Compression ratio of minimum Basic Pay of Group D employees and Group A officers under different Pay Commissions of Central Government – BANK Employees.

Compression ratio of minimum Basic Pay of Group D employees and Group A officers under different Pay Commissions of Central Government – BANK Employees.

Central Pay Commission	Minimum Basic Pay (Group D) Rs.	Minimum Basic Pay of Officer Grade (Group A) Rs.	Compressi on Ratio
III CPC (1973 to 1985)	196	700	1: 3.57
IV CPC (1986 to 1995)	750	2200	1: 2.93
V CPC (1996 to 2005)	2550	8000	1: 3.13
VI CPC(2006 to 2015)	7000   (Band Pay 5200 + Grade Pay 1800)	21000 (Band Pay 15600 + Grade Pay 5400)	1: 3
VII            CPC(2016 onwards)	18000	56100	1: 3.11

Table: 2

Compression ratio of minimum Basic Pay of Sub-Staff and Officer Grade under different Bi-partite Settlements in Banks

Bi-partite Settlements	Minimum Basic Pay (Sub-Staff) Rs.	Minimum Basic Pay of Officer Grade Rs.	Compression Ratio
2nd Bipartite (01.01.1970)	116	500 (01.01.1970)	1: 4.31
3rd Bipartite (01.09.1978)	245	700 (01.10.1979)	1: 2.85
4th Bipartite (01.07.1983)	430	1175 (01.02.1984)	1: 2.73
5th Bipartite (01.11.1987)	815	2100 (01.11.1987)	1: 2.57
6th Bipartite (01.11.1992)	1600	4250 (01.11.1992)	1: 2.65
7th Bipartite (01.11.1997)	2570	7100 (01.11.1997)	1: 2.76
8th Bipartite (01.11.2002)	4060	10000 (01.11.2002)	1: 2.46
9th Bipartite (01.11.2007)	5500	14500 (01.11.2007)	1: 2.63
9th Bipartite (01.05.2010)	5850	14500	1: 2.47
10th Bipartite (01.11.2012)	9560	23700 (01.11.2012)	1: 2.47

We insist that the anomaly created in the last wage revision by providing special allowance with DA instead of Basic Pay has to be rectified this time. The merger of special allowance and DA with the Basic Pay has been done already for LIC Officers and RBI Officers.

A standardization of salary and allowances for Bank staff has been done by a Committee famously known as the Pillai Committee which gave certain recommendations in 1974 which were further discussed and rationalized and implemented in 1979.

Pillai Committee had taken into account the guidelines of UN publication, handbook of Civil Service Law and practices 1966, which mentioned 3 major requirements of sound pay structure viz..inclusiveness (pay structure in relation to other sectors of economy) comprehensibility (an easy quick picture of gross emoluments) and adequacy (to attract right type of persons and retain them). The Pillai Committee added 2 more viz.. rationality (functions and responsibility of posts ) and career planning.

It said in view of the importance of the national approach to wage problems we consider it necessary to make the pay structure in nationalized banks broadly similar to that obtaining in the State Bank Group, in the Central Government and in Public Sector undertakings (Para 5-2, vii)

The committee also said, “ If the objective of attracting the best talent in the country is to be achieved, the pay of the bank officers at the entry level should not be anything less than that obtaining in Class I services and Public Sector industries” (Para 5-10)

The Parliamentary Committee on Subordinate legislation in its 141 report has also endorsed these principles.

However between 1979 and now there is a huge downward trend in the Bank Officials salary which has to be rectified now.

Source : banknewskumar.blogspot.in