IBA carries out amendment regarding stagnation increment in Clause 40 of Bank Wage Settlement dated 25.05.2015
IBA clarifies on Stagnation Increment under 10th Bank Wage Settlement for Bank Employees
HR & Industrial Relations
Designation Officers of Banks which are parties to the 10th Bipartite Settlement/Workmen Union dated 25.5.2016
Stagnation IncrementUnder the recently signed 10th Bipartite Settlement, it has been agreed that employees shall be eligible for 8th stagnation increment on 1st May, 2015 or two years after receiving stagnation increment, whichever is later.
It has been further agreed that the period of 3 years shall be reduced to 2 years for sanction of 6th stagnation increment. Accordingly it has bee provided in the Settlement that an employee who has completed two years or more after receiving the fifth stagnation increment as on 1st November, 2012 shall receive the sixth stagnation increment as on 1st November, 2012.
In this connection, we advise that the financial benefit on account of this reduction of eligibility from 3 to 2 years for sanction of the 6th stagnation increment shall accrue on or after 1.5.2015 since the additional cost of such reduction in periodicity from 3 to 2 years has been adjusted at 50% of the actual cost and hence to be effective from 1.5.2015 (30 months out of 60 months of the period of the Settlement).
However under clause 40 of the settlement dated 25.5.2015 in ‘Implementation’ it has inadvertently mentioned as under:-
Stagnation Increment – 8th 1st May, 2015
In view of the adjustment of cost as 50% of the total cost towards improvements in stagnation increment/s this needs to be corrected and read as under:
3 Stagnation Increment improvements (5th to 6th & 7th to 8th Stagnation increment) 1st May, 2015Member banks may kindly take a note of the above.
Dy. Chief Executive