Bank employee's wage revision: Public sector Bank employees will end 2023 on a happy note as the Indian Bankers Association (IBA) packed a deal with bank unions for a 17 percent annual wage hike. The pay revision will be effective for five years from 1.11.2022.
According to the agreement, the wage revision of all public sector banks, including the State Bank of India (SBI), will result in a burden of Rs 12,449 crore on the banks.
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17% Pay increase for bank employees
In a meeting, the IBA and the bank unions signed an agreement on a 17 percent hike in pay slips, a three percent surcharge after the inclusion of dearness allowance, and improved pensions for all pensioners, including those who retired under the proposed 12th scheme since 1986. Bilateral solution.
In a Memorandum of Understanding (MoU) signed between the two banking organizations, both IBA and bank unions agreed to 17 percent of the annual payroll expenditure for the financial year 2021-22.
Pay hike would cost Rs 12,449 crore
The pay hike would cost Rs 12,449 crore for all public sector banks, including SBI. The new pay scales will be constructed after incorporating and loading the dearness allowance to 8088 points of basic pay (average index point applicable for the quarter of July, August, and September 2021) on 31.10.2022. 3 percent, a total of Rs. 1,795 crore.
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Earlier, as per the previous wage agreement, bankers got a 15 percent pay hike. According to the agreement, the parties will "meet on mutually convenient dates and formulate a detailed bilateral settlement/memoranda of understanding on various issues related to the consensus positions.
Both organizations will endeavor to complete the bilateral settlement/memoranda of understanding within 180 days from the date.