This decision will lead to an additional yearly expenditure of approximately Rs 8,284 crore for these banks, benefiting around 8 lakh bank employees. The wage hike is set to take effect from November 2022.
The All India Bank Officers’ Confederation announced that as part of the agreement, all Saturdays will be recognized as holidays, subject to government notification. The revised working hours will come into effect upon government notification.
According to the press release, “The Joint Note recognizes all Saturdays as holidays, pending government notification. The revised working hours will be effective after notification by the government.”
IBA Chief Executive Officer Sunil Mehta expressed his satisfaction with the agreement, stating in a post on X (formerly Twitter), “Today marks a significant milestone for the banking industry as IBA and UFBU, AIBOA, AIBASM, and BKSM have signed the 9th Joint Note and 12th Bipartite Settlement regarding Wage Revision for Bank Officers and Employees, which will take effect on Nov. 1, 2022.”
Bonanza for bankers
Explaining the intricacies of the new pay structure, the Confederation stated, “The new pay scales have been constructed after merging Dearness Allowance corresponding to 8088 points and additional load thereon.”
Under the revised wage settlement, the female employees will be entitled to take one day of sick leave per month without the requirement of a medical certificate. Moreover, accumulated privilege leave can be encashed up to 255 days upon retirement or in the event of an employee’s death while in service.
Furthermore, provisions have been made for retired employees, ensuring that the monthly ex-gratia amount will be paid in addition to the pension or family pension provided by the Public Sector Banks, including the State Bank of India, to pensioners and family pensioners who became eligible for pension on or before October 31, 2022, including those who retired on that date.
Will it impact customers?
The five-day work week may affect bank customers who usually keep their bank-related work for Saturdays.
However, with banks offering facilities like mobile banking, ATMs, and internet banking, the customers will have an easy access to their bank accounts.