The Indian Banks Association (IBA) and various bank unions have agreed to a significant wage revision, wherein salaries will witness an annual increment of 17% over five years, commencing from the fiscal year 2021-22. This consensus, stated in an announcement released on December 7, will initiate the wage revision from November 1, 2022.
However, despite this accord, the unions have put forth a demand stipulating that all Saturdays should be recognized as public holidays for banks before they officially endorse the wage agreement. Consequently, a memorandum of understanding (MOU) has been established between the IBA and the United Forum of Banks, along with other unions and associations, as part of a bipartite settlement. Nevertheless, the final signing of the agreement remains contingent upon the declaration of a five-day work week.
The projected annual increase in salary and allowances pegged at 17% of the annual pay slip expenses for FY22, is estimated to amount to approximately Rs 12,449 crore for all public sector banks, including the State Bank of India (SBI).
As outlined in the MOU, the formulation of new pay scales will encompass merging dearness allowance (DA) corresponding to 8,088 points with the basic pay as of October 21, 2022. Additionally, an augmentation of 3% will be introduced, resulting in an aggregate of Rs 1,795 crore.
The allocation of the annual wage hike for bank employees will be individually determined and apportioned based on the breakdown of establishment expenses for FY22. Both parties are scheduled to convene on mutually agreeable dates to outline a comprehensive Bipartite Settlement or Joint Note, encompassing the various consensual matters.
It's noteworthy that the IBA has already proposed to the government the declaration of all Saturdays as holidays within the banking industry under the Negotiable Instruments Act of 1881.