Now banks won't open on Saturdays; Government bank employees to also get 17% salary hike

Indian Banks' Association (IBA) and bank employee unions have sealed a historic pact, promising a bundle of benefits to employees of Public Sector Undertaking (PSU) banks. The agreement, finalized on Friday, entails a significant annual wage hike of 17%. Notably, all Saturdays are set to be recognized as holidays, contingent upon government notification.

The signing of the 9th Joint Note and 12th Bipartite Settlement marks a crucial milestone for the banking industry, according to Sunil Mehta, CEO of IBA. The wage revision, scheduled to take effect from November 1, 2022, is expected to incur an additional annual expenditure of approximately ₹8,284 crore for PSU banks.

This hike, benefiting around 8 lakh bank employees, also introduces some noteworthy alterations in working conditions. The revised working hours will come into effect post notification by the government, as stated by the All India Bank Officers’ Confederation.

Outlined below are the top 5 benefits for PSU bank employees under the new agreement:

1. A 17% salary hike effective from November 1, 2022. Furthermore, officers completing CAIIB (CAIIB Part-II) will receive two additional increments.

2. Incorporation of new pay scales post-pact, including the merger of Dearness Allowance corresponding to 8088 points. The effective load on basic pay post-merger of dearness allowance stands at 4.20%.

3. Female employees are entitled to one sick leave day per month without requiring a medical certificate.

4. Accumulated privilege leave can be encashed up to 255 days upon retirement or in the unfortunate event of an employee's demise during service.

5. Retired employees will receive a monthly ex-gratia amount, supplementing the pension or family pension provided by Public Sector Banks, including SBI. This provision extends to pensioners and family pensioners eligible to draw pension on or before October 31, 2022.

The comprehensive pact signifies a collaborative effort towards ensuring the welfare of bank employees while reinforcing the stability of the banking sector.

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