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

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

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

Shape Up Your Future 16th & 17th September 2021
  • 15+ Knowledge Sessions
  • 30+ Industry leaders
Watch Live
Meet Our Speakers
Nikhil Malhotra
Nikhil Malhotra
Dan Schawbel
Dan Schawbel
Ronnie Screwvala
Ronnie Screwvala
Dr. KV Subramanian
Dr. KV Subramanian
Benjamin Pring
Benjamin Pring
Sanjeev Bikhchandani
Sanjeev Bikhchandani
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.

Advertisement


Before and after salaries of Grade A PSU bank officers :

ExistingAfter merger of DA of 6352 pointsRevised salary with 2.25% loading in Basic Pay
Basic pay₹ 23,700Basic pay₹ 35,029Basic pay₹ 35,817
DA₹ 12,229DA₹ 932DA₹ 953
Basic + DA₹ 35,929Basic + DA₹ 35,960Basic + DA₹ 36,769
Special allowance₹ 1,837Special allowance₹ 2,715Special allowance₹ 2,776
DA on special allowance₹ 984DA on special allowance₹ 72DA on special allowance₹ 74
Basic + DA + Special allowance₹ 38,714Basic + DA + Special allowance₹ 38,747Basic + DA + Special allowance₹ 39,619
NPS₹ 3,871NPS₹ 3,875NPS₹ 3,962
Net salary₹ 34,842Net salary₹ 34,873Net 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.
Advertisement

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 bankShare 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

Advertisement
SEE ALSO:

India offers income tax relief for home buyers and developers to boost new property sales

Public Sector Banks across India Plan to Strike on November 26

Diwali 2020 Puja time and date
What is Atmanirbhar Bharat Rozgar Yojana and what is benefits of this yojana for employees


{{}}