EXPECTED DEMAND FOR ALLOWANCES IN XTH BPS BASED ON NEW CRITERIA OF CLASSIFICATION OF CITIES

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We have recently uploaded anticipated pay scales based on certain projection by one of the readers V. Subramanian [ pannvalan@yahoo.co.in ]. That did not include the projections for allownances. Now Mr Subramanian has sent us the detailed working for demanding the revised allowances. Though, the final demands will be placed to IBA only by UFBU and other unions, yet we feel this is a good attempt as a starting point. Readers can give their views so that the message can reach union leaders.

TENTH BIPARTITE SETTLEMENT – PROPOSED MINIMUM CHARTER OF

DEMANDS REGARDING OTHER ALLOWANCES

Allowance	EXISTING	REVISED
D. A.	0.15% per slab on the pre-revised basic pay	0.15% per slab on the revised basic pay
H.R.A.	8.5%/ 7.5%/ 6.5% of the present basic pay depending on the population group	10% to 30% of the revised basic pay depending on the revised classification of the centres (please see attachment for further details), without any ceiling
C.C.A.	3% for lower CCA centres and 4% for higher CCA centres with a maximum of Rs.375 and Rs.540 respectively.	5% to 10% of the revised basic pay depending on the revised classification of the centres (please see attachment for further details), without any ceiling
PQP - 1	Rs.410	Equal to one increment in the last stage of the scale
PQP - 2	Rs.1,030	Equal to 2 increments in the last stage of the scale
FPP	In case of FPP, the current FPP is protected and on promotion to the next higher grade/scale only, on reaching the maximum of the scale, FPP equivalent to the last increment in the scale is granted with DA thereon, basing on the index prevailing at the beginning of the settlement period (01-11-2007). This will remain frozen till the settlement period ends.	FPP is proposed to be fixed at the amount equal to the previous increment drawn plus DA thereon, basing on the index prevailing at the beginning of the settlement period (01-11-2012). This way, the anomaly in FPP will vanish. On reaching the maximum of the scale, FPP equal to one increment in the last stage of the revised scale plus DA (as on 01-11-2012) thereon is granted. This will remain frozen till the settlement period ends.
Medical Aid	Up to MMGS III - Rs.5,100 SMGS IV and above – Rs.6,320	Up to MMGS III - Rs.12,000 SMGS IV and above – Rs.15,000
LFC – Home Town	Frequency – Once in the sub-block of 2 years, in the main block of every 4 years. Effectively, it is once every 4 years only. Distance - There is no restriction on the distance between the present place of work and the home town.	If the distance between the place of work and the home town is 500 KMs and above, home town LFC is permitted *every year.* Otherwise, no home town LFC is allowed.
LFC – Anywhere in India	Distance – Without restriction on the distance, any place in India can be reached by the shortest railway route. But, the place of destination must be mentioned beforehand and such place must be touched, even if a roundabout journey is undertaken. (Reimbursement will however be restricted to the distance by the shortest railway route by the eligible class of by train).	4500 KMs one way for officers up to MMGS III and 6000 KMs one way for SMGS IV and above (There is no need to name any destination beforehand). Circuitous journey is also allowed within the overall distance (both ways) of 9000 KMs/12000 KMs. Within the overall eligibility, expenditure on travel to foreign countries may also be reimbursed.
Halting Allowance	Up to MMGS III – Rs.600/Rs.700/Rs.800/Rs.1000 SMGS IV and above – Rs.700/Rs.800/Rs.1000/Rs.1200	Up to MMGS III – Rs.800/Rs.1000/Rs.1200/Rs.1500 SMGS IV and above – Rs.1200/Rs.1500/Rs.1800/Rs.2000

POPULATION GROUP – NEW CLASSIFICATON THAT CAN BE PROPOSED BY UNIONS

It is proposed to reclassify the places/centres, according to the latest population figures of such places/centres. It is as follows.

