Employees of the state-owned banks are expected to reap various benefits after the successful completion of negotiations between the Indian Banks Association (IBA) and various bank employees’ unions on Friday. After this IBA, bank unions pact, the monthly salary of the PSU bank employees is set to rise to the tune of 17 percent whereas the Dearness Allowance (DA) is expected to correspond to 8088 points. The salary hike will be applicable from 1st November 2023. In a joint note issued by the IBA and various bank employees’ unions, the pact paves the way for 5-day work in a week as all Saturdays have been now recognized as holidays for the PSU bank employees.
Top 5 benefits for PSU bank employees
Here we list out the top 5 benefits that state-owned bank employees are set to get after the IBA, bank employees’ unions:
1] 17% salary hike: PSU bank employees are set to receive a 17 percent salary hike after the IBA, bank employees union pact. As per the joint declaration, “The total quantum of wage revision increase (payslip component) is more than ₹828 crore being the 17% of the cost of payslip component of establishment expenses of public sector banks.”
The salary hike will be applicable from 1st November 2022 as the joint declaration went on to add, “Officers who have completed CAIIB (CAIIB Part-II) shall be eligible for two increments w.e.f. 01.11.2022.”
2] Dearness Allowance merger: After the IBA, bank employees union pact, the new pay scales of the PSU bank employees are set to see the merger of DA corresponding to 8088 points.
“The new pay scales have been constructed, after merging Dearness Allowance Corresponding to 8088 points and additional load thereon. With the applicable load of 3.22% the effective load on the basic pay post-merger of dearness allowance @30.38% is 4.20%,” the joint declaration says.
3] 5-day work in a week: The joint declaration went on to add that the pact will pave the way for the 5-day work in a week for PSU bank employees as the joint note recognizes all Saturdays as bank holidays.
4] Reworking of DA formula: The joint note says that the index for DA is shifted from 1960 = 100 to 201+6 = 100 series resulting in shifting the conversion factor from 0.06 to 0.99 as per 2016 = 100 series benefitting the bank employees with enhanced dearness allowance.
“The conversion factor on account of the merger of Dearness Allowance worked out at 0.0549. Instead of being rounded off to 0.05, it is raised to 0.06 extending benefit to serving and retired (bank) officers,” the joint note said.
5] New pay scales: The new scales of pay range from ₹48,480 to ₹1,73,860 covering all the scales from scale I to VII, with effect from 01.11.2022.