The Indian Bank Association and the Bank unions have signed a Memorandum of Agreement leading to the 12th Bipartite wage settlement for the banking industry in India. The agreement envisages
an increase by 17% in the saaries of bank employees with retrospective effect from 01-11-2022. The validity of this settlement would be for five years.
The last time IBA and bank employee unions signed the bipartite settlement, for the five years between November 2017 and October 2022, there was 15 percent increase in pay for bank employees.
To arrive at the revised pay scales, Dearness Allowance corresponding to 8088 points will be merged to the basic pay as of 31.10.2022. There would be a loading of 3% after the DA merger, which will benefit pensioners from 1986.
It is also agreed that as a one-time measure applicable for the current bipartite monthly ex-gratitude amount will be considered along with pension by PSBs to pensioners and family pensioners, who were drawing pension as on October 31, 2022.
Another long awaited issue from the point of view from the Bank employees, Five-day banking, is also addressed during the negociations. The Unions have requested that all Saturdays be declared as holidays under the Negotiable Instruments Act (NI Act) for the banking industry before the final bipartite agreement is signed. The MOU stated that IBA has already recommended to the government.
The annual pay slip expenses for FY 2021-22 works out to Rs 12,449 crores for all public sector banks including SBI. The final wage settlement is expected to be signed within two months.
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