About 8.8 lakh Covid ‘economic warriors’ from 29 banks received good news on Wednesday, just ahead of the Diwali festival, with the conclusion of the long-drawn-out wage revision negotiations between nine unions and the Indian Banks’ Association (IBA).
Under the 11th Bipartite Wage settlement, which will be effective from November 1, 2017 to October 31, 2022, bank employees — officers, staff and sub-staff — will get a 15 per cent hike in the payslip component and from FY21 a performance linked incentive (PLI) that public sector banks will implement.
Banks will make a higher contribution (14 per cent against 10 per cent now) for employees covered under the New Pension Scheme (NPS). Employees will receive additional stagnation increments.
Other benefits include certain improvements to the leave rules, including longer maternity leave (in certain cases).
Banks are likely to disburse immediately an ad hoc amount, equivalent to the net arrears payable for the period from November 1, 2017 to October 31, 2020, by deducting the ad hoc amount already paid on this account and continue to pay the revised salary and allowances on ad hoc basis.
The wage negotiations had dragged on for over three years.
CH Venkatachalam, General Secretary, All India Bank Employees’ Association, said this industry-wide wage revision will benefit about 8.8 lakh bank employees in 29 banks, of which 3,78,783 are officers and the rest staff and sub-staff.
Increased wage bill
The increase in the annual wage bill for the 29 banks — 12 public sector , 10 private and seven foreign banks — will be ₹7,898 crore.
“To inculcate a sense of competition and also to reward the performance, the concept of Performance Linked Pay has been introduced for the first time,” IBA Chief Executive Sunil Mehta said in a statement.