Around 10 lakh employees of 43 banks, including public sector banks, will get a 15 per cent hike in salaries, with the Indian Banks Association on Monday signing a wage agreement with employee unions and officers’ associations.
The revision, applicable with retrospectively with effect from November 1, 2012, will benefit employees and officers in 43 banks including public sector banks, old private sector banks and a few foreign banks.
The 15 per cent hike would come come at a cost of Rs. 4,725 crore.
“The 15 per cent wage revision would cost banks Rs. 4,725 crore as incremental salary and allowances in a year. If superannuation cost is included, then the total burden would be around Rs. 8,370 crore,” IBA Chairman T.M. Bhasin told reporters.
As a prudent measure, banks have been making provision for wage hike for last few years.
For officers, the pay has been revised from existing range of Rs. 14,500 – Rs. 52,000 to Rs. 23,700 – Rs. 85,000.
A special allowance for officers ranging from 7.75-11 per cent of basic pay along with applicable dearness allowance has been introduced.
The scale of pay of workmen and non-subordinate staff has been revised from Rs. 7,200 - Rs. 19,300 to Rs. 11,765 – Rs. 31,540 while the scale of pay of subordinate staff from Rs. 5,850 – Rs. 11,350 to Rs. 9,560 – Rs. 18,545.
As per the new pact, a special allowance for workmen at 7.75 per cent of basic pay along with applicable dearness allowance has also been introduced.
Mr. Bhasin said arrears to the workmen will be given immediately and for officers’ within 4 - 6 months.
The bank employees will now soon get holidays on second and fourth Saturdays.
“RBI has given in-principle approval for it [holidays] and we have written to the government. We hope to get permission soon. We expect it should take 3 - 4 weeks time to implement it,” Mr. Bhasin added.
The wage settlement has also introduced a medical insurance scheme for employees of member banks.
“Earlier, all banks were having reimbursement of hospitalisation and medical expenses on individual bank basis. Now, we have taken consolidated policy from four public sector non-life companies which gives a floater cover of Rs. 3 lakh and Rs. 4 lakh for family.
“There will be cashless facility available as we are giving them 100 per cent reimbursement for self and dependents,” Mr. Bhasin said.
Govt banks to stay closed on 2nd and 4th Sat from July-Business Standard
Pay revision details okayed for 2012-17, arrears to be paid from this month; total extra payout to staff will be Rs 8,300 crore a year
Following a pact between public sector bank (PSB) employees and officers with the management, all branches in the country will remained closed on all second and fourth Saturdays from July.
T M Bhasin, chairman of the Indian Banks’ Association (IBA), said the Reserve Bank of India had approved the proposal and a notification would be issued on the change, under the Negotiable Instruments Act.
It will take three to four weeks for the process to get complete. PSB branches will work fulltime on the first and third Saturday of each month, said Bhasin, also chairman and managing director of Indian Bank.
Bankers said with a robust system of alternate banking channels like ATMs, points of sale and internet banking, customer services would not suffer.
IBA has also signed a wage settlement pact with the United Forum of Bank Unions and a few others, for a 15 per cent increase in salary and allowances to about a million employees. The wage revision is with effect from November 1, 2012, and is valid for five years. PSBs are expected to begin to pay the arrears from this month, Bhasin said.
The banks and their employee and officer unions had signed a framework agreement on February 23 for a 15 per cent wage rise, with an understanding to finalise the details in 90 days. The scale pay of officers has been revised from Rs 14,500–52,000 to Rs 23,700–85,000. Officers will get a special allowance ranging from 7.75-11 per cent of basic pay, along with applicable dearness allowance.
The scale pay of workmen (non-subordinate) has been revised from Rs 7,200–19,300 to Rs 11,765–31,540. That of subordinate staff has been revised from Rs 5,850–11,350 to Rs 9,560–18,545. The special allowance for workmen will be 7.75 per cent of basic pay, plus dearness allowance.
An important feature of the settlement is a medical insurance scheme being introduced for families of employees.
The 15 per cent wage revision would cost PSBs Rs 4,725 crore as incremental salary and allowances in a year. Banks have been making provision for the wage revision from November 2012. When expenses for the superannuation benefits like pension are combined, total extra expenditure will be Rs 8,300 crore a year, estimates IBA.
T M Bhasin, chairman of the Indian Banks’ Association (IBA), said the Reserve Bank of India had approved the proposal and a notification would be issued on the change, under the Negotiable Instruments Act.
It will take three to four weeks for the process to get complete. PSB branches will work fulltime on the first and third Saturday of each month, said Bhasin, also chairman and managing director of Indian Bank.
Bankers said with a robust system of alternate banking channels like ATMs, points of sale and internet banking, customer services would not suffer.
IBA has also signed a wage settlement pact with the United Forum of Bank Unions and a few others, for a 15 per cent increase in salary and allowances to about a million employees. The wage revision is with effect from November 1, 2012, and is valid for five years. PSBs are expected to begin to pay the arrears from this month, Bhasin said.
The banks and their employee and officer unions had signed a framework agreement on February 23 for a 15 per cent wage rise, with an understanding to finalise the details in 90 days. The scale pay of officers has been revised from Rs 14,500–52,000 to Rs 23,700–85,000. Officers will get a special allowance ranging from 7.75-11 per cent of basic pay, along with applicable dearness allowance.
The scale pay of workmen (non-subordinate) has been revised from Rs 7,200–19,300 to Rs 11,765–31,540. That of subordinate staff has been revised from Rs 5,850–11,350 to Rs 9,560–18,545. The special allowance for workmen will be 7.75 per cent of basic pay, plus dearness allowance.
An important feature of the settlement is a medical insurance scheme being introduced for families of employees.
The 15 per cent wage revision would cost PSBs Rs 4,725 crore as incremental salary and allowances in a year. Banks have been making provision for the wage revision from November 2012. When expenses for the superannuation benefits like pension are combined, total extra expenditure will be Rs 8,300 crore a year, estimates IBA.
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