The All India Bank Officers’ Association (AIBOA) has termed the revised performance-linked incentive (PLI) scheme unveiled by the Ministry of Finance for senior executives of public sector banks (PSBs) as unfair to lower rung officers.
The PLI ceiling for senior executives, ranges from 70 per cent to 90 per cent of their annual basic pay and 100 per cent for whole-time directors on the board. But for junior officers it is only in the range of 1.6 per cent to 4.1 per cent.
S Nagarajan, General Secretary, AIBOA, said the revised PLI scheme opens up a new type of discriminatory treatment amongst the officers in the work place.
“The impact of disparities between the frontline officers’ vis-a-vis the executive cadre are creating a stark and unjustifiable gap and needs to be revisited,” he said.
Nagarajan emphasised that the frontline officers generate business (mobilise deposits, offer loans, and other services), ensure smooth day-to-day operations in the branches, and are involved in direct customer engagement and customer redressal.
The AIBOA General Secretary observed that public sector banks are nation building institutions and in order to encourage the officers’ fraternity to serve the society better, the Government should examine “equal work and equal incentive” to ensure fairness in the compensatory mechanism.
He observed that proportionate compensation will facilitate collective working in the service industry. Further, fair compensation will ensure continuity in the Bank as frontline officers will not look for exit options.
Nagarajan said the proposed revision should be put on hold as the same is stonewalling the bipartite exercises between the four officers’ organisations and the Indian Banks’ Association.
The earlier PLI scheme was restricted only to Whole-Time Directors (WTDs) – MD & CEOs and Executive Directors. But the revised scheme is also applicable to senior executives in the rank of Chief Manager and above.
The PLI ceiling for Managing Director & Chief Executive Officers and Executive Directors of nationalised banks and Chairman, Managing Directors and Deputy Managing Directors of State Bank of India has been pegged at 100 per cent of their annual basic pay.
The PLI ceiling for senior executives in the rank of Chief General Manager and General Manager; and Deputy General Manager and Assistant General Manager is pegged at 90 per cent and 80 per cent, respectively, of their annual basic pay. For Chief Manager, this ceiling is at 70 per cent.