S No	Population of the Place/Centre	Classification
1	Up to 25,000	Rural
2	25,001 to 200,000	Semi-Urban
3	200,001 to 15,00,000	Urban
4	15,00,001 to 50,00,000	Metropolitan
5	Above 50 Lakhs	Megalopolis

H.R.A. Payable on the basis of Population Groups

S No	Population of the Place/Centre	H.R.A. Payable (as % of Basic Pay plus other allowances ranking for P.F.)
1	Up to 25,000	10.00
2	25,001 to 200,000	15.00
3	200,001 to 15,00,000	20.00
4	15,00,001 to 50,00,000	25.00
5	Above 50 Lakhs	30.00

Note: There is no ceiling on the HRA Amount payable.

C.C.A. Payable on the basis of Population Groups

S No	Population of the Place/Centre	C.C.A. Payable (as % of Basic Pay plus other allowances ranking for P.F.)
1	500,001 to 15,00,000	5.00
2	15,00,001 to 50,00,000	8.00
3	Above 50 Lakhs	10.00

Note: There is no ceiling on the CCA Amount payable.

Hill Allowance Payable on the basis of the Altitude of the Place

S No	Altitude of the Place/Centre (in Metres)	Hill Allowance Payable (as % of Basic Pay plus other allowances ranking for P.F.)
1	1500 to 3000	5.00
2	3000 to 6000	8.00
3	Above 6000	12.00

Note: There is no ceiling on the Hill Allowance payable.

Comments by Rajesh Goyal :

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In one of the comments on our earlier page, it has been advised by one of the retired bankers that it is a futile exercise to put up all such projections and we should chanelise our energies for updation of pension etc. I pondered upon the issue and decided to continue with our present strategy. We have to always remember that each section of the bankers will be expecting to drive the maximum benefit for themselves in the BPS. This is human nature. I myself being a retired banker would love updation of the pension to be top of the agenda, but in every BPS there is and will always remain the main focus on serving employees. Thus, as head of AllBankingSolutions, I have to keep my personal interests at bay and see that we take up the issues relating to each Group. Last time 2nd pension option was one of the major achievements of unions (it was for serving and partially for retired bankers), though it was with a cost and few were left even out of the scope of that. AllBankingSolutions is already fighting for covering the left over bankers for 2nd pension option. Left over bankers feel that is the most important issue and issue of updation of pension can wait. Bankers who could not get full gratuity feel that should be the top priority and other issues can be taken up at a later stage.

Thus, we are trying to cater to each group of bankers. Please do not blame us if in a particular article we address the issues relating to only one group. I would like that my retired friends who are dreaming of updation of pension should remember that it will involve huge costs, and banks will fight against it till the last. Certainly there is a strong case for updation of pension. However, the banks will start thinking of updation of pension only when certain Court verdicts point towards the same. No union at present is ready to go to Court on this issue. In recent times number of groups have fought for 2nd Pension option in various courts on their own but unions failed to even support this demand on the floor of the Courts Inspite of favourable verdicts, IBA and GoI is avoiding issuing the circular and union leaders are silent. Retired bankers need to wait and see what are demands placed by unions for them and what is the response of IBA towards demands relating to retired bankers. In case they fail to meet their aspirations, a strong movement will be needed at national level to create awareness for the need for updation of pension for bankers. There may be need to fight the same legally. I am sorry that as usual on other topics, I am blunt here and some of our affected readers may not relish the same. But these are facts. I request our fellow retired bankers to send us all the material, arguments, legal judgments etc relating to updation of pension so that we can start building the base for appropriate action.

I would again like to place on record that AllBankingSolution.com is not a party in the negotiations. We are here to create awareness among the bankers and give words to their aspirations. Based on the facts and data, bankers (retired and serving) can put pressure on union leaders to move towards the desired goals. In the past I have seen that bankers were merely spectators as they did not have data to counter union leaders who kept all details close to their chests till the BPS was signed.

With the above base, we open this page for seeking your views as to how other allowances should be worked out. I am fully aware that final shape for such allowances has to be based on number of other factors which Mr Subramanian may not be fully aware. However, the above are the minimum expectations of general banker. Moreover, I feel the above demands are reasonable and can be improved based on the additional inputs available with UFBU and unions.

You can give your feedback / comments about this Article. Please give only relevant comments as irrelevant comments are waste of time for yourself and our other readers.