(Staff circular 7325 dated 24.12.2020)

1. SCALES OF PAY:

SCALE – I 36000 1490/7 46430 1740/2 49910 1990/7 63480
SCALE – II 48170 1740/1 49910 1990/10 69810
SCALE – III 63840 1990/5 73790 2220/2 78230
SCALE – IV 76010 2220/4 84890 2500/2 89890
SCALE – V 89890 2500/2 94890 2730/2 100350
SCALE – VI 104240 2970/4 116120
SCALE – VII 116120 3220/4 129000

Fitment: Fitment shall be stage-to-stage i.e. on corresponding stages from 1st stage onwards and the increments shall fall on the anniversary date as usual.

2. STAGNATION INCREMENTS:

  • Officers in JM Grade Scale I who have moved to scale of Pay for MMG II in terms of Regulation 5(b) after reaching maximum of the higher scale are presently eligible for four stagnation increments. With effect from 1st November 2017, these officers will be eligible for five stagnation increments. The first four stagnation will be released after every two completed years of service, of which first two shall be Rs.1990/- each and next two shall be Rs.2220/- each. The fifth stagnation increment of Rs 2220/-will be released two years after receipt of fourth stagnation increment or w.e.f. of 1st November 2017, whichever is later.
  • Officers in MMG Scale II who have moved to scale of Pay for MMG Scale III in terms of Regulation 5(b) after reaching maximum of higher scale shall be eligible for four stagnation increments. With effect from 1st November, 2017 these officers will be eligible for five stagnation increments. First four stagnation increment of Rs2220/- will be released after every two completed years of service after reaching the maximum on the higher scale .The fifth increment of Rs2220/-will be released two years after release of fourth stagnation increment or  w.e.f 1st November 2017,whichever is later.
  • Officers in substantive MMG Scale III i.e. those who are recruited in or promoted to MMG Scale III shall be eligible for five stagnation increments. Those officers shall now be eligible for total six stagnation increments. First four stagnation increment of Rs2220/- after every two completed years and the next two increments of Rs2500/- each, two years after receipt of the fourth stagnation increment. The sixth stagnation increment of Rs2500/-will be released two years after release of fifth stagnation increment or w.e.f 1st November 2017, whichever is later.
  • Officers in SMGS-IV shall be eligible for one stagnation increment of Rs.2500/- two years after reaching the maximum of scale. These officers will now be eligible for one additional stagnation increment of Rs.2730/-after two years of receipt of first stagnation increment or w.e.f 01.11.2017., whichever is later.
  • Provided further that the stagnation increments received by the officers from scale I to scale IV who are/were in service of the banks as on 1st November, 2017 as per periodicity hereinbefore would be readjusted from three-year periodicity to two-year periodicity from the date of reaching their maximum and officer shall be notionally eligible for stagnation increments w.e.f 01.11.2017 in terms of this joint note as per the revised periodicity which will qualify for superannuation benefits. However, monetary benefit on account of such revised and readjusted periodicity of stagnation increments shall be payable from 1st November 2020 or the actual date of entitlement whichever is later.
  • Officers in SMGS-V shall be eligible for one stagnation increment of Rs2970/- for two years after reaching the maximum of scale or w.e.f 01.11.2020, whichever is later.

3. DEARNESS ALLOWANCE:

On and from 01.11.2017, Dearness Allowance shall be payable for every rise or fall of four points over 6532 points in the quarterly average of the All India Average Working-Class Consumer Price Index (General) Base 1960=100 at 0.07%.

4. HOUSE RENT ALLOWANCE: [w.e.f. 01.11.2017]

I II
i) Major “A” Class Cities and Project Area Centres in Group A 9% of Pay
ii) Other Places in Area I and Project Area Centres in Group B and state of Goa 8% of Pay
iii) Other places 7% of Pay

Provided that if an officer produces a rent receipt, the House Rent Allowance payable to him/her shall be the actual rent paid by him/her for the residential accommodation in excess over 0.50% of Pay in the first stage of the Scale of Pay in which he/she is placed with a maximum of 150% of the House Rent Allowance as payable as per aforesaid rates mentioned in Column II above.

Note: The claims of officer employees for House Rent Allowance linked to the cost of their ownership accommodation shall also be restricted to 150% of House Rent Allowance as hitherto.

