Bank employees across India are anticipating a substantial increase in their wages as the Indian Banks' Association (IBA) and bank employee unions have come to an agreement on a 17 per cent annual wage hike. This move is projected to have a considerable impact, especially on public sector banks.

The agreed-upon wage hike is expected to result in an additional annual expenditure of approximately Rs 8,284 crore for these banks, benefiting about 800,000 bank employees. The wage revision is scheduled to be implemented from November 2022 onwards.

As part of this agreement, all Saturdays will be recognized as holidays, pending government notification, according to the All India Bank Officers' Confederation. Revised working hours will also be put into effect once the government notifies.

Sunil Mehta, CEO of IBA, expressed his satisfaction with the agreement, calling it a significant milestone for the banking industry. He announced the signing of the 9th Joint Note and 12th Bipartite Settlement regarding Wage Revision for Bank Officers and Employees, which is slated to commence on Nov. 1, 2022.

The new pay structure has been intricately designed, merging Dearness Allowance corresponding to 8088 points and additional load thereon, as explained by the Confederation.

Under the revised wage settlement, female employees will be entitled to one day of sick leave per month without the necessity of a medical certificate. Additionally, accumulated privilege leave can be encashed up to 255 days upon retirement or in the unfortunate event of an employee's death while in service.

Provisions have also been made for retired employees, ensuring that they receive a monthly ex-gratia amount in addition to their pension or family pension provided by Public Sector Banks, including the State Bank of India, for those who became eligible on or before October 31, 2022.

The transition to a five-day work week may impact bank customers who typically conduct their banking on Saturdays. However, with the availability of facilities such as mobile banking, ATMs, and internet banking, customers will continue to have convenient access to their accounts.

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