Public Sector Banks - More Bang for the Buck?
Prima facie, the higher pay at junior management level for public sector banks may seem contrary to public perception. The answer to the gap between this perception and reality lies in the composition of the pay. Across levels of management, benefits and retirals together account for a larger proportion of total pay at public sector banks, as compared to that prevalent in the private sector banks. Combined with relatively higher entry level cash salaries, the benefits make total pay at public sector banks competitive with respect to private sector banks at junior and mid management levels.
Benefitting from Benefits
Public sector banks continue to offer the standard benefits prevalent in private sector banks like home loans, education loans, club membership provident fund and gratuity. In addition, there is a plethora of other benefits like scholarship for meritorious students, laptops/tablets, subsidized canteens, company car and fuel which are not universally prevalent in the private sector. Plus, there are a host of benefits which truly tilt the balance. We cover five such benefits as examples herein:
Pension: Although not granted to new employees, this accounts for a substantial benefit for older employees. The fact that pension is a defined benefit, ,unlike provident fund (defined contribution) makes it more attractive for the employees
Staff Quarters: Leading public sector banks provide maintained staff quarters at locations across the country. While the value of this benefit is difficult to cost, it is usually higher than the HRA the employee would have otherwise received. Furniture reimbursement is usually provided along with the quarters
Medical Protection: Some public sector banks offer an unlimited medical protection for employee as well as dependents. In addition, the banks actually have arrangements and tie-ups with hospitals across circles for mreservation of beds. Some banks extend this facility to pensioners as well, which is perceived as a huge benefit by the Gen X workforce prevalent in these banks
Holiday Homes: At least one public sector bank offers holiday homes at popular hill stations and destinations as a benefit to its employees
Reservation of School Seats: Some public sector banks enter into tie-up with reputed schools at each circle level for reservation of seats for children of the staff. This greatly facilitates the frequent transfers that a public ,sector employee encounters through his or her career
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