5. CITY COMPENSATORY ALLOWANCE: (w.e.f 1.11.2017)

  Area   Rate
i) Places in Area I and in the State of Goa Rs.1,400/-p.m.
ii) Places with population of Five lakh and over and State Capitals and Chandigarh, Puducherry and Port Blair.   Rs.1,150/-p.m.

6. Location Allowance (Non- CCA Centres) (w.e.f 1.11.2017):

Effective 1.11.2017 a fixed allowance of Rs.700/-pm is payable to all officers posted in areas other than the areas that are eligible for CCA. This fixed allowance shall not be reckoned for payment of DA, superannuation benefits, viz, pension including NPS, PF and Gratuity.

7. Learning Allowance:

With effect from 1.11.2017, officer shall be paid Learning allowance of Rs.600/-together with applicable Dearness Allowance thereon.

8. SPECIAL ALLOWANCE: (w.e.f. 01.11.2017)

With effect from 01.11.2017, Officers shall be paid Special Allowance as under:

Scale I – III -16.40% of Basic Pay + applicable Dearness Allowance thereon.

Scale IV – V    -19 % of Basic Pay + applicable Dearness Allowance thereon.

Scale VI – VII – 20% of Basic Pay + applicable Dearness Allowance thereon.

Note: The Special allowance with applicable DA thereon shall not be reckoned for superannuation benefits, viz, Pension including NPS, PF and Gratuity.

9. Pension (Including State Bank of India):

a). As per extant regulations, pension payable to officers is based on the average of the emoluments drawn in the last ten months preceding the retirement of the officers in terms of regulations 2 and 38 of the pension regulation .For the purpose of payment of pension, the pay of the officer retiring on or after 1st November, 2017 will be taken on the basis of the pay as is provided under this settlement. However in the case of officers who have retired from the services of the Banks, on or after 1st November 2017 but before 31st August 2018 since the period of preceding ten months will constitute pay both under this settlement as well as pertaining to settlement dated 25th May 2015, in such case, the following procedure will be adopted for determining pension payable to them.

  • For the period of ten months falling as and from 1st November 2017,the actual pay drawn by the officer under this settlement ;and
  • For the Period failing prior to 1st November, 2017, the actual pay drawn by the officer plus Dearness allowance at the rate of 47.8 percent thereon will be notionally reckoned as pay for the purpose.

With effect from 1st November 2017, the pay as defined under clause 6 of this settlement and drawn by the officers who are member of pension fund shall be taken into consideration for the purpose of calculation of Pension Fund Rules/Regulations in force.

b). Option not to claim incremental commutations on revised basic pension Officers in service of the Bank as on 1st November 2017 and who have retired thereafter but before the date of this settlement and who had opted for commutation pf pension will have an option not to claim incremental commutation on revised basic pension.

c). Dearness Relief on Pensions

With effect from 1st November,2017,in respect of officers who retired or died while in service on or after 1st November ,2017,Dearness Relief shall be payable at 0.07% per slab on the Basic Pension or Family Pension or Invalid pension or compassionate allowances as the case may be, Dearness Relief in the above manner shall be paid half yearly for every rise or fall of 4 points over 6352 points in the quarterly averages of the All India Consumer Price Index for Industrial workers in the series 1960=100.

10. PROVIDENT FUND:

Officers who are presently covered under the Bank Employees’ Pension Regulations, 1995/96 shall continue to contribute 10% of the Pay towards Provident Fund and there shall be no matching contribution.

  • Officers of State Bank of India will continue to be covered by Contributory Provident Fund Scheme as hitherto.
  • Officers who are presently covered under contributory Provident Fund Scheme who did not opt for Pension Scheme available under Joint Note dated 27th April 2010 shall continue under the Contributory Provident Fund Scheme as hitherto.

11. New Pension Scheme:

Officers except in state Bank of India, who are governed by New Pension Schemes w.e.f 01.04.2010, will continue to contribute 10% of pay plus Dearness Allowance and the Bank will make a contribution of 14% of pay plus dearness allowance from the date of signing of joint note subject to approval of the government.

  • Officers in State Bank Of India who are governed by New Pension Scheme w.e.f 01.08.2010 will continue to contribute 10% of the pay + Dearness Allowance and the bank will make a contribution of 14% of Pay + Dearness Allowance from the date of signing of the Joint Note subject to approval of the Government.
  • The service charges by the Service Provident /Fund Manager of NPS will be borne by the bank from the FY2021.

