Friday, August 30, 2013

UNDERSTANDING WAGE REVISION PROCESS-2


Too many questions posted on
 “What will the new salary for me after 10th B.P.S?”
My reply is “Sorry, We can’t predict at this stage”
Why?  IBA has not at all announced quantum of wage increase in Rupees, or % of increase.
Even if it announced, it will fall short of our expectations.
We have to fight, struggle, strike to get adequate increase.

After finalizing the exact quantum or % of increase, it should be applied to various heads like
B.P., H.R.A, SPL.ALLOW., P.Q.A, F.PA., MEDICAL AID, HALTING ALLOWANCE,LFC  etc.,
Also for P.F. contribution, Pension Old and New, Gratuity, etc.,
By increasing certain heads by certain amount,
How many employees will be benefited? And
Which section of employees will be benefited? These questions will arise.

To quote one example, take LFC. fare are decided by railway department.
We can only increase distance or class of travel. If we increase distance by % of increase in every settlement the distance will cross our country go beyond also.
Reimbursement of Hospitalisation will not be availed by all.
So far, wage increase arrived and agreed in quantum of rupees only.

For example, in 9th B.P.S amount of increase was 2577 crores. When converted  in %,  it came to 17.5% of last year wage bill. Even out of this 13% of 17.5% (2.275%) was set aside for excess expenditure on pension. Hence, out of the remaining  amount different heads are increased with different %.
For example annual Medical Aid was increased from Rs.1500 to 2000 i.e 25% ( for clerk)
In L.F.C distance is increased from 1750 K.M to 2000 K.M for 2 year block for clerk i.e.14.28%

Even in Basic Pay all stages are not increased equally. Please read the following table.
BASIC PAY

8TH B.P.S
AFTER MERGER
9TH B.P.S
INCREASE

OF D.A 24.66%
final

4410
5498
6200
12.78
4625
5766
6600
14.47
4840
6034
7000
16.02
5055
6302
7400
17.43
5390
6719
7900
17.57
5725
7137
8400
17.70
6060
7554
8900
17.81
6530
8140
9500
16.70
7000
8726
10100
15.74
7470
9312
10700
14.90
7940
9898
11300
14.16
8440
10521
12000
14.05
8940
11145
12700
13.96
9440
11768
13400
13.87
10000
12466
14100
13.11
10560
13164
14800
12.43
11120
13862
15500
11.81
11680
14560
16200
11.26
12650
15769
17500
10.97
13210
16468
18300
11.13
13770
17166
19100
11.27
14330
17864
19900
11.40
14890
18562
20700
11.52
15450
19260
21500
11.63
16010
19958
22300
11.73
16570
20656
23100
11.83
0
0
23900

**From 01.04.2010 Rs.1000 added to all stages taken from spl.allow.
This is just transfer of amount from one head to another.
You may see that the increase is not 17.5% or evenly increased for all stages.
Considering all these aspects how can we calculate our new salary.
Let us wait for an agreement of wage revision be signed. 
Then start calculating our new salary and arrears.

Moreover, economic situation of the country is becoming worse day by day. Bank profits are beaten.
Wage revision depends on profitability and paying capacity also.
In the 7th B.P.S Three banks including INDIAN BANK were denied of wage arrears from  01.11.1997 to 30.06.2000. Arrears were paid after two years from the settlement date as the balance sheet of these banks were in red at that time.

In this background  how we are going to get a reasonable increase in wages?
For that we have miles to go, you know?
Till such time avoid the question “What will the new salary for me after 10th B.P.S?”                   






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