bank wage revision: Banks, employee unions agree to 17% salary hike, latest on 5-day week proposal: 10 points

The Indian Banks’ Affiliation and unions have reached an settlement on a 17% wage hike for all public sector banks, totaling Rs 12,449 crore. This resolution will profit round 9 lakh workers, together with 3.8 lakh officers, of PSU banks, together with SBI and a few outdated era personal banks. Talks between the Indian Banks’ Affiliation and representatives of workmen unions and officers’ associations have been held on December 7, 2023, relating to the wage revision, and an MoU was signed. A last settlement on the wage revision might be finalised inside 180 days.

“The events will meet on mutually handy dates to attract out an in depth Bipartite Settlement/Joint Be aware on the varied points on which consensus positions are reached. The events will endeavor to finalize the Bipartite Settlement /Joint Be aware inside a interval of 180 days,” the MoU stated.

Additionally learn: Banks to be open for under 5 days every week? Finance ministry receives IBA proposal

Listed below are key issues to know in regards to the wage revision MoU

The wage revision might be efficient from November 1, 2022, for a interval of 5 years.

As per the settlement, there might be a 17% improve in wage and allowances, based mostly on the annual pay slip bills for the fiscal 12 months 2021-22.

This quantities to Rs 12,449 crore for all public sector banks, together with the State Financial institution of India.

To calculate the brand new pay scales, the Dearness Allowance comparable to 8088 factors might be merged with the fundamental pay as of October 31, 2022. Moreover, a loading of three% might be added, totaling Rs 1795 crore.

The distribution of the annual wage improve between workmen and officers might be decided individually based mostly on the breakup of multinational bills for the fiscal 12 months 2021-22.

Whereas the demand for pension updation for all retirees continues to be below dialogue, it has been agreed {that a} one-time ex-gratia quantity might be thought of together with the pension for pensioners and household pensioners who have been receiving pension as of October 31, 2022.

The applicability of this ex-gratia for retirees of the present settlement interval might be additional mentioned.

It is necessary to notice that the ex-gratia quantity is not going to be topic to some other allowances, together with dearness allowance.

The Indian Banks’ Affiliation has already beneficial to the federal government the declaration of all Saturdays as holidays below the NI Act for the banking business, based mostly on earlier negotiations with unions/associations. (Bhagwat Karad, Minister of State for Finance, said in Parliament that the IBA proposal had been acquired. He didn’t, nevertheless, make clear on the proposal’s standing or whether or not the Finance Ministry is considering accepting it. Banks are actually closed on the second and fourth Saturdays of every month.)

All different points raised by managements and unions/associations through the negotiation course of, together with the cost of ex-gratia to pensioners and household pensioners of personal sector banks and overseas banks, might be resolved to mutual satisfaction.