Substaff in Banks getting Lower Basic Pay on Promotion? AIBEA Seeks Fair Promotion Formula for Substaff

Chennai, September 28, 2025 – The All India Bank Employees’ Association (AIBEA) has asked the Indian Banks’ Association (IBA) to clarify and change a promotion rule. The association wants a fair formula for subordinate staff (substaff) who are promoted to the clerical cadre.

The Problem: Lower Pay for Qualified Substaff

The AIBEA states that substaff who pass the JAIIB/CAIIB professional examinations are being disadvantaged when they are promoted to a clerk position. Currently, bank officers who pass these exams before promotion get a special benefit. The three increments (pay increases) they earned for the qualification are notionally reduced before fitment into the officer scale. Then, those three increments are added back to their new basic pay. This method ensures they benefit fully from their qualification upon promotion. However, this same provision is not available for substaff promoted to clerical cadre.

Let’s understand with the help of an example:

A substaff with JAIIB/CAIIB currently has a basic pay of ₹23,820. Under the current IBA fitment formula, their new basic pay as a clerk would be ₹28,070. If the special provision (notionally reducing increments and then adding them back) were applied, their new basic pay as a clerk would be ₹29,720. This shows a clear disadvantage for the qualified substaff under the current rule.

Description	Amount (₹)
Current Formula (Without Provision)
Basic Pay of a substaff with JAIIB/CAIIB	23,820
Fitment on promotion as CSA as per IBA formula	28,070
Proposed Formula (By Adding the Provision)
Basic Pay of a substaff with JAIIB/CAIIB	23,820
Notional Basic Pay by reducing 3 increments	21,495
Fitment on promotion as CSA as per IBA formula (on Notional Pay)	25,390
Final Fitment by adding 3 increments for JAIIB/CAIIB	29,720

AIBEA pointed out that from 1966 until 2015, additional increments for JAIIB/CAIIB were only for clerical staff. The benefit was extended to the substaff only under the 11th Bipartite Settlement in 2020. This was done to encourage and motivate substaff to pass the examinations. The association is happy that substaff are now taking and passing these exams.

In a letter to IBA, AIBEA has requested an urgent clarification. The association has asked the IBA to issue instructions to banks. This instruction should confirm that the provision of notionally reducing and then adding the JAIIB/CAIIB increments for fitment will be applicable to subordinate staff promoted to the clerical cadre as well.