Stagnation Increment Clarification from IBA

HR & INDUSTRIAL RELATIONS

 

HR&IR/MBR/XIBPS/9991

June 5, 2021

 

Designated Officers of Member Banks which are parties to the 11th Bipartite Settlement/ Joint Note dated 11.11.2020

 

Dear Sir/ Madam,

Stagnation Increment

Please refer to our letter No. CIR/HR&IR/XIBPS/9314 dated 12th November, 2020 with regard to Wage revision to Award Staff and Officers respectively in terms of Bipartite Settlement and Joint Note dated 11th November, 2020.

In this regard we have received a few queries from our member Banks regarding the benefit of improvement in stagnation increment. Please note that by the clarifications in this communication, no additional benefit over and above the provisions of bipartite/joint note mentioned above, are to be extended.

We quote below the relevant provisions in the Settlement/Joint Note.

A. For Workmen/ XI BPS

Clause 5.  Stagnation Increments

In partial modification of Clause 5 of Bipartite Settlement dated 25th May 2015, both clerical and subordinate staff (including permanent part-time employees on scale wages) shall be eligible for nine stagnation increments w.e.f. 1st November 2017 at the rate and frequency as stated herein under:

The clerical and subordinate staff including permanent part-time employees on scale wages on reaching the maximum in their respective scales of pay, shall draw nine stagnation increments at the rate of Rs. 1990/- and Rs.1000/- respectively (pro rata in respect of permanent part-time employees) each due under this settlement, and at frequencies of 2 years, from the dates of reaching the maximum of their scales as aforesaid.

Provided further that a clerical / subordinate staff (including permanent part-time employees on scale wages) already in receipt of eight stagnation increments shall be eligible for the ninth stagnation increment from 1st November, 2017 or two years after receiving the eighth stagnation increment, whichever is later.

Provided further that the Stagnation increment/s received by the employees who are/were in service of the banks as on 1st November, 2017 as per periodicity hereinbefore would be readjusted from the date of reaching their maximum by also considering the Graduation/JAIIB/CAIIB Qualifications acquired thereafter, if any and employee shall be notionally eligible for stagnation increments w.e.f. 1.11.2017 in terms of this settlement as per the revised periodicity which will qualify for superannuation benefits. However, monetary benefit on account of such revised and readjusted stagnation increment/s shall be payable from 1st November, 2020 or the actual date of entitlement whichever is later.

 

46 (2) Implementation

 

With effect from

a)     9th Stagnation Increment

1st November, 2017

b)     Rescheduling of stagnation increment/s due to change in periodicity

i)                Notional benefit

ii)              Monetary benefit

 

 

1st November, 2017

1st November, 2020

 

Thus, in terms of the above, it will be observed and understood as under:

 

a.      From 1-11-2017, both clerical and subordinate staff are eligible for 9 stagnation increments.

b.     Each Stagnation increment shall be Rs. 1990 and Rs. 1000 for clerical staff and subordinate staff respectively at a frequency of 2 years.

c.      Clerical / subordinate staff already in receipt of 8 stagnation increments shall be eligible for the 9th stagnation increment from 1st November, 2017 or two years after receiving the eighth stagnation increment, whichever is later.

d.     For all other employees who were in service as on 1-11-2017, stagnation increments already drawn as per old norms shall be reworked as per new norms.  The benefit of such reworked stagnation increments shall be notional from 1-11-2017 and monetary benefit shall be payable from 1-11-2020 or the actual date whichever is later. Though the benefits may accrue w.e.f. 1-11-2017, in no case monetary benefit will be extended in any manner for the period preceding 1-11-2020.

 

All Member Banks are requested to be guided accordingly and implement the provisions as above.

