Bank Employees To Get Annual Wage Hike By 17%; 5-Day Work Week Pending Government Approval

Bank Employees To Get Annual Wage Hike By 17%; 5-Day Work Week Pending Government Approval

Under the revised wage settlement, women employees will be able to take one day of sick leave per month.

Oliviya KunjumonUpdated: Saturday, March 09, 2024, 12:04 PM IST
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Bank Employees To Get Annual Wage Hike By 17%; 5-Day Work Week Pending Government Approval | Image: Wikipedia (Representative)

The Indian Banks' Association (IBA) and major bank employee unions have inked a mutual agreement, paving the way for a substantial 17 per cent annual wage hike. This agreement, signed as the 9th Joint Note and 12th Bipartite Settlement, is slated to come into effect from November 1, 2022, and is expected to bring a wage hike will directly benefit around 8 lakh bank employees across the country.

The wage hike agreement is expected to lead to an additional annual expenditure of approximately Rs 8,284 crore for public sector banks.

Sunil Mehta, Chief Executive Officer of the IBA, took to his social media platform to share the momentous news. In a post on X (formerly Twitter), he stated, "Today marks a significant milestone for the #bankingindustry as IBA and #UFBU #AIBOA #AIBASM and #BKSM have signed the 9th Joint Note and 12th #Bipartite Settlement regarding #Wage Revision for Bank Officers and Employees."

Proposed Changes Pending Government Approval

As part of the joint agreement, a proposal to recognize Saturdays as official holidays is currently pending government approval. Apart from this, revised working hours are also part of the deal and will only come into effect post the government's nod.

Merging Dearness Allowance

The formulation of new pay scales involves the merger of Dearness Allowance corresponding to 8,088 points and additional load.

Special Benefits for Women Employees

Under the revised wage settlement, women employees will be able to take one day of sick leave per month without the obligation of providing a medical certificate.

Privilege Leave Benefits Upon Retirement

Retired employees are also in for benefits under the agreement. The agreement allows for the encashment of accumulated privilege leave up to 255 days at the time of retirement or upon the unfortunate death of an employee while in service.

Monthly Ex-Gratia for Retired Employees

Another provision in the agreement is the monthly ex-gratia amount for retired employees. This additional benefit is in addition to the pension or family pension provided by Public Sector Banks, including the State Bank of India (SBI). The provision applies to those eligible to draw pension on or before October 31, 2022, encompassing retirees from the specified date.

(With inputs from PTI)

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