wage hike: Five-day work week, big hike: Bonanza for bankers awaits government nod

The Indian Banks’ Affiliation (IBA) and financial institution worker unions have reached a consensus on an annual wage hike of 17 per cent, a transfer that’s anticipated to have a considerable influence on public sector banks.

This choice will result in an extra yearly expenditure of roughly Rs 8,284 crore for these banks, benefiting round 8 lakh financial institution staff. The wage hike is about to take impact from November 2022.

The All India Financial institution Officers’ Confederation introduced that as a part of the settlement, all Saturdays will likely be acknowledged as holidays, topic to authorities notification. The revised working hours will come into impact upon authorities notification.

In accordance with the press launch, “The Joint Word acknowledges all Saturdays as holidays, pending authorities notification. The revised working hours will likely be efficient after notification by the federal government.”

IBA Chief Govt Officer Sunil Mehta expressed his satisfaction with the settlement, stating in a put up on X (previously Twitter), “Immediately marks a big milestone for the banking trade as IBA and UFBU, AIBOA, AIBASM, and BKSM have signed the ninth Joint Word and twelfth Bipartite Settlement concerning Wage Revision for Financial institution Officers and Staff, which is able to take impact on Nov. 1, 2022.”

Bonanza for bankers
Explaining the intricacies of the brand new pay construction, the Confederation said, “The brand new pay scales have been constructed after merging Dearness Allowance equivalent to 8088 factors and extra load thereon.”

Below the revised wage settlement, the feminine staff will likely be entitled to take in the future of sick go away monthly with out the requirement of a medical certificates. Furthermore, amassed privilege go away will be encashed as much as 255 days upon retirement or within the occasion of an worker’s loss of life whereas in service.

Moreover, provisions have been made for retired staff, guaranteeing that the month-to-month ex-gratia quantity will likely be paid along with the pension or household pension supplied by the Public Sector Banks, together with the State Financial institution of India, to pensioners and household pensioners who grew to become eligible for pension on or earlier than October 31, 2022, together with those that retired on that date.

Will it influence clients?
The five-day work week might have an effect on financial institution clients who often preserve their bank-related work for Saturdays.

Nonetheless, with banks providing services like cellular banking, ATMs, and web banking, the purchasers can have an easy accessibility to their financial institution accounts.