Bank unions, IBA ink wage pact; OK 15% hike, 2nd and 4th Sat holiday

Bank unions, IBA ink wage pact; OK 15% hike, 2nd and 4th Sat holiday

FPJ BureauUpdated: Saturday, June 01, 2019, 01:29 AM IST
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Mumbai : Around 10 lakh employees of 43 banks, including public sector banks, will get a 15% hike in salaries, with the Indian Banks Association signing a wage agreement with employee unions and officers’ associations, reports PTI.

The revision, applicable with retrospectively with effect from November 1, 2012, will benefit employees and officers in 43 banks including public sector banks, old private sector banks and a few foreign banks.

The 15 per cent hike would put an extra burden of Rs 4,725 crore on the banks. “The 15 per cent wage revision would cost banks Rs 4,725 crore as incremental salary and allowances in a year.  If superannuation cost is included, then the total burden would be around Rs 8,370 crore,” IBA Chairman T M Bhasin told reporters.

As a prudent measure, banks have been making provision for wage hike for last few years. For officers, the pay has been revised from existing range of Rs 14,500-Rs 52,000 to Rs 23,700–Rs 85,000.            A special allowance for officers ranging from 7.75-11 per cent of basic pay along with applicable dearness allowance has been introduced.

The scale of pay of workmen and non-subordinate staff has been revised from Rs 7,200–Rs 19,300 to Rs 11,765–Rs 31,540 while the scale of pay of subordinate staff from Rs 5,850–Rs 11,350 to Rs 9,560–Rs 18,545.

As per the new pact, a special allowance for workmen at 7.75 per cent of basic pay along with applicable dearness allowance has also been introduced. Bhasin said arrears to the workmen will be given immediately and for officers’ within 4-6 months.

The bank employees will now soon get holidays on second and fourth Saturdays. The wage settlement has also introduced a medical insurance scheme for employees of member banks and their family members.

Bank employees are set to get a bonanza as they will get arrears from November 2012 when the last settlement had expired. Banks have already been providing for the wage hike through provisions every quarter.

The RBI had asked all banks to ensure adequate provisioning on this account on their books from November 2012, to prevent any sudden shock on account of this on any bank’s profit, capital or viability.

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