FBOIOA Launches "FBOIOA Sahayya" to Support Officers Facing Salary Crisis

The Federation of Bank of India Officers’ Associations (FBOIOA) has announced a special financial assistance scheme called “FBOIOA Sahayya” to support its officers who are struggling because of heavy perquisite tax deductions from their salaries. Many officers have received extremely low salaries this month, leaving them in financial trouble.

Background of the Issue

This development comes after a recent court ruling upheld heavy taxation on perquisites extended  by the bank, such as rent-free accommodation and subsidized housing. This tax amount is directly deducted from officers' salaries.

According to FBOIOA, more than 1,400 officers got less than ₹20,000 salary for February 2025. Some officers even saw nil salary credits after tax deductions. This has caused financial strain for many officers.

Why are Officers Suffering?

This heavy tax has affected officers living in official accommodation the most. These officers already work extra hours due to staff shortage  and increasing work pressure in public sector banks. From handling government schemes to dealing with long customer queues, officers manage everything. Despite this, they are now facing salary cuts due to tax rules.

FBOIOA’s Urgent Demand

Noticing this serious problem, FBOIOA has demanded that Bank of India management should pay this tax itself instead of cutting it from officers' salaries. While these talks are still happening, FBOIOA has decided to help officers directly with financial support.

“FBOIOA Sahayya”: Immediate Relief through Interest-Free Assistance

To provide immediate relief, FBOIOA has introduced an interest-free financial scheme ‘Sahayya’. These officers can apply for interest-free financial help up to ₹50,000.

The federation has outlined a clear process for availing the scheme. Officer members of FBOIOA who have received less than ₹20,000 in net salary for February 2025 due to perquisite tax deductions can apply through their respective Unit General Secretaries before March 7, 2025. Required documents include the latest salary slip, five post-dated cheques, and a declaration confirming that the applicant has explored all other financial avenues, such as salary overdraft.

While speaking to Kanal, Nilesh Pawar, General Secretary, FBOIOA stated, “The sudden and excessive perquisite tax deductions have left more than 2,000 officers with drastically reduced salaries — many received less than ₹20,000, and some even got only ₹100 or ₹500. This happened because the bank deducted income tax for the entire financial year within just two months, leaving officers with almost no take-home salary. We immediately approached the top management, asking them to absorb this tax burden, as banks like SBI and Bank of Baroda have done in the past.” 

He further added, “However, with no resolution in sight, FBOIOA stepped in with ‘FBOIOA Sahayya,’ a ₹50,000 interest-free financial assistance scheme to help officers manage critical expenses like school fees, groceries, and medical costs. Over 500 applications have already been processed, disbursing more than ₹2.5 crore so far. This initiative is not just financial help — it is our way of protecting the dignity and morale of our officers, ensuring they can continue their work and lives with self-respect despite this unexpected crisis.” 

Key Features of the Scheme

• Eligible officers: Those who received less than ₹20,000 net salary in February 2025.
• Assistance amount: Up to ₹50,000.
• Disbursement: In two installments of ₹25,000 each (March and April 2025).
• Repayment: Five equal monthly installments of ₹10,000 each, starting from May 2025.
• Interest: No interest will be charged on this assistance.

Wider Concern on Perquisite Tax and Taxation Policy

The FBOIOA further highlights how public sector bank officers are disproportionately affected by taxation policies. While tax relaxations have been provided to corporations and high-income groups, PSU employees continue to bear heavy financial burdens. The recent ruling and subsequent deductions have made it difficult for many officers to meet essential household expenses.

A Family that Stands Together

FBOIOA stressed that it sees itself as more than just a trade union — it is a support system for its members. By introducing this scheme, the federation aims to demonstrate its solidarity with officers in difficult times.

As negotiations with the bank’s management continue, FBOIOA has repeated its demand for fair treatment of officers and urged eligible members to apply for the assistance scheme without delay.

This proactive step by FBOIOA reflects its long-standing commitment to protecting the financial interests of Bank of India officers and ensuring their concerns are heard at the highest levels.