Central government employees and pensioners may receive their September salaries and pensions five days early, with the Centre allowing payments to be disbursed on Friday, 25 September, ahead of a proposed nationwide bank strike.
The three-day strike is scheduled from 28 to 30 September. With 26 and 27 September falling on the weekend, branch-based banking services could face disruption for several consecutive days.
September salaries and wages would ordinarily have been processed at the end of the month. Under the latest instructions, however, all central government employees, including those working in Defence, Posts and Telecommunications, may be paid on 25 September.
Industrial employees of the central government are also covered by the order, while central government pensioners may receive their September pensions through banks or Pay and Accounts Offices on the same date.
Is the early salary an additional payment?
No. The amount paid on 25 September will be treated as an advance payment of the employee’s normal September salary or wages.
Once the full month’s entitlement is calculated, any difference will be adjusted against the employee’s October salary. The same principle applies to pensions.
Why are bank employees going on strike?
The strike has been called by the United Forum of Bank Unions (UFBU) and other unions and associations representing employees of public-sector banks, with support from regional rural banks.
The principal unresolved demand is the introduction of a five-day banking week, under which all Saturdays would become bank holidays.
The unions had also opposed the Performance Linked Incentive scheme. The government has since kept that scheme in abeyance, leaving the five-day work week as the major unresolved issue.
Will online banking and ATMs work?
The strike is expected to have its greatest impact on branch-based services at public-sector and regional rural banks.
Banks have been asked to take steps to keep essential services running and ensure sufficient cash is available in ATMs. Customers have also been advised to use mobile banking, internet banking, ATMs and UPI wherever possible and complete important branch transactions before the strike.
The government has separately asked ministries and departments to process other payments and banking transactions due at the end of September in advance wherever feasible.
The advance salary order was issued by the Controller General of Accounts under the Ministry of Finance after the Department of Financial Services warned of possible disruption to banking transactions during the strike.