Bank employees across India may soon transition to a five-day work week, marking a significant shift from the current practice of working on alternate Saturdays. The move, awaiting government notification, would entail banks being closed on Saturdays and Sundays, providing employees with a two-day weekend.
Joint Note Agreement and Salary Hike
The All India Bank Officers’ Confederation and the Indian Banks Association recently finalized discussions, culminating in the signing of the 9th Joint Note on March 8, 2024. According to the agreement, all Saturdays will be recognized as holidays once the government issues the necessary notification. Additionally, a substantial 17 percent annual salary raise has been agreed upon, with an estimated yearly outlay of approximately Rs 8,284 crore for public sector banks. This increase is set to benefit up to 8 lakh bank workers, effective from November 2022.
Implications and Timing of Implementation
The implementation of the five-day work week and revised working hours hinges on government approval. Once approved, all Saturdays will be designated as holidays under Section 25 of the Negotiable Instruments Act. While the exact timing adjustments are yet to be clarified, reports suggest that employees may work an additional 40 minutes per day, with working hours potentially extending from 9:45 a.m. to 5:30 p.m.
Impact on Banking Operations and Customers
The transition to a five-day banking week may pose challenges for customers accustomed to conducting banking transactions on Saturdays. However, with the proliferation of digital banking services such as mobile banking, ATMs, and internet banking, customers have increasingly relied on alternative channels for their banking needs.
Salary Revision Details
According to the All India Bank Officers’ Confederation, the total quantum of wage revision increase amounts to over Rs. 8284 crores, constituting 17% of the cost of the Payslip component of establishment expenses for Public Sector Banks. With an additional load of 3.22%, the effective load on basic pay post-merger of dearness allowance stands at 4.20%. The revised pay scales range from Rs. 48,480 to Rs. 173,860, covering all scales from Scale I to VII, effective from November 1, 2022.
