Nice! Share it on Facebook so that your friends can join you here.
are bhai settelment ka kya hua kuch to batao
The central government is trying to befool the bankers by bringing in the concept of CTC........i think that its really sad......we shid all protest against this.......and if implemented then also use this conept others gov services.......
it seems like 10th BPS will be finalized towards end of 2014.....
Is there any chance of settlement before general election in 2014???
when will employ get new revised salary
DA merger + %age increase will add up to make final basic pay and other salary components i.e. DA(remaining 10.9%) HRA & CCA will be calculated on that final basic. DA is merged to calc new basic pay in the begining itself along with 20%(min.) increase by IBA.
for PO.....14500/- (new basic=14500+8721.75(DA merging 60.15%) + 4644.35(20% increase min.)=27866.1) +DA(remaining 10.9% i.e. 76.5% (as on nov 2012 & not on present DA)-60.15%=16.35%@ 0.15 bt now reduced to 0.10, so comes down to 10.9% i.e. 3037.40
+ 2368.62(HRA) + 540(CCA if applicable)= Rs. 33812.12/- (GROSS)
ARREAR(calc from nov 2012 to mar 2014= for 17 months = around Rs.1,23,709/- (GROSS)
for Scale 2....new basic=19400+11669.1+ 6213.82(20% increase min.)=37282.92)
+DA(remaining 10.9%= 4063.84)+ 3169.05(HRA) + 540(CCA if applicable)= Rs. 45055.81/- (GROSS)
ARREAR(calc from nov 2012 to mar 2014= for 17 months = around Rs.1,46,642/- (GROSS)
UNDERSTANDING D.A. MERGER AND WAGE REVISION PROCESS ************************************************
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. (60.15% 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, COMMPUTATION,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.
Hi all ( irrespective of bank alloted ) look at the below useful info abt the salary revision for po in 2013 ………..
Bank PO & Clerk Expected Salary After Pay Revision (10th Bipartite Settlement)
Bank Probationary Officer Salary After Revision in 2013:
At present a newly joined Bank PO's Basic Pay is Rs.14,500. After merging the 60.15% DA as on 01.11.2011 to Basic Pay, it will be Rs.23,221/- We are expecting minimum 20% increment to this basic pay, but we can expect 25% increment to this basic pay.
If IBA agree for 20% increment, Final Basic Pay will be Rs.27,866. From August 2013, DA is 88.95%. After merging 60.15 with basic, remaining 28.80% DA will be there. We can expect minimum 10% HRA after revision. So, you get total 38.80% of DA & HRA on Basic Pay. So, total Gross Salary of Bank fresher Probationary Officer (PO) from August 2013 will be Rs.38,678/- (Worst Possible Scenario)
If IBA agree for 25% increment, Final Basic Pay will be Rs.29,026. Total 38.80% of DA & HRA on Basic Pay. So, total Gross Salary of Bank fresher Probationary Officer (PO) from August 2013 will be Rs.40,288/- (Somewhat Good)
If IBA agree for 30% increment, Final Basic Pay will be Rs.30,187. Total 38.80% of DA & HRA on Basic Pay. So, total Gross Salary of Bank fresher Probationary Officer (PO) from August 2013 will be Rs.41,899/- (Good Settlement)
We can expect Worst possible scenario in reality. So, Salary of Bank PO from August 2013 will be Rs.38,678/-
Will the 10th Bipartite agreement have an impact on salary of Insurance companies like LIC?
HERE ARE LIES, DAMNED LIES AND CTC'S
NUBE circular 03 / 2013 dated : 11-06-2013 rightly explained what is Cost to the Company, net salary and gross salary which are some of the key components that form part of any individual's salary structure.a transparent effort by a negotiating union Cost to the company is the figure what companies generally like or prefer to quote when they offer salary packages to potential job aspirants. The cost to the company figures can be quite misleading for new job aspirants while seasoned or experienced individuals usually are quite obviously aware of the differences after a couple of bitter experiences. At the end of it, the amount the person actually gets in hand can turn out to be significantly lower than what he/she would have originally imagined.
Ravi, a fresh software graduate, joined a top notch IT Company. For his first job, he was extremely happy with the total CTC of Rs 6,00,000. On the basis of this CTC, Ravi made lavish plans with his first month's salary. Expensive gifts for family, a swanky new bike and the latest mobile phone. But with the first salary, he realized some of his plans had to wait. His take home salary was nowhere close to his estimation of his salary. He approached his HR, who then explained the breakup of his CTC, which he had just glanced over at the time of joining.
The Cost to Company refers to the total expenditure a company would have to incur to employ you. It includes monetary and non-monetary benefits, such as monthly pay, training costs, accommodation, telephone, medical reimbursements or other expenses, borne by the company to keep you employed. The total CTC as need not be the actual salary in hand at the end of the month. It is simply a sum of various components put together.
Let's take a live example to understand this better. Arjun Malhotra recently got selected as an Assistant Manager in one of the leading Mumbai-based BPOs. It was his first job and he was offered an annual CTC package of Rs. 501624/- ' Wow that sounds cool' he thought. He immediately did some rough calculations and estimated that his monthly salary would turn out to be Rs. 41,802/-. His happiness didn't last long when he was provided the offer letter and then it dawned on him what a cost to the company or CTC package meant.
