Though the RBS Regulations has no provision for distributing incentives to employees, sources say RBS has already distributed more than Rs 100 million as incentives in the name of reward and advance.[break]
However, RBS did not distribute incentives for the employees before the Dashain festival this year because of repeated directions from the Commission for the Investigation of Abuse of Authority (CIAA). The decision, however, has prompted employees to announce agitation against the RBS administration.
Violating the RBS Regulations, RBS provided performance incentives to employees from 1994 to 2001 as ´reward´. It, however, had started distributing incentives in the name of advance from 2001 after CIAA and Finance Ministry objected to RBS´ act of ´rewarding´ all the employees.
“We have stopped illegal distribution of such allowance from this year,” a senior RBS official told Republica on Tuesday.
The state-owned insurance company used to distribute Rs 6 million a year as ´incentives´ to its 100 plus staffers. Each employee used to receive Rs 19,000 to Rs 30,000 per year.
RBS staffers have been launching different forms of protest demanding the management continue distribution of ´incentives´. They have padlocked the chamber of the chief administrator of RBS for the last couple of weeks. The staffers have also demanded the management to stop the ongoing process of recruiting 28 new officials to partially fulfill the existing vacancies.
RBS has been managing with only one-third of its approved workforce. Though RBS has 400 approved posts, it only has around 100 staffers at present.
The RBS management, meanwhile, has proposed the Ministry of Finance to amend its existing regulations to legalize incentives distribution.
However, RBS officials said the Finance Ministry is against legalizing distribution of incentives. Instead, the Finance Ministry officials are also against the other allowance that RBS has been unreasonably distributing to its staffers.
Finance Ministry officials informed Republica that RBS staffers were enjoying Dashain allowance and other facilities on the basis of total salary, including allowances, instead of basic salary.
RBS staffers enjoy life insurance allowance, uniform allowance, anniversary expenses allowance, last rites allowance, tiffin allowance, special allowance, incentives allowance, productivity allowance and business promotion allowance, among others.
Other allowances include house rent allowance, house maintenance allowance, external office allowance, among others.
“We have also found that RBS has been distributing allowance on accumulated leaves on the basis of full remuneration instead of the widely accepted practice of calculating the allowance on the basis of basic salary.
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