Bank employees receive an annual pay increase of 17%; Five-day working week awaits government approval

The Indian Banks’ Association and bank employee unions on Friday agreed to a 17 per cent annual wage hike, a move that will result in an additional annual outlay of about Rs 8,284 crore for public sector banks.

As many as 8 lakh bank employees will benefit from the wage hike, which will come into effect from November 2022.

The All India Bank Officers’ Confederation said in a joint note it was agreed to recognize all Saturdays as public holidays, pending notification from the government.

The revised working hours will come into effect after notification from the government, the report said.

“The new pay scales have been constructed after merging the Dearness Allowance equivalent to 8,088 points and an additional tax on top of it,” the report said.

Under the new wage scheme, all female employees would be allowed to take one day of sick leave per month without providing a medical certificate.

The accrued privilege leave can be redeemed for a period of up to 255 days at the time of retirement/on death of an employee while in service, the report said.

“Today marks an important milestone for the #banking sector as IBA and #UFBU #AIBOA #AIBASM and #BKSM signed the 9th Joint Memorandum and the 12th #Bipartite Settlement regarding the #salary revision for bank officers and employees, which was launched on 1 come into effect in November. September 1, 2022. @PIB_India #dfs,” IBA CEO Sunil Mehta said in a tweet.

For the retired employees, it has been agreed that the monthly ex-gratia amount will be paid in addition to the pension/family pension paid by the public sector banks, including SBI, to pensioners and family pensioners, who became eligible for pension on or before October 31, 2022, including those who retired on said date.

First print: March 8, 2024 | 10:19 PM IST