In a significant development for the bank employees, the Indian Banks’ Association (IBA) and bank employee unions agreed on an annual wage hike of 17%, and agreed to recognise all Saturdays as holidays, pending government notification.
The revised working hours will be effective after notification by the government, it said.
The wage hike move will result in an additional yearly outgo of around Rs 8,284 crore for public sector banks. As many as 8 lakh bank employees are set to benefit from the wage hike, which will be effective from November 2022.
IBA Chief Executive Officer Sunil Mehta highlighted the significance of the agreement, stating that it marks a milestone for the banking industry.
Retired employees are also set to benefit, with the agreement stipulating that a monthly ex-gratia amount will be paid in addition to the pension or family pension provided by Public Sector Banks, including SBI, for those eligible to draw pension on or before October 31, 2022.
Under the new wage settlement, all women employees would be allowed to take one day sick leave per month without giving a medical certificate.
Accumulated privilege leave may be encashed up to 255 days at the time of retirement/upon death of an employee while in service, the joint statement said.