Basically a CTC package includes all of the cost factors (well almost) that a company spends on an individual. This primarily includes Employer's contribution of provident funds, Gratuity, Mediclaim Insurance, Food Coupons, Loyalty bonus, and performance linked bonuses to name a few. When companies include all these factors naturally the salary has to look bloated.
From an employee's perspective the inclusion of the aforementioned factors doesn't reflect directly in his net salary or his take home salary. Net salary or take home salary basically means what you get in hand post the standard deductions such as PF, gratuity, and professional tax if applicable, etc. The other major factor that impacts your net salary other than the standard deductions is the income tax.
Now that we have explained you what a CTC and net salary means, let us try and explain you the meaning of “gross salary.” Gross salary is basically the salary that is quoted on your pay slip. Gross salary doesn't include the additional components that form part of your CTC.
Now lets go back to Arjun's example. Below is an extract from Arjun's offer letter.
Gross and CTC Salary Breakup
Amount Per Month
Amount Per Month
Showing 1 to 10 of 10 entries
The above table has been divided into two segments. The components on the left are the ones that are accounted for in his gross salary while the components on the right are the CTC components which don't directly reflect in his take home pay. Most of these components such as performance bonus, gratuity, employer's contribution of PF and canteen facilities do not get accounted for in his monthly take home but benefits he can derive in the long run. So if we all want to know what Arjun's actual salary is – well it turns out to be just Rs. 33,000/- (Gross salary) which is approximately Rs. 8000/- less than his CTC. Once again there are also some additional components included in Arjun's gross salary such as LTA that would be paid out to him at the end of the year or the food coupons (Sodhexo meal passes) paid monthly but in the form of coupons. This again differs or varies from company to company. Most companies offer Sodhexo's as a tax saving gesture where the employees get to save a certain amount annually on income tax as the deducted amount is not taken into consideration for calculating income tax.
Other than what you get to see in Arjun's offer letter, different companies have a variety of components that are considered under CTC. For instance most leading banks provide home loans to their employees on a heavily discounted rate of interest. The entire benefit the employees gain from the discounted rate is added to their CTC package which hugely inflates their overall package.
Himadri Shekhar Bhattacharjee, a bank officer in his thought provoking, informative study in his site 'musing of life has adumbrated this spurious , perverse concept succinctly that it could be inflated by as much as 73%, if not more. See, how it can inflate the pay package of bank employees, irrespective of the actual money at hand, as can be seen below:
CTC of a JMG- 1
Bank Officer : CTC of a bank officer
INFLATION OF SALARY PACKAGE BY APPLYING CTC CONCEPT OF CALCULATION
DEARNESS ALLOWANCE@36.75%, as on Aprill 2010
HOUSE RENT ALLOWANCE@6.5% AT OTHER PLACES
SPECIAL AREA ALLOWANCE@Rs400
CITY COMPENSATORY ALLOWANCE,@4% OF BP MAX. Rs540 pm.
PF CONTRIBUTION BY EMPLOYER @10% of BP(though There shall be no Provident Fund to officers joining the services of Banks on or after 01.04.2010. They shall be covered by a Defined Contributory Pension Scheme).
RENT FREE ACCOMODATION (minus recover @1.20% of starting BP, ie.Rs174 pm
Furniture Facility(less, recovery @.25% of starting BP ie Rs36.25 pm from Rs80000, as admissible in PNB,for example).
For an assumed asset life of 10 years,(80000-(36.25*120))
FIXED PERSONAL PAY at minimum.
PROFESSIONAL QUALIFICATION PAY FOR CAIIB@ Rs410 pm, 2 years after reaching top of the scale.
PROFESSIONAL QUALIFICATION PAY FOR CAIIB@ Rs1030 pm. 2 years after reaching top of the scale.
HALTING ALLOWANCE, w.e.f. 01.05.2010 Grade / Scales of Officers Major 'A' Class Cities (Rs.) Area I(Rs.) Other Places (Rs.) Officers in Scale - IV & above 1000 800 700 Officers in Scale - I / II / III 800 700 600
MID ACADEMIC YEAR TR. ALL. w.e.f 01.05.2010 Rs.700/- p.m.
MEDICAL AID (@Rs5100 pm,as prevalent in PNB, for ex.).
PETROLL REIMBURSEMENT@30 litres in a month in area III places.
@Rs73 per litres for 12 months
NEWSPAPER EXPENSES REIMBURSEMENT(@ Rs150pm. at PNB, for ex.)
@Rs150 for 12 months
MOBILE BILL REIMBURSEMENT(@Rs1200pm, at pnb, for ex)
@Rs1200 pm for 12 months
ENTERTAINMENT EXPENSES(@Rs4800 pa, as paid by pnb, for ex.)
CANTEEN FACILITY(@Rs50 per employee, in mid sized branches, as paid by PNB, for ex.)
@Rs50 for 12 months
KEROSENE/FUEL CHARGES FOR CANTEEN (on actual basis).
