Deepawali bonanza for bank employees: Around 14 lakh bank employees are in for a festival bonanza with the Indian Banks’ Association asking top managements of private sector, public sector and foreign banks to pay one month’s salary as advance ahead of Deepawali. It has been decided that pending the wage revision talks, an ad hoc amount, equivalent to one month’s salary (basic plus dearness allowance) may be disbursed to all permanent workmen, staff, and officers, said a letter signed by VG Kannan, Chief Executive of the Indian Banks’ Association.
The IBA letter dated October 1, which was reviewed by the Financial Express Online, states that this one month salary will be paid only to those permanent employee who were on the bank’s roll on November 1, 2017 and who are still in service.
Those bank employees who have joined the service between November 1, 2017 and March 31, 2019 will be paid half the amount (15 days salary – basic plus DA).
However, this advance to be paid to nearly 14 lakh bank employees during the festive season will be settled against the payment of arrears following the signing of a wage revision settlement between employees and management of the banks.
“Bank employees may be advised by the concerned banks that the ad hoc payment is being made to them as a gesture of goodwill…and the amount being paid now will be adjusted against the actual arrears payable (to employees),” said the IBA letter to the concerned banks.
The decision also comes as a shot in the arm for the industry that has been grappling with an unprecedented slump in the demand. Festive season is the time when most Indians buy new goods and clothes, white goods, new vehicles, jewellery and property among other things.
The season typically begins in September-October and extends to February-March in the new year. Three most auspicious occasions of Dussehra, Dipawali and Akshaya Tritiya fall during this festive season, accounting for bulk of the demand during the season. The season also coincides with the winter marriage season in the country thereby further boosting the demand.
However, this year, economic growth declined to a six-year low in the April-June quarter forcing the government to announce a slew of measures to shore up the demand.
This additional disposable income in the hands of 14 lakh bank employees will help the Modi government’s drive to boost the consumption.