Banks will be burdened by more than Rs 12 thousand crores, no decision has been taken yet on pension and 5 day week.

Bank Salary Increase: An agreement has been reached between the Indian Bank Association (IBA) and the employee unions to increase salaries by 17 percent. The agreement will come into effect from November 1, 2022 and will remain in force for five years. Accordingly, all public sector banks including SBI will have a burden of Rs 12,449 crore due to the increase in salary.

Salaries will increase by 17%.

According to the agreement, the salaries in all public sector banks will increase by 17%. 12449 crores will be spent on it. About 9 lakh employees and 3.8 lakh officers will benefit from the new agreement. On December 7, talks were held between the IBA and the employee unions. An MoU was also signed regarding salary increase. The process of increasing the new salaries will be completed in 6 months.

These are the main issues of this agreement.

According to the MoU, the new pay hike will be effective from November 1, 2022. It will remain in force for the next 5 years. For the new pay scale, DA will be merged into the basic pay. This rule will be deemed applicable from October 31, 2022. In addition, 3 percent loading will also be applicable, resulting in an expenditure of Rs 1,795 crore. There will be different rules for increasing the annual salaries of officers and employees. However, the proposal to increase the pension is yet to be decided. But, they are agreed to be paid once.

No decision has been made yet on every week off.

IBA has demanded the government to keep every Saturday as a holiday. Currently, the second and fourth Saturdays are bank holidays. Minister of State for Finance Bhagwat Karad confirmed this in Parliament. But he did not say whether the government is considering it or not. It is not mentioned in the MoU either. A five-day week can be decided later. Before Diwali, the central government had increased the dearness allowance of its employees by four per cent, while the bank employees had been demanding a salary hike since last year.

Also read this

IIT placements: 30% drop in IIT placements, not getting good job offers, companies keep distance

Bank Employees

Leave a Comment