Bank Employees Good News: 5 days’ work weekly, salary increased by 17 per cent

The Indian Banks Association (IBA) and major bank employees’ unions have signed a mutual agreement, paving the way for a substantial 17 per cent annual wage hike. Signed as the 9th Joint Memorandum and 12th Bilateral Settlement, the agreement will come into effect from November 1, 2022.

And is expected to bring wage hikes that will directly benefit nearly 8 lakh bank employees across the country. The pay hike deal is worth about 8,284 crore to public sector banks. It is expected to result in an additional annual cost.

IBA Chief Executive Officer Sunil Mehta took to his social media platform to share the big news. x (earlier on Twitter) said, “Significant milestone for #banking industry today as IBA & #UFBU #AIBOA #AIBASM & #BKSM sign 9th Joint Memorandum & 12th #Bilateral Settlement on #Wage Revision. Bank Officers  & Employees.”

Today marks a significant milestone for the #bankingindustry as IBA and #UFBU #AIBOA #AIBASM and #BKSM have signed the 9th Joint Note and 12th #Bipartite Settlement regarding #Wage Revision for Bank Officers and Employees, which will take effect on Nov. 1, 2022. @PIB_India #dfs pic.twitter.com/QDC4TC8CIY

— IBA_Chief_Executive (@ChiefIba) March 8, 2024

The proposed changes are pending government approval. As part of the joint agreement, a proposal to recognize Saturdays as official holidays is currently pending government approval. Further, the revised working hours are part of the agreement and will come into effect only after approval by the government.

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The formulation of new pay scales includes merger of dearness allowance corresponding to 8,088 marks and additional burden.

Special benefits for women employees:

Under the revised wage compensation, women employees will be able to take one day of sick leave per month without the obligation to provide a medical certificate.

Privilege leaves benefits after retirement:

Retired employees also get benefits under the agreement. The agreement allows for encashment of accrued privilege leave up to 255 days during retirement or in case of unfortunate death of an employee while in service.

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Another provision in the agreement is the monthly ex-gratia amount for retired employees. This additional benefit is in addition to pension or family pension provided by public sector banks including State Bank of India (SBI). This provision applies to those who are eligible for pension on or before October 31, 2022, covering those who retired from the specified date.