The Indian Banks’ Association and bank employee unions have agreed to a 17% annual wage increase for bank employees, affecting around 8 lakh workers in public sector banks. The hike, effective from November 2022, will lead to an additional yearly expense of approximately Rs 8,284 crore.
As part of the agreement, all Saturdays will now be recognized as holidays, pending government notification. The revised working hours will be implemented after government notification.
The new pay scales have been formulated by merging the Dearness Allowance corresponding to 8088 points and additional load. Under the revised settlement, women employees can take one sick leave day per month without providing a medical certificate.
Accumulated privilege leave can be encashed up to 255 days at the time of retirement or the death of an employee in service. For retired employees, a monthly ex-gratia amount will be paid in addition to the pension/family pension provided by Public Sector Banks, including SBI. This is applicable to pensioners and family pensioners eligible for pension on or before October 31, 2022, including those who retired on that date.
IBA CEO Sunil Mehta expressed the significance of the agreement, highlighting the joint effort of IBA, UFBU, AIBOA, AIBASM, and BKSM in signing the 9th Joint Note and 12th Bipartite Settlement regarding Wage Revision for Bank Officers and Employees. The changes will take effect on November 1, 2022.
