MUMBAI: The Banking Association of India signed the XI bipartite wage agreement with a representative of the bank’s employees paving the way for a 15% salary increase. The agreement applies to public sector banks, some old generation private banks and some foreign banks.
The IBA in a statement said that to instill a sense of competence and also to reward performance, the concept of the Performance Linked Incentive (PLI) scheme has been introduced for the first time. The scheme will be effective from the current fiscal. The PLI scheme in public sector banks will be based on the operating profit / net profit of the individual bank. It is optional for private and foreign banks.
The bipartisan agreement is a platform for bank employees to renegotiate wages every five years. In addition to salary, the salary agreement incorporates various benefits for employees and incorporates any changes to the conditions of service. For example, the computerization of banks in the 1990s was made possible by a salary agreement. The contract also includes employee benefits designed to promote inclusion. Although the term of the previous agreement ended in 2017, the current agreement was delayed due to lengthy negotiations and the closure of Covid-19.
The bank salary agreement is important to other public sector employees, including those of Life Insurance Corporation and other public sector insurance companies. the Reserve Bank of India and public financial institutions like Nabard. The government reviews the salary scales for the employees of these organizations based on the salary agreement signed with the banking unions.
“The Banking Association of India is pleased to announce the conclusion of the 11th Bipartite Wage Negotiations with banking unions and associations it will enter into force as of November 1, 2017. The agreement reached today foresees an increase of 15 percent in the payment receipt ”, said IBA’s executive director Sunil Mehta said in a statement. The new salary revision would imply an additional annual expense of Rs 7,898 crore for banks.
According to a note distributed by All India Bank Employees Association, the new agreement includes leave benefits such as additional sick leave for those who have completed 30 years of service. Employees can take sick leave to take care of sick children on presentation of a medical certificate. Maternity leave of up to nine months can be granted for the legal adoption of a child and a longer maternity leave for mothers of twins. Another relief for employees is absence from the office due to curfew, riots, prohibitive order, natural calamities in the workplace would be treated as a special duty leave.
The employee unions that signed the agreement include the United Forum of Banking Unions (UFBU), which represents four workers ‘unions and four civil servants’ associations, and also Karamchari Sena Mahasangh Bank (BKSM), which were parties to the agreement, according to a statement from the IBA.
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