IBA, Unions Agree To 17% Salary Hike
The Indian Banks' Association and unions have agreed to a 17 per cent wage increase for all public sector banks, amounting to Rs 12,449 crore. This decision will benefit approximately nine lakh employees of PSU banks, including 3.8 lakh officers, as well as some old generation private banks. On 7 December 2023, the Indian Banks' Association met with representatives of labour unions and officers' associations to discuss wage revision, and an MoU was signed. Within 180 days, a final wage revision agreement will be reached.
"The parties will meet on mutually convenient dates to draft a detailed Bipartite Settlement/Joint Note on the various issues on which they have reached consensus positions."
According to the agreement, salary and allowances will be increased by 17 per cent based on annual pay slip expenses for fiscal year 2021-22.
The total amount for all public sector banks, including the State Bank of India, is Rs 12,449 crore. As of 31 October 2022, the Dearness Allowance corresponding to 8088 points will be merged with the basic pay to calculate the new pay scales. A 3 per cent loading will also be applied, totaling Rs 1795 crore.
The annual wage increase distribution between workers and officers will be determined separately based on the breakdown of establishment expenses for fiscal year 2021-22.
