In a significant development, the Indian Banks’ Association (IBA) and bank unions reached a landmark agreement on Thursday, marking a positive conclusion to 2023 for employees of public sector banks (PSBs). The parties inked a comprehensive deal, ushering in a 17% annual wage increase for bank staff.
Key Highlights of Wage Revision Agreement
- Effective Date: December 1, 2023
- Duration: Five Years
- Total Cost: Rs 12,449 Crore
Bank Employees Wage Revision
The wage revision encompasses all public sector banks, including the State Bank of India (SBI). The total financial implication for this salary hike, as outlined in the agreement, is a substantial sum of Rs 12,449 crore.
The Memorandum of Agreement encompasses various aspects, including a 17% increase in pay slip cost, an additional loading of three per cent following the merger of dearness allowance, and improvements in pension benefits for all pensioners from 1986, covering retirees under the proposed 12th bipartite settlement.
Quoting from the MoU, “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 agreement further details the construction of new pay scales, involving the merger of Dearness Allowance corresponding to 8088 points as applicable for the Quarter of July, August, and September 2021. Additionally, a loading of 3% will be added, amounting to Rs 1,795 crore.
As a part of the agreement, the proposal for five-day banking has been forwarded to the government for favorable consideration. This follows the previous wage agreement, where bankers received a 15% wage increase.
According to the terms, both parties commit to meeting on mutually convenient dates to finalize a detailed Bipartite Settlement/Joint Note within 180 days from the date of this agreement.
This historic wage revision not only reflects the collaborative efforts of the IBA and bank unions but also signifies a positive outcome for the banking sector’s workforce.
