Revision of pay and pension of Bank and Central Government Employees: Rajya Sabha Q&A

The Central Pay Commission recommendations are not applicable to the employees of Public Sector Banks (PSBs). The pay scales of employees in PSBs are revised every five years on the basis of the Bipartite Settlement signed with Workmen Unions and Joint Note signed with Officers’ Associations by Indian Banks’ Association (IBA). Accordingly, IBA negotiates salary and service conditions of employees. As part of negotiations, the terms of payment of pension are also discussed alongwith the salary revision. The service conditions of Central Government employees differ significantly from those of bank employees and the two are regulated by their respective service regulations. Hence, no comparison can be drawn between the two.

GOVERNMENT OF INDIA

MINISTRY OF  FINANCE

RAJYA SABHA

ANSWERED ON-06.08.2013

196 . SHRI A.A. JINNAH

(a) whether the Central Pay Commission benefits are not applicable for employees of banks;

(b) if so, how their salaries are revised;

(c) whether the salaries of employees of banks are revised on the recommendations of some other body; 

(d) if so, the name of such body;

(e) whether the Minister is aware that after the recommendations of the said body only the salaries of servicing  employees are revised and pensioners are ignored by these bodies; and

(f) if so, the detailed reasons for ignoring pensioners of nationalized banks by such bodies whereas separate recommendations are made by pay commission for Central Government pensioners?

ANSWER