The Indian Bank Association (IBA) and bank employee unions have signed a memorandum of understanding on wage revision, through which annual increase in salary and allowances has been agreed at 17 per cent for five years, effective November 2022, said a statement issued on Thursday evening dated 7 December2023.
“Annual increase in salary and allowances is agreed at 17 per cent, of the annual pay slip expenses for FY 2021-22, which works out to Rs. 12,449 crore for all public sector banks including SBI (State Bank of India),” the statement added. IBA has already recommended to the government to declare all Saturdays as holidays under NI Act for Banking industry in line with earlier negotiations with unions/associations. The organisations had sought the implementation of the same before signing of the final bipartite agreement.
The new pay scales will be constructed after merging dearness allowance corresponding to 8088 points (average Index point as applicable for the Quarter of July, August and September 2021) to the basic pay as on October 31, 2022, and adding thereon a loading of3 per cent, amounting to Rs 1795 crore, it said. On the other hand, based on the agreement, the distribution of annual wage increases between workmen and officers will be worked out separately and proportionately based on the breakup of establishment expenses for FY 2021-22.
“Without prejudice to the demand of unions/associations for updated of pension for all retirees, it is also agreed that as a one-time measure applicable for the current bipartite / Joint Note period, monthly ex-gratia amount will be considered along with pension by PSBs to pensioners and family pensioners, who were drawing pension as on October 31, 2022. The applicability of the said ex-gratia for the retirees of the current settlement period will be discussed further. The said ex-gratia amount will not attract any other allowance including dearness allowance,” it added.