Bank employee unions and the Indian Banks’ Association have reached a consensus to boost the annual wage by 17 per cent. This projects an additional expenditure of approximately Rs 8,284 crore per year for public-sector banks.
Commencing from November 2022, an estimated eight lakh bank employees are poised to enjoy the advantages of this salary increase.
The meticulously-crafted new pay structure integrates Dearness Allowance (DA) linked to 8,088 points and additional load. Notably, female employees will now be entitled to one sick leave day per month without the requirement of a medical certificate. Additionally, accrued privilege leave can be monetised up to 255 days upon retirement or in the unfortunate event of an employee’s demise during service.
Accrued privilege leave is a system where employees accumulate paid leave days based on their length of service, typically granted annually. For instance, an organisation may offer 20 days of privilege leave per year, and if an employee does not use the full entitlement within that year, the remaining days carry over to the next year.
This accumulation continues over time, allowing employees to build up a reserve of leave days. In certain situations, companies may also permit the monetisation of accrued leave, allowing employees to receive a financial payout for their unused leave days, either during their tenure or upon retirement.
For the retired employees, the association has outlined the provision of a monthly ex-gratia amount in addition to the pension or family pension for eligible individuals associated with public-sector banks, including SBI, who are entitled to pension benefits on or before 31 October, 2022.
Additionally, as per the joint statement, all Saturdays will be officially recognised as holidays, contingent upon governmental approval for the revised working hours.
