The Indian Banks’ Association on Wednesday reached a settlement with Bank Employee Unions in which they agreed to an annual wage hike of 15%. The two parties completed the 10th Bipartite Agreement in May 2015 which resulted in an additional outgo of Rs.4,725 crores every year. This negotiation finally turned into an agreement after (almost) three years, with the signing of the 5-Year Bipartite Wage Agreement upto 2022.
The Chief Executive of the Indian Banks Association said “ this agreement will provide a 15% increase in the payslip. To inculcate a sense of competition and also to reward the performance, the concept of performance-linked pay has been introduced for the first time”
With the signing of the Bipartite Wage Agreement, The bank employees were given a 15% hike, and also the wage bill was pushed up by Rs.7,900 crore per year. Out of this Rs.3,385 crores is for non-officers and the rest is for officers. This 15% wage bill hike will be for a five-year period between November 2017 and October 2022. This wage negotiation cover 29 banks and 500,000 employees in the banking sector.
The employees demanded three major things – wages on a par Central pay commission, working week of only five days, and revised family pension scheme. IBA considered the family pension scheme demand and has recommended it to the government. The government will decide whether that facility must be extended to the bank employees or not. We will surely inform you about the same if any notification is released.