With the conclusion of the two-year long negotiations between bank unions and the Indian Banks’ Association, an annual increment of 15 per cent in pay has been mutually agreed upon for all bank employees. The revised wages will come into effect from November 1, 2017. Also, a performance-linked incentive has been introduced for the employees of all public-sector banks (PSBs), but the same is optional for private and foreign banks.
Bank unions have called many strikes to put forward their demands in the past two years. The increment in salaries and allowances will cost Rs 7,898 crore in terms of payslip components. The PLI will be given out on the basis of the operating profits or net profits of the respective banks.
Employees will be paid the PLI every year, in addition to their salaries.
This year onwards, in addition to encashment of privilege leave (PL) at the time of retirement and while availing leave fare concession, employees will be allowed to encash PL at five days every calendar year during a festival of their choice. In case of employees aged 55 and above, seven days of PL may be encashed during any one festival.
The banks will now contribute 14 per cent of pay and dearness allowance to the National Pension Fund instead of 10 per cent. This will come into effect from the prospective date of signing of the settlement, depending on when the Government approves the same.
Details are expected to be finalised within three months.