears) that bank employees will get for the last 30 months will warm the cockles of their heart. Income tax authorities too will be happy as arrears will be taxable.
S Nagarajan, General Secretary, All India Bank Officers’ Association, said “A special allowance has been introduced for employees… there is a new hospitalisation scheme backed up by insurance.” The wage settlement will benefit 3,04,000 odd officers (as on March 31, 2012) in the banking sector.

Officers will get health insurance cover of Rs. 4 lakh and the clerical and sub-staff will get Rs. 3 lakh cover, he added.

A corporate buffer will be created by banks to reimburse hospitalisation expenditure exceeding the abovementioned limits.

Pointing out that the last wage settlement expired in October 2012, Nagarajan, in a lighter vein, observed that “Five years is the tenure of the wage settlement. We have already exhausted 30 months in coming to a settlement. It’s time now to submit the next charter of demands.”

Vishwas Utagi, Vice President, All India Bank Employees Association, said the wage settlement will benefit about 4.50 lakh clerical and sub-staff in the banking sector.

Bank employees will get close a couple of lakh rupees, on an average, as arrears in gross terms, he explained. Since payrolls are computerised, the arrears could be credited to employees’ accounts in a month.

Utagi said the issue of upgradation of pension of retirees and 100 per cent neutralisation of dearness allowance will be taken up by the United Forum of Bank Unions separately.

Read at: The Hindu Businessline

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(i) In support of the 10 point Charter of Demands of Central Trade Union;

The post Impacts of two days Banks Strike on 20th & 21st Feb, 2013 appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

The Central Government is disappointed to note that a section of the bank employees has decided to join the strike called by certain Trade Unions on February 20-21, 2013.

Prime Minister of India has made an appeal to the Trade Unions not to go strike. Government has also set-up a Group of Ministers to talk to the Trade Union leaders. So far as bank employees are concerned, there is really no reason at all to join the strike. None of the main points contained in the charter of demands has any connection with the bank employees. Banks provide employment to a large number of people and continue to recruit every year. Bank employees have social security cover. They hold regular jobs which carry attractive scales of pay. They receive bonus, PF and gratuity in accordance with applicable laws. They are entitled to pension.

In view of the above, the Government would once again appeal to the bank employees not to join the strike on February 20-21, 2013.

Source: PIB

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