In some good news for bank employees — the economic ‘warriors’ who have been working through the pandemic — those from the public sector and old generation private sector banks will get a 15 per cent pay hike.
Simultaneously, a performance linked incentive (PLI) will be introduced for public sector bank (PSB) employees.
The protracted 11th bipartite wage settlement negotiations between bank unions and the Indian Banks’ Association (IBA) concluded on Wednesday, with both sides agreeing to an annual wage increase and allowances of 15 per cent of the wage bill as on March 31, 2017.
The wage revision will be effective from November 1, 2017. The annual increase in salary and allowances works out ₹7,898 crore on payslip components.
The wage settlement negotiations had been going on for more than two years, with unions resorting to strikes on and off to press their demand.
Both sides agreed to the introduction of PLI in PSBs, which will be based on the operating profit/net profit of the individual bank.
For private and foreign banks, PLI is optional. The PLI is payable to all employees annually over and above the salary, as per the minutes of the discussion between the unions and IBA.
From calendar 2020, besides encashment of privilege leave (PL) at the time of retirement and during availing of leave fare concession, PL encashment would be permitted at five days every calendar year (seven days in case of employees aged 55 and above) at the time of any festival of their choice.
Banks’ contribution to the National Pension Fund will be increased to 14 per cent of pay and DA against the current 10 per cent from the prospective date of signing of the settlement, subject to the approval of the government.
The parties will endeavour to finalise the bipartite settlement/ joint note within 90 days from today.