Chennai, January 22: The bank officers will lose between Rs 41,472 and Rs 148,608 on the basis of salary scale as High Cost Allowance (DA) as per the salary agreement signed by the unions against the salary agreement signed by Asian life insurance giant Life Insurance Corporation of India (LIC), said a senior union official from the Indian Association of Bank Officers (AIBOA).

AIBOA and three Members of Parliament (MP) – Communist Party of India K. Subbarayan, Congress MP Rajya Sabha Kumar Ketkar and Anil Desai of Shiv Sena want the central government to rework the DA for bankers and return it to equality with the LIC employees. However, other banking unions do not expect the government to revise the DA structure for bankers like that of LIC staff members. 7th wages commission: the dearness allowance payable to central administration employees put on hold? Here is a fact check.

In the last salary review (April 2021), LIC staff received a 0.08% increase for every four point increase in the AD calculation, although the banking sector did not only gets 0.07% for every 4 point increase.

“The difference is calculated by keeping the base salary at Rs 100. The figures taken for salary review purposes, broken down into seven scales,” Nagarajan, AIBOA told IANS.

He said that for the purposes of the work, the starting base salary of Rs 36,000 for officers in Scale I and the base salary of officers in Scale VII (GM Cadre) of Rs 129,000 are taken into account. “In 51 months from 1.11.2017 to 31.01.2022 for Scale I officer, the DA amount lost is Rs 41,472 and Scale VII is Rs 148,608,” Nagarajan said.

According to him, the DA difference for a base salary of Rs 100 on 31.01.2022 is 4.34% and should reach minimum 5% at the end of October 2022. “An officer who retired during this period must have lost the advantage of the collection of leave, gratuity and monthly pension as well. An officer who joined after 1.04.2010, contribution to the NPS scheme at 14% on base salary every month from 11.11.2020 will also be the loser,” Nagarajan mentioned.

He stated that for the future construction of new salary scales, i.e. for the period from 1.11.2022 to 31.10.2027, there will be further differences in the salary scales. Few bank union leaders are of the opinion that the central government will revise the DA as requested by AIBOA.

“The salary agreement was signed by the banking unions and the DA component cannot be equal to that of the LIC. Bank employees enjoy lower interest rates on their loans and higher interest rates on their deposits, which LIC employees do not enjoy.

“This issue needs to be discussed by all banking unions in their common platform. The pay agreement has already been signed by several unions other than ours,” said Pradip Biswas, National Vice President of the Bank Employees Federation of India (BEFI) at IANS. Biswas said the DA anomaly was there and that BEFI did not sign the pay deal while other unions including AIBOA signed it.

The way DA parity with LIC staff has been demanded by banking unions has also not gone over well with insurers and other banking sector unions. “This (difference from DA) decision by the Center has created an imbalance in the entire banking and insurance industry, with LIC staff members receiving favorable treatment, ostensibly to rush the IPO of the LIC (initial public offering) without too many objections from its employees,” Nagarajan said.

“The LIC unions, which claim to be pro-labour, seem to have quietly accepted the government’s decision as they benefited from the latest wage review…So all their ‘fierce opposition’ to the divestment plans is down to nothing more than ‘a simple symbolic gesture,’ he added. Vishwas Utagi, co-chairman of the Joint Union Action Committee, said dryly.

Disagreeing with this, BEFI’s Biswas said, “The AIIEA protested the IPO of LIC. They also came up with other protest programs.” “Anyone can tell bankers that LIC is on a solid financial footing compared to public sector banks. Despite competition, LIC’s management expense ratio is by far the lowest in the industry. of LIC deserve a good salary package,” Shreekant Mishra, secretary general of the Insurance Employees Association of India (AIIEA), told IANS.

AIIEA is a major union in LICs and also has a decent presence in government-owned general insurance companies. Bankers appear to be suffering from heartburn or indigestion with the pay review agreement signed by LIC unions and management, Mishra said.

(The story above first appeared on LatestLY on January 22, 2022 at 4:35 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle , log in to our website latestly.com).