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Over 8.5 lakh bank employees get Diwali gift, 15% salary hike

More than 8.5 lakh bank employees of public sector banks (PSB) have been given a big gift by the Indian Banks Association. On Wednesday, an agreement to increase the salary of 8.8 per cent of public sector employees to 15 per cent was signed. Also Read – Customs of public sector banks across the country must take note, bank employees on strike from Friday

Intense talks were going on about this for the last three years. The UFBU, which represents four bank officer unions and five workman unions, and the IBA on July 22 signed an MoU for an annual wage increase of 15 per cent. Also Read – Indian Banks’ Association informed a Parliamentary panel Banks not yet prepared for GST roll out | IBA told parliamentary committee, banks are not ready for the implementation of GST

The Indian Banks’ Association is happy to announce the conclusion of the 11th bipartite pay agreement with bank unions and unions. On Wednesday, there was an agreement that the salary would be increased by 15 percent annually. IBA CEO Sunil Mehta said in a statement. Also Read – Idea added | 1.5 million | subscribers | by the PSB | Idea to add 1.5 million subscribers to PSB

The 15 percent increase in salary will be valid from November 1, 2017, which will run for five consecutive years.

According to the statement, a detailed bipartisan agreement or joint note has been signed with the UFBU and BKSM (Bank Karamchari Sena Federation), who are in favor of the agreement.

About 37 banks, including public, private and foreign banks have authorized the IBA to negotiate with the unions on wage increases for employees.

About 3.79 lakh officers of public sector banks and about 5 lakh bank employees will get the benefit of increment to old generation private banks and foreign banks.

With the new wage revision, banks will have an additional annual dues of Rs 7,898 crore.

The IBA further said that to create competitive spirit and better performance, the concept of Performance Related Incentive (PLI) scheme has been introduced for the first time. The scheme will be effective from the current financial year.

In public sector banks, the scheme will be based on the operating profit or net profit of the individual bank. It is optional for private and foreign banks. As per the agreement, PLI will be payable to all employees over and above the normal salary payable annually.

The four bank officials associations said in a joint statement, “After lengthy discussions and lengthy negotiations on various financial and non-financial issues, there has been a long-awaited agreement between the IBA and all constituents of the UFBU.” The unions were the All India Bank Officers Confederation (AIBOC), All India Bank Officers Association (AIBOA), Indian National Bank Officers Congress (INBOC) and National Organization of Bank Officers (NOBO), which came after the new basic pay merger. The statement said that with a loading of 6,352 marks and 2.5 per cent, the new salary structure is Rs 36,000 to Rs 1,29,000, which covers all seven scales.

The 10th bilateral settlement ended in October 2017. In the 10th bilateral settlement, which was signed in May 2015. For the period between November 2012 to October 2017, the IBA offered a 15 per cent increase.

About the author

Kim Diaz

Kim recently joined the team, and she writes for the Headline column of the website. She has done major in English, and a having a diploma in Journalism.

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