IBA signs MoU with unions on pay revision; okays 17% hike for 5 years

The Indian Banks’ Association (IBA) and bank employee unions have signed a memorandum of understanding (MoU) for a 17 per cent increase in salary and allowances for five years.

The increase would be effective November 2022, said a statement issued on Thursday evening.

“The annual increase in salary and allowances is agreed at 17 per cent, of the annual pay slip expenses for FY22, which works out to Rs 12,449 crore for all public-sector banks (PSBs), including State Bank of India,” the statement said.

The IBA has recommended the government declare all Saturdays as holidays under the Negotiable Instrument Act in line with earlier negotiations with unions/associations. The organisations had sought the implementation of the same before signing of the final bipartite agreement.

 

The new pay scales will be constructed after merging dearness allowance corresponding to 8,088 points (average index point as applicable for the quarter of July, August, and September 2021) to the basic pay as on October 31, 2022, and adding thereon a loading of3 per cent, amounting to Rs 1,795 crore, it said.

On the other hand, based on the agreement, the distribution of annual wage increases between workmen and officers would be worked out separately and proportionately based on the breakup of establishment expenses for FY22.

The two parties also agreed that as a one-time measure applicable for the current bipartite/joint note period, a monthly ex-gratia amount will be considered along with pension by PSBs to pensioners and family pensioners, who were drawing pension as on October 31, 2022. “The said ex-gratia amount will not attract any other allowance, including dearness allowance,” it added. 

The parties will endeavour to finalise the bipartite settlement within 180 days from the date of this minutes.

The statement said all other issues of the management and unions discussed during negotiations, including payment of ex-gratia to pensioners and family pensioners of PSBs and foreign banks, will be settled to mutual satisfaction.