Bank Clerks New Allowances LFC, LTC, Medical Benefits

The 12th Bipartite Settlement was signed on 8th March 2024 and this settlement has introduced new LFC/LTC rules for clerks working in Banks. Let’s have a look at the new LFC allowances offered to clerks in this settlement.

Eligible distance one way	Once in 2 years	Once in 4 years
Clerical	2700 km	5400 km
Substaff	2350 km	4700 km

• Employees can also travel by special trains like Rajdhani, Shatabdi, Tejas, Vande Bharat, Amrit Bharat, etc. (except luxury trains) and train fare incurred by the employees for the eligible distance will be reimbursed by the Bank.
• Where an employee has applied for LFC/leave as per stipulated time and the same is sanctioned and when advance booking of train tickets is not possible, tickets purchased under Tatkal/Premium tatkal will be reimbursed.
• Where an employee has applied for LFC/Ieave in advance and has also booked the tickets and the LFC is declined or deferred by the management due to exigencies, the cancellation charges will be reimbursed by the Bank.
• While availing LFC, break-in journey shall be permitted upto two times in the overall journey and train fare actually incurred by the employee upto the entitled distance shall be reimbursed.
• LFC facility for an escort accompanying an employee with benchmark disabilities:
  LFC facility shall be allowed for an escort who accompanies an employee with benchmark disabilities on the journey subject to following conditions:
  • Prior Approval of the competent authority is obtained.
  • The nature of Physical disability of the employee is such as to necessitate an escort for the journey.
  • The employee with such benchmark disabilities does not have an adult family member as dependent to accompany him/her.
  • The employee with such benchmark disabilities and the escort shall avail of the concession, if any, in the Rail/Bus fare as might be extended by Railways/State Roadways authorities in such cases.
  • Any other person who is entitled to LFC as dependent does not accompany the employee with such benchmark disabilities on the journey.
• All employees will be given an opportunity to exercise an option within 90 days from the date of the Settlement (i.e. before 8-6-2024) to change the existing option to avail LFC under two years or four years block. If no option is exercised within this period, the existing option will continue to be operative.

Reimbursement of LFC for travel by own car: For the purpose of LFC, while travelling by own car, the employee will be reimbursed a maximum of Rs.11/- per k.m. plus toll fees if any, per vehicle.

Definition of ‘Family :

‘Family’ of an employee shall mean:

1. the employee’s spouse,
2. wholly dependent unmarried children (including step children and legally adopted children)
3. wholly dependent physically and mentally challenged brothers / sisters with 40% or more disability,
4. widowed daughters and dependent divorced / separated daughters,
5. sisters including unmarried/ divorced/ abandoned or separated from husband/ widowed sisters,
6. parents wholly dependent on the employee.
7. In the case of physically and mentally challenged children irrespective of age, they shall be construed as dependents even after their marriage subject to however fulfilling the income criteria for dependent.

Income criteria for dependents:

The term wholly dependent family member shall mean such member of the family having a monthly income not exceeding Rs.18,000. If the monthly income of the parents exceeds Rs.18,000/- or the aggregate of monthly income of both the parents exceeds Rs.18,000/-, both the parents shall not be considered as wholly dependent on the employee.

Any 2 of Father/ Mother/ Father-in-law/ Mother-in-law can be included as Dependent :

For the purpose of Leave Fare Concession, any two of the dependent father, mother, father-in-law, mother-in-law shall be covered. The employee will have the choice to substitute either of the dependents or both once in a calendar year.