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Thursday, June 02, 2005

Salary Revision Circular issued by AISBOF

(Can be downloaded from

 CIRCULAR NO. 67 TO ALL AFFILIATES/MEMBERS:                   2nd  June, 2005


We furnish below the text of AIBOC Circular No. 33 of date for the information of our affiliates/members.

with greetings,

TO ALL AFFILIATES/MEMBERS:                    2nd  June, 2005


The signing of the agreement on 02-06-2005 by the representatives of the Confederation and Indian Banks� association has drawn the curtain to the long awaited salary revision exercise for the Bank Officers. The agreement is a historic one. The long waiting, patience, perseverance and commitment of the rank and file has ensured one of the best settlements we have reached so far at the industry level. The success is that of the rank and file. We congratulate them and applaud them for the tremendous maturity and patience shown by them in reaching the final settlement. The agreement is historic and significant on several counts. The major ones are:-

(1) The percentage increase at 13.25% is the highest so far;
(2) The Officers in the Banking Industry could not get the same date of effect as that of the workmen
in the last revisions. This is the first time the date of effect is from  the date of expiry of the earlier agreement, i..e. 01-11-2002;
(3) The removal of anomaly in the matter of Dearness Allowance and neutralization of 100% of D.A.   for Officers and Employees;
(4) The correction of Pension aberration and achievement of 50% of last drawn pay as pension
 payable to employees retired w.e.f. 1-4-1998 and future retirees;
(5) Introduction of encashment of LFC facility;
(6) Revision of all allowances and their improvement including the issue of Halting Allowance, etc.;
(7) Assurance from IBA for continuation of bipartite negotiations on extension of pension to PF   optees;
(8) Improvement in Hospitalisation charges which remained unchanged during the last settlement.

There are several other areas which have ensured a fair deal to the Officers� Community.

2. Comrades, the Confederation has  once again emerged as a clear winner in the race. It has ensured that the officers who were deprived of certain benefits,  particularly D.A. neutralization as also the date of effect have been taken  care of fully. The Confederation has also succeeded in ensuring higher merger of  Index and the revision of all allowances.

3.  We enclose the details of the settlement for the information of  all our comrades.

4. Comrades, let us rededicate ourselves on this historic occasion to the cause of the Officers� Movement, to protect and strengthen it through our constructive participation in all the activities of the Confederation to defend the interests of the working class of our country. On the eve of our completion of 2 decades of service, we look forward to the whole-hearted  support of all our officers and comrades in all our future struggles.

With greetings, 



(1)  Scales of Pay (W.e.f.: 01/11/2002)

 Scale -I  = 10000-470/6-12820-500/3-14320-560/7-18240
 Scale -II  = 13820-500/1-14320-560/10-19920
 Scale -III  = 18240-560/5-21040-620/2-22280
 Scale -IV  = 20480-560/1-21040-620/5-24140
 Scale -V  = 24140-620/4-26620
 Scale -VI  = 26620-680/4-29340
 Scale -VII  = 29340-680/2-30700-900/1-31600-1000/1-32600

Fitment shall be stage-to-stage, i.e., on corresponding stages from 1st stage onwards and the increments shall fall on the anniversary date as usual.

2)  Dearness Allowance:

(a) For the period from 01-11-2002 to 31-1-2005: 

For every rise or fall of 4 points over 2288 points in the quarterly average of the All India Average Working Class Consumer Price Index(General) Base 1960=100 at the following rates:-

 (i)     0.18% of �pay� upto Rs.9,650/- plus
 (ii)    0.15% of �pay� above Rs.9,650/- and upto Rs.15,350/- plus
 (iii)    0.09% of �pay� above Rs.15,350/- and upto Rs.16,350/-plus
 (iv)    0.04% of �pay� above Rs.16,350/-
(b) On and from 1st February, 2005 :

Dearness Allowance shall be payable for every rise or fall of 4 points over 2288 points in the quarterly average of the All India Average Working Class Consumer Price Index (General) Base 1960=100: at 0.18% of pay.

