Indian Banks Association and Employee Unions Reach Accord on 17% Annual Wage Hike, 5-Day Workweek Awaits Government Nod

The Indian Banks' Association and bank employee unions reached a consensus on an annual salary increase of 17 percent. This decision is expected to lead to an additional annual expenditure of approximately Rs 8,284 crore for public sector banks. Around 800,000 bank employees stand to gain from this wage hike, which is slated to come into effect from November 2022.

The All India Bank Officers’ Confederation announced that a joint agreement has been reached to designate all Saturdays as holidays, subject to government notification. The revised working hours will come into effect once the government issues the notification, as stated by the Confederation.

The new pay scales have been constructed, after merging Dearness Allowance corresponding to 8088 points and additional load thereon, it said.
Under the new wage settlement, all women employees would be allowed to take one day sick leave per month without giving a medical certificate.

It was announced that accumulated privilege leave can be encashed up to 255 days upon retirement or in the event of an employee's death while in service. Additionally, for retired employees, it was agreed that a monthly ex-gratia amount will be provided in addition to the pension/family pension paid by Public Sector Banks, including SBI. This benefit extends to pensioners and family pensioners who became eligible for pension on or before October 31, 2022, including those who retired on that date.