11th bipartite settlement – Charter of Demand

Last updated by Abhay Kumar on September 11, 2017

11th Bipartite Settlement is due from 1st November 2017. Charter of demand for 11th Bipartite Settlement has been submitted jointly by AIBOC, AIBOA, INBOC & NOBO. This Charter of demand will be the basis for discussions and negotiations for finalizing the salaries, benefits and other matters concerning bank employees 11th bipartite settlement for Bank Employees. The charter of demand for wage revision is 104 pages long. See Important points of the demands.

See: Expected DA for Bankers from November 2017

See: How much time previous BPS have taken and SBI mandate for 11th bps for upto Scale – III only.

Following are brief details of the demands for next bank wage revision, due from 1st November 2017.


The following are details of the demands for 11th bipartite settlement:

Basis for Demands

The process of wage revision must be an honest attempt to offer the replies to the primary questions flashed which are listed as follows:

  • Whether the compensation system is scientifically designed match these developments witnessed in the industry?
  • Whether the compensation ensures the officers to lead a decent quality of life?
  • Whether the compensation syncs with the academic qualification at the outset and the risk, responsibility, accountability and transferability an officer encounters in the working atmosphere?
  • Whether the compensation generates the sense of pride and belongingness towards the job entrusted and the Institution employed? Whether the compensation generates the confidence on the future?

As the Pay Commission has adopted the principles to draw the wage structure taking into account the salary structure of different sectors including the private sector and the same has been accepted by GOI for implementation, the same principles have to be followed by and for the Banking sector also.

Thus we shall also follow the principles of VII pay commission in fixing minimum salary, of course to be calculated as on 1 November. 2017 after adding the cushion discounted by the pay commission to the Government employees for the “STATUS” they enjoyed and also after adding the additional cushion for the RISK, RESPONSIBILITY, TRANSFERABILITY AND ACCOUNTABILITY the bank officers are subjected to, in the same ratio fixed between the employees and officers, deleting the very concept of special pay caused grave injustice to the retired/retiring officers who laid strong edifice to the ever strong Indian banking sector.

We have to take into account the inflation projected for Nov,17.

The remuneration package of the Bank officers needs to be framed in such a manner:

  • That officers would feel that they are valued and fairly paid considering their work load and undertaking of enormous risks and responsibilities.
  • They should be treated at par with Government officials and PSU officers.
  • As stated in the 7 Pay Commission Report the status of an officer in the society should also be taken into account while fixing the salary.
  • Remuneration of officers is an important element of proactive functioning in Banks in this era of competitive scrimmage and their commitment, dedication and hard labour towards the progress of the economy of the country.

Pay Scales

Minimum Basic Salary of Bank Officers in 11th bipartite settlement is proposed at Rs.61000 based on Central Govt. (VII CPC) pay scale of 56100, which is based on DA 1.1.2016 whereas we are proposing DA merger on 31.10.2017.

The pay scales will be arrived at based on the above principles discussed.


Fitment shall be stage-to-stage i.e. on corresponding stages from 1 stage onwards and increments shall fall on the anniversary date as usual. There shall be automatic movement of scale..

Dearness Allowance

Since the entire D.A. outstanding as on 31.10.2017 is to be merged with the existing Basic Pay, the percentage of revised D.A. as on 01.11.2017, for every rise or fall of four points of index on the quarterly average of D.A. over and above November 2016 index should be recalculated @ 0.07% per slab of 4 points.

House Rent Allowance

In view of the fact that nearly 60% of officers have been staying in leased houses / flats of banks, increase in the percentage of H.R.A. will not extend them any benefit of salary increase, on the contrary they will have to suffer more loss for the same leased house / flat. Hence, existing percentage of HRA should be retained without any change and thus, lesser amount of allocation towards HRA out of total amount to be allotted for wage revision can be diverted in other areas where from all officers can be benefitted.

Alternatively, self leasing of own houses should be permitted to avoid the huge disparity under the present dispensation of capital cost.


The existing classification of centre should be reviewed classified in the following categories:-


I Major Metro –  Kolkata, Delhi,Mumbai, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune, etc.,

II Metros (Area I) – All centres with more than 12 lakh Population and State Capitals

III Centres with population of 1 lakh and above and all District Head quarters


Category I – 20% of Basic Pay

Category II – 17.5% of Basic Pay

Category III – 15% of Basic Pay

F.P.P.: It should be the last increment without any ceiling.

