 |
|
||||
|
|
|||||
|
|
Follow AllBankingSolutions @ 
|
FINANCIAL IMPLICATIONS OF THE IMPENDING WAGE REVISION – A LAYMAN’S CALCULATIONS
by
Pannvalan
|
Ads by Google
1. Salaries not paid/saved on account of strike action undertaken by the staff are an important source of funding our future wage revision. As per one conservative estimate, for every day strike, the wages saved are Rs.103 Crores (even asssuming that only 80% of the bank staff participate in strike). 2. If we see the past history, before every wage settlement, strike action for a minimum period of 6 days has been resorted to, on an average. So far (in 2013 and 2014), bank staff have gone on general strike on 5 days. Thus, the amount saved on account of strike is Rs.515 Crores so far. 3. Amount saved due to the advancement of the cut-off date for D.A. merger, resulting in lower revised pay scales. This has resulted in revised Basic Pay becoming lower by 20% and gross emoluments per month coming down by Rs.3,000 to Rs.20,000. This way, loss for bank employees is nearly Rs.700 Crores per year. 4. Interest on arrears saved due to the inordinate delay in reaching the settlement. This amount if quantified will be around Rs.120 Crores for 2 years from 01-11-2012. 5. Amount likely to be carved out of the proposed wage increase for meeting pension costs. At 6% of Rs.56,292 crores (cost of wage bill for FY 2011-12), it touches Rs.3,378 Crores. 6. Interest saved in crediting the Provident Fund and Pension Fund after a long gap. This may be approximately Rs.160 Crores for 2 years from 01-11-2012
Ads by Google
7. Not extending the benefit of wage revision to pensioners who retired from banking service, before a specified date (so far in the past, this date was the effective date of the implementation of the latest settlement). As there is no accurate statistical data is available for this purpose, we may take this figure to be around Rs.800 Crores. This is not savings, but only the amount sacrificed by the persons retired prior to the settlement commencement date. Hence it is not taken into account, for our calculations here.
8. Lastly, the amount saved in conveyance, electricity, fuel, canteen subsidy, telephones, water etc. on the days of strike, although it may appear very meagre at the branch/office level. This may be about Rs.75 Crores at the national level.
9. If we consider a hike of 40% in the total wage cost, it works out to Rs.22,517 Crores.
10 If we total the losses discussed under Points No.2 to 9 (excluding 7), it is Rs.4,948 Crores.
11. If we reduce this amount (Rs.4,948 Crores) from the overall load proposed (Rs.22,517 Crores), the net increase in wage bill on account of 10th BPS is only Rs.17,569 Crores per year.
12. In terms of pay slip components, it translates to Rs.9,832 Crores (a hike of 31.2%). Cannot we afford this much? .
|
