Bank Union wants to charge 4% levy from employees on net salary arrears as part of the implementation of the 12th Bipartite Settlement (BP). In simpler terms, this means that employees who are due to receive arrears in their salary will have 4% of those arrears deducted and paid to the bank union as part of their union fees or contributions, according to a Hellobanker report citing Indian Banks' Association (IBA) notice.
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This deduction will be calculated after accounting for contributions to the Provident Fund (PF)/National Pension System (NPS) and income tax, the notice said.
This will be distributed as follows:
Furthermore, within the allocation to base unions, 10% is earmarked for All India Bankwise Federations, with the remaining 30% to be retained by the base unions themselves.
To provide clarity on this levy structure, let's consider an example:
If the net arrears after deductions amount to ₹1 lakh, the levy contribution at 4% would be 4,000. Out of this sum:
Notably, the IBA last week agreed on an annual wage hike of 17% for bank employees. This step will result in an additional yearly outgo of around ₹8,284 crore for public sector banks.
As many as 8 lakh bank employees are set to benefit from the wage hike, which will be effective from November 2022.
Among the highlights of the settlement was also the recognition of all Saturdays as holidays, pending government notification.
This move, as said by the All India Bank Officers’ Confederation, signifies a step towards ensuring a better work-life balance for employees.
Additionally, revised working hours will come into effect post the government's notification.
(Edited by : C H Unnikrishnan)
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