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SBI employees to get more pension

Monday 10 April 2006

Those getting up to Rs. 21,040 salary will get 50% of last pay

New Delhi: The weeklong strike by State Bank of India employees was called off on Sunday night following a settlement which gives higher pension to 2.10 lakh staff of the country’s largest commercial bank.

Announcing the settlement after a meeting lasting more than 10 hours between the Finance Ministry, the striking workers and the SBI management here, Finance Minister P. Chidambaram told reporters that the employees getting up to Rs. 21,040 salary would get 50 per cent of their last drawn pay as pension and above that, 40 per cent.

Earlier, the cut-off salary for 50 per cent pension was Rs. 8,500. Beyond this salary, employees will get 40 per cent of their basic as pension subject to a minimum of Rs. 10,520 a month.

The cut-off of Rs. 21,040 will actually work out to Rs. 21,800 if personal qualification allowance of about Rs. 700 is included.

Following the settlement, Mr. Chidambaram said the employees had called off their strike and would resume work from Monday. Satisfied with the outcome, All India SBI Staff Federation Secretary P.K. Patnaik said all pending work due to the strike would be cleared so that customers were not put to any inconvenience.

To a question, Mr. Patnaik said the employees would not claim salary for the strike period.

SBI Chairman A.K. Purwar said losses suffered due to the strike were "enormous," but could not be quantified.

He said the bank would talk to State Governments, which shifted their business from the SBI to other PSU banks, to get their business back.

The details of the bilateral settlement would be worked out on Monday, Mr. Chidambaram said.He said the settlement was unlikely to spark off a "competitive demand" from other nationalised banks and public sector undertakings. - PTI

See online : The Hindu

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