12. MEDICAL AID (Other than State Bank of India):

On and from 1st November 2017, reimbursement of Medical Expenses shall be as under:

  1. Officers in JMG & MMG Scales – Rs.10, 300/- p.a.
  2. Officers in SMG & TEG Scales – Rs.12, 300/- p.a.

13. RECOVERY OF HOUSE / FURNITURE RENT:

House rent recovery shall be @ 0.50 % of the first stage of the scale of pay in which the officer is placed or the standard rent for the accommodation, whichever is less. Furniture rent recovery shall be @ 0.10% of the first stage of the scale of pay in which the officer is placed.

14. FIXED PERSONAL PAY: (w.e.f. 01.11.2017)

Fixed Personal Pay together with House Rent Allowance shall be at the following rates and shall remain frozen for the entire period of service.

(A) Increment Component (Rs.) (B) DA as on 01.11.2012 (Rs.) (C) Total F.P.P. payable
where bank’s accommodation is provided (Rs.)
1990 53 2043
2220 59 2279
2500 66 2566
2730 73 2803
2970 79 3049
3220 86 3306

Note:

  • F.P.P. as indicated in “C” above shall be payable to those officer employees who are provided with bank’s accommodation.
  • F.P.P. for officers eligible for House Rent Allowance shall be “A” + “B” plus House Rent Allowance payable on the last increment of the relevant scale of pay.
  • The increment component of F.P.P. shall rank for superannuation benefits.
  • Only Officers who were in the service of the bank on or before 01.11.1993 will be eligible for FPP one year after reaching the maximum scale of pay there are placed.

15. PROFESSIONAL QUALIFICATION PAY (PQP): (w.e.f. 01.11.2017)

(A) Officers shall be eligible for professional qualification pay as under:

i. Those who have passed only CAIIB – Part I / JAIIB Rs.1020/- p.m. one year after reaching top of the scale-II.

ii. Those who have passed both parts of CAIIB –

(a). Rs.1020/- p.m. one year after reaching top of the scale.

(b). Rs.2250/- p.m. two years after reaching top of the scale.

(B) An Officer employee acquiring JAIIB/CAIIB (either or both parts) qualifications after reaching the maximum of the scale of pay, shall be granted from the date of acquiring such qualification the first installment of PQP and the release of subsequent installments of PQP shall be with reference to the date of release of first installment of PQP.

16. OTHER ALLOWANCES:

(I). Deputation Allowance (w.e.f. 01.11.2020)

Deputation Allowance shall be at the following rates:

  1. An Officer deputed to serve outside the bank 7.75% of Pay with a maximum of Rs.6000/- p.m.
  2. An Officer deputed to an organization at the same place or to the training establishment of the bank 4% of Pay with a Maximum of Rsa.3000/- p.m.

(II). Hill and Fuel Allowance (w.e.f. 01.11.2017)

Place Rate
a) Places with an altitude of 1000 meters and above but less than 1500 meters and Mercara Town 2% of Pay subject to                a maximum of Rs.1125/- p.m.
b) Places with an altitude of 1500 meters and above but less than 3000 meters. 2.5% of Pay subject to a maximum of Rs.1500/- p.m.
c) Places with an altitude of 3000 meters and above 5% of Pay subject to a maximum of Rs.3000/- p.m.

(III). Halting Allowance (w.e.f. 01.11.2020)

Grade / Scales of Officers Metro Major                     “A” Class Cities Area I Other Places
Officers in Scale VI & Above 2700 1950 1650 1425
Officers in Scale IV & V 2250 1950 1650 1425
Officers in Scale I/II/III 1550 1650 1425 1200

(IV). Special Area Allowance (w.e.f. 01.11.2017)

At places where special area allowance is payable in terms of Regulation 23(ii) of Officers’ Service Regulations,

1979/1982, the said allowance shall be payable at rates as in Annexure V.

