Staff Costs
– A Brief Analysis
- Total Staff Costs
‘Total Staff Costs’
include Salaries and Allowances, Incentives, Bonus, Overtime Wages,
Superannuation Benefits (PF, Gratuity, Pension including Commuted Pension),
Leased Accommodation, Monthly Conveyance, Furniture, Newspaper and all other
Staff Welfare Measures (Entertainment/Medical/Holidaying & Travel
etc.). Thus, it is akin to ‘Cost to
the Company’ (CTC) concept i.e. cost incurred in keeping a person on the
bank’s payrolls. For the year ended
31-03-2007, the total staff costs amounted to Rs.27,520.00 Crores.
- Total Establishment Costs
‘Total Establishment
Costs’ include Staff Costs as described above and in addition, rent,
electricity, depreciation and repairs on premises, vehicles and furniture (including
Computers, ATM, Printers, Fax, Networking Systems and other Office Equipments). Thus, establishment costs are much higher
than staff costs.
- Total Wage Costs
‘Total Wage costs’
include Monthly Pay & Allowances paid to staff in service, monthly pensions
and other benefits which are fixed in nature and paid every month unlike other
staff costs. Cost of wage bill for FY
2011-12 was put at Rs.56,292 crores. Total Wage Costs were Rs.27,520.00 Crores for
the year ended 31-03-2007.
- Pay Slip Components
This is the most
important part of all. Because, basing on this only, all others are decided. ‘Pay Slip components’ include monthly pay and
allowances, as reflected in the pay slip (on the left side) of
individual employees. Of the pay
slip components, the Basic Pay and any other pay or allowance that ranks for
superannuation benefits (PF, Gratuity and Pension) are very important and
crucial in any wage revision.
IBA
itself has openly admitted now (through its Press Release dated 02-12-2014)
that 11% increase in pay slip components is equal to 12.5% increase in total balance
sheet costs. Believing this is correct,
it translates to Rs.7,036.50 Crores (In 9th BPS, the amount of hike
was Rs.4,816.00 Crores).
Rider:
What was Rs.4,816.00
Crores as on 30-09-2006 (the reference date on which D.A. was merged with
Basic Pay in 9th BPS) is equal to Rs.7,590.02 Crores, if
converted to prices as on 30-09-2011 (the reference date on which D.A. is
proposed to be merged with Basic Pay in 10th BPS).
Pannvalan
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