PNB credited PLI for Officers upto Scale III, Bank Union threatens Protest

Punjab National Bank (PNB) has recently credited PLI to its employees up to Scale III. [Read: Punjab National Bank has credited PLI to Employees]

But an issue has come to light. The Bank has paid PLI only to officers up to Scale III. The All India Punjab National Bank Officers’ Association (AIPNBOA) has strongly opposed the bank’s decision to grant Performance Linked Incentive (PLI) only to officers in Scale-I to Scale-III, leaving out those in Scale-IV to Scale-VII.

AIPNBOA has written a formal letter to the Managing Director and CEO of Punjab National Bank and called the decision unfair and in violation of existing agreements, demanding immediate corrective action.

As per the circular issued by Dilip Saha, General Secretary of AIPNBOA, the bank’s management announced a 14-day PLI for junior officers without consulting the majority union or officer associations, which is required under the terms of the wage settlement. [Read: Punjab National Bank has credited PLI to Employees]

The union argues that the PLI scheme was part of the wage negotiation process and any decision related to it, including the duration and distribution, must be made in consultation with recognized unions. It stated that management’s action violated the agreed procedures laid down in the bipartite settlement and joint note, which have not been withdrawn or replaced by any government instruction.

Earlier, the Banks had released a new PLI scheme for Officers in Scale IV and above. Scale IV Officers were to be given PLI up to 70% of their Annual Basic Pay.

• Scale IV officers can get 70% of their annual basic pay (approximately ₹11.75 lakh per year).
• Scale V and VI officers can get 80% of their annual basic pay (approximately ₹14.40 lakh per year).
• Scale VII officers can get 90% of their annual basic pay (approximately ₹22.50 lakh per year).
• EDs and MDs of Nationalised Banks, DMDs, MDs, and Chairman of SBI can get PLI up to 100% of their annual basic pay

Discussions related to PLI are undergoing between UFBU and IBA in the office of the Chief Labour Commissioner. The United Forum of Bank Unions (UFBU) had asked IBA to advise all Banks to defer payment of PLI to employees until discussions are ongoing. Conciliation meetings were held at the Chief Labour Commissioner’s (CLC) office in Delhi on March 18 and 21, 2025. During these meetings, it was agreed that the Indian Banks’ Association (IBA) would collect feedback from member banks and submit a review to the Department of Financial Services (DFS). [Read: UFBU asks Banks to Postpone New PLI Scheme for Senior Officials]

Following the meetings, UFBU wrote to the Chairman of IBA and also informed the Chief Labour Commissioner, requesting that the implementation of PLI for Scale-IV and above be put on hold. The CLC subsequently advised IBA to defer the scheme. Despite this, the management of Punjab National Bank went ahead and released the PLI only to officers up to Scale-III. [Read: UFBU asks Banks to Postpone New PLI Scheme for Senior Officials]

The AIPNBOA has now asked the bank to immediately discuss the matter with the majority union and finalize the PLI for all officers up to Scale-VII. They have also requested that the current partial PLI payment be reversed or withheld until a fair resolution is reached. If the demand is not met, the union has warned that it will be forced to initiate protest actions under the guidance of the All India Bank Officers’ Confederation (AIBOC), which is part of UFBU. [Read: UFBU asks Banks to Postpone New PLI Scheme for Senior Officials]

The union has said that all officers, regardless of their rank, contributed to the bank’s performance and deserve equal recognition and benefits. They urged the management to resolve the issue respectfully and fairly by extending the PLI benefits to senior officers as well.

More details will be released soon.