India has been grappling with a long-standing debate about introducing a 5-day workweek for banks. This discussion gained further momentum after the central government approved the 8th Pay Commission, leading to renewed hope among banking employees for a significant change. However, despite expectations, Finance Minister Nirmala Sitharaman’s Union Budget presentation on February 1, 2025, did not include any announcement regarding the 5-day workweek for banks.
Recently, Indonesia approved 5 Day Work week for employees working in Public Sector Enterprises. In UK, more than 200 companies have introduced 4 day work week. The whole world is shifting towards 4 day work week but in India, 5 Day Work week is not being introduced for Banks. Almost all the government departments in India operate for 5 days per week but the same is not being implemented in Banks.
Current Workweek Structure in Banks
At present, banks in India operate six days a week, with the exception of the second and fourth Saturdays, when they remain closed. Over the years, bank employees have consistently raised demands for a shift to a 5-day workweek, citing work-life balance concerns and improved productivity.
Agreement Between IBA and Bank Unions
In December 2023, the Indian Banks’ Association (IBA) and various bank unions reached an agreement to adopt a 5-day workweek. However, this change remains contingent on government approval. In March 2024, both parties signed the 9th Joint Note, which included a proposal for the new workweek structure, along with weekends off on Saturdays and Sundays.
Expectations of Approval
There were hopes that the long-awaited 5-day workweek might receive final approval by the end of December 2024, following media reports that suggested the Finance Ministry might give its green light. However, no such approval has been granted as of now, and there is no official timeline or deadline set for the proposal’s implementation.
The 8th Pay Commission’s Impact on Bank Employees
The recent approval of the 8th Central Pay Commission on January 16, 2025, brought relief to over 1 crore central government employees and pensioners. While the announcement provided significant benefits for central government employees, banking staff are still awaiting a similar breakthrough regarding their workweek structure. The news of the Pay Commission’s approval has led banking employees to hope for a major move on the 5-day workweek front as well.
It remains to be seen when the government will officially approve the 5-day workweek proposal for banks, but the growing anticipation suggests that this debate will continue to be a focal point for both employees and the government.
