ALL INDIA BANK EMPLOYEES' ASSOCIATION
Central Office: “PRABHAT NIVAS” Regn. No.2037
Singapore Plaza, 164, Linghi Chetty Street, Chennai-600001
Phone: 2535 1522, 6543 1566 Fax: 4500 2191, 2535 8853
e mail ~ firstname.lastname@example.org & email@example.com
CIRCULAR LETTER NO.26/140/2011/34 26th July, 2011
TO OFFICE BEARERS/STATE FEDERATIONS &
ALL INDIA BANKWISE ORGANISATIONS:-
Counting Officiating Pay for payment of Gratuity
Units are aware that in terms of our Bipartite Settlement, „PAY‟ means and includes
Basic pay, Special Pay, PQP, Graduation Pay, Stagnation Increments, Increment
portion of FPP and Officiating Pay, if any.
Officiating pay will arise when a Sub-staff or Clerk is required to work in higher
Special Pay posts on temporary assignment, leave vacancy, officiating in a higher
cadre, etc as well as by internal bank-wise arrangements where certain Special Pay
posts are assigned to employees on rotation basis instead of on permanent basis. It
is very clearly provided in Bipartite Settlement that Officiating Pay paid on such
occasions and contingencies are to be treated as part of „Pay‟. Pay will attract DA
and HRA besides eligible for superannuation benefits i.e. Provident Fund / Gratuity /
If such Officiating Pay has been paid during the last 10 months of service
of an employee prior to retirement, the same has to be included for calculating the
average pay for calculation of Basic Pension.
For payment of Gratuity under our Bipartite Settlement, the Officiating /
temporary assignment pay paid during the last 12 months prior to retirement has
to be included for working out the Average Pay.
However, for payment of Gratuity under the Gratuity Act, the Officiating Pay
paid during the last month in service prior to retirement should be included as
Pay for calculating eligible Gratuity.
Earlier, it was brought to our notice that in some of the Banks, the Officiating Pay
paid on rotation / temporary assignment was not being included as „Pay‟ for the
purpose of Pension. On our taking up the matter with IBA, they had issued a
clarification circular in this regard.
However, recently, our unit in IOB, viz. Indian Overseas Bank Employees Trade
Union had brought to our attention that the management in IOB is not including the
Officiating Pay for calculating Gratuity stating that the “Computer Operator
Allowance was given on rotation basis and it was not taken under permanent
allowance category and not come under Special Pay in our Bank”.
We had taken up this matter with the IBA who have now clarified to
Indian Overseas Bank that Officiating Pay should be taken for calculation
The purpose of this communication is to advise our units to ensure that in all the
Banks the Officiating Pay is included for calculating Provident Fund / Gratuity /