
The Indian Bank Association (IBA) and bank employee unions have reached an agreement on the 12th bipartite wage hike settlement, which will be effective for the next five years, starting from November 1, 2022. According to the Memorandum of Understanding (MOU) reviewed by Moneycontrol, bank employees will receive a 17 percent increase in salary.
Rupam Roy, the General Secretary of All India Bank Officers’ Confederation (AIBOC), stated to Moneycontrol that the final agreement is expected to be signed within two months, although the cut-off period for the agreement is 180 days.
The MOU outlines that the new pay scales will be constructed by merging the Dearness Allowance corresponding to 8088 points (average Index point applicable for the Quarter of July, August, and September 2021) to the basic pay as of October 31, 2022. Additionally, a loading of 3 percent, amounting to Rs 1795 crore, will be added.
Regarding the additional 3 percent loading after the merger of Dearness Allowance, Roy mentioned that it would lead to improvements in pension for all retirees from 1986, including those under the proposed 12th bipartite settlement.
The MOU also addresses the ex-gratia amount for pensioners and family pensioners who were drawing pension as of October 31, 2022. It states that the monthly ex-gratia amount will be considered along with the pension as a one-time measure applicable for the current bipartite settlement. The unions have requested the implementation of this measure before the final bipartite agreement is signed.
In the previous bipartite settlement in November 2020, IBA and bank employee unions agreed to a 15 percent increase in pay for bank employees. This 15 percent wage bill hike covered the five-year period between November 2017 and October 2022.
The MOU also highlights that IBA has recommended to the government that all Saturdays be declared as holidays under the Negotiable Instruments Act (NI Act) for the banking industry. This aligns with previous negotiations with unions, and IBA will pursue this recommendation.
On December 6, the Finance Ministry confirmed that it had received a proposal from India’s banks regarding five days of banking. Bhagwat Karad, MOS Finance, stated in a written reply to parliament during the ongoing winter session that IBA has submitted a proposal to declare all Saturdays as banking holidays.
Krishna Kumar, the General Secretary of All India Punjab National Bank Officers Federation, expressed his dissatisfaction with the 17 percent increase, stating that it should have been at least 20 percent. Kumar emphasized that considering the annual operating profit of around 2.40 lakh crore of Public Sector Banks (PSBs) in FY 2022-23 and 2.10 lakh crore in 2021-22, the loading in basic should have been around 8 percent. He added that the initial basic salary of a scale one officer in PSB will be around Rs 47,500, which is considerably lower compared to other government of India employees.
AIBOC’s Rupam Roy also expressed his dissatisfaction with the current hike, acknowledging that while he understands that young bankers may not be happy, it’s important to pay respect to retirees. He stated that he is not entirely happy with the current situation but is pleased for the retirees.
Another anonymous public sector banker expressed frustration and anger regarding the decision, highlighting that banks are currently making record profits and bankers are working beyond their limits due to staff shortages. They expressed disappointment with the increment received, considering the circumstances.
Yes….I am also not agree… why Unions signed without 5 day banking… We are very upset. Now all PSUs very strong n good profits recd….
Well said sir, one should know that everyone will retire from service. Pension should be as per CENTRAL EMPLOYEES PENSION
The salary hike for clerks is not according to the workload inrcreased due to shortage of clerk staff at present.
This is pure injustice to banking fraternity… Unions completely backstabbed young bankers especially clerks… Work load increased on par with officers but salary pays on clerical… Double the pay scale of officers to clerks… This is the worst settlement ever in the history of banking… Unions should be held responsible
There is no updation to the retirees. Instead one time measure of ex-gratia is expected. Pension started from 1986, till date updation was not done. Because of price raise and cost of living is on the raise, pensioners are suffering a lot.
This ill conceived ex-gratia is a petty amount in lieu of revision in pension. Retirees are frustrated lot as serving unions under the banner of UFBU have not made any significant effort in assuaging the anger of retirees. Retirees have no say anywhere in the negotiation table.
IT IS IMPORTANT TO PAY RESPECT TO RETIREES
All resposibility thrown on workmen/clerk without monetary benefit..wordt settlement since started.