3)  House Rent Allowance: (w.e.f. 01/11/2002)
                                                                I                            II
(i)  Major �A� Class Cities and Project  Area Centres in Group �A�            8.5% of Pay 
(ii)  Other places in Area I and Project  Area Centres in Group �B�            7.5% of Pay
(iii)  Other places                                                                                          6.5% of Pay
Provided that if an officer produces a rent receipt, the House Rent Allowance payable to him/her shall be the actual rent paid by him/her for the residential accommodation in excess over 1.75% of pay in the first stage of the Scale of Pay in which he/she is placed with a maximum of 150% of the House Rent Allowance payable as per aforesaid rates mentioned in Column-II above.


The claims of officer employees for House Rent Allowance linked to the cost of their ownership accommodation shall also be restricted to 150% of House Rent Allowance as hitherto.

4)  City Compensatory Allowance: (W.e.f 01-11-2002)
 Area                                                  Rate        Maximum Amount
i)  Places in Area 1 and                       4% of            Rs.540/-
 In the State of  Goa                          Basic Pay

ii)  Places with population  of                3% of              Rs.375/-
 5 lakhs and over and State                Basic Pay
 Capitals and Chandigarh,
 Pondicherry and Port Blair
5)  Provident Fund (W.e.f 01-11-2002)

 10% of Pay

6)  Pension (other than State Bank of India)

In respect of an officer, other than the officer in SBI, who is a member of the Pension Fund, who retires or dies while in service or other wise ceases to be in employment on or after the 1st of May 2005, �Pay� for the purpose of pension shall be the pay last drawn by the  officer employee prior to his retirement/death. Pending necessary amendment to be made to the relevant provisions of the bank (employees) Pension Regulations, 1995 officers retiring or dying while in service on or after 1st May� 2005 shall be granted provisional pension having regard to the above provisions.

(1) The Bank (employees) Pension Regulations, 1995 does not apply to the officers of SBI.

(2) �Pay� for the purpose of Provident Fund/Pension shall mean Basic Pay including Stagnation
Increment, Professional Qualification pay, Increment component of Fixed Personal  pay and Officiating Allowance.

7)  Medical Aid:
 On and from 1st February, 2004, reimbursement of medical expenses shall be as under:
 (a)  Officers in JMG & MMG Scales   -  Rs.3,750/-p.a
  (b)  Officers in SMG & TEG Scales   -  Rs.5,000/- p.a.
For the year 2004, the reimbursement of medical expenses under the medical aid  scheme shall be enhanced proportionately for 11 months, i.e., February, 2004  to December,2004.

8)  Hospitalisation Expenses:
On and from 1st May, 2005, reimbursement of hospitalisation expenses under Regulation 24(1)(b)(i) of Officers� Service Regulations, 1979/1982, shall be in terms of the Hospitalisation Scheme laid down under Bipartite Settlement dated 2.6.2005 for workmen employees, subject to following limits:
  Scale of Officer                                                 Limits
(a)  Junior Management Grade Scale-I                  i.  Bed charges
 and Middle Management Grade                        Self - Rs.600/- per day
     Scales II & III                                             Family - Rs.450/- per day
                                                                        ii.  Other charges

At the scale 125% of  limitslaid  down 

under the Hospitalisation Scheme
        applicable to workmen employees

(b)  Senior Management Grade Scales                    i.  Bed Charges
     IV & V and Top Executive Grade                     Self - Rs.800/- per day.
     Scales VI & VII.                                           Family - Rs.600/- per day 

                                                                        ii.  Other charges

                                                                   At the scale of 150% of the    limits laid  down  under the Hospitalisation

Scheme  applicable to workmen Employees.

9.  Recovery of House/Furniture Rent: (w.e.f: 1-11-2002)
i.  House rent recovery shall be @ 1.75% of the first stage of the scale of pay in which the officer   is placed or the standard rent for the accommodation, whichever is less.

ii.  Furniture rent recovery shall be @ 0.40% of the first stage of the scale of pay in which the officer   is placed.
10.  Fixed Personal Pay:
On and from 1st November, 2004.  Fixed Personal Pay together with House Rent Allowance shall be at the following rates and shall remain frozen for the entire period of service.
Increment Component          DA as on 01-11-2002          Total FPP payable where 

                  bank�s accommodation is provided

      (A)                                    (B)                             (C)
        Rs.                                  Rs.                            Rs.
          560                                23                              583
          620                                 25                             645
          680                                28                                708
          1000                               41                             1041
(i)  FPP as indicated in �C� above shall be payable to those officer employees who are provided  with bank�s accommodation.