 

B. For Officers /Joint Note

 

Clause 2.  Stagnation Increments

 

a)          Officers in JM Grade Scale I who have moved to scale of pay for MMG Scale II in terms of Regulation 5 (b) after reaching maximum of the higher scale are presently eligible for four stagnation increments. With effect from 1st November, 2017, these officers will be eligible for five stagnation increments. The first four stagnation increments will be released after every two completed years of service, of which first two shall be Rs.1990/- each and next two shall be Rs. 2220/- each. The fifth stagnation increment of Rs.2220/- will be released two years after receipt of fourth stagnation increment or w.e.f. 1st November 2017, whichever is later.

b)          Officers in MMG Scale II who have moved to Scale of Pay for MMG Scale III in terms of Regulation 5 (b) after reaching maximum of higher scale are presently eligible for four stagnation increments. With effect from. 1st November, 2017 these officers will be eligible for five stagnation increments. First four stagnation increments of Rs.2220/- will be released after every two completed years of service after reaching the maximum on the higher scale. The fifth stagnation increment of Rs.2220/- will be released two years after release of fourth stagnation increment or w.e.f. 1st November, 2017, whichever is later.

c)          Officers in substantive MMG Scale III i.e. those who are recruited in or promoted to MMG Scale III are presently eligible for five stagnation increments. These officers shall now be eligible for a total six stagnation increments. First four stagnation increments of Rs. 2220/- after every two completed years and next two increments of Rs. 2500/- each, two years after receipt of the fourth stagnation increment.  The sixth stagnation increment of Rs. 2500/- will be released two years after release of fifth stagnation increment or w.e.f. 1st November 2017, whichever is later.

d)          Officers in SMG Scale IV are presently eligible for one stagnation increment of Rs. 2500/- two years after reaching maximum of scale. These officers will now be eligible for one additional stagnation increment of Rs. 2730/- after two years of receipt of first stagnation increment or w.e.f. 1.11.2017, whichever is later.

e)          Provided further that the Stagnation increment/s received by the Officers from Scale I to Scale IV who are/were in service of the banks as on 1st November, 2017 as per periodicity hereinbefore would be readjusted from three year periodicity to two year periodicity from the date of reaching their maximum and officer shall be notionally eligible for stagnation increments w.e.f. 1.11.2017 in terms of this Joint Note as per the revised periodicity which will qualify for superannuation benefits.  However, monetary benefit on account of such revised and readjusted periodicity of stagnation increment/s shall be payable from 1st November, 2020 or the actual date of entitlement whichever is later.

f)           Officers in SMGS – V shall be eligible for one stagnation increment of Rs.2970/- two years after reaching the maximum of scale or w.e.f. 1.11.2020, whichever is later.

Thus, in terms of the above, it will be observed and understood as under:

a.      Officers in JM Grade Scale I and who have moved to Scale II under Reg. 5 (b) and who have received 4 stagnation increments shall receive the 5th stagnation increment at Rs. 2220, two years after receiving the 4th stagnation increment or w.e.f. 1-11-2017, whichever is later.

b.     Officers in MMG Scale II and who have moved to Scale III under Reg. 5 (b) and who have received 4 stagnation increments shall receive the 5th stagnation increment at Rs. 2220, two years after receiving the 4th stagnation increment or w.e.f. 1-11-2017, whichever is later.

c.      Officers in MMG Scale III and who have received 5 stagnation increments shall receive the 6th stagnation increment at Rs. 2500, two years after receiving the 5th stagnation increment or w.e.f. 1-11-2017, whichever is later.

d.     Officers in SMG Scale IV and who have received one stagnation increment shall receive 2nd stagnation increment at Rs. 2730, two years after receiving the 1st stagnation increment or w.e.f. 1-11-2017, whichever is later.

 

e.      Officers in SMG Scale V shall be eligible for one stagnation increment at Rs.2970/- two years after reaching the maximum of scale or w.e.f. 1.11.2020, whichever is later.

 

f.      Further, for all officers who were in service as on 1-11-2017 and who have received stagnation increment/s at the earlier frequency of 3 years, their stagnation increments shall be re-adjusted and re-worked at the uniform frequency of 2 years.  The benefit of such re-worked stagnation increment shall be notional from 1-11-2017 with monetary benefit w.e.f. 1-11-2020 or the actual date of entitlement whichever is later.

Banks may take note of the above and be guided accordingly.

Warm regards,

Yours faithfully,

 

  

Gopal Murli Bhagat

Deputy Chief Executive