BANKING - Rationalisation of Pay Fitment Policy for Exserviceman employed in PSBs
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Complaint by: on March 27, 2013, 12:56 pm in Banking and Finance

Based on the contents of GOI letter no F.No.4/1/2010-SCT (B) dated 23-03-2012 and the amended relevant provisions of CCS orders, it was expected that basic pay in Public Sector Bank would not be fixed below “pay in band Plus Grade Pay” received during retirement from Indian Air Force.

It is really matter of frustration for some of the ex serviceman that basic pay in public sector banks are being fixed based upon the Gross Pay that he received from defense services at the time of retirement.This Gross pay (includes Pay in Band, Grade Pay, and DA) has been considered in fixation of my basic pay on reemployment in such a way that the DA at the time of retirement from Defense service has been equated to DA at the time of joining Bank.The DA component in the Gross pay gets the maximum weightage, when considered for the purpose of re-fixation of pay for ex-serviceman. If the DA at the time of retirement from Defense Services i.e @0% Jan - Jun 2006, @2% Jul -Dec 2006, @6% Jan-Jun 2007, @9% Jul-Dec 2007 @12% Jan-Jun2008 has been equated to prevailing DA at the time of recruitment in Bank many ex servicemen will be fooled by the present pay fixation policy in PSB.
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For example an exserviceman who retired from Defense services in Jan 2010 and joins public sector Bank in May 2011 will get basic pay which is less than the amount of (pay in band plus grade pay) that he recieved at the time of retirement from Defense Services. The reason is DA @ 53% during May 2011(at the time of joining Bank) is compared to DA @ 35% during Jan 10 and Basic pay so fixed on reemployment is reduced to a value so that the total Pay consisting of Basic Pay, DA, HRA and Conveyance allowance just exceed the Gross pay that he received at the retirement.


The following facts tabulated below can be compared to understand the disparity in detail.

The ex-serviceman (after 20 years of Service) who retired in 30th Apr 2008, his Gross Pay in Def Service was Rs 16722/- {Rs 10730/- (Pay in Band)+ Rs 2800 (Grade Pay)+ Rs 1400 (Group X Pay)+ Rs 1732 (12% DA) + GCB and other allowances}.
The ex-serviceman (after 20 years of Service) who retired in 30 May 2011 his Gross pay in Def Services was Rs 21366/-{Rs 11220/- (Pay in Band)+ Rs 2800 (Grade Pay)+ Rs 1400 (Group X Pay)+ Rs 5946 (53% DA) }.
The ESM who retired with a Gross Pay of Rs 16722/- joined United Bank of India in May 2011 and gets his Basic Pay fixed at Rs 11700/- wef from May 2011 (Rs 10500/- plus two increments on account of having Graduation degree).
The ESM who retired with a Gross Pay of Rs 21366/- joined United Bank of India in Oct 2012, and gets his Basic Pay fixed above Rs 16000/-.





Thus we can infer from the aforesaid facts that a serious disparity has occurred in Pay Fixation of Ex-Serviceman reemployed in United Bank of India. A Junior Ex-Service man employee is getting more pay and allowances than his Senior Counter part. The difference in Basic Pay of both the ex-serviceman Bank employee is more than Rs 5000/- . The issue has been submitted many times to the authorities through proper channels and to our Union leaders for redressal but so far there is no response shown to the aggrieved lot.

The relevant references to the subject matter are mentioned below.
(i)No.HR&IR/CIR/2012-13/76/589/5499 dated 02 Apr 2012
(ii)O.M. No. 3/19/2009. Esst. Pay dated 8th November 2010 from DOP&T.
(iii)F.No.4/1/2010-SCT (B) Government of India Ministry of Finance Department of Financial Services dated23-03-2012
(iv) O.M. No. 3/19/2009. Esst. Pay dated 05-04-2010

GOI office memorandum dated Sep 2012 issued by Ministry of Personnel, Public Grievances and Pensions states that “For the purpose of pay fixation as well as pension, on re employment in the Banks, the reckonable emoluments are Basic Pay + Grade Pay + Military Service Pay + NPA(Non Practicising Pay).

