Dearness Allowance + Basic merged, National Pension System contribution increased for bank employees!

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Updated: Jul 23, 2020 9:41 PM

If the operating profit is above 15 per cent, employees will get an additional 15 days salary. However, this will be applicable only if the bank reports a net profit.

If the operating profit is above 15 per cent, employees will get an additional 15 days salary. However, this will be applicable only if the bank reports a net profit.

Bank Employees Salary Hike: Around 8.5 lakh bank employees are going to benefit from an annual wage hike of 15 per cent. The decision in this regard was finalised yesterday after intense negotiations by bank employees’ unions and the Indian Banks’ Association (IBA). The annual hike in wages will be effective from November 2017.  “Today IBA & UFBU have signed an MoU for 15% increase in pay slip component of Bank Employees, in Principal agreement to remove cap & offer 30% of Basic Pay as family Pension,” IBA Chief Executive Officer Sunil Mehta had tweeted yesterday.  Here’s a look at all that was decided how the salary hike will be implemented:

Performance Linked Incentive (PLI): Apart from the salary hike, PLI will be introduced for public sector bank staff. According to a PTI report, it will be based on operating or net profit of individual banks concerned. PLI will be applicable from the current financial year for public sector banks. However, it will be optional for the private sector and foreign banks. There will be no PLI if the operating profit earned by a bank is less than 5 per cent. However, if the operating profit is between 5-10 per cent, employees would get an additional five days salary.

If the operating profit is above 15 per cent, employees will get an additional 15 days salary. However, this will be applicable only if the bank reports a net profit.

Basic Pay + Dearness Allowance Merged: The Basic Pay and Dearness Allowance has been merged, as per the IBA statement.

National Pension System Contribution by Emlpoyer (bank): Bank’s contribution to NPS (New Pension Scheme) fund will increase to 14 per cent — 14 per cent of pay and dearness allowance.

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