PQP : For completion of Part I JAIIB and Part II CAIIB, one and two increments are to be considered instead of consolidated amount as in the past. The present embargo on non payment of PQP and FPP should be removed.

Other Allowances & Benefits


An additional allowance to the extent of 20% of the Basic Pay drawn by him; Weightage for the purpose of Promotion Choice place of posting on completion of the assignment An additional LTC to enable him to meet the family etc; (As provided for those serving in North East for the Public Sector Employees)


All officers irrespective of the office of posting/ i.e. branch/administrative office etc., should be paid the closing allowance equal to 15 days of their salary once in 3 months.



  1. Review and rationalization of Halting/Boarding/Traveling expenses.
  2. The Boarding expenses should be linked to lodging expenses.
  3. The existing system of allowing banks to fix the rates of reimbursement periodically should continue with a provision to review them annually.
  4. All officers should be eligible for travel by Air, irrespective of distance with Executive Class entitlement for Senior Management.
  5. For places not connected by Air, Officers should be permitted to travel by st AC-I Class by rail.
  6. Option to be granted for travel by road in any other mode also including own vehicle. Seeking permission of the competent authority to be done away with in case of exigency and emergent circumstances
  7. Lodging & Boarding expenses and diem allowance for 15 days proposed.


Increments falling due between 1 January to 30 June should be sanctioned on 1st January of the year itself. Increments falling due between 1st July to 31st December should be sanctioned on 1 July of the year itself. (In tune with 7 Pay Commission)

Running Scale:

As promotion depends on vacancy done, everyone eligible do not get promotion. Hence there should be a running scale without stagnation.


The perquisites and other allowances as well as welfare facilities provided by the banks and settled at the industry level should not be reckoned for the purpose of arriving at the cost of wage revision. It is an essential area of functional expenditure, as in the case of business promotion in other sectors of the economy. We should strive for parity in allowances, welfare facilities and perquisites. We therefore propose that the Bank should bear the tax on perquisites.


Post allowance should be reintroduced in order to provide incentive for officers for working in the most competitive sector, to compensate him for taking additional load on account of diversification, technology initiative etc., i. 25% of the Basic Pay should be paid as post allowance to all designated officers viz., Branch Managers, Divisional Managers, etc., ii. 20% of the basic to other officers.


Risk Allowance should be introduced to provide cover to all lending risks to all sanctioning authorities at all grades as present dynamics of banking involves various types of risks beyond the normal prudence of banking.

Differently abled:

A special care and allowance should be paid to the differently abled in terms of the Govt of India guidelines

Disturbed Area Allowance :

Disturbance Area Allowance of 20% of Basic Pay should be paid to officers working in the branches which comes under disturbed area and Terrorist prone areas called as The Red Corridor.




We have to switch over to the earlier scheme with improvement. Family also should be provided 100% reimbursement. Medical reimbursement should be exempted from tax, as it is not an income. Taxing medical reimbursement is a huge burden to the convalescing officer. IBA should take necessary steps to achieve this.

Medical Check Up

Considering the stress and strain as well as the increasing health hazards, we need Master Health Check-up for the officer and his / her spouse once in two years if the officer’s age is less than 50 and every year if the officer crosses 50 years of age. This will actually keep them fit and reduce the expenditure for the Bank.


We need to review the existing scheme in a comprehensive manner.

The entitled mode of travel should be made as air travel to all officers For Senior Management Cadre it should be executive class.

The encashment of leave fare concession should be the actual expenditure he / she would have incurred had the officer travelled actually by entitled class.

RBI and NABARD provide Rs107000 per head to officers upto E grade and for F grade and above Rs 160000. The same can be extended to our officers.

Foreign Travel to be allowed within the entitlement upto the maximum distance permissible in India. The IBA should take up with the Government and seek exemption from payment of income tax whenever the amount is drawn on the basis of reimbursement.


