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The United Forum of Bank Unions (UFBU) has written a letter to the Indian Banks’ Association (IBA) seeking a review of the Performance Linked Incentive (PLI) paid to bank employees for the financial year 2024-25.
In its letter dated October 9, 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, to ensure fair treatment for all employees.
The strike from 28 to 30 September 2026 was deferred as the Government put the new PLI scheme on hold and IBA agreed to hold discussions regarding new PLI scheme. It was decided that the new PLI scheme will be modified for the welfare of all bank employees.
Minutes were signed between 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. In this meeting, it was also decided to frame a High level committee for the implementation of 5-day banking.
UFBU mentions 3 issues in PLI scheme as per today’s letter
UFBU has highlighted three major concerns regarding the PLI scheme. First, any change or modification to the scheme should be discussed bilaterally between the bank management and employee representatives.
Second, the scheme should continue to provide incentives based on the collective performance of the bank rather than moving away from this basic principle. Third, the incentive rules should remain uniform for all employees covered under the scheme.
UFBU has welcomed the decision to keep the revised scheme in abeyance and the IBA’s agreement to start discussions on possible modifications. However, the union has pointed out that the revised PLI scheme for Scale IV to VIII officers for 2024-25 has already been implemented, and a higher amount of PLI has been paid to these officers, involving substantial expenditure. At the same time, around 20% of officers in Scale IV to VIII did not receive any PLI.
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.
The letter was signed by C.H. Venkatachalam of AIBEA, Rupam Roy of AIBOC, L. Chandrasekhar of NCBE, Sanjay Khan of AIBOA, Debasish Basu Choudhary of BEFI, Prem Makker of INBOC, and O.P. Sharma of INBEF.
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