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Tuesday, February 24, 2015

Bank employees to get 15% increase in salary

Bank employees, mostly from the public sector, will get a 15 per cent wage hike and two additional holidays a month as part of an industry-wide wage settlement.

This is part of the deal cobbled up by employees’ unions and bank managements, under the aegis of the Indian Banks’ Association (IBA), at a meeting on Monday. Following the agreement, the employees’ unions have called off the four-day strike, which was supposed to start on February 25.

The proposed hike in salaries will amount to a collective outgo of ₹4,725 crore per year for the 45 banks that are part of the 10th industry-wide bipartite five-year wage (2012-2017) settlement exercise.

Almost 8.50 lakh employees in the banking sector – all public sector banks, some old generation private sector banks and a few foreign banks – are expected to benefit from the wage settlement. The revised salary will be implemented with retrospective effect from November 1, 2012.

Under the terms agreed on Monday, banks will remain closed on the second and fourth Saturday. Other Saturdays will be full working days. It is expected that even private banks may follow suit.

The proliferation of ATMs, internet banking and mobile banking in the last few years seems to have convinced bank managements, under the aegis of the Indian Banks’ Association (IBA), that giving second and fourth Saturdays off every month is feasible.

“Given the technology that is at play in banking, two Saturdays off in a month is unlikely to cause inconvenience to bank customers,” said a top public sector bank official.

According to CH Venkatachalam, General Secretary, All-India Bank Employees Association, the 15 per cent hike, which is excluding superannuation benefits, hospitalisation expenses, leave travel concession, is on the payslip component.

In the previous (9th) bipartite wage settlement, covering the 2007-2012 period, an average wage hike of around 17.5 per cent was given.

Announcing the conclusion of the 10th bipartite wage negotiations with bank unions and associations, TM Bhasin, IBA Chairman, said both sides (bank managements and unions) have agreed to work out detailed bipartite settlement note within a period of 90 days.

Source : Thehindubusinessline


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