Savings Bank Allowance : Report of the Committee Allowances – 7th Pay Commission

Savings Bank Allowance : Report of the Committee Allowances – 7th Pay Commission

3.5.7 Savings Bank Allowance (Para 8.10.43, 8.10.80)

Existing Provisions: It is granted to Postal Assistants working in Post Office Savings Bank (POSB) for shouldering strenuous and complicated nature of Savings Bank work. Postal Assistants need to qualify an Aptitude Test to get this allowance. The current rates are ₹300 per month for fully engaged staff and ₹150 pm for partially engaged staff.

Reasons mentioned by 7th CPC for recommending abolition: The justification provided by the Ministry is not sufficient for their continuance. Therefore, this allowance has been abolished.

Demand:

National Council (Staff Side), JCM: This Allowance should be retained and enhanced as it is granted to Postal Assistants working in POSB for shouldering strenuous and complicated nature of Savings Bank work.

Analysis and Recommendations of the Committee: No additional justification has been furnished for continuance of the allowance. Representatives of the Postal Unions also did not press for this demand in their meeting with the Committee. Department of Posts also has not supported the demand for continuance of  this allowance. Therefore, the Committee recommends that the 7th CPC recommendation to abolish Savings Bank Allowance may be accepted.

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