The Indian Banks Association (IBA) and bank unions have agreed on a 17 per cent annual salary increase for five years, starting from the fiscal year 2021-22. The wage revision, effective from 1 November 2022, is part of a memorandum of understanding between the IBA and various unions. However, the unions are insisting on declaring all Saturdays as public holidays for bank employees before signing the final agreement, which includes the decision for a five-day work week.
Next year, employees in public-sector banks, including the State Bank of India (SBI), are in for a 17 per cent salary increase, totaling a significant Rs 12,449 crore. This agreement is part of a Memorandum of Understanding (MoU), where they plan to adjust pay scales by combining the dearness allowance and adding a three per cent increase, amounting to Rs 1,795 crore. The distribution of this pay raise will be worked out based on the cost of running the banks in the upcoming year.
To finalise these plans and address agreed-upon matters, there will be meetings between bank representatives and employee unions. These discussions aim to create a detailed agreement, known as a bipartite settlement, outlining the terms both parties have settled on.
Interestingly, the Indian Banks Association (IBA) has already suggested to the government that all Saturdays should be considered holidays for the banking industry, according to a law dating back to 1881.
