Bank Employees Await Govt Nod for 17% Wage Hike, Sat Off

The Indian Banks’ Association (IBA) and major bank employee unions have signed a joint agreement that will result in a 17% annual wage hike for about 8 lakh bank employees across public sector banks. The agreement will be effective from November 2022 and will entail an additional yearly expenditure of around Rs 8,284 crore for the banks. The agreement also proposes to make Saturdays holidays and revise the working hours, subject to government approval.

The wage hike agreement is the outcome of the 9th Joint Note and 12th Bipartite Settlement between the IBA and the United Forum of Bank Unions (UFBU), which represents nine unions of officers and employees. The negotiations for the wage revision started in May 2022 and concluded in March 2024 after several rounds of discussions.

Sunil Mehta, Chief Executive Officer of the IBA, tweeted that the agreement marks a significant milestone for the banking industry and thanked the UFBU for its cooperation and understanding. He also thanked the Department of Financial Services, Ministry of Finance and Reserve Bank of India for their guidance and support.

According to the joint note, the new pay scales have been constructed after merging Dearness Allowance corresponding to 8088 points and additional load thereon. The note also states that all women employees would be allowed to take one day sick leave per month without producing a medical certificate. Moreover, accumulated privilege leave may be encashed up to 255 days at the time of retirement or upon death of an employee while in service.

The agreement also provides some benefits for the retired employees, such as a monthly ex-gratia amount in addition to the pension or family pension paid by the banks. This provision will apply to those who became eligible to draw pension on or before October 31, 2022, including those who retired on that date.

The joint note also recognises all Saturdays as holidays, pending government notification. The revised working hours will be effective after notification by the government. The note says that the normal working hours shall be seven hours per day (excluding lunch break) on Monday to Friday and five hours per day (excluding lunch break) on Saturday (if working).

The wage hike agreement is expected to boost the morale and productivity of the bank employees, who have been working tirelessly during the Covid-19 pandemic. The agreement also reflects the commitment of the IBA and the UFBU to resolve their issues amicably and maintain industrial harmony in the banking sector.

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