Bank employees across India are poised to receive a significant boost in their salaries, with the recent signing of the 9th joint note and the final 12th bipartite settlement agreement between the Indian Banks’ Association (IBA) and bank unions. The agreement, which covers 25 banks including public sector, private, and foreign banks, will see a substantial increase in wages totaling Rs 12,449 crore over a period of five years.
Wage Revision Details
Effective from November 1, 2022, the wage revision entails an annual increase of 17% in salary and allowances, calculated based on the annual pay slip expenses for FY22. The new scale of pay will be formulated by merging the dearness allowance corresponding to 8,088 points. This settlement addresses various issues discussed during negotiations between the management and workmen unions, ensuring mutual satisfaction.
Pending Decision on Five-Day Work Week
While the wage revision agreement has been reached, the implementation of a five-day work week for public sector bank employees remains undecided. The decision awaits the Centre’s final determination, despite the recommendation put forth by the IBA.
Background
This wage revision marks a significant milestone in the ongoing efforts to address the remuneration concerns of bank employees. In July 2020, around 850,000 bank employees received a 15% increase in their salary packages, following a memorandum of understanding signed between the IBA and the United Forum of Bank Unions, resolving a three-year-long contentious issue of wage revision.