There is nothing for award staff in this settlement
Everything is for officers.
While clerical is working more than officers.
They are underpaid.
This is injustice.
Why the IBA and UNIONS are not serious about the pension updation settlement of Bank retirees like other GOVT employees . Why they are deprived of a genuine benefit despite having huge amount of pension fund created by employees contribution which can easily cover updation portion. Seems a big mistery. Feel pity on the issue and a big QUESTION to most of the union leaders as why they do not fight for the cause Despite being retired for many a years. Can any one dare to answer with honesty.
Since the introduction of Economic Liberalisation measures, Privatisation measures, and Globalisation measures, during early 1991-1992 in our Country, the Governments are only patronizing Private Enropreneurs at the cost of common man and working class people. The Trade Union Movement lost it’s momentum. Working class is slowly becoming deunionised in spirit. Today by and large it is no more one for all and all for one in the Trade Unions. Everyone is for one’s self. Even Government is not serious in honouring it’s commitments, agreements with it’s people and working class in the Country. The Country as a whole is undergoing a transition. We all have to wait for better times to come, if we think we are having Good times.
What about the pensioners who were also part of the bank and devoted with sinceritly for the development of banking sector always ignored . As per opinion pensioners should also be treated equally to the existing staff and be treated and benefited in the same manner.
No benefits for Private Bank Employees, At least 5 day working should be implemented.So that we private bank employees can enjoy our weekend and give some time to Family .
17 % hike only For PSU’s.
Not Fruitful Meeting.
All bank should convert to private bank.
Pension metter is not resolved properly union leader not knowing the feelings of retired employees 1000 rs increase in pension is shameful for them there is nothing else for them except pension working staff get more and more allowances but retired employees get only pension in central and state government a simple clerk and teachers get more pension then branch manager of a govt Bank how he survive MD of sbi me rajnish kumar already saying how we will survive after retirement
In Bank of Rajasthan which is amalamagatiom in ICICI Bank a family pensioner of a retired mmgs 3 branch manager get only 12000 is shameful he pay medical expenses or electricity bill nothing else
As usual the pensioners are at the receiving ends. There is a huge hue and cry for the updation before the settlement but after it is signed pensioners find themselves clueless and dejected.
Fighting for 5 day week and wasting time and energy is like trying to bring sky to earth. Banking being an essential service, govt had even attempted to make it 7day week which dud not happen. No govt be it BJP or dynasty will agree for 5 day week as it will cause a lot of inconvenience to general public as there are so many areas that ATMs or online can handle alternative channels.
Fighting for 5 day week and wasting time and energy is like trying to bring sky to earth. Banking being an essential service, govt had even attempted to make it 7day week which dud not happen. No govt be it BJP or Congress will agree for 5 day week as it will cause a lot of inconvenience to general public as there are so many areas which alternative channels likeATMs or online cannot handle.
“I’m also unhappy with the agreement reached without the inclusion of a 5-day banking week. Once the settlement is finalized, it’s unlikely that the government will implement a 5-day week, as the BJP government is heavily reliant on corporate interests.”
Pay components increase is merely 14.45% whereas Workload increased to 150% . Absolutely injustice accepted by the retired so called Union leaders!!!
On 06 December 2023, the Finance Ministry confirmed that it had received a proposal from India’s banks regarding five days of banking. Bhagwat Karad, MOS Finance, stated in a written reply to parliament during the ongoing winter session that IBA has submitted a proposal to declare all Saturdays as banking holidays. Then this lackadaisical approach towards bankers should be reciprocated befitting reply by the banking fraternity and their families in forthcoming elections
On 06 December 2023, the Finance Ministry confirmed that it had received a proposal from India’s banks regarding five days of banking. Bhagwat Karad, MOS Finance, stated in a written reply to parliament during the ongoing winter session that IBA has submitted a proposal to declare all Saturdays as banking holidays. Then this lackadaisical approach towards bankers should be reciprocated through a befitting reply by the banking fraternity and their families in forthcoming elections
Pay componets increase is merely 14.45%, whereas Workload increased to 150%. Absolutely injustice towards the employees and proudly accepted by the so called retired union Leaders!!!
