Bank Employees Set for 17% Salary Hike as Wage Settlement Agreement Signed

Employees of public sector banks are poised to receive a 17% salary boost following the signing of the 9th joint note and the final 12th bipartite settlement agreement between the Indian Banks’ Association (IBA) and bank unions. The total expenditure allocated for wage revision stands at Rs 12,449 crore, encompassing all banks, including the State Bank of India. Effective from November 1, 2022, for a duration of five years, the wage revision entails an annual increase in salary and allowances equivalent to 17% of the annual pay slip expenses for FY22. The settlement encompasses 25 banks, comprising 12 public sector lenders, 10 private banks, and three foreign banks.

In December, the IBA and bank unions inked a memorandum of understanding (MoU) for a 17% wage hike, setting a 180-day timeline for the final settlement. An earlier report in November had indicated the potential for a 15-20% salary increase for employees of public sector banks as negotiations between the IBA and unions progressed towards the final stages of the 12th bipartite talks.

The agreement stipulates that the new pay scale will be formulated by merging the dearness allowance corresponding to 8,088 points, with all other discussed issues between management and workmen unions to be resolved to mutual satisfaction during the negotiation process.

Despite recommendations from the IBA, the decision regarding a five-day work week for public sector bank employees remains pending, awaiting a verdict from the Centre.

Back in July 2020, approximately 850,000 bank employees experienced a 15% increment in their salary packages following the signing of a memorandum of understanding between the IBA and the United Forum of Bank Unions, resolving the long-standing issue of wage revision after three years of contention.

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