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Seventh Pay Commission seems to be a benchmark for all industry level wage talks post its implementation. In the banking industry, the wage talks for 11th Bipartite settlement had already begun with little headway so far in the negotiations. The delay is not taken positively, especially by the young bankers and most of the whats app groups and Facebook pages are flooded with comparison of bank pay with 7th pay commission. In fact, to my surprise there are many hard and ardent supporters for implementation of 7th Central Pay Commission in banks, which is nothing but a retrograde step and similar to killing a duck which lays a golden egg. As I had opportunity to taste both the settlements, I wish to come out with a critical comparison of both of them.
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Features
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10th Bipartite Settlement
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7th Pay Commission
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Which is Best?
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Basic Pay
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Rs.25,563.75 (including Special Pay)
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Rs.56,100
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7th CPC
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Dearness Allowance
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Revised once in 3 months with immediate effect.
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Cabinet approves the revised DA once in 6 months and usually paid in arrears due to late announcement.
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BPS
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Annual Increment
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Rs. 980 (which is 4.13% of Basic Pay)
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3% of Basic Pay
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BPS
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House Rent Allowance
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Rs.1659 (7%)/ Rs.1896 (8%) Rs.2133 (9%)
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Rs.4488 (8%) / Rs.8976 (16%)/ Rs.13,464 (24%)
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BPS
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Leased Accomodation : Even the present quantum provided for leased accomodation is more than the HRA received at every level as per 7th CPC
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No Leased Accomodation
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Option of availing 150% of the eligible HRA
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No option to avail 150% HRA
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Annual Medical Allowance
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Rs.8000. Apart for this, many banks provide monthly medical allowance too with a minimum of Rs.500
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No such allowance
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BPS
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Professional Update Allowance
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Increment Provided for JAIIB and CAIIB and reimbursement for other exams.
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Fixed one time allowance of Rs.15000 which is hiked by 50% only in scientific departments like ISRO, DRDO, DAE etc.,
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BPS
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Deputation Allowance
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7.75% (or Rs.4000) for outside and 4% (or Rs.2000) for same station
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As per 6th CPC, the ceiling was same as Bank and now it is enhanced to Rs.4500 for same station and Rs. 9000 for outside
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7th CPC
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Hill Area Allowance
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Min of Rs.750 to a max of Rs.2000
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Rs. 900 as per 6th CPC and now it is abolished.
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BPS
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Entertainment Allowance
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Rs.1800 for JMG 1 and Rs.4200 for JMG as BM
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Provided for Cabinet Secretary and Railway Officers only. As per 6th CPC it was Rs.1000 for entry level officer and now it is abolished.
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BPS
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Conveyance Allowance
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Rs. 9/km for Car and Rs.4.45/km for Two wheeler to travel on own vehicle for official duty
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Approximately Rs.5.6 per KM for Car
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BPS
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Lodging Reimbursement
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Rs.1000 to Rs.1500 per day (excluding Halting Allowance)
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Rs.2250 per day ( no additional Halting Allowance)
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More or Less same
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Halting Allowance
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Rs.800 to Rs.1300
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Rs.900 (called as Lump Sum)
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BPS
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Transport Allowance
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Provided as Petrol Allowance
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Rs.3600 + DA / Rs.7200 + DA TPTA Cities
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7th CPC
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Travel Entitlement
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2nd AC Train or Economy Class Flight
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2nd AC Train or Economy Class Flight
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Both Same
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Medical Facility
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Introduced Health Insurance Scheme
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Recommended to introduce Health Insurance Scheme
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Both Same
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LOANS
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Festival Advance
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1 Month Gross Pay
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Officers not eligible for interest free Festival Advance.
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BANK
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Car Loan
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Most of the Banks have Car Loan upto 9 Lakhs
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Rs.1,80,000 or 8 month Basic whichever is less.
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BANK
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HBA
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Most of the Banks have HBA not less than 50 Lakhs
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25 Lakhs or 34 times of Basic whichever is less and recommended to reduces minimum service to 5 years from 10 years.
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BANK
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LEAVES
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CASUAL LEAVE
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12 Days
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8 Days
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BPS
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EL / PL
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33 Days (1 Day for every 11 Days)
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30 Days
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BPS
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Medical/ Commutted/ Sick Leave
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30 Days of Half Pay Basis. Medical Certificates waived twice in a year
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20 Days of Half Pay Basis. No waiver of medical certificate
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BPS
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Unavailed Casual Leave
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CL unavailed can be carried upto 3 years
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CL unavailed expires and no option to carry over
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BPS
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Maternity Leave
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12 Months (max of 6 months in 1 occasion)
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180 Days
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BPS
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Paternity Leave
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15 Days
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15 Days
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Both Same
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PROMOTION
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Promotion
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Provision of Fast Track Channel. Once in 3 years promotion can be taken and oppurtunity to reach Scale 7 (7 Promotions) in 18 years.
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Indian Audit and Account Service has the minimum period to reach Senior Administrative Grade (5th Promotion) and it takes 17 years on a Average.
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BPS
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From the above table it is very clear that it is just the hike in basic pay which is having an impact in the pay slip for employees under CPC. Other than Basic Pay, the allowance and facilities, even as per the 10th Bipartite settlement is better in banks. Concessional loans provided to bankers are unparalleled. Leaves are much better. Once the other Saturdays are also declared leave as per the charter of demands of 11th BPS, then leaves will be one of the best in the industry. It is due to lack awareness that many insist for CPC by throwing away BPC. If the interest/EMI benefits due to concessional loans and other allowances are also included to arrive at cost to company basis, then bank pays are better than any other pay in public sector. Let us learn to appreciate what we have. Instead of asking for implementation of 7th CPC, it is wise enough to ask for equivalent basic pay within the BPS ambit which is already in the charter of demands.
