May 3, 2024

IBA Calculation of Proposed Hike is 16.36% and Not 12.25%

11th Bipartite Wage Revision – IBA is insisting that the proposed hike is 16.36% and not 12.25% as projected by the UFBU. The complex calcuulation which is shown by IBA to CLC is here below.

1. IBA Over and above the encashment at the time of LFC (leave fare concession), five days additional encashment of leave (approximately 1.37% of payout) is offered every year to celebrate festive seasons, IBA said.

2. IBA has explained that the performance-linked incentive (PLI) scheme, which is proposed over and above the basic pay hike, would work out to be a minimum 2.74% additional pay out over the base salary bill of Rs 52,625 crore.

Total pay out to an employee will be 16.36% (12.25%+1.37%+2.74%)

It has proposed 10 days of salary (basic plus dearness allowance) for employees in banks which do not earn net profit but report a minimum 5% annual rise in operating profit, based on 2019-20 balance sheet.

PLI would be higher for better performing banks, provided they report net profit. Moreover, seven days annual encashment of leave is offered to employees over 55 years of age and in addition to normal leave encashment already available, there would now be 150 to 170 additional leave encashment available to most employees during their service period, the bankers’ body said in its communication.

If anyone is able to understand it, please do let me know !!!!!!

One thought on “IBA Calculation of Proposed Hike is 16.36% and Not 12.25%

  1. 5 days salary per year amounts to 1.38 percent of monthly salary. But the leave they permit to encash are ours not of IBA. So that claim is baseless….
    Second about PLI…In the present scenario of writeoff of corporate loans leads to erosion of profit.Hence no one is going to get that either.
    Again another another false claim of IBA….
    THEY THINK THEY CAN DICTATE…. BUT WE WILL NOT LET THEM….

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