In a landmark move, the Indian Banks’ Association (IBA) alongside various bank employee unions, has reached a pivotal agreement introducing a five-day work week for all employees of Public Sector Undertaking (PSU) banks. This decision, sanctioned by the Department of Financial Services (DFS) under the Ministry of Finance, is set to be formalized through an upcoming government notification.
Sunil Mehta, the CEO of IBA, celebrated this achievement on social media, stating, “Today marks a significant milestone for the #bankingindustry as IBA and #UFBU #AIBOA #AIBASM and #BKSM have signed the 9th Joint Note and 12th #Bipartite Settlement regarding #Wage Revision for Bank Officers and Employees, which will take effect on November 1, 2022.”
This adjustment to a five-day work week is expected to entail an additional annual cost of approximately ₹8,284 crore for PSU banks. Furthermore, the agreement also encompasses a 17% annual wage hike, retroactively effective from November 1, 2022, promising a financial uplift for about 800,000 bank employees.
The agreed terms include a merging of the Dearness Allowance with the basic pay, which, after adjustments, results in an effective increase of 4.20% on the basic pay. Notably, the settlement introduces a progressive step towards employee welfare by allowing female employees one sick leave per month without requiring a medical certificate.
Moreover, employees can now monetize up to 255 days of accumulated privilege leave at the time of retirement or in the unfortunate event of an employee’s passing during service. Additionally, the pact ensures that retired individuals will receive a monthly ex-gratia payment in addition to their pension or family pension from Public Sector Banks, including the State Bank of India. This benefit extends to pensioners and family pensioners who were eligible for pension as of October 31, 2022.
This groundbreaking agreement between the IBA and bank employee unions heralds a new era of enhanced work-life balance and financial security for PSU bank employees, underscoring the government’s commitment to nurturing a more conducive and rewarding work environment in the banking sector.
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