Pay for bank employees rises by 17% as IBA signs pact with bank unions: here’s how much pay will rise

Salary hike for bank employees: The Indian Banks’ Association has signed an annual wage hike of 17 percent with the banking unions. The wage revision will take effect from 1.11.2022 for a period of five years.

Salary hike for bank employees: As per the agreement, the revision in wages will cost banks an amount of Rs 12,449 crore across all public sector banks, including the State Bank of India (SBI).

ChennaiThe new year 2024 will start on a cheerful note for a large section of bank employees in the country as they will receive a 17% salary increase this year. In this regard, the Indian Banks’ Association (IBA) has signed an agreement for an annual wage hike of 17 percent with the banking unions. The wage revision will take effect from 1.11.2022 for a period of five years.

As per the agreement, the wage revision will cost banks an amount of Rs 12,449 crore across all public sector banks, including the State Bank of India (SBI).

During the meeting, the IBA and the banking unions signed a Memorandum of Agreement for a 17 percent increase in paycheck costs, an additional three percent tax after the merger of the long-term allowance, an improvement in the pension for all pensioners from 1986, including pensioners under proposed 12th bipartite settlement.

“The annual increase in salary and allowances has been agreed at 17 percent of the annual paycheck cost for the financial year 2021-2022, which amounts to Rs 12,449 crores for all public sector banks including SBI,” the MoU notes.

“The new pay scales will be constructed after merging the Dearness Allowance corresponding to 8088 points (average index point as applicable for the quarter of July, August and September 2021) with the basic salary on 31.10.2022, and adding a charge of 3 percent, amounting to Rs 1,795 crore,” it added.

Five day working day recommended

Five-day banking has also been recommended to the government for favorable consideration. Under the previous wage agreement, the bankers received a 15 percent pay increase.

According to the agreement, the parties will meet “at mutually convenient dates to prepare a detailed bipartite settlement/joint note on the various issues on which consensus positions have been reached. The parties will endeavor to complete the bipartite settlement/joint memorandum within a period of 180 days from the date of these minutes.”