At an assumed consumption of one LPG cylinder pm for an office with 5 staff.
LIBRARY FACILITIES(@Rs625 pa.as paid by PNB,for ex.)/
At an assumed staff strength of 5
CLOSING ALL.FOR 2 CLOSINGS IN A YEAR@Rs250,per closing, as paid in PNB
BRIEF CASE COST REIMBURSEMENT(@Rs150, as paid by PNB,for ex.).
Not included as contingent upon it happening.
CHILDREN'S SCHOLARSHIP SCHEME.
SILVER JUBILEE/ MILE STONE AWARDS
MEMENTO TO RETIRING EMPLOYEES.
Compensation on Transfer Officers in Scale - IV & above` Rs.12,000/- Officers in Scale - I, II & III Rs.9,000/-
LEAVE FARE CONCESSION, w.e.f 01.05.2010 An officer in JMG Scale - I is entitled to travel on duty by 1st Class or AC 2-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.
DEPUTATION OUTSIDE BANK@7.75% of pay max.Rs2300 pm
DEPUTATION INSIDE BANK@4% of pay, max.Rs1200 pm
HILL AND FULE ALLOWANCE, w.e.f 01.11.2007 Places with an altitude of 1000 meters & above but less than 1500 metres & Mercara Town 2% of pay subject to a maximum of Rs.550/- p.m.Places with an altitude of 1500 meters & above but less than 3000 metres 2.50% of pay subject to a maximum of Rs.680/- p.m.Places with an altitude of 3000 meters & above 5% of pay subject to a maximum of Rs.1,570/- p.m.
Not taken into calculation as not admissible to all.
CTC Per Year
CTC Per Month,as on 01-04-2010
ACTUAL STARTING SALARY OF A JMG SC-I, AS ON 01-04-2010 PM
SALARY PACKAGE INFLATED BY CTC CONCEPT:
CTC FOR PERSONS MAY BE ADJUSTED FOR CC ALL AND NON CC ALL. RECEIPENTS.
'CTC' emerged as a new and novel way to window dress salary packages to project them more than what one gets in his/her hand. Beware, the CTC concept is being toyed with, by FINMIN and IBA, to create a feeling that, bank employees are already getting more than what they deserve, so, there is no need for any further hike.But, it defies logic, why, government employees are kept untouched from this seemingly novel concept and pay commission structured pay and facilities are continued for them inspite of the stark disparity between pay of government employees and bank employees.Even State govt employees get more than what we get.
Let the Finance Ministry lead from the front and show it to the Nation how the CTC structure be implemented by moving all the MPs, MLAs, Ministers, PM, President etc etc as well as the Govt Employees to the CTC Model first. Lets not forget Charity begins at home first. So please preach what you Practice
Above all we have to increase our awareness and learning
i read in a blog, "the cut off date for merger of D.A. is taken as 30-09-2011 as was done last time, the revised basic pay before additional load will be 1.6015 times the present basic. Then adding another 25%, the revised basic will be 2.001875 times the present basic pay."
I want to know is this estimate made on gross salary or net? if it's on gross salary den in that case the wage increase/revision will not be more than 3.5k-4k on gross, as in.....if one's gross sal(scale 2) is 38k and after new basic(DA merged & 25% load=Rs.38836/-) + hra(2900/-(7.5% of new basic)) +cca , so it will come around 42k....the increase is only Rs.4000/-....and I believe the increase in net sal will not be more than 3k if gross is only 4k.....if anyone could clear this doubt!!
when is this expected to be implemented?
why dont the banks apply the 6th pay comm???
dont expect basic to cross 20,000................
Basic will cross Rs. 20,000 for sure. But overall salary hike will hardly be 20-25%, as DA will come down, as before applying hike they merge some portion of DA to the existing Basic.
Last time around in 9th Bipartite Settlement, the Basic went up from 10,000 to 14,000, that is 45% rise in Basic. Even if we increase it by same percentage this year, 14,500 + 45% of 14,500 = Rs. 21025. However, people are expecting the Basic to go higher as there has been a lot of inflation as well over these years. DA from next month is 84%. After the settlement, Basic will go up but DA will come down. Effective increase that is anticipated is about 25% of the (Basic + DA) that one gets right now.
Do you know that which components of the salary were reduced.. Which resulted in the difference in actual salary rise in 9th BPS.
Lets try finding out that maths..
DA% is what is shifted to a lower % after the hike. So, if one looks at the Basic alone (without knowing what was the DA% before and after settlement), it does not tell much about the increase in salary.
But yes, higher the Basic the better it is as everything else is linked to the Basic. Like DA, HRA, Pension contribution etc.
Also bank employees get a very poor HRA when you compare it with central govt employees. I hope this issue gets resolved in this settlement. How the fark can one expect to find a house to live in Rs. 1200-1300 these days? I mean, even in large cities, bank pays only 8.5% of Basic as HRA, which is peanuts. One cannot even rent a small store at 10th floor in this amount, leave aside a house to stay in.
When you follow a discussion, you receive notifications about new posts and comments. You can unfollow a discussion anytime, or turn off notifications for it.86 people follow this discussion.