Banks Agree To Hike Wages By 17%, Public Holiday On All Saturdays, Await Govt Nod

About 8 lakh bank employees would benefit from the wage hike and this will cost an annual outgo of Rs 8,284 crore for the public sector banks, informed the All India Bank Officers’ Confederation

The Indian Banks’ Association and bank employee unions agreed on the implementation of a wage hike for employees across public sector banks in the country. The representational bodies agreed on an annual wage hike of 17 per cent for the bank employees, which will be effective from November 2022.

This wage hike will lead to a surplus annual outgo of nearly Rs 8,284 crore for the public sector banks, reported PTI. About 8 lakh bank employees would benefit from the wage hike, informed the All India Bank Officers’ Confederation. 

The body stated that it has been agreed to recognise all Saturdays as holidays via a joint note and the decision is now awaiting government notification. The revision in the working hours will be implemented after the government notifies the change, it noted.

Leave Benefits

The Confederation added that the new pay scales have been made after putting together Dearness Allowance corresponding to 8088 points and surplus load thereon. Further, the new wage norms will also provide an extra benefit for the female employees. The revision stated that all women employees will be eligible for availing one day sick leave every month without providing a medical certificate. Addtiionally, employees would be allowed to encash accumulated privilege leave up to 255 days at the time of retirement/death while in service. 

Commenting on the revisions, Sunil Mehta, CEO, IBA, posted on social media platform X, formerly known as Twitter, and said, “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.”

Changes For Retired Employees

The new norms would also implement some changes for retired employees. As per the revisions, the monthly ex-gratia amount for retired employees would be paid in addition to the pension/family pension paid by the public sector banks including SBI to pensioners and family pensioners, who fulfilled the criteria to draw pension on or before October 31, 2022, and those who retired on the date.