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The United Forum of Bank Unions (UFBU) has given three suggestions to the IBA regarding modifications to the new PLI scheme. In its letter dated 9 October 2026, UFBU has requested the IBA to review the PLI paid to award staff and officers up to Scale III, as well as Scale IV to VIII officers who did not receive any PLI.
The Government had introduced the new PLI scheme, and as per this new scheme, senior executives of banks starting from Scale IV will get PLI worth lakhs of rupees. The PLI for 2024-25 was disbursed, and Scale IV officers got around Rs. 5-7 lakhs as PLI, and the amount increased for senior officers. Meanwhile, Scale I to III officers got PLI of only up to Rs. 50,000. Bank employees are calling this discriminatory.
The PLI was not paid to all senior executives. It was paid only to 80% of employees, and the bottom 20% of employees did not get any PLI. UFBU announced a strike against this from 28 to 30 September 2026, but the strike was deferred by UFBU on 27 September 2026 as the Government agreed to put the payment under the new PLI scheme for 2025-26 on hold.
Minutes were signed between the IBA and UFBU on September 27, 2026, under which the IBA agreed to begin discussions on changes to the revised PLI scheme for officers in Scale IV and above.
UFBU has highlighted three major concerns regarding the PLI scheme.
#1) First, any change or modification to the scheme should be discussed bilaterally between the bank management and employee representatives.
#2) Second, the scheme should continue to provide incentives based on the collective performance of the bank rather than moving away from this basic principle.
#3) Third, the incentive rules should remain uniform for all employees covered under the scheme.
The union has argued that officers who did not receive PLI were also part of the bank’s overall performance. Therefore, while discussions on changes to the scheme for 2025-26 and subsequent years are pending, the PLI payments made for 2024-25 should also be reviewed. UFBU has specifically called for a review of payments made to award staff and officers up to Scale III, along with those Scale IV to VIII officers who were not paid any PLI. The union has requested the IBA to arrange a meeting to discuss the matter and reach an amicable and mutually acceptable solution.
Does this mean that officers up to Scale III may also get more PLI for the year 2024-25? Well, it may be, as UFBU has asked the IBA to review the payment of PLI made to staff up to Scale III and the 20% of senior executives who were not paid any PLI.
It will be interesting to know how the discussions proceed and how the IBA will revise the new PLI scheme.
Click here to read UFBU letter 9 October 2026
