IBA and bank staff unions reach an agreement on pay revision and a 17% increase in allowances

 IBA and bank staff unions reach an agreement on pay revision and a 17% increase in allowances

The IBA and bank employee unions last signed a bilateral agreement in November 2020, whereby it was agreed to raise bank workers' compensation by fifteen percent.

The five-year wage bill rise of fifteen percent is scheduled to take effect in November 2017 and end in October 2022.

The 12th bilateral salary rise agreement has been approved by the Indian Banks Association (IBA) and the unions representing bank workers. This agreement will come into force on November 1, 2022, and last for the next five years. The formally signed Memorandum of understanding, which Moneycontrol has seen, states that bank staff would get pay increases of 17%.

The deadline is 180 days, but the final deal is anticipated to be completed in two months, according to Rupam Roy, general secretary of the All India Bank Officers Confederation (AIBOC), who spoke with Moneycontrol.

"After combining the dearness allowance corresponding to 8088 highlights (average index point applicable for the quarter of July, August, and September 2021) in the basic pay as of October 31, 2022, and adding loading thereto, three percent, amounting to Rs 1795 crore, the new pay scale will be constructed," the Memorandum of Understanding stated.

Roy said that the 3% loading that would be added after the DA merger will enhance pensions for all retirees since 1986, including those who were laid off under the planned 12th bilateral agreement.

"It has also been agreed that income to pensioners and family pensioners will be distributed by the PSBs as a lump sum measure applicable to the current bilateral monthly ex-gratia amount, with no prejudice to the unions' demand to update the pension for all retirees." will be taken into consideration with those who received pensions until October 31, 2022, according to the MoU.

The IBA and bank employee unions last signed a bilateral agreement in November 2020, whereby it was agreed to raise bank workers' compensation by fifteen percent.

The five-year wage bill rise of fifteen percent is scheduled to take effect in November 2017 and end in October 2022.

Five banking days prior to the signing of the bilateral agreement

The IBA and bank unions/associations have an MOU, and the latter has asked that it be put into effect prior to the signing of the final bilateral agreement. According to the MOU, in accordance with earlier negotiations with the unions, IBA has previously suggested to the government that all Saturdays for the banking sector be designated as holidays under the Negotiable Instruments Act (NI Act). is, and IBA will act upon this suggestion.

The Finance Ministry said on December 6 that Indian banks had extended an offer for five days of banking. In a written response during the current winter session of Parliament, Minister of State for Finance Bhagwat Karad said that the IBA has proposed making all Saturdays bank holidays.

Growth less than anticipated by bankers

The All India Punjab National Bank Officers Federation's general secretary, Krishna Kumar, told Moneycontrol that the 17% rise ought to have been at least 20%. "Considering the annual the operating profit of PSBs of approximately Rs 2.40 lakh crore in FY 2022-23 and Rs 2.10 lakh crore in FY 2021-22," he explained.

Kumar went on to say that the loading in Basic should have been closer to 8% as 3% loading in Basic would only have increased Basic by Rs. 1,400 over the course of five years—a negligible amount when compared to the corporate sector.

"A scale one officer in PSB will start at about Rs 47500, which is much less than other Department of India employees," he said.

"I know my young bankers have not been happy; but as a leader, we should give dignity to our retirees; as IBA has also given, I am disappointed with the current situation but am happy for our retirees," AIBOC Roy remarked in a Moneycontrol interview, expressing his displeasure with the current raise.

"I am very irritated and disappointed with today's decision; currently, all the banks make record profits and bankers are at 150 percent of their limit due to the employees," said another active public sector banker who wished to remain anonymous. are putting in more labor than." Even with the pay rise, we still don't have enough.