The settlement was done in a hurry, may be due to forthcoming elections. The pensioners issues were left untouched. Ex-gratia for pensioners is welcome but the updation should be done at the earliest.
I am also not happy with the present pay structure that recently got signed by the Bank Unions and IBA. Bankers deserve more because of our nature of job. We always work beyond stipulated working hours, lots of work pressure to achieve the unrealistic targets and so on.
Special pay should be part of basic pay for calculating pension
Ex Garcia is joke for pensioners
Piece of the cake was historical achievement of Ex Gratia. UFBU leaders deserve kudos for achieving such princely amount of Ex Gratia.
Not a single banker is happy with this settlement
If the settlement was not upto the satisfaction why sign it in a hurry.
First of all the leaders should have demanded recruitment of employee for all banks. Now again with the settlement even if 5 day week is introduced. The stress for the employees will be the same and they will be called to work on Saturday and Sunday inspite of holidays. Instead of which increase the employees to reduce stress. The payment increase will not reduce the stress. Union leaders to give importance for increasing the staff strength which is the need of the hour. Branches are suffering without staff. I have an experience of 41 years in the banking industry and have reached AGM position from clerical. I am in the bank from pre computerisad days and with more employees then were reaching home by 5 or maximum 6. With Saturday working also we had a balanced life. Post computerised with decline in employee the load is on the reduced staff. We are fools working three persons work for a single person pay. Leaders to deman more employee. One day will come where one employee will beasked to do five people’s work for a single pay.
Interesting thing is that our so called majority union AIBEA was trapped by the evil tactics of IBA and NCBE and they are not even aware they are being fooled. This is time to ask their member why their union has made a secret settlement by keeping other award staff union in dark. In a recent speech AIBEA general secretary was telling they have the history of settling unsettled things and unsettled settled things.That means this settled clause can also be unsettled. This is high time now to raise voice against this horrible settlement. It is a perfect time to drop mass resignation from this two giant union.
Nothing made clear about pension structure under this bipartite
Out of ₹12500 crores arrears, the
out go on I .Tax will be ₹4500 crores.
You can’t satisfy all at all Times. Some One will always remain unsatisfied at any given point of time, even if you give them a Moon. Because, they will find and Focus on the Black Spots of the Moon.
One has to appreciate the minimal Time ,the concerned parties have taken in arriving at this settlement with a provision for One more options for pension to those who have Resigned and other leftover.
It’s too much rise
Considering the workload and extra hours put on in on a daiy basis, the hike should have been atleast 20%. Overtime is a good substitute. Fill up huge shortage of staff on a war footing. Bring the status of employees to the past glory.
Public sector Banks earn huge profits with less strength of working staff. Like earnings more profit, banks also write off more NPAs which helps the big business houses very much. But they are reluctant to pay a reasonssble pay to their own staff members.
Make all the banks fully 100% digital, we don’t really need most of these employees at such luxurious salaries, the ordinary bank clients will benefit immensely from lower charges 😊
Why every new allowance for Officers only and not for clerk’s.
17%, but actual salary increase is only 14%.
In every settlement, employees are cheated by the so called unions. So also Pensioners.
The UFBU has back stabbed the pensioners of Private sector banks never in the banking industry. What made them to accept and sign the NIL ex gratia for the private sector banks. Who is behind this a million dollar secret.
UFBU is not getting any levy from the pensioners. So they are not interested about them
Without the representatives of retirees, settlement is incomplete.working staff is benefitted and retirees are cheated.
Regarding the fate of the Retiree’s, in every Bi-partite settlement it remembers me the Poem ‘THE BULL’ written by’Lord Byren’.
There were herd grazing the field where in the strong Bull headed at a particular time and controlled the herd with his mighty muscles. It is quite natural the Head Bull became older and the young ones coming of age and attained the position of leader.
One day the young one became the leader by hitting the old leader.
This is not just a poem but a lesson. Hence the present employees are future Retiree’s. It is for them to safe guard their future life.