Many countries, including the United States, operate Monday through Friday for banks. Currently, bank branches in India are closed on the second and fourth Saturday of every month.
Public sector banks will have to spend nearly Rs 12,500 crore more every year under the new pay deal agreed between the management of state-owned banks and their employee unions. Nearly 7.56 lakh public sector banks, including State Bank of India, will now get a 17% increase in salaries and allowances every year for the next five years.
The agreement was finalized following discussions between the Indian Banks’ Association (IBA) representing the bank management and authorized representatives of workers’ unions and managers’ associations on fixing salary changes of bank officers and workers, a joint memorandum of understanding was signed by IBA and unions. speak. SBI’s total payroll for FY23 alone is pegged at Rs 57,292 crore.
According to the memorandum, the IBA has recommended that the government declare all Saturdays as public holidays under the Negotiable Instruments (NI) Act for the banking industry, in line with previous negotiations with unions. If the government accepts this proposal, banks will only operate from Monday to Friday every week.
Many countries, including the United States, operate Monday through Friday for banks. Currently, bank branches in India are closed on the second and fourth Saturday of every month. Bank unions are also pushing to declare all Saturdays as public holidays. “The unions/associations have urged that these measures be taken before the signing of the final agreement/joint note between the two parties,” the memorandum of understanding between IBA and the unions said.
Bank employees got a 15% pay hike, representing an outlay of Rs 7,900 crore for banks during 2017-2022. Both parties agreed to roll out the concept of performance-linked incentive scheme for the first time since FY 2020. PSU banks reported a 57% rise in their net profit to Rs 1 lakh crore in the FY 2023. According to the agreement, new salary scales will be built after incorporating unlimited benefits corresponding to 8088 points (average index points applicable for the July, August and September 2021 quarters) into the base salary at as of October 31, 2022 and additionally thereafter, the 3% fee amounts to Rs 1795 crore. “The annual increase in salary and allowances is agreed at 17 per cent of the annual pay slip expenditure for the financial year 2021-22, or Rs 12,449 crore for all public sector banks,” IBA said. including SBI”.
The memorandum states that the allocation of annual salary increases between workers and officers will be set separately and proportionally based on the establishment’s expenditure allocation for the 2021-2022 financial year. “Without prejudice to the request of the unions/associations to update pensions for all retirees, it is also agreed that as a one-time measure for the current bipartisan period Now, the monthly non-free amount will be taken into account at the same time as the pension. of PSB to pensioners and family pensioners who are receiving pension on October 31, 2022,” he said.
The application of ex-gratia compensation to retirees in the current pay period is discussed in more detail. The unspecified amount will not attract any other subsidies, including priceless subsidies.
The Memorandum of Understanding states that the parties will meet at mutually convenient dates to work out a detailed joint agreement/arrangement on various issues on which consensus has been reached. The parties will endeavor to complete the settlement within 180 days.
Earlier, some banks had even considered doing away with pay arrangements implemented by the Indian Banks Association to retain talent under their own compensation systems. However, this project was later abandoned.
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