Since the Bank officers are paid either of the Hill & Fuel allowance or Special Area Allowance and both are not paid in case of payment of Adhoc Temporary Incentive for officers posted in North East ( popularly known as North East Allowance). In Central Government Special Compensatory/Remote Locality allowance (Special Area Allowance in our case) is paid in addition to special duty allowance (Adhoc Temporary Incentive for officers posted in North East in our case). The North East Allowance as being paid @ 20 % of Basic pay the rate of both the allowances should be suitably revised as prevailing in Central Government. The rates of this allowance shall automatically increase by 25% whenever the Dearness Allowance payable on revised pay structure goes up by 50%


There is no uniformity in payment of deputation allowance paid to bank officers. The allowance should be suitably revised and made uniform in the industry.


The concept of minimum exgratia should be reintroduced in a rational manner. Exgratia is now available to all the Employees in Private Sector Banks, Foreign Banks etc., which has created a serious differential in the emoluments between the workforce in the Public Sector and other sectors. It is also prevalent in Govt. Sector such as Railways/ Postal and in Public Sector Undertakings and paid during festivals. Hence, an amount equivalent to not less than one month’s gross salary should be paid as exgratia to all.


In view of the onerous responsibilities of conducting commercial banking operations involving risk, officers should be paid Commercial Banking Allowance as prevailing in the Reserve Bank of India. (Central Banking Allowance)



Hence, a separate Transfer / placement Policy taking into account the problems of the lady officers should be designed and forwarded to the member banks by IBA

Yet another major consideration is their safety and security at different centers.

The lady Officers need to be extended the benefit of flexi-time and flexi-place concept. They should be given choice of their place at the time of transfer and placement keeping their difficulties in view. The Banks should be advised to keep one exclusive lady Officer in charge of Personnel Administration in all the Banks to attend to their exclusive issues including transfer, placement etc.

The lady Officers whose spouses are working elsewhere should be accommodated at the same place. Similarly, where the wife and husband are employed in the same bank, they should also be accommodated at the same centre. The spouse policy given by the Government should be implemented in toto.

Flexi timing as well as work from home facility should be introduced for a limited period of 3 years during the entire service.


The Banks should provide Creche facility for the benefit of children of Officers who are required to attend to office as the children need parental attention


The existing Maternity Leave of 6 months at a time should also be extended in case of adoption of a child (from present 3 months). 3 months’ additional sick leave be sanctioned after attaining the age of 45 years as lady officers are prone to diseases at this age. Child Care leave as applicable to the Central Government employees must be made available to lady officers i.e. two years CCL with salary. It should be also extended to male officers if they are single parents.


The Paternity leave should be extended to 60 days on 2 occasions.


Spouse employed in the same bank to be permitted to avail LFC separately as per individual eligibility. The lady officers should be permitted to take their dependent parents and parents in law along with them on LFC/LTC.


The parents, father-in-law & mother-in-law, dependent of an officer, sons and daughters, brothers and sisters divorced or deserted, daughters or sisters etc to be treated as members of family for the purpose of LFC/HTC and medical facilities.

Fertility Treatment

Now a days infertility is a serious problem affecting family life. Additional leave of 6 months at different intervals along with salary and medical reimbursement should be provided. This will also apply to men who undergo infertility treatment. (h) Work from Home

Work from Home

We also demand for the implementation of the concept of “Work from Home” immediately


The flexi timing is only for a limited period of 2 years during the entire service.


The voluntary retirement provided in the Officers Service Rules should be incorporated in the Pension rules and they should also be made eligible for Pension without any discrimination.

Pension scheme should be extended to all those who have been denied earlier on the basis of the misinterpretation of the understandings reached with IBA in 50 particular those who retired under voluntary retirement scheme as per the service regulations / resigned after completing 20 years.

Full Pension Eligibility Period to be made 20 years


The Family Pension should be on par with the Government and be at 30% of last drawn pay by the officer across the board to every one. The regular family pension will be payable till death. Up to the age of 67 years or 10 years after death full pension.


The employees and officers who joined the banking industry on or after th 01.04.2010 should be governed by the original pension settlement signed on 29 October 1993 and Gazetted in the year 1995.


The Gratuity should be paid at the rate of one month salary and allowances without any ceiling. The gratuity should be completely exempt from payment of income tax. The calculation of gratuity should be changed as we move over to 5 day week.


Based on the principles of retirement benefits which allot Provident Fund, Gratuity and Pension for different purposes, the Provident Fund should be at the rate of 12% of the total salary and allowances. The Provident Fund should be payable to all employees.


