Govt Approves 15% Salary Hike For 8 Lakh Bank Employees; But Denies 5-Day Working Week
A good news with the start of festivities and another reason to celebrate for the bank employees since the wage revision for public sector bank officers which was pending from 2017 has finally been approved on paper.
Salary Hike For Bank Employees
As per the reports, the Indian Banks’ Association has officially signed the 11th Bipartite Settlement.
According to this agreement, the bank employees would get around 15 percent hike in wage for the period starting 2017-22.
To start with, the bank unions had asked for a 20 percent hike, while IBA had offered a 12.25 per cent hike for the employees initially.
Finally, After a series of discussions, they finalized on 15 percent of annual hike.
For the applicability, this agreement applies to public sector banks, a few old generation private and some foriegn banks.
In banking industry, this said hike in salaries would lead to an increase of about Rs 7,898 crore in the wage bill.
Three months back in July, this memorandum was signed between banks and several banking unions, regarding the salary hike.
Ceiling On Pension
In addition to that, the ceiling on pensions has also been removed.
So now, the family of the deceased bank employee would now get Rs 30,000 as pension compared to Rs 11,000 earlier.
On the other hand, the demand to implement five-day banking was not
announced among the other changes .
Performance Linked Bonus Announcement
Apart from that, there was a proposal to give annual performance-linked incentives to the bank employees.
So, the PLI scheme will be applicable over and above the salary, depending on their bank’s performance.
Now, employees of the banks making 15 per cent annual operating profit will get 15 days’ worth salary, according to the new guidelines.
If the banks make an operating profit of 10-15 per cent, then the employees of the bank will get 10 days’ worth payment.
So far, the salary revisions happen every five years.
Then the discussion of salary hike is held between Banking sector unions and IBA.
After that, the hike is announced for the employees.
Prior to this, in 2012, the IBA had also announced the salary hike worth 15 per cent for the bank employees.