Stay Informed Stay Ahead


bank wage revision: Banks, employee unions agree to 17% salary hike, latest on 5-day week proposal: 10 points

The Indian Banks’ Association and unions have reached an agreement on a 17% wage hike for all public sector banks, totaling Rs 12,449 crore. This decision will benefit around nine lakh employees, including 3.8 lakh officers, of PSU banks, including SBI and some old generation private banks. Talks between the Indian Banks’ Association and representatives of workmen unions and officers’ associations were held on December 7, 2023, regarding the wage revision, and an MoU was signed. A final settlement on the wage revision will be finalised within 180 days.

“The parties will meet on mutually convenient dates to draw out a detailed Bipartite Settlement/Joint Note on the various issues on which consensus positions are reached. The parties will endeavor to finalize the Bipartite Settlement /Joint Note within a period of 180 days,” the MoU said.

Here are key things to know about the wage revision MoU

The wage revision will be effective from November 1, 2022, for a period of five years.

As per the agreement, there will be a 17% increase in salary and allowances, based on the annual pay slip expenses for the fiscal year 2021-22.

This amounts to Rs 12,449 crore for all public sector banks, including the State Bank of India.

To calculate the new pay scales, the Dearness Allowance corresponding to 8088 points will be merged with the basic pay as of October 31, 2022. Additionally, a loading of 3% will be added, totaling Rs 1795 crore.

The distribution of the annual wage increase between workmen and officers will be determined separately based on the breakup of establishment expenses for the fiscal year 2021-22.

While the demand for pension updation for all retirees is still under discussion, it has been agreed that a one-time ex-gratia amount will be considered along with the pension for pensioners and family pensioners who were receiving pension as of October 31, 2022.

The applicability of this ex-gratia for retirees of the current settlement period will be further discussed.

It’s important to note that the ex-gratia amount will not be subject to any other allowances, including dearness allowance.

The Indian Banks’ Association has already recommended to the government the declaration of all Saturdays as holidays under the NI Act for the banking industry, based on previous negotiations with unions/associations. (Bhagwat Karad, Minister of State for Finance, stated in Parliament that the IBA proposal had been received. He did not, however, clarify on the proposal’s status or whether the Finance Ministry is contemplating accepting it. Banks are now closed on the second and fourth Saturdays of each month.)

All other issues raised by managements and unions/associations during the negotiation process, including the payment of ex-gratia to pensioners and family pensioners of private sector banks and foreign banks, will be resolved to mutual satisfaction.


Your email address will not be published. Required fields are marked *