After signing a MOU on Pension Buyout Scheme on 26.07.2022 in DBS Bank to which Lakshmi Vilas Bank has been merged with, the management and the Lakshmi Vilas Bank Employees Union (NCBE) signed a wage settlement on 14.10.2022.    It is to be noted that after takeover of LVB by DBS Bank of India Ltd, it has withdrawn the earlier mandate given by LVB to IBA for 11th Bi-partite settlement. It is stated that the wage increase is 15% in September 2022 gross salary. The period of this bank level settlement in DBS is for 5 years from 01.10.2022 to 30.09.2027.This period coincides with the industry-level 12th bipartite settlement. The DBS employees are denied one wage revision i.e. 11th bipartite wage revision entirely. This is a great injustice to them.



The basic pay will be 59% of the new Gross Salary, HRA will be 10% of basic pay, Special Allowance will be 10% of basic pay, DA on basic pay and Special Allowance as per all India CPI and other allowances will be balance of new gross salary.

The annual increase will be at 2% of Gross Salary (Basic+HRA+Spl.Allow+Other Allow) for the calendar years (January to December) which will be paid in the March of the succeeding year. For the year 2022 January to December, the Assistant Officers (clerks) will be paid at 2% in March 2023. For the subsequent years, the increase will be based on the individual performance of the clerks. It implies that if the performance is not satisfactory, even this 2% increase will be denied. For Support Assistants (Sub Staff) it will be at 2% of gross salary during the settlement period. The annual increment feature available in bi-partite settlements is absent which is a substantial loss to the employees.

Upon the introduction of New wage settlement pay structure, the existing allowances like FPP, PQP, SWO, Driver allowance, Transport Allowance, Daftary allowance, Halting allowance, Hill, special area allowance etc (available in 11th Bi-partite) stands terminated. Medical Aid, LFC, Uniform allowance etc will be paid on monthly basis adding to other allowances head. There will be substantial loss to the employees due to removal of all the pay and allowances as hitherto available in the industry-wide bipartite settlement.

A goodwill payment of 15% of gross salary for the period Dec 2020 to Sep 2022 will be paid to the employees on rolls on the date of signing this settlement excepting those who did not opt for the Pension Buyout Scheme.

A variable pay or performance pay is also introduced from the performance year 2023 which is based on Bank’s performance above threshold limit of 5% and the individual performance of the employee.


All the employees will be covered under the DBIL’s Employees Provident Fund Scheme. Employee’s Contribution to the Provident Fund shall be 12% on the revised Basic Pay and the Bank will make a matching contribution.

Regarding pension buyout scheme, read editorial dated 13th August 2022.

Employees are eligible for Gratuity as per Gratuity Act 1972 and DBIL Employees Gratuity Rules, and capped at Rs.20 lakhs or as revised from time to time under payment of Gratuity Act.

In case of unfortunate death of an employee, gratuity will be calculated for full service subject to maximum of Rs.20 lakhs. Additionally, each surviving child (Max 5) will be paid monthly payment of Rs.15500/- upto 21 years of age or upto getting an employment. This is a welcome step.

If the spouse or ward is a graduate, he or she will be reviewed for an employment on compassionate ground as per Bank’s policy. If non-graduate, an amount of Rs.3 lakhs will be paid to the family. Denial of employment of non-graduates is retrograde.


A transfer/relocation policy is also introduced for both Assistant Officers and Support Assistants deployable to any branch/office within linguistic area. Female employees above the age of 55 and male employees above the age of 56 are exempted from transfer. For those on transfer, a onetime all inclusive lumpsum of Rs.2 lakhs for Assistant Officers and Rs.1.50 lakhs for Support Assistants will be paid. Both clerks and sub-staff are liable to be deployed anywhere within the linguistic area and this will cause severe hardship to them.


There will be key performance goals set every year including cross-selling of third party products for both Assistant Officers and Support Assistants and there will be flexible working hours within statutory limits. Performance goals are set even for substaff and they will be a great burden to the employees. Passing powers for Assistant Officers (Clerks) is set as Rs.50000 per transaction. Passing power is doubled when compared to bipartite settlement. Those who hold the keys of the vault cannot leave the branch without closure of the vault. It is silent regarding overtime payment. That means without OT, key holders have to work extra hours and the same has been agreed by the Union by way of settlement.