Para 4(b)(ii) of O.M. No. 3/19/2009. Esst. Pay dated 05-04-2010 clearly mention in the Note that in the revised pay structure basic pay is pay in the “pay in band plus grade pay” attached to the post.

However it may be noted from the above mentioned circulars that a statement quoted as “ESMs are eligible for Pay fixation in Banks based on the pay drawn by them at the time of discharge from the Defense Services which would include pay band plus grade pay” is interpreted in the manner mentioned above to cause this disparity in pay fixation.

It is reliably learnt that almost all the public sector banks are following the same procedure of pay fixation of ex-serviceman. The ex-servicemen who retired in 2006, 2007 and 2008 are the most suffered if they were not lucky enough to get employment opportunity immediately after retirement because the DA for them was less. We therefore believe that there is lack of clarity in the instructions, with regard to the subject, from Govt of India to IBA and further down to PSBs. So it is essential for us to know the correct platform from which we can project these issues and get them redressed suitably.

Complainant's Goal: Rationalisation of Pay fitment policies for exserviceman reemployed in PSBs
Complainant's Target: BANKING
Complaint Location: IndiaWest BengalPaschim Medinipur
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Recent Comments
15.
Sat, 21 Sep 2013  Supratik Pandey

Ex servicemen pain and agony can be shared by an ex servicemen only whether they are pre 2006 retirees or post 2006 retirees. The subject matter brought out here is Rationalisation of pay fixation policies vis a vis ex servicemen reemployment. This disparity has erupted out as a result of wrong pay fixation formulation policy during 1984-1985. The gap caused due to this disparity is widening up since then and the time has come when something decisive has to be initiated by us. The recruitment of ex servicemen in PSB will never stop. The DA on Basic pay also will get add up. So the disparity will remain and continue as long as we do not stand united and raise our voice.

14.
Sat, 21 Sep 2013  Supratik Pandey

Ex servicemen pain and agony can be shared by an ex servicemen only whether they are pre 2006 retirees or post 2006 retirees. The subject matter brought out here is Rationalisation of pay fixation policies vis a vis ex servicemen reemployment. This disparity has erupted out as a result of wrong pay fixation formulation policy during 1984-1985. The gap caused due to this disparity is widening up since then and the time has come when something decisive has to be initiated by us. The recruitment of ex servicemen in PSB will never stop. The DA on Basic pay also will get add up. So the disparity will remain and continue as long as we do not stand united and raise our voice.

13.
Sat, 21 Sep 2013  ANUPAM GUHA

SO FAR THE DISPARITIES MENTIONED IN THIS COMPLAINT REGARD TO POST 2006. WHY DON'T YOU CONSIDER PRE-2006 RETIREES AND THEIR SUFFERINGS ? WHEN WE WERE IN SERVICE WE WERE ONE AND UNITED.DON'T BREAK THAT HIGH IMAGE AND FIGHT FOR ALL

12.
Sat, 21 Sep 2013  ANUPAM GUHA

SO FAR THE DISPARITIES MENTIONED IN THIS COMPLAINT REGARD TO EX-SERVICEMEN BELONG TO POST 2006.WHY DON'T YOU CONSIDER POST 2006 RETIREES AND THEIR SUFFERINGS? WHEN WE WERE IN SERVICE,WE WERE ONE AND UNITED.DON' BREAK THAT HIGH IMAGE AND FIGHT FOR ALL.

11.
Tue, 17 Sep 2013  Supratik Pandey

Colonel Shekhawat Sahab first of all my regards to you. I want to say here that the pay fixation rules for CPSE Board level Executives and below board level executives are formulated as per the Industrial Dearness Allowance and Central Dearness Allowance Concept. The Public Sector Banks are not following the circulars issued by Department of Public Enterprises. Please post your view to a different thread which is applicable to public Sector enterprise like SAIL, BHEL HAL etc etc. Normally the anomalies observed in pay fixation policies in public sector banks are removed through tribunal set up at regional level and central level.

