January 22, 2025

“Indian Banks’ Association and Employee Unions Agree to Designate Saturday as Official Public Holiday”

The Entrepreneur Bytes Team March 9, 2024 241

In a significant development for the banking sector, the Indian Banks’ Association (IBA) and bank employee unions have inked a historic pact, ushering in several benefits for employees of public sector banks (PSUs). The agreement, reached on Friday, encompasses a 17% annual wage hike and the recognition of Saturdays as official holidays, contingent upon government notification.

Agreement Sealed for 17% Wage Hike and Array of Benefits for PSU Bank Employees
Agreement Sealed for 17% Wage Hike and Array of Benefits for PSU Bank Employees

In a significant development for the banking sector, the Indian Banks’ Association (IBA) and bank employee unions have inked a historic pact, ushering in several benefits for employees of public sector banks (PSUs). The agreement, reached on Friday, encompasses a 17% annual wage hike and the recognition of Saturdays as official holidays, contingent upon government notification.

Announcing the landmark agreement, Sunil Mehta, CEO of the Indian Banks’ Association, took to Twitter to share the news. He highlighted the signing of the 9th Joint Note and 12th Bipartite Settlement regarding Wage Revision for Bank Officers and Employees, set to take effect from November 1, 2022. The wage revision is estimated to result in an additional annual expenditure of approximately ₹8,284 crore for PSU banks, benefiting around 8 lakh bank employees.

Key highlights of the pact include:

  1. 17% Salary Hike: PSU bank employees are slated to receive a 17% salary hike, effective from November 1, 2022. Furthermore, officers who complete CAIIB (CAIIB Part-II) will be granted two additional increments.
  2. New Pay Scales: Post the agreement between the IBA and bank employee unions, new pay scales for PSU bank employees will be introduced, incorporating the merger of Dearness Allowance corresponding to 8088 points. The effective load on the basic pay post-merger of dearness allowance is reported to be 4.20%.
  3. Enhanced Benefits: Female employees are entitled to one sick leave day per month without requiring a medical certificate. Additionally, accumulated privilege leave can be encashed up to 255 days upon retirement or in the event of an employee’s demise while in service.
  4. Ex-Gratia for Retired Employees: Retired employees will receive a monthly ex-gratia amount, supplementing the pension or family pension provided by Public Sector Banks, including SBI. This provision extends to pensioners and family pensioners eligible to draw pension on or before October 31, 2022, including those who retired on that date.

Furthermore, the revised working hours, as per the agreement, will be implemented following notification by the government, as confirmed by the All India Bank Officers’ Confederation.

The culmination of this pact underscores a collaborative effort between the IBA and bank employee unions to address the welfare and financial security of PSU bank employees, setting a positive precedent for industrial relations within the banking industry.

Sources By Agencies

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