(Milcah Anila, Intern Journalist) New Delhi: A 15 percent pay hike will apply to public and private bank employees as per an agreement reached between bank employees and the Banks Association of India (IBA). With the pay hike for bank employees, banks will not have to bear the burden of Rs 7,900 crore annually.
Employees will receive a pay rise in November, including arrears. The pay hike is expected to benefit about 5 lakh bank employees. The increment arrears will be released from January 1, the bank officials’ union said in a statement.
The IBA said in a statement that it had introduced the capability-based pay system to increase competitiveness among bank employees as well as promoting competent performance. The pay hike talks were attended by representatives of 12 public sector banks, 10 private banks, 6 foreign banks, and bank union leaders.
The bank employees took part in the discussions with three main demands:
To apply the recommendations of the Central Wage Commission, work five days a week, and update family pension.
However, the first two demands did not materialize as expected. The IBA has agreed to propose a family pension scheme to the government.
The central government is yet to decide on applying the scheme to bank employees.
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