Public Sector Bank Employees to Get 17% Salary Hike

Public Sector Bank (PSB) Employees To Get 17% Salary Hike

Mumbai: Good news for bank employees, spanning across public sector banks (PSBs), selected private banks, and foreign banks. The Indian Banks Association (IBA) on Thursday sealed a significant annual wage hike agreement of 17% with the bank unions, set to be effective from November 1, 2022, and spanning a five-year duration.

This wage revision will incur a collective cost of Rs 12,449 crore for all public sector banks, including the prominent State Bank of India (SBI), as outlined in the agreement. During the meeting between the IBA and bank unions, a Memorandum of Agreement(MoU) was formalized, encompassing a 17% increase in pay slip costs and an additional loading of three percent post-dearness allowance merger. Furthermore, enhancements in pension benefits were secured for all pensioners in 1986, covering retirees under the proposed 12th bipartite settlement.

The MoU specifies, “Annual increase in salary and allowances is agreed at 17%, of the annual pay slip expenses for FY 2021-22, which works out to Rs 12,449 crores for all public sector banks, including SBI.” The document elaborates on the construction of new pay scales, involving the merger of Dearness Allowance with the basic pay as of October 31, 2022, and an additional loading of 3%, totaling Rs 1,795 crore.

Notably, a proposal for a five-day banking system has been put forth to the government for favorable consideration. Comparatively, the previous wage agreement saw a 15% wage increase for bankers. The agreement outlines future meetings to delve into detailed discussions on consensus positions, aiming to finalize the Bipartite Settlement/Joint Note within 180 days from the date of the minutes.