IBA clarification on stagnation increment to Non-Subordinate Employees

IBA clarification on 6th, 7th, 8th Stagnation Increment to Non-Subordinate Employees – Employees who have completed two years or more as on 15th November, 2012, after receipt of 5th stagnation increment, would be eligible for 6th stagnation increment w.e.f. 1st November, 2012

IBA has released a Clarification circular on 10th Bipartite Settlement regarding 6th, 7th, 8th Stagnation Increments on 19.09.2015.

HR & INDUSTRIAL RELATIONS

IBA CIRCULAR

No.HR&IR/ClR/2015-16/B/90/1377

September 19, 2015

Designated Officers of Member Banks

who are parties to Bipartite Settlement

Dear Sir/Madam,

10th Bipartite Settlement (1.11.2012 to 31.10.2017):

Stagnation Increments to Non-Subordinate Employees

As per the provisions of 10th Bipartite Settlement, it has been agreed to reduce the periodicity of 6th stagnation increment from 3 years to 2 years and to introduce 8th stagnation increment w.e.f. 13th May, 2015. 8th stagnation increment is to be released after two years on receipt of 7th stagnation increment or from 19th May, 2015 whichever is later. Keeping in view the cost constraints, it was further agreed that the consequential financial benefit to the employees could be released from 13th May, 2015. There is no change in periodicity of releasing the 7th stagnation increment and 7th stagnation increment is released after two years on receipt of 6th stagnation increment. In other words, an employee would be eligible for 8th stagnation increment, 6 years after receipt of 5th stagnation increment or w.e.f. 18th May, 2015, whichever is later.

However, the employees who have got 6th and 7th stagnation increments on or after 18th November, 2012 but before 13th May, 2015 as per 9th Bipartite Settlement, would get 8th stagnation increment, 7 years after receipt of 5th stagnation increment, if the weightage of one year on account of reduction of periodicity of 6th stagnation increment from 3 years to 2 years as per 10th Bipartite Settlement is not given to such employees. As a result, these employees would be placed in a disadvantageous position vis-a-vis the employees junior to them.

2. The Workmen Unions have therefore, requested us to clarify the position without any ambiguity.

3. We have examined the matter and clarify that the employees who have completed two years or more as on 15th November, 2012, after receipt of 5th stagnation increment, would be eligible for 6th stagnation increment w.e.f. 1st November, 2012, notionally, however, monetary benefit to such employees will be given 3 years after receipt of 5th stagnation increment or w.e.f. 1st May, 2015 whichever is earlier. Similarly, 7th stagnation increment will be released notionally 2 years after notionally release of 6th stagnation increment and monetary benefit of 7th stagnation increment will be released 2 years after receipt of monetary benefit of 6th stagnation increment or w.e.f. 1st May, 2015 whichever is earlier. 8’h stagnation increment will be released 2 years after notionally release of 7th stagnation increment or w.e.f. 1st May, 2015 whichever is later. The case may be clearly understood by following illustrations:

Illustration – I: Date of Receipt of 5th Stagnation Increment: 01/10/2010

Position as per 9th bipartite Settlement

Position as per 10th Bipartite Settlement

Stagnation Increment

Due Date of Release

Notional Date of Release

Date of Monetary Benefit

6th

01/10/2013

01/11/2012

01/10/2013

7th

01/10/2015

01/11/2014

01/05/2015

8th

01/11/2016

01/11/2016

Illustration – II: Date of Receipt of 5th Stagnation Increment: 01/10/2011

Position as per 9th bipartite Settlement

Position as per 10th Bipartite Settlement

Stagnation Increment

Due Date of Release

Notional Date of Release

Date of Monetary Benefit

6th

01/10/2014

01/11/2013

01/10/2014

7th

01/10/2016

01/11/2015

01/10/2015

8th

01/11/2017

01/10/2017

Illustration – III: Date of Receipt of 5th Stagnation Increment: 01/10/2012

Position as per 9th bipartite Settlement

Position as per 10th Bipartite Settlement

Stagnation Increment

Due Date of Release

Notional Date of Release

Date of Monetary Benefit

6th

01/10/2015

01/10/2014

01/05/2015

7th

01/10/2017

01/10/2016

01/10/2016

8th

—-

01/10/2018

01/10/2018

4. Please arrange accordingly.

Yours faithfully,

K Unnikrishnan

Deputy Chief Executive

Tab to view IBA letter No.HR&IR/ClR/2015-16/B/90/1377 dated 19.09.2015

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