Projected DA For Bank Employees

Projected Dearness Allowance of Bank Staff 

vis-à-vis Central Government Staff 

from 01-08-2014 to 31-10-2014

For Bank Staff, the anticipated D.A. for the period form 01-08-2014 to 31-10-2014 is 102.15%, basing on the assumption that the existing rate of inflation of 6.70% will continue to be the same for April, May and June, 2014.

For Central Government Employees, (with the same assumption as stated above), the projected D.A. for 6 months from 01-07-2014 to 31-12-2014 is 107%.  Thus the difference in D.A. is 4.85%, with bank staff getting less.  (It is likely that D.A. of bank staff will rise further from November, 2014 and the difference may come down).

If the rate of inflation is 8% for April, May and June, 2014, then the revised D.A. from Aug. to Oct. 2014 for bank staff will be 104.70%.   For Central Government staff (with the assumption of 8% y-o-y inflation for April, May and June, 2014), the D.A. for the 6 month period from July to Dec. 2014 is 107%.  In this scenario, bank staff's D.A. will be lower by 2.30%. (It is likely that D.A. of bank staff will rise further from November, 2014 and the difference may come down).

From these, I understand two things.

1.    When the rate of inflation is showing increasing trend during the past 3 months, the difference in D.A. between bank staff and central government staff narrows.  Bank staff do lose, but not much.

2.    When the rate of inflation is showing decreasing trend during the past 3 months, the difference in D.A. between bank staff and central government staff widens further.  Bank staff lose pretty much.

Date: 04-05-2014                                                                                                            pannvalan

UNDERSTANDING D.A. MERGER AND WAGE REVISION PROCESS!!-- Contributed by one Bank staff on Facebook

In the meeting 12.08.2013 it is decided to merge 4440 points of CPI with Basic pay.

What does it mean?

As on 01.11.2011 CPI was 4440 for D.A calculation i.e 401 slabs, 60.15%(@0.15% per slab)
As on 01.11.2012 CPI was 4876 for D.A calculation i.e 510 slabs, 76.50% (@0.15% per slab)
Now after merging 4440 points D.A. for balance 436 points i.e 109 slab will remain.
This 109 slab will not be calculated @ 0.15% as it will lead to giving D.A on D.A +basic.

Hence it will be reduced.
To what extent?

In 8 th bi-partite settlement D.A. merger was at 2288 points. % per slab was 0.18%
In 9th bi-partite settlement D.A. merger was at 2836 points. % per slab was 0.15%
How 0.18 became 0.15?

It is simple maths. (2288/2836)*0.18=0.145=0.15%

Likewise this time it will be (2836/4440)*0.15=0.0958=0.10%

This rate is not announced officially, but this is the method of calculation.
If higher % is announced I will be happy.

What is the effect of merging D.A with Basic Pay?

Example:
On 01.11.2012 Basic Pay =8000. D.A. (old)=6120 (@76.50%)
Total=14120
On 01.11.2012 Basic Pay=12812. (160.15% of 8000).D.A. (New)=1396.50(109*0.10%)
Total=14208
Now, Basic pay of 8000 becomes 12812.

IBA has not revealed the % of wage increase yet.

Any % announced will be calculated on 12812 and not on 8000.
This is the effect of D.A.merger.

All our benefits like HRA, CCA, PF CONTRIBUTION, PENSION, COMPUTATION,LOAN ELIGIBILITY etc.,are calculated on the basis of basic pay only. 

Hence we have to increase Basic pay substantially.
Therefore this merger point is a good one.

Effective date from 01.11.2012 and its importance:

In previous settlements effective date was postponed by an year or so and different heads like B.P, D.A.,Spl.Allow, etc., was given effect on different dates thereby loosing the arrears substantially.

This time it is achieved from the day one.
Offer of Mediclaim Policy instead of reimbursement of hospitalization bills:

MEDICAL REIMBURSEMENT:

Bank employees are not able to get reimbursement for their medical bills when they admit in a hospital not approved by the bank. Admission in a hospital depends on the circumstances, individual’s preference, doctors/quality of treatment available in a hospital etc.,
Moreover bills are passed for a lesser amount subject to ceilings prescribed for different heads like room rent, operation charges etc.,
In the last settlement increase given for different heads of treatment were very low due to load constrains.

To overcome this situation, my suggestion is banks should arrange to take
“GROUP MEDICLAIM” policy for their employees and premium should be paid by banks.
This is not a new concept, it is available in almost all industries including state Govt. employees.
It is shame that bank employees are not covered by mediclaim policy in this modern world.
To start with banks can opt for a policy for Rs.5, 00,000/- per employee family.

IBA has come forward to implement this scheme. I am delighted.

I request all of you to avoid the question

“What will be my salary after 10th B.P.S?”

The process has just started and No % of increase is offered by IBA.

At this stage the above question is irrelevant.

Don’t think that IBA is ready to give a hefty increase and Unions and Union leaders are reluctant to accept.

It is in our (employees) hands to bring Govt. /IBA to the negotiating table with good offer.

Till such time please support Unions/Leaders (whatever be the union you belong to), though we have our own reservation about them in certain matters.

United we will succeed.