Indian Banks Association (IBA) and other bank unions have reached a consensus on wage revision and agreed to an annual increase of 17% in salaries for five years starting fiscal 2021-22, according to a statement issued on December 7. The wage revision will be effective from November 1, 2022.
However, the unions have demanded that all Saturdays should be declared public holidays for banks before they sign the wage agreement.
This means a memorandum of understanding (MOU) has been put in place between the IBA and United Forum of Banks, and other unions and associations for a bipartite settlement. However, the unions will only sign the final agreement when the five-day work week decision is announced.
The annual increase in salary and allowances will be at 17% of annual pay slip expenses for FY22. This would amount to about Rs 12,449 crore for all public sector banks, including
State Bank of India (SBI).
As per the MoU, the new pay scales will be constructed after merging dearness allowance (DA) corresponding to 8,088 points to the basic pay as on October 21, 2022 and adding there on a loading of 3%, which would amount to Rs 1,795 crore.
The distribution of annual wage increase to the bank employees will be worked out separately and proportionately based on the break-up of establishment expenses for FY22.
The parties will meet on mutually convenient dates to draw out a detailed Bipartite Settlement or Joint Note on the various issues on which consensus positions have been reached.
It must be noted that the
IBA has already recommended to the government to declare all Saturdays as holidays under the Negotiable Instruments Act of 1881 for the banking industry.
First Published: Dec 8, 2023 8:56 AM IST
