A 5 day privilege leave for employees during any festival is granted annualy
A bipartite agreement between the Indian Banks' Association (IBA) and the United Forum of Bank Unions (UFBU) has finalised on a 15% hike in the wages of bank employees. Under this agreement, a Performance Linked Incentive (PLI) will also be introduced for public sector bank staff based on operating/net profit of individual banks.
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After 35 numerous negotiations, a memorandum of understanding between the IBA and the workers and officers union has revised the wage policy which will benefit about 10 lakh bank employees and will be effective from November 1, 2017. A 15% hike in the salary of bank employees have been inked in the said MoU. The agreed annual wage increase in salary and allowances will be in effective from November 1, 2017, which works out to Rs 7,898 crore on payslip components.
Basic pay has been merged with dearness allowance, the IBA said in a statement. Close to 37 banks, including public, private and foreign banks, have mandated the IBA to negotiate with unions on wage hikes for their employees. Based on the bank's rank and profile, this 15% increase will be distributed among the bank officials and workers seperately. This may result in a fixed component increase in bank wages but may fluctuate for individual employees. "We are happy to state that in the meeting between the IBA and the UFBU at Mumbai, a broad understanding has been reached and a Memorandum of Understanding (MoU) was signed," All India Bank Employees' Association (AIBEA) General Secretary C.H. Venkatachalam told IANS. The AIBEA is one of the constituents of UFBU.
They also agreed for a redemption of privilege leave at five days every year - seven days for workers and officers aged 55 and above - during any festival. The bank's contribution to the National Pension Scheme will be raised to 14 percent from the current 10 percent.
-With input from sources