Bank Wage Agreement

The latest round of negotiations, which ended with the signing of the agreement on Wednesday, had been ongoing for nearly three years. The plan takes effect from the current fiscal year. The public sector banking regime will be based on the operating income or net income of each bank. It is optional for private and foreign banks. Under the agreement, the PLI would be payable to all workers each year above the normal wage. After lengthy discussions and negotiations on various financial and non-financial issues, the long-awaited agreement between the IBA and all UFBU voters for all officer ranks has been reached,” reads a joint statement from four bankers` associations. “Today`s agreement provides for a 15% increase in the payroll,” said Sunil Mehta, IBA Chief Executive. In order to give a sense of competition and reward performance, the concept of performance compensation was introduced for the first time. The first two were not met, but the IBA agreed to recommend the family pension system to the government. The government is now deciding whether to extend this facility to bank employees. An agreement on the computerization of banks was signed in the 1990s. It has also promoted workers` benefits and inclusion. The duration of this agreement ended in 2017. The bank compensation contract is important not only for bankers, but also for other private employees of Life Insurance Corporation.

The pay scale of these employees is revised on the basis of their agreement signed with the trade union bank. “The pension cap of 9,000 times a month has been removed. It is paid at a single rate of 30%. Banks` finances will not take a hit in the bill, as they have already taken into account the increase in wage costs over the years. Future cost liability will remain limited, as the base salary component will be offloaded by only 2.5%, which was 2% at the time of the last count,” said Sunil Mehta, Chairman of the IBA Board of Directors. This comes days after bank unions cancelled a three-day bank strike, scheduled for 11 March. The strike was declared following the absence of wage changes talks with the Association of Indian Banks (IBA). The confederation of nine trade unions — which, on behalf of its members, conducts wage review talks with the Association of Indian Banks (IBA). Banking unions and the Indian Banks` Association (IBA) signed a two-party wage contract on Wednesday that gave bankers a 15 percent increase and increased payrolls by 7,900 kronor a year. Banking services are expected to be affected in the coming days, with public sector bank employees being two days… The two sides last entered into the 10th two-part wage contract in May 2015, which resulted in an additional 4,725 kronor per year. The hike came into effect in November 2012, when the last five-year-old two-bedroom has ended.

Wage negotiations involved 29 banks – 12 public sector banks, 10 private banks and 7 foreign banks – and 500,000 employees in the banking sector. In a joint statement by the four trade unions representing workers, it is stated for the first time that there will be a single basic allowance, the home rental allowance (HRA), the special allowance and the transport allowance. The HRA rate will be 10.5 percent on payment across the country.