Note: Please find Annexure V   (Joint Note dated 11th Nov.2020) Staff circular 7325

(V). Definition of Family

Clause 14(vii) of Joint Note dated 25.05.2015 is modified as under:-

For the purpose of medical facilities and for the purpose of leave fare concession the expression ‘family’ of an employee shall mean:

  • The employee’s spouse, wholly dependent unmarried children (including step children and legally adopted children), wholly dependent physically and mentally challenged brother/sister with 40% or more disability, widowed daughters and dependent divorced / separated daughters, sisters including unmarried / divorced / abandoned or separated from husband / widowed sisters as also parents wholly dependent on the employee.
  • The term wholly dependent family member shall mean such member of the family having a monthly income not exceeding Rs.12, 000/- p.m. If the income of one of the parents exceeds Rs.12, 000/- p.m. or the aggregate income of both the parents exceeds Rs.12, 000/- p.m., both the parents shall not be considered as wholly dependent on the officer employee.
  • A married female employee may include her natural parents or parents-in-law under the definition of family, but not both, provided that the parents/parents-in-law are wholly dependent on her.

NOTE: For the purpose of medical expenses reimbursement scheme, for all employees male/female any two of the dependent parents / parents-in-law shall be covered. The officer employee will have the choice to substitute either of the dependents or both.

Physically Challenged children of employees to be defined as dependents irrespective of age or marital status, subject to income criteria.

17. PROJECT AREA ALLOWANCE:

On and from 1st November 2017, Project Area Compensatory Allowance shall be payable at the following rates:

  1. Project Areas falling in Group A – Rs.600/- p.m.
  2. Project Areas falling in Group B – Rs.525/- p.m.

18. MID ACADEMIC YEAR TRANSFER ALLOWANCE: (Wef 01.11.2020)

On and from 01.11.2020, Mid Academic Year Transfer Allowance shall be payable at Rs.1650/- p.m. subject to other conditions.

19. SPLIT DUTY ALLOWANCE:

On and from 1st November 2020 Split Duty Allowance shall be payable at Rs. 300/- p.m.,

20. COMPENSATON ON TRANSFER: (w.e.f. 01.11.2020)

An Officer on transfer will be eligible to draw a lump sum amount as indicated below for expenses connected with packaging, local transportation, insuring the baggage etc.

Grade/Scale of Officer Rs.
Officers in Scale IV and above 30,000/-
Officers in Scale I, II and III 25000/-

21. Privilege leave (As per Annexure):

22. MATERNITY LEAVE (As Per Annexure):

23. Date of effect:

For payment of arrear, the benefits under various provisions as above shall be from November 2017, unless otherwise specified against the relevant provisions.

24. New Introduction:

(As per Joint note dated 01.11.2020)

I. Annual in catchment of privilege leave

From the calendar year 2020, privilege leave encashment shall be permitted at the rate of 5 days for each calendar year at the time of any festival of the employee’s choice. Employees who have completed 55 years of age as on 1st January 2020 and above shall be entitled to encash at the rate 7 days for each calendar year till retirement as a one-time measure.

II. Performance linked incentive scheme

The wages settle during wage revision at industry level are paid by all banks uniformly, irrespective of the size of the banks and their financial strength. In today’s challenging environment, where there is a stiff competition among banks, a genuine need is felt to allow banks to pay their employees something extra by way of encouragement as per the profitability and financial soundness of the respective banks. In order to inculcate a sense of competition and also to reward the performance, the concept of productivity linked pay was discussed and after discussion between the parties it is agreed to introduce performance linked incentive scheme in public sector banks which will be based on operating profit/ net profit of the individual Bank (optional for private and foreign bank) the PLI shall be payable to all employees annually over and above the normal salary payable. The people Matrix shall decide the amount payable to the employee (in number of days of pay = basic + DA) depending on annual performance of the of the bank.

All the employees shall get the maximum number of days of pay as incentive depending on where in the matrix the banks performance fits in, broadly as per the matrix as under:

SR.N YoY growth in operating profit No. of days for which salary (Basic+ DA) shall be paid
1 <5% NIL
2 5% to 10% 5 Days
3 >10% to 15% 10 Days*
4 >15% 15 Days*

3rd and 4th slabs are payable only if the bank has Net Profit. If a bank has growth in operating profit of 5% & more ,but there is no Net Profit, then minimum 2nd slab of 5 days will be payable.

(The PLI will be applicable from a FY 2020- 21)

III. Family Pension

subject to approval by the government it is agreed that family pension shall be payable at the uniform rate of 30% of the pay of the deceased employee and that there shall be no ceiling on family pension it is agreed that these pension provisions when approved by the government shall apply to SBI also.