DEARNESS ALLOWANCE PAID TO CENTRAL GOVERNMENT STAFF AND BANK STAFF – A COMPARISON

This is the history of Dearness paid to Central Government Staff and Bank Staff, since 01-11-2007.

(D. A. in %)

Comparative Facts About DA in Banks Vs Central Government - A Wake Up Call for UFBU

1.    As can be seen from the above statistics, D.A. % of bank staff has always been higher than the D.A. % of central government staff from November, 2008 onwards and until 30-06-2013 this trend continued.

2.    As on 01-11-2007, some residual D.A. was left for the bank staff, as the entire D.A. was not merged with their Basic Pay.

3.    Whereas in case of Central Government staff, their entire D.A. got merged with their Basic Pay from 01-01-2006 onwards.

4.    Since central government staff have Grade Pay, in addition to Basic Pay, for all levels and cadres/grades, their Basic Pay and Grade Pay put together is much higher than the Basic Pay of the bank staff in the comparable rank and grade. 

5.    It may please be remembered that even the Transport Allowance paid to central government staff is reckoned for computing their D.A. 

6.    Thus, for central government staff, the aggregate of Basic Pay, Grade Pay and Transport Allowance is counted for computing D.A.

7.    But in case of bank staff, only their Basic Pay (which is pretty lower than the aggregate of these 3 referred in Point No.6) is taken for calculating D.A.

8.    For central government staff, the D.A. for each half-year is calculated basing on the average AICPI (Base 2001=100) for the 12 months preceding the half year concerned. To elaborate further, for D.A. as on 01-07-2013, the average AICIPI (Base 2001=100) for 12 months ended 30-06-2013 is considered.

9.    Dearness Allowance for the central government staff is calculated by using the following formula.

Dearness Allowance = (Average of AICPIN for the past 12 months – 115.76)*100/115.76 (ignoring fractions) and inflation neutralization at 100% at all levels.

10.  In case of bank staff, their D.A. for a particular quarter is calculated basing on the average of AICPI (Base 1960=100) for the 3 month period preceding the current cycle of D.A. To explain further, D.A. from 01-08-2013 is arrived at, by taking the average of AICPI for the months of April, May and June, 2013.

11.  In case of Central Government staff, the D.A. compensation per slab as per 6^th CPC works out to 0.16% approximately.

12.  In case of Bank Staff, the D.A. compensation is only 0.15% per slab as per 9^th BPS.

13.  It may please be noted that 115.76 points in 2001=100 series is equal to 2642 points in 1960=100 series.  This was the yearly average index level as on 31-12-2005.

14.  D.A. of bank staff was merged at 2836 points in 1960=100 series, when 9^th BPS was implemented from 01-11-2007.  Despite merger of D.A. at a higher level (2836 points) than the government staff (2642 points), the salary of bank staff is less than that of Central Government staff, because of faulty construction of pay scales and lesser D.A. compensation per slab for the bank staff.

15.  Only major difference is, D.A. paid to bank staff is revised at quarterly intervals and for central government staff, D.A. is revised at half-yearly intervals.

16.  Since our Basic Pay is far below the aggregate of Basic Pay, Grade Pay and Transport Allowance of Central Government staff, we stand to lose heavily, in comparison, if we look at the gross emoluments per month.

17.  Another area where we lose heavily is the HRA. At present, our HRA percentage is a cruel joke (Maximum: 8.5%), as compared to the HRA of central government staff (Max: 30%).

18.  One may be tempted to point out that we are paid reasonable rents for the leased accommodation provided by the bank. Here also, I wish to clarify the following points.

(a)  Clerks and Sub-staff don't get leased accommodation.

(b)  In case of central government employees, regardless of their grade, each one is provided government quarters (Railways/BSNL/CPWD Quarters), subject to availability, in most of the cities/towns throughout the country.

(c)  Bank staff are posted to remote corners and very far off places by their managements. So, to mitigate their hardships, the banks are duty bound to provide some reasonable accommodation to their staff. (In this case also, the rents paid by many of the banks are not at all in tune with the market rates and bank officers are forced to shell out substantial amount from their pocket every month).

(d)  Bank staff are subjected to many more number of transfers than their counterparts in the government service, during their entire career.

(e)  Because of very frequent transfers that too outside their linguistic area and that too far away from their place of domicile, bank staff in general and bank officers in particular are compelled to maintain two establishments – one at the place where their family lives and the other at their place of work.  This results in huge drain of resources – financial, accumulated leave etc. and deterioration of health.  Enormous strain and stress are felt by the officers in their daily life.  They lose mental peace and lead a life that is full of agony and pain, till their retirement.

19.  We must also remember that the central government staff enjoy stagnation-free running scale of pay, throughout their career.  Bank staff reach their stagnation too early in their life – many of them before they attain 40 years of age.  This is a great injustice to the bank staff, considering the fact that as one gains more knowledge, skills and experience as one moves forward in the organisation, his salary does not change and he gets stuck at a position for decades.

20.  Pension for the central government staff gets automatically revised upwards, whenever there is a wage revision for them.  This facility remains a distant dream for bankers.

Date: 05-08-2013     

PROJECTED D.A. FROM MAY, 2014

The AICPI-IW (1960=100) for January, 2014 was 237 and for February, 2014, the index stood at 238.

As per the present trend in retail inflation, the index may remain unchanged at 238 for March, 2014 too. If it happens, the D.A. will fall to 97.05%, from the existing level of 99.90%.

Even if the index records a modest rise of 1 point and touches 239 for March, 2014, yet there will be a downfall and the revised D.A. will be only 97.35%. 

When the central government employees are getting D.A. of 100% on their Basic Pay, Grade Pay and Transport Allowance effective 01-01-2014, it is regrettable that our D.A. that is already below this 100% mark has started its downward journey (D.A of Central government employees will be at 100% till 30-06-2014 and our new D.A. from May, 2014 will be in force till 31-08-2014).

For retaining the D.A. at the present level of 99.90%, the index must increase by 10 points in March, 2014 (touching 248 points), registering an inflation of 4.20% in one month (i.e.50.40% annualized), which is ruled out.

D.A. of bank staff was merged at 2836 points in 1960=100 series, when 9^th BPS was implemented from 01-11-2007.  Despite merger of D.A. at a higher level (2836 points) than the central government staff (2642 points), the Dearness Allowance of bank staff is less than that of Central Government staff, because of faulty construction of pay scales and lesser D.A. compensation per slab for the bank staff.

Moreover, if the central government employees get 50% of their present D.A. merged with their Basic Pay, as an interim measure, the difference will widen further. I shudder to think of the situation after the 7^th CPC is fully implemented.

Will UFBU wake up at least now?