scorecardPSU bank employees wage revision finalised after three years of waiting — only a ₹1,100 increase in salary for officers
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PSU bank employees wage revision finalised after three years of waiting — only a ₹1,100 increase in salary for officers

PSU bank employees wage revision finalised after three years of waiting — only a ₹1,100 increase in salary for officers
IndiaIndia6 min read
  • The wage revision for public sector bank officers, which has been pending since 2017, has been finalised and signed by the Indian Banks’ Association (IBA) and Workmen Unions.
  • The total quantum of wage increase is ₹3,385 crore being 15% of the pay slip component.
  • The salary slip, however, will only reflect a real wage increase of ₹1,100 for bank employees.
The wage revision for public sector bank officers, which has been pending since 2017, has been signed, sealed and delivered. The Indian Banks’ Association (IBA) and Workmen Unions agreed that the total quantum of wage increase is ₹3,385 crore, which is 15% of the pay slip component.


However, the demand of public sector employees to implement five-day banking was not among the changes announced.

And, more changes may be in the works with Finance Minister Nirmala Sitharaman stating that the public sector banks need to do more to end discrimination in terms of pension against employees who may wish to retire early at the IBA's 73rd annual general meeting yesterday, on November 10.

She hinted at banks adopting the One Rank, One Pension (OROP) scheme, which means no matter the retirement date or the rank of an employee — everyone will get the same quantitative pension.

15% increase in wages for public sector bank employees

For Grade A officers at public sector banks, if there is a 2.5% load factor, a 15% bump is only results in a net increase of ₹1,100 to their in hand salary at an individual level. And, it merges the Dearness Allowance (DA) of 6352 points. This means most of the increase comprises what banker’s are already earning as dearness allowance.


Before and after salaries of Grade A PSU bank officers :

Existing

After merger of DA of 6352 points

Revised salary with 2.25% loading in Basic Pay

Basic pay

₹ 23,700

Basic pay

₹ 35,029

Basic pay

₹ 35,817

DA

₹ 12,229

DA

₹ 932

DA

₹ 953

Basic + DA

₹ 35,929

Basic + DA

₹ 35,960

Basic + DA

₹ 36,769

Special allowance

₹ 1,837

Special allowance

₹ 2,715

Special allowance

₹ 2,776

DA on special allowance

₹ 984

DA on special allowance

₹ 72

DA on special allowance

₹ 74

Basic + DA + Special allowance

₹ 38,714

Basic + DA + Special allowance

₹ 38,747

Basic + DA + Special allowance

₹ 39,619

NPS

₹ 3,871

NPS

₹ 3,875

NPS

₹ 3,962

Net salary

₹ 34,842

Net salary

₹ 34,873

Net salary

₹ 35,657


Family pension shall also now be paid out a uniform rate of 30%, subject to approval by the Government.

“It is agreed that family pension shall be payable at the uniform rate of 30 percent of the Pay of the deceased employee and that there shall be no ceiling on family pension. It is agreed that these provisions, when approved by the Government shall apply to SBI also,” said the IBA’s notification.

Meanwhile, the reimbursement of medical expenses under the medical aid scheme has been restricted to an amount of ₹2,355 per annum.

Public sector banks react to wage hike announcement:

Public sector bank

Share price change

State Bank of India (SBI)

0.58%

Bank of India

-0.49%

Union Bank

-0.60%

Punjab National Bank (PNB)

-1.18%

Bank of Baroda

-2.16%

Source: NSE at 12:00 pm

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