Public sector bank employees are set to get a 17% rise in their wages after Indian Banks’ Association (IBA) and bank unions signed a memorandum of understanding (MoU) on the 12th bipartite settlement late on Thursday. The total annual salary for banks will work out to `12,449 crore for all banks, including State Bank of India.
The wage revision will be effective from November 1, 2022 for a period of five years and the annual increase in salary and allowances will be 17 %of the annual pay slip expenses for FY22.
FE had, on November 27, reported that employees at public sector banks may see between 15-20% hike in salaries as 12th bipartite talks between IBA and unions entered a final stage.
“The new pay scales will be constructed after merging Dearness Allowance corresponding to 8088 points (average index point as applicable for the quarter of July, August and September, 2021) to the basic pay as on 31.10.2022, and adding thereon a loading of3%, amounting to Rs 1,795 crore,” the MoU signed between IBA and unions said.
Further, IBA said that it has already recommended to the Centre for a five-day work week for all employees and the proposal will be pursued. The lobby group added that unions have urged implementation of five-day work week before signing of the final bipartite agreement in next 180 days.
In July 2020, around 850,000 bank employees got a 15% increase in their salary packages, with the IBA and the United Forum of Bank Unions signing a memorandum of understanding to settle the three-year-long contentious issue of wage revision.