Encashment of entire leave at credit should also be permitted on resignation, removal and compulsory retirement. Now, half permitted on resignation & full on compulsory retirement. The existing ceiling on encashment of leave should be removed at the time of resignation / superannuation as directed by the Court judgement. The entire 58 amount should be exempted from income tax as in the case of the Central Government Employees. Encashment of PL should be allowed without any ceiling.


A comprehensive Medical Scheme for pensioners/ retirees should be framed and introduced in all the banks as available now in the case of executive directors and CMDs of the Banks, and the medical insurance scheme is to be reversed.


A separate allocation of funds for improvements to welfare of the pensioners should be made every year. The facilities like Holiday Home, clinics, Transit House etc., should be made eligible for pensioners also. Present ceiling of 3 % of net profit to be given to welfare activities should be raised to 5 % of operating profit to be given to welfare activities. Suitable life cover should be taken for normal as well as accidental death of employees. LFC/ HTC FACILITY: LFC / HTC Facility should be extended to the retirees also at par with serving employees or at least once in 5 years.


News paper and fitness allowance can be provided to the pensioners


Regulated Working Hours

The working hours for officers should be defined and regulated.


5 Days week should be introduced immediately in the entire banking industry.

The working hours should not exceed 36.5 hours in a week.

The daily working hours should not be more than 6.5 hours in the normal course.

Any working hours, more than 7 hours a day, should be compensated monetarily to the extent of twice the actual hourly salary in the normal course.

This should be uniform for the Banking Industry as the Govt directs banks to work late or on holidays often and we follow their directions but compensation varies between Banks.

They should also be made eligible to take weekly off to the extent of additional hours of duty rendered by them as rest is needed for recuperation.

The Officers who are called upon to work on weekly-off days and holidays, should be compensated as above and in addition be permitted a compensatory off on a date convenient to them and such weekly offs be credited to the leave account.

Need to have uniform holidays to the officers in the Grid, as the holidays are declared by RBI, substantially less no of holiday is extended to the officers


We demand that there should be uniform categorization norms for all Public Sector Banks.


The availing of leave should be made flexible. The officers should be free to avail the leave as and when required. They should also have the benefit of splitting the day into hours and half-day, full-day etc., and longer period as in the case of several other corporates.


The existing system of maintaining separate leave accounts may be done away with. A common account of leave should be introduced where they should be able to combine all types of leave into total number of days of leave available to them and use the same as per their own requirement.

  1. Casual leave should be increased to 15 days;
  2. Privilege Leave – 33 days in a year.
  3. Sick Leave 15 days in a year ( on full pay) without any ceiling;
  4. Restricted holidays: A minimum of 10 days in a year for festivals and other personal, religious functions etc., may be permitted to be availed as holidays by the officers.
  5. Special leave for study, sports, social and cultural activities
  6. Leave on loss of pay
  7. Sabbatical leave h. Accumulation of PL should be increased to 360 days instead of 270 days.
  8. Encashment of PL should be allowed for maximum 360 days.
  9. Encashment of 30 days PL per two years be allowed without linkage to LTC.
  10. 50% of balance of Sick leave not availed may be converted to PL at the time of superannuation or VRS.


The leave so calculated should be credited to the leave account of the officer on a consolidated basis. The officer should be eligible to avail the leave on the basis of his requirement.

The intermittent holidays and weekly offs should be excluded while sanctioning leave.

The Officer should have the opportunity of encashing the balance available in the consolidated leave account once in a year to the extent of 50% of the leave available in his account at the beginning of the subsequent year.

Further, an officer should be permitted to encash the entire leave at his credit at the time of retirement including sick leave and no ceiling should be imposed for accumulation of leave.

The officer may be permitted to transfer leave to another officer in case of need for medical purpose.


Work done on a regular basis should not be outsourced.


We have submitted a very comprehensive note to the Indian Banks’ Association for the review of the existing conduct rules and procedure and to introduce certain changes in tune with the changing environment. The issue should be finalized for implementation, before the negotiation starts as it is a pending issue.


The present adhoc system of withholding gratuity and harsh decision to set off the gratuity amount towards loss caused etc., should be reviewed keeping in view, the recent judicial pronouncements.

In any case, there should not be stoppage or denial of gratuity to the officers.

