Will Salary Increments stop if Bank Employees participate in Strikes?

Strikes are generally conducted by Bank Employees to protest against non-fulfillment of demands. But some people have doubt in their minds – Will salary increments be stopped if Bank Employees participate in Strike? Today, in this article, we will know about this.

In year 2000, Ministry of Finance had released a letter and clarified that employees who participate in a legal strike will not face any delay in their salary increments. This directive ensures that employees exercising their legal right to protest are not penalized through financial means.

The clarification was issued by the Department of Economic Affairs (Banking Division) under the Ministry of Finance. In an official communication addressed to Shri A. Ramanathan, General Manager of the National Bank for Agriculture and Rural Development (NABARD), the government stated that participation in a legally organized strike—regardless of its duration—will not affect the employee’s eligibility for timely annual increments.

This decision was made after a thorough review in consultation with the Indian Banks’ Association (IBA). Referring to two letters issued by the IBA—No. PD/GSN/GOVT/Q/1030 dated 25.09.1999 and No. PD/CSN/GOVT/Q/1233 dated 15.11.1999—the Ministry emphasized that there should be no postponement of increment for any employee involved in a lawful strike.

The Ministry had also requested NABARD to circulate this clarification to all Regional Rural Banks (RRBs) to avoid any misinterpretation or incorrect implementation of increment policies.