Are public sector bank employees considered Central Government employees?
Are employees working in major public sector banks like SBI and PNB classified as Central Government employees? Under which category do public sector bank employees fall? Find the answers to all these questions here.
Bank unions have called for a three-day strike from September 28 to September 30. While online and digital banking services will continue to operate normally during this period, operations at bank branches will remain completely suspended. To ensure that the salaries and pensions of Central Government employees are not delayed due to the strike, the Ministry of Finance has instructed all ministries and departments to transfer payments to accounts by September 25. Following this decision, a natural question arises: are employees working in public sector banks also considered Central Government employees? Here is the correct answer.
In India, government employees are primarily categorized in two ways: first, based on the government or institution they work for; and second, based on their rank or 'Group'.
Who falls under the government/institution category?
| Category | Who Is Included | Examples |
|---|---|---|
| Central Government Employees | Employees of Central Government ministries, departments, attached or subordinate offices | IAS, IPS, Income Tax, Railways (under Railway Board), Postal Department, Defence Civilian Employees |
| State Government Employees | Employees working in State Government departments | PCS, State Police, State Education Department, State Health Department |
| Local Body Employees | Employees of municipal corporations, panchayats and municipalities | Municipal Corporation Clerks, Sanitation Workers, Municipal Engineers |
| Public Sector (PSU/PSB) Employees | Employees of companies or banks in which the government holds a majority stake | SBI, PNB, ONGC, BHEL, LIC, Railway PSUs |
| Autonomous Institutions / Constitutional Bodies | Employees of government-linked but independently functioning institutions or bodies | UPSC, Election Commission, RBI, Universities, certain posts in IITs/AIIMS |
Based on the aforementioned criteria, public sector bank employees are not Central Government employees; rather, they are classified as public sector bank employees. At the Centre and in most states, positions are divided into Groups A, B, and C. The erstwhile 'Group D' has now largely been merged into 'Group C'.
Who is included in Group A?
The Group A category comprises top-level positions involving policy formulation, administration, and leadership—essentially, most gazetted officers. Examples include IAS, IPS, IFS, and IRS officers, scientists from ISRO or DRDO, and doctors in central hospitals.
Who is included in Group B?
Group B consists of mid-level roles involving policy implementation and supervision, comprising a mix of gazetted and non-gazetted officers. Examples include Section Officers, Income Tax Inspectors, Junior Engineers, DSPs (State), and certain teaching positions.
Who is included in Group C?
This group comprises the largest number of employees, including clerical, operational, and support staff. Examples include LDCs (Lower Division Clerks) and UDCs (Upper Division Clerks), stenographers, constables, tax assistants, technicians, and bank clerks.
Who falls under Group D?
Group D has now largely been phased out. This group comprised personnel in lower-level roles such as peons, sanitation workers, gardeners, and drivers. It is worth noting that new recruitments now mostly take place in Group C or are outsourced.
Two minor yet important classifications
Gazetted vs. Non-Gazetted
Gazetted: Appointments are published in the official gazette; these roles carry certain statutory powers (Group A and some Group B).
Non-Gazetted: Most of the remaining Group B and the entirety of Group C.
Permanent vs. Temporary or Contractual
Permanent: Government employees.
Contractual: Outsourced staff, daily wage earners.
While these individuals work in government offices, they are not entitled to the same service rules and pension benefits.
