7 to 21 per cent increase announced

Chief Minister Jayalalithaa on Friday announced an increase ranging from 7 per cent to 21 per cent in the salaries of the employees of cooperative banks.

Aimed at benefiting 4,784 employees of the cooperative banks, the hike would be a minimum of Rs.1,630 per month to a maximum of Rs.15,670 per month. The hike would entail an additional expenditure of Rs.55.82 crore annually to the banks.

Since the hike was related to performance of the banks, the government categorised them into four groups.

As per the decision, employees of the Tamil Nadu State Apex Cooperative Bank Ltd, which is making profits continuously, would get a 21 per cent increase in their salaries with effect from January 1, 2011.

They would also be paid the back wages.

Employees of the Chennai, Coimbatore, Cuddalore, Dharmapuri, Erode, Kancheepuram, Salem, Tiruchi and Villupuram central cooperative banks would get a 20 per cent hike with effect from the same date and they too would be getting the back wages.

Kumbakonam, Dindigul, Kanyakumari, Pudukottai, Ramanathapuram, Thiruvannamalai, Virdhunagar, Tuticorin and Madurai central cooperative banks’ employees would get a 15 per cent salary hike with effect from January 1, 2011.

Considering the low net profit of the Vellore Central Cooperative Bank, it was decided to increase the salaries of the employees by 15 per cent with effect from January 1, 2011, but they would be paid the hike from January 1, 2012. Given the financial condition of the Niligiris, Sivaganga, Thanjavur and Tirunelveli Central Cooperative Banks their employees would get an increase of 7 per cent.

Like for others, it would be with retrospective effect, but paid from January 1, 2013.

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