IBA and unions reach an agreement; bank employees’ pay will rise by 17% Indian Bank Association pushes for a five -day work week
IBA and unions reach an agreement; bank employees' pay will rise by 17% Indian Bank Association pushes for a five-day work week
By: Pune Pulse
December 13, 2023
Pune: The management of state-owned banks and their employee unions reached a new wage settlement that will require public sector banks to pay nearly Rs 12,500 crore more annually.
For the next five years, the salary and allowances of nearly 7.56 lakh public sector banks, including the State Bank of India, will increase by 17% annually.
According to a joint memorandum signed by the Indian Banks’ Association (IBA), which represents bank managements, and the authorized representatives of workmen’s unions and officers’ associations, the agreement was finalized following discussions on wage revision for officers and workmen in banks. For FY23, SBI’s total wage bill was estimated to be Rs 57,292 crore.
In accordance with past agreements with unions, IBA has already suggested to the government that all Saturdays be declared holidays under the Negotiable Instruments (NI) Act for the banking sector. In the event that this proposal is approved by the government, banks will only operate Monday through Friday.
The US and many other nations observe the Monday through Friday banking week. In India, banks are currently closed on the second and fourth Saturdays of each month.
Additionally, bank unions are advocating for the designation of every Saturday as a holiday. The memorandum signed by the IBA and unions stated that the unions/associations urged for implementation of the same before signing of the final bipartite agreement/joint note.
Shreyas Vange