No disciplinary action should be initiated after superannuation

All Terminal benefits should be released pending disciplinary proceedings if bank fails to complete the proceedings before superannuation as is being done in the case of CBI cases being pending.


The IBA should take up with the Government, the introduction of an exclusive Banking Administrative Tribunal for the banking Industry in order to deal with all the service as well as disciplinary matters in respect of officers similar to Central Administrative Tribunal. Decision has already been taken. Only notification is to be issued.


The present ceiling of Rs.10,000/- for dependent should be increased to Rs.30000/- taking into account minimum basic pay of Rs.18000/- for the Central Govt employees which along with DA amounts to Rs. 30000/-.



To cater to the emerging needs we have to go for massive recruitment of clerks and Officers and also agriculture graduates, commerce graduates, Computer Engineers etc immediately.


Redefine the voluntary retirement and re-fix the minimum eligibility for the purpose.


The age of superannuation to be raised to 65 years for all officers, as there is a huge shortage in the middle order and seniors due to non recruitment for 10 years.


Present Ceiling of 3% of net profits to be increased to 3% of Gross profit without any ceiling. LIFE COVER : Suitable Life Cover should be taken for normal as well as accidental death. This is available in few Banks but there is no unanimity.



Housing Term Loan:

In view of the increase in cost of construction of house and flats, we need to have a comprehensive review of House Building Advance to officers by suitably enhancing the limit to Rs.1 core at Simple rate of interest without any slab,which can be repaidup to the age of 75.

The Conveyance Loan has not been revised for long, we need to enhance the Car Loan limit to Rs.15 Lacs and Two Wheeler Loan limit to Rs.1 lac at Simple rate of interest without any slab. The repayment of the above loans should be extended upto 75 years of age.

Review of all loans and advances and make same rules in all banks.


In view of All India transferability of officers, the Road tax on vehicles of different States should be paid by the bank on inter-state transfers.


The Banks should take the responsibility for shifting the personal effects of the officers on transfer from one place to another. In the absence of such facility, the Officers should be reimbursed the full expenditure on certificate basis.


To meet additional expenditure towards education of children, housing etc., officers should be paid two months’ salary to compensate incidental expenses on transfer. In case of transfer outside the State, 3 months’ salary should be paid 71 towards incidental expenses. In case of transfers to far off centers and the places of inclement weather and living conditions, there has to be high compensation as incidental expenditure on transfer.


As cost of Education has increased a lot Education Allowance to be introduced in 11th bipartite settlement for school education and higher education similar to that existing in Govt / PSUs / Private Sector.

These are excerpts from the Detailed (Original) Charter of Demand for 11th bipartite settlement by the AIBOC, AIBOA, INBOC & NOBO. Download the PDF of charter of demand for 11th Bipartite Settlement.


Kirit · January 29, 2017 at 11:37 pm

After 20 years vrs full pension should be eligible as per central govt.

R.K.GUPTA · March 1, 2017 at 12:20 pm

Dreams proposed are good. How many dreams are converted to reality is to be seen.

Aparna Iyer · April 16, 2017 at 6:29 pm

Keep day dreaming. This will not materialize even in the next 2 decades.

Bindu C · April 22, 2017 at 6:41 pm

let us demand for reducing minimum no of years for pension from 20 years to 15 years

M S Mukherjee · June 13, 2017 at 3:38 pm

Why charter of demand is silent about gratuity ceiling wef–01/01/2016?will the RETIRED employees be DEBARRED for getting gratuity wef 01/01/2016 for delayed implementation of gratuity act?will the bank employees call in prey for delayed implementation of gratuity act ?WE DEMAND PROPER JUSTICE IN THIS REGARD.

Neeraj Singh · July 28, 2017 at 11:12 pm

No one talks about award staff. They are just labours.

Raghubir · August 12, 2017 at 9:05 pm

Retirement age to be extended to 65 Yrs and retirement benefits competitive to foreign countries in BRICS India place in the last and 43rd rank in paying low to workers if retirement age is not extended the retirement be paid to the bankers of 65 yrs

Ashok Pandita · March 13, 2018 at 9:05 am

How about the special pay introduced in last settlement without ranking for gratuity and pension benefits? Since it is abolished in pay commission and will be removed from next settlement for Bankers, the effect of the same should be given to the pensioners of last settlement.

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