Privilege leave will be reduced to 15 days per year from 34 days per year and 5 days to be availed compulsorily every year. Unavailed PL upto 7 days can be carried over to next year. Casual leave will be 12 days per year; Unavailed Casual Leave cannot be carried forward and will lapse at the end of the year. Sick leave will be 15 days per year. Half pay sick leave stands withdrawn. The reduction of leave facilities is a big loss to the employees.

Half day CL, Compassionate sick leave, Service recognition Anniversary leave of 5 days on 25th 30th 35th work anniversaries are newly introduced. Prolonged illness leave for critical illness like cancer, renal, leukemia, heart diseases is introduced as 180 days full pay followed by 180 days half pay which are welcome measures.

Sabbatical leave for employees is reduced to 3 months each on two occasions in entire service compared to the eligibility upto 2 years as available to all the bank employees.


Group medical Insurance of 4 lakhs has been introduced covering employee, spouse and five children. This is far inferior to the present medical insurance scheme available in the industry-wide bipartite settlement. The Corporate buffer, inclusion of parents, parents in laws etc. available in bipartite are absent.


Existing Staff Housing Loan, Marriage Loan, Vehicle Loan, Festival Advance will continue till repayment is over. No new loan of any kind or festival advance will be sanctioned. For medical emergency, 3 months’ salary repayable in 12 months, Personal Loan at 1.5% less commercial rate is introduced. Concessional rate staff loans are withdrawn which will be a substantial loss to employees.


An age old traditional Bank which has always been a part of the industry level Bi-partite settlements withdrew from that with the cooperation of the employees’ union and enters into a bank level settlement.

Overall, there will be huge loss to the employees in terms of withdrawn annual increments and the concept with introduction of 2% yearly increase, that too based on performance for clerks. 

Transfer policy, performance goals for clerical and sub staff, increased passing powers will increase their responsibilities almost at par with that of the officers but with far lesser benefits. 

Almost all allowances including that of Head Cashier, SWO, Daftary etc  and all concessional loans are withdrawn and this will be a substantial loss to the employees. There is a drastic reduction in the leave facilities.

The Employees’ Union which has entered into this bipartite settlement has isolated itself from the rest of the employees in the industry. There are many retrograde provisions in this settlement. In future, if the management does not honour even this settlement or tries to reduce the present benefits, they have to fight themselves and there will be no support from any quarters.. It is highly doubtful whether the Union has taken the mandate from every employee before entering into this settlement.

Uniform wages and service conditions are the uniting factors of the bank employees irrespective of the size of the bank or whether the particular bank is public or private sector. The Management of the DBS bank has successfully broken this unity and the union has become a prey. The LVB Employees’ Union claims this as a historical settlement. Indeed it is historic in giving up the existing rights and privileges and accepting many retrograde provisions. This will set a bad precedent in the industry and needs to be reversed.


  1. மோசமான முன் உதாரணமாகியுளள்து இந்த ஒப்பந்தம். பிற வங்கி நிர்வாகங்களும் இந்த திசை வழியில் முயற்சிக்கும் !

  2. Not only dangers have came…They are going to stay with them…It is time to raise and resist the dangers…Unity is the only way to defeat all attacks and dangers…

  3. This is the beginning of bank wise settlement’s and great threats are going to come.
    This is because of lack of ideology of NCBE about the importance of unions in securing the best to it’s members.
    The unions are loosing their strength and courage to overcome such management attitudes to working class.

  4. Through this settlement, the Union has isolated its members and deprived them of the industry-level protection and that too with much lower benefits! Himalayan proportions indeed – not achievement but blunder!

  5. The wage revision introduced in DBS Bank is alarm for all other NCB employees and officers. It showcases how a private management will consider the employees rights and how the wages are stealthily linked with performance. Trade unions ought to have a serious review regarding their approach.

  6. Facing a lot of sufferings we reached where we are now. The present step is a new beginning , to march backwards

Comment here...