Indian Banks’ Association: 17% Wage Hike and Recognition of All Saturdays as Holidays

In a significant development for bank employees, the Indian Banks’ Association (IBA) and bank employee unions have reached a historic agreement, endorsing an annual wage hike of 17% and recognizing all Saturdays as holidays, subject to government notification. The revised working hours will come into effect following the government’s official announcement.

This wage hike decision will result in an additional annual expenditure of approximately Rs 8,284 crore for public sector banks, benefiting around 8 lakh bank employees. The implementation of the wage hike is slated to begin from November 2022. The Chief Executive Officer of IBA, Sunil Mehta, emphasized the milestone nature of this agreement, marking a significant achievement for the banking industry.

Retired employees are also set to gain from this agreement, as it includes a provision for a monthly ex-gratia amount, in addition to the pension or family pension offered by Public Sector Banks, including SBI. This benefit is applicable to those eligible for pension on or before October 31, 2022.

Key points:

1. PSU bank employees to get a 17 per cent salary hike. The increment will be effective from November 1, 2022, and officers completing CAIIB (CAIIB Part-II) will receive two additional increments.

2. The new pay scales for PSU bank employees, post IBA and bank employees union pact, include the merger of Dearness Allowance corresponding to 8088 points.

“With the applicable load of 3.22 per cent the effective load on the basic pay post-merger of dearness allowance @30.38 per cent is 4.20 per cent,” the joint declaration says.

3. Under the revised wage settlement, female employees are entitled to one sick leave day per month without a medical certificate.

4. Accumulated privilege leave can be encashed up to 255 days upon retirement or in the event of an employee’s death while in service.

5. Retired employees will receive a monthly ex-gratia amount, in addition to the pension or family pension provided by Public Sector Banks, including SBI. 

Furthermore, under the new wage settlement, female employees will be granted the privilege of taking one day of sick leave per month without the requirement of a medical certificate. Additionally, the agreement allows the encashment of accumulated privilege leave up to 255 days at the time of retirement or in the unfortunate event of an employee’s demise while in service. The consensus reached between the Indian Banks’ Association and bank employee unions is poised to bring about several positive changes and benefits for PSU bank employees, enhancing their working conditions and financial well-being.