(ii)  FPp for officers eligible for House Rent Allowance shall be �A� + �B� plus House Rent Allowance drawn by the officer employees concerned when the last increment of the relevant scale of pay as specified in sub-regulation (ii) of Regulation 4 is earned.

(iii)  The increment component of F.P.P. shall rank for superannuation benefits.

11.  Professional Qualification Pay: (W.e.f. 01/11/2002)
 Officers shall be eligible for professional qualification pay as under:

i)  Those who have passed CAIIB - Part-I/JAIIB : Rs.300/- p.m. after one year on reaching top of the scale.

ii)  Those who have passed both parts of CAIIB-
 a)  Rs.300/- p.m. one year after reaching top of the scale.
 b)  Rs.750/- p.m. two years after reaching top of the scale.

 An officer employee aquiring JAIIB/CAIIB (either or both the parts) qualifications after reaching the maximum scale of pay, shall be granted from the date of acquiring such qualification the first instalment of PQP & the release of subsequent instalments of PQP shall be with reference to the date of release of first instlment of PQP.

Provided further that in a case where an officer as on the date of this Joint Note, has already acquired any of the above said qualifications and has not earned any increment or PQP  on account of aquiring such qualifications, he may be, w.e.f. 1st Nov 2002 or the date of acquiring such qualification/s, whichever is later, released PQP  as provided hereinabove.

12.  Other Allowances:

i)  Deputation Allowance. (W.e.f. 1.6.2005)

 Deputation Allowance shall be at the following rates:

a)  An officer deputed to serve outside the bank - 7.75% of pay with maximum of Rs. 1,500/- p.m.

b)  An officer deputed to an organisation at the same place or to the training establishment of the   bank - 4% of Pay with a maximum of Rs.750/-p.m.
ii)  Hill and Fuel Allowance:   (W.e.f. 01/11/2002)
                     Place                                           Rate
a)  Places with an altitude of 1000 Metres and above                 2% of Pay subject to a  
 but less than 1500 metres and Mercara Town.                       maximum of Rs. 400/- p.m.

b)  Places with an altitude of 1500 metres                                2.5% of Pay subject to a
 and above but less than 3000 metres.                                maximum of Rs. 500/- p.m.

c)  Places with an altitude of 3000 metrres and above.               5% of Pay subject to a
                                                                                                    maximum of Rs. 1150/- p.m. 

iii)  Halting Allowance:  (W.e.f. 01/6/2005)
Grade/Scales of Officers               Major �A� class cities    Area-I       Other places
Officers in Scale IV and above  Rs. 600/-*        Rs. 550/-     Rs.500/-

Officers in Scale I/II/III              Rs.550/-         Rs.500/-       Rs.400/-
Provided that in case of officers in Scale IV and above, Halting Allowance payable per diem while on outstation work at  the 4 Metros viz Delhi, Kolkata,Chennai & Mumbai : Rs. 700

iv)  Special Area Allowance:  (W.e.f. 01/11/2002)

At places where special area allowance is payable in terms of regulation 23(ii) of Officers� Service Regulations, 1979/1982, the said allowance shall be payable at rates as in Annexure-IV.

v)  Compensation on transfer:  (W.e.f. 01/5/2005)

An officer on transfer will be eligible to draw a lump sum amount, as indicated below, for expenses connected with packaging, local transportation, insuring the baggage etc.
 Grade/Scales of Officers                          Rate
 Officers in Scale IV & above                      Rs.8,750/-

 Officers in Scale-I/II/III                              Rs.7,000/-
vi)  Mode of Travel and Expenses on Travel

Effective from the date of this joint Note, the following provisions shall apply wherever an officer is required to travel on duty:

(i) An officer in Junior Management Grade is entitled to travel by 1st Class or AC II  Tier Sleeper by train. He may, however, travel by air (economy class) if so permitted by the Competent authority, having regard to the exigencies of business or public interest;

(ii) An officer in Middle Management Grade is entitled to travel by 1st Class or AC II  Tier Sleeper by train. He may, however, travel by air (economy class) if the distance to be travelled is more than 1000 kms. He may, however, travel by air (economy class) even for a shorter distance if so permitted by the Competent Authority having regard to the exigencies of business or public interest;

(iv) An officer in Senior Management or Top Executive Grade may travel by car between places not connected by air or rail provided that the distance does not exceed 500 kms. However, when a major part of the distance between the two places can be covered by air or rail, only the rest of the distance should normally be covered by car;

(v) Any other officer may be authorised by the Competent Authority having regard to the exigencies of business, to travel by his own vehicle or by taxi or by the Bank�s vehicle.