10.
Tue, 17 Sep 2013  Supratik Pandey

Colonel Shekhawat Sahab first of all my regards to you. I want to say here that the pay fixation rules for CPSE Board level Executives and below board level executives are formulated as per the Industrial Dearness Allowance and Central Dearness Allowance Concept. The Public Sector Banks are not following the circulars issued by Department of Public Enterprises. Please post your view to a different thread which is applicable to public Sector enterprise like SAIL, BHEL HAL etc etc. Normally the anomalies observed in pay fixation policies in public sector banks are removed through tribunal set up at regional level and central level.

9.
Mon, 09 Sep 2013  Supratik Pandey

United Bank of India has taken up the matter with IBA which has forwarded it to Govt of India for issuing relevant instructions. This is confirmed from United Bank of India Saral Samadhan Scheme launched recently. My phone no is ********61

8.
Tue, 03 Sep 2013  manoj singh

lot of ex service men deprived due to the fitment procedure in banking sector.those who retired in 2006,07,08 are the most effected with this fitment rules.becouse that time banks have less vacancies, so we could not get job in time, now we r suffering wheather a fresh retires are getting more salery than a senior employee. govt should take proper care to ex servicemen who deprived.

7.
Sat, 24 Aug 2013  LAKHWINDER SINGH

YES Dear Im the most suffer i retired in 2004 joined bank in2008 now i got promotion gentalman now im drawing less than clerical staff. this is india where the policies maker are denying but no one is bother, in raj sabha on 23 mar 13 qno 2512 state that there is no provision for fixsation but my friends are getting good salries.I hope ur struggle will achive the goal as per my opinion we are not entitle for protection if it is otherwise let us see

6.
Thu, 22 Aug 2013  venkatesh

please leave contact details to get in touch with each other an make a common platform to file writ petition.
m ********19
venkatesh

5.
Wed, 31 Jul 2013  manas chandra saha

protection to be given on the basis of length of service in previous organisation so that discrepency may not arise in case of same lenth of service. same rank.

4.
Thu, 25 Jul 2013  Debasis Sahoo

I am also a victim on this issue. The management of United Bank Of India is unwilling to consider the practical things. We need to convince them through legal steps only. They are not willing to answer our several letters forwarded from my end.

3.
Fri, 19 Apr 2013  KRISHAN KUMAR DAHANWAL

I think the pay fitment policy of PSBs in respect of Ex-servicemen is not transparent. There should be a uniform formula for each and every ex-servicemen who joins PSB. An ex-servicemen who retires from the defence forces but could not get the banking job due to one or the other reason, the DA announced during that unemployed period, should be added in his LPC The bank should give fitment taking into account that unemployed period DA also so that his pay fitment would be at par with the ex-servicemen who has just retired from defence forces and joined the bank immediately after retirement. The anomaly in pay fitment in respect of DA component which results in huge difference in pay fitment t will be automatically resolved.

2.
Fri, 19 Apr 2013  krishan kumar dahanwal

I think the pay fitment policy of PSBs in respect of Ex-servicemen is not transparent. There should be a uniform formula for each and every ex-servicemen who joins PSB. An ex-servicemen who retires from the defence forces but could not get the banking job due to one or the other reason, the DA announced during that unemployed period, should be added in his LPC The bank should give fitment taking into account that unemployed period also so that his pay fitment would be at par with the ex-servicemen who has just retired from defence forces and joined the bank immediately after retirement. The anomaly in pay fitment which is prevalent will be resolved.

1.
Fri, 29 Mar 2013  sandeep kumar

Exactly. I am one of those most suffered due to the way PSBs are currently interpreting rather misinterpreting the policies/circulars issued by the govt. I got retired in 2006 and reemployed in bank in 2011. At that point of time DA was 0%. So the fixation given by the bank was neglible for me. I merely got one increment and my basic including 02 graduation increments was fixed at 8400/-. whereas my basic at the time of retirement itself was 11630/- (8830 + 2800). Thus there is serious disparity in pay fixation by banks. Your effort in this regard is reallly laudable. We will surely fight it out !!!