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.
However as per the instructions issued by Department of Personnel & Training from time to time, no protection of the pay held by the Ex-Servicemen (ESM) prior to retirement is given and he is allowed to draw pay only in the prescribed pay scale / pay structure of the post in which he is re-employed. Instructions / guidelines in this regard are issued from time to time by the respective nodal administrative ministries and it is the responsibility of the respective organizations to implement the same.
Para 4.2 (b) ii of GOI O.M. No. 3/19/2009. Esst. Pay dated 05-04-2010 suggests that the Basic pay of exserviceman after reemployment will be the amount consisting of Pay in band Plus Grade pay recieved at the time of retirement. But Public Sector Banks have formulated a policy whereby the DA at the time of retirement from Defense services gets the maximum importance and can thereby reduce the Basic Pay to any amount. The pay fiment policy adopted by PSBs is therefore quoted below for your information.
Basic pay in public sector banks are being fixed based upon the Gross Pay as per Last Pay Certificate that the ESM received from defense services at the time of retirement. This Gross pay (includes Pay in Band, Grade Pay, and DA & excludes Rank pay, GCB Pay and MSP ) has been considered in fixation of the basic pay on reemployment in such a way that the DA at the time of retirement from Defense service gets equated to DA at the time of joining Bank. Now suppose, an exserviceman retires in February 2006 and joins a public Sector Bank in Mar 2007 when the DA was approximately 9% of Basic pay. Since the DA at the time of retirement from Defense Services i.e @0% Jan - Jun 2006, his pay in band plus Grade pay will only be the reckonable Gross Pay he recieved as per LPC. Now the pay fixation in Bank is done on the basis of this Gross pay quoted in his LPC in such a way that 9% of DA of some amount X called Basic Pay plus the Basic Pay becomes the gross pay which is equal to the gross pay recieved as per LPC.
DA for central government employees are revised twice a year. This DA revision policy is different for Bank employees. Sometimes DA for central government employees is increased by 10%. Exserviceman do not get immediate employment just after retirement. Some of them gets employment after one year, some get after two years and some of them may have to wait for more time. These factors contribute to irrational pay fixation in PSB Banks.
It is observed that a Junior Ex-Service man employee having nil banking experience and whose date of joining is one year latter than his senior counter part having one year banking experience gets Basic pay which is Rs 5000/- more than his Senior Counter part. This means that the total difference in remuneration both the ex-serviceman Bank employee is more than Rs 9000/- .
The following facts tabulated below can be compared to understand the disparity in detail.
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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 in30 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) }. |
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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/-.
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Thus we can infer from the aforesaid facts that a serious disparity exists in Pay Fixation of Ex-Serviceman reemployed in Public Sector Banks. The issue has been submitted many times to the authorities through proper channels and to the 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. So it is essential for us to know the correct platform from which we can project these issues and get them redressed suitably.