The remaining provisions as in Sub-regulation 2 & 3 of Regulation 41 of Officers� Service Regulations shall remain unchanged.

vii)  Leave Travel Concession:

1.  During each block of 4 years, an officer shall be eligible for leave travel concession for travel to his place of domicile once in each block of two years. Alternatively, he may travel in one block of two years to his place of domicile and in another block of two years to any place in India by the  shortest route.

2. Alternatively, an Officer, exercising the option anytime during a 4 year block or two year block as the case may be, surrender and encash his LTC (other than travel to place of domicile) upon which he shall be entitled to receive an amount equivalent to 75% of the eligible fare for the class of travel by train to which he is entitled upto a  distance of 4500 kms (one way) for officers in JMG Scale-I and MMG  Scale II & III and 5500 kms (one way) for officers in SMG scale-IV and above. An officer opting to encash his LTC shall prefer the claim for himself/herself and his/her family members only once during the block/term in which such encashment is availed of. The facility of encashment of Privilege leave, while awailing of Leave Fare Concession is also available while encashing the facility of LTC.

3. The mode and class by which an officer may avail of Leave Travel Concession shall be the same as the officer is normally entitled to travel on transfer and other terms and conditions subject to which the Leave Travel Concession may be availed of by an officer, shall be as decided by the Board from time to time.

viii)  Definition of family:

i) For the purpose of  Leave Travel Concession and for reimbursement of Hospitalisation Expenses, �Family� of an officer shall mean an officer�s spouse wholly dependent, unmarried children (including dependent step children and legally adopted children) and wholly dependent parents ordinarily residing with and wholly dependent on the officer.

ii) The term wholly dependent child/parent shall mean such member of the family having a monthlyincome not exceeding Rs.2,550/- p.m.

If the income of one of the parents exceeds Rs.2,550/- p.m. or the aggregate income of both the parents exceeds Rs.2,550/- p.m. both the parents shall not be considered as wholly dependent on the employee.

13.  Project Area Allowance:

On and from 1st November 2002, Project Area Compensatory Allowance shall be payable at the following rates:

 Project Areas falling in Group A-Rs. 210/- p.m.
 Project Areas falling in Group B-Rs. 185/- p.m. 
14. Mid-academic year transfer Allowance:

 On and from 1st January 2004, mid-academic year transfer allowance shall be payable   at Rs. 500/- p.m. subject to other conditions.

15. Split Duty Allowance:

 On and from 1st November 2002, Split Duty Allowance shall be payable at Rs. 125/- p.m.

16.  General Provisions:

Officers manning hubs/switch centres, disaster recovery centres or similar sensitive installations requiring round-the-clock maintenance/surveillance and security officers required to provide round the clock maintenance/surveillance shall not participate in any work stoppage/strike action.

17.  Date of Effect:

For payment of arrears, the benefits under various provisions as above, shall be from the date of signing the Joint Note unless otherwise specified against the relevant provisions as detailed below: 

1. Basic Pay
2. Dearness Allowance
3. House Rent Allowance
4. City Compensatory Allowance
5. Professional Qualification Pay                              1.11.2002
6. Hill and Fuel Allowance
7. Special Area Allowance
8. Project Area Allowance
9. Split Duty Allowance
10.  Mid Academic Year  Transfer Allowance                     1.1.2004
11.  Dearness Allowance 100% Neutralisation                   1.2.2005
12.           Medical Aid           1.2.2004
13.          Fixed Personal Pay        1.11.2004
14.          Deputation  Allowance                     1.6.2005
15.          Compensation on Transfer          1.5.2005


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