Bank employees get 15% hike under new wage pact

Bank employees, including officers, will get a 15 per cent increase in their salaries and allowances under a wage settlement entered into between the Indian Banks Association and Employee Unions and Officers' Associations today.

The wage revision will benefit about one million employees in 43 banks, including public sector banks, old private sector banks and some of the foreign banks.

The 15 per cent wage revision would cost the public sector banks Rs4,725 crore as incremental salary and allowances in a year, IBA said in a release.

The current wage revision is effective from 1 November 2012 and will be valid for 5 years. In all, 11 all-India employees unions and officers' associations participated in the wage revision exercise.

Under the revised scale of pay, officers will get a basic salary in the range of Rs14,500 - Rs52,000 to Rs.23,700-Rs85,000 as also special allowance ranging from 7.75 per cent to 11 per cent of basic pay along with applicable dearness allowance.

The scale pay of employees (non-subordinate) has been revised from Rs7,200-Rs19,300 to
Rs11,765-Rs31,540, while the the scale pay of subordinate staff has been revised from
Rs5,850-Rs11,350 to Rs9,560-Rs18,545 along with special allowance at 7.75 per cent of basic pay along with applicable dearness allowance.

The wage settlement also introduces a medical insurance scheme for families of employees.

The 15-per cent wage revision would cost PSU banks Rs4,725 crore as incremental
salary and allowances in a year.

IBA said banks have been making provision for wage revision from November 2012.

T M Bhasin, chairman, IBA and Rajiv Rishi, chairman, negotiating committee of IBA led the management team in the negotiations. IBA expects banks to implement the revision immediately.

IBA also expects the salary revision to improve the moral of the bank employees, leading to better productivity.