a) Employees who had joined the Banks prior to 1-4-2010 and opted to continue under Contributory PF would contribute 10% of their Pay every mnth with matching contribution from the management.
b) For employees who had joined before 1-4-2010 and are govered by pension scheme, only own contribution of 10% of Pay would be recovered but without any matching contribution
c) Those who joined the Banks on and from 1-4-2010 are covered by New pension Scheme only and hence not covered by PF or CPF.
GRATUITY
1. In terms of Section 4 (5) of the Payment of Gratuity Act, 1972, Gratuity under Gratuity Act or BPS provisions whichever is higher is payable.
2. Hence for every retiring employee, Gratuity has to be calculated both under the Act and under BPS and higher of the two will be paid.
3. For those employees who have retired from November, 2012, Gratuity will be re-calculated both under the Act and as per 10th BPS and arrears/difference if any will be paid to them.
Gratuity under the Act: (Pay+DA)/26 x 15 Days x No. of years of service Max. Rs. 20 lakhs
Gratuity under BPS : Pay x No. of years’ service
1. One month pay for one year of service
2. Max. 15 months’ Pay upto 30 years’ service
3. Above 30 years, half month pay per year of service.
4. No ceiling or max. on Gratuity under BPS