Bank unions secure 17% salary hike agreement; Demand five-day work week

Bank Employees Salary Hike: Bank unions have recently reached an agreement with the Indian Banks Association (IBA) to implement a substantial 17% annual salary hike over five years, starting from the fiscal year 2021-22. This consensus, set to take effect from November 1, 2022, aims to enhance the financial remuneration for bank employees across the country.

This wage revision agreement, announced marks a significant milestone between the IBA and various bank unions. However, the unions have set forth a pivotal condition before fully endorsing the deal - the declaration of all Saturdays as public holidays for banks.

While a memorandum of understanding (MoU) has been formalized between the IBA and the United Forum of Banks along with other unions and associations, the final agreement hinges upon the assurance of a 5-day banking.

The 17% increase in salaries and allowances for the fiscal year 2022-23 would amount to approximately Rs 12,449 crore, encompassing all public sector banks, including the esteemed State Bank of India (SBI).

Per the terms outlined in the MoU, the new pay scales will incorporate the merging of dearness allowance (DA) amounting to 8,088 points with the basic pay as of October 21, 2022, coupled with a 3% loading, totaling ₹1,795 crore.

To allocate the annual wage hike among bank employees, the distribution will be calculated separately and proportionally based on the establishment expenses for the fiscal year 2022.

5 Days Banking

Further discussions between the parties are scheduled to finalize a comprehensive Bipartite Settlement or Joint Note, encompassing various consensual matters. It's noteworthy that the IBA has urged the government to designate all Saturdays as holidays within the banking sector under the Negotiable Instruments Act of 1881.

The unions’ insistence on a five-day work week stands as a significant demand, underlining their intent to not fully ratify the wage agreement until this condition is met, ensuring improved work-life balance for bank employees.

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