Comparison of Pay between Bank employees and Central Govt. Employees after 7th Pay Commission


No doubt, careers in both Central Government as well as PSU Banks are much sought after among job aspirants. Then, which one is better among these two?
It would be an effort of comparing and apples and oranges if these two are set against each. Both these careers have different service conditions and have their own merits and demerits. While Bank Employees Pay and allowances are revised every five Years, Central Government Employees are due for pay revision every ten years.
However, salary at various levels in these sectors are being compared regularly. Prior to implementation of 10th Bipartite Settlement many bank unions and individuals from banks demanded for equating salary of bank employees with that of government employees. To justify their demand they had come up with a comparison of salary of Group C & D employees in PB-1 of Central Government Service and Sub-Staff in Banks. Like wise pay and allowances of a Graduate Assistant (clerical staff) and officers in both of these organisations were also compared.
The following tables provides those comparisons (Salary before implementation of 10th Bipartite wage Settlement)
MONTHLY SALARY OF CENTRAL GOVERNMENT STAFF AND BANK STAFF (OTHER THAN OFFICERS) AS ON 01-08-2013

Central Govt. Staff (in Pay Band –1)Sub-staff in Banks
Basic Pay4,8605,850
Grade Pay1,800N I L
Special Pay (at the minimum for bank staff)N I L340
Total6,6606,190
Dearness Allowance5,994 (@90%)5,506 (@88.95%)
H.R.A.1,998 (@30%)619 (@10%)
C.C.A.N I LN I L
Transport Allowance1,140 (600+90% DA)225
Staff Welfare/ProvisionsN I L500
NewspaperN I L100
Gross Monthly salary15,79213,140
Pay and AllowancesCentral Govt. Graduate Assistant (in Pay Band – 2)Clerical staff in Banks
Basic Pay8,7007,200
Grade Pay4,200N I L
Special Pay (at the minimum for bank staff)N I L500
Total12,9007,700
Dearness Allowance11,6106,849
H.R.A.3,870770
Transport Allowance3,040 (1,600+90% DA)225
Staff Welfare/ProvisionsN I L500
NewspaperN I L100
Gross Monthly salary3142016,144
MONTHLY SALARY OF OF OFFICERS IN BANKS AND CENTRAL GOVT AS ON 01-08-2013
Various Componentsof Monthly PayCentral Government Officers (in Pay Band – 3 –Stage I)Bank Officersin JMGS I
Basic Pay15,60014,500
Grade Pay5,400N I L
Total of Basic + Grade Pay21,00014,500
Dearness Allowance18,900(@90%)12,898(@88.95%)
H.R.A.6,300(@30%)1,233(@8.5%)
C.C.A.(Maximum@4% for bank officers)N I L540
Transport Allowance / Monthly Conveyance6,080(3,200+90% DA)2,200(30 litres of petrol)
Staff WelfareN I L500
Staff Entertainment Expenses(prorata)N I L300
Gross Monthly salary52,28032,171
Present Position of Salary after implementation of 10th BPC for bank employees and release of 7th Pay Commission Report
In May 2015, IBA accpted to grant overall 15% increase in pay slip component of bank employees with effect from November 2012 which will be valid for five years.
Also, we have the recommendations of 7th Pay Commission in black and white now. 7CPC has proposed an increase of 14.29% in Basic Pay alone and overall increase in Pay and allowances will be 23.55% as per Finance Ministry official press release.
In this background we have attempted here to compare the revised pay and allowances of Bank Employees and 7CPC proposed pay and allowances of Central Government Employees.
It may please be kept mind that this exercise is merely an arithmetical comparison and the same do not advocate anything relating to conclusion that one is better than the other.  As we mentioned earlier, nature of work, service conditions and intrinsic benefits involved in respect of employees of these organisations are not comparable.
Pay and Allowances as on 01.01.20167CPC proposed entry pay for PB-1 (Rs)Sub-staff in Banks (Rs)
Basic Pay18,00010,535 **
Special Allowance – 7.75%N I L817
Total18,00011,352
Dearness Allowance4,518 (@39.80%)
H.R.A.2,880 (@16%) ***1,053 (@10%)
Transport Allowance900 ***425

Gross Monthly salary

21,780

17,348

Pay and Allowances in 20167CPC proposed entry pay for PB-2
(Graduate Assistant and Equivalent)
Graduate Clerical Staff in Banks
Basic Pay35,40013,730 **
Special Allowance – 7.75%N I L1,064
Total35,40014,794
Dearness Allowance5,888 (@39.80%)
H.R.A.5,664 (@16%) ***1,373 (@10%)
Transport Allowance1,800 ***425

Gross Monthly salary

42,864

22,480

Pay and Allowances in 20167CPC proposed entry pay for PB-3
(Group-1)
Officers in Banks (Scale-1)
Basic Pay56,10027,620 **
Special Allowance – 7.75%N I L2,141 (grade pay)
Total56,10029,761
Dearness Allowance11,855 (@39.80%)
H.R.A.8,976 (@16%) ***2,489 (@9%)
Transport Allowance3,600 ***870

Gross Monthly salary

68,676

44,975

** As 10th BPS was implemented with effect from 2012, Basic Pay of sub-staff, Clerical Staff and officer as on 2016 will be basic pay with four increments, which are calculated to be 10,535/-, 13,730/- and 27,620/- respectively.
*** HRA proposed by 7CPC for X,Y, and Z cateogory cities is 24%, 16% and 8% respectively. We have taken 16% in this case as most of Central Government Employees would be entitled for the same. Like wise, Transport Allowance rate for which most of PB-1 and PB-2 employees would be entitled to has been taken in to account.

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