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Salaries and allowances of bank employees will increase by 15 per cent after bank unions and industry body Indian Banks’ Association (IBA) on Monday signed a wage deal.
The agreement was first announced in February after years of negotiations between the UFBU (United Forum of Bank Unions), an umbrella of nine unions, and the IBA.
The wage revision will be effective from November 1, 2012 and will benefit about 10 lakh employees from public sector banks, old private banks and some foreign banks. This will result in an additional salary burden of ₹4,725 crore per year on banks. With additional provisioning for superannuation and other benefits, the outgo goes up to ₹8,370 crore annually.
Following the wage revision, the scale of pay for officer-level employees goes up from ₹14,500-₹52,000 to ₹23,700-₹85,000, including special allowance and dearness allowance.
The scale of pay of workmen — non-subordinate staff — has been revised from ₹7,200-₹19,300 to ₹11,765-₹31,540, while that of subordinate staff goes up from ₹5,850-₹11,350 to ₹9,560-₹18,545, including allowances, IBA Chairman TM Bhasin said.
Additional holidays The wage settlement also includes a medical insurance scheme for the families of employees and additional holidays on the second and fourth Saturdays of a month. The first and third Saturdays will be regular working days.
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