15% Salary Hike for Bank Employees – 11th Bipartite Wage Agreement full details – Minutes of the discussions held on 22nd July, 2020
Indian Banks’ Association
Minutes
of the discussions held on 22nd July, 2020 between IBA representing
Management of banks which are parties to the Bipartite Settlement and
Workmen Unions and Officers’ Associations on wage revision
Discussions were held between the Indian Banks’ Association
representing Managements of banks and the authorized representatives of
Workmen Unions and Officers’ Associations on wage revision for officers
and workmen in banks.The Management and the Unions representing Officers and Workmen staff. acknowledge the need for a robust banking system which is responsive to the challenges facing the country and the need to improve further the productivity, efficiency and responsiveness to the needs of the customers and various stakeholders. With this commitment, it has been agreed to resolve the pending wage settlement issue and enter into an Moll as under-
1. The wage revision will be effective from 1.11.2017.
2. The annual wage increase in salary and
allowances is agreed at 15% of the wage bill as on 31-3-2017 which
works out to Rs.7,898 crores on Payslip components.
3. The new pay scales will be constructed
after merging Dearness Allowance corresponding to 6352 points (average
Index point as applicable for the Quarter of June, July, August 2016)
and adding thereon a loading of 2.50% on Basic Pay plus Dearness
Allowance as on 31″ March 2017 amounting to around Rs. 1155/- Crores.
4. Distribution of annual wage increase
between Workmen and Officers will be worked separately and
proportionately based on breakup of establishment expenses as on
31.3.2017.
5. In today’s Banking scenario, there is
stiff competition amongst different category of banks i.e., Public
sector, Private sector, Foreign banks. In order to inculcate a sense of
competition and also to reward the performance, the concept of
Performance Linked Pay is felt to be introduced. After prolonged
discussions and deliberations on this matter, it has been agreed to
introduce Performance Linked Incentive (PLI) in Public Sector Banks,
which will be based on Operating/ Net Profit of the individual bank
(optional for private & foreign banks). The PIA is payable to all
employees annually over and above the normal salary payable. The PLI
matrix decides the amount payable to the employees (in number of days of
pay-Basic+DA) depending on the annual performance of the bank. All the
employees will get the number of days of pay as incentive depending on
where in the matrix the bank’s performance fits in, broadly as per pay
Matrix under :
SI. No. | YoY Growth in Operating Profit | No. of days for which Salary (Basic + DA) all be paid |
---|---|---|
1 | <5% | Nil |
2 | 5% to 10% | 5 days |
3 | >10% to 15% | 10 days* |
4 | >15% | 15 days* |
*3rd & 4th slabs are payable only if the Bank has Net Profit. If a Bank has growth in Operating Profit of 5% & more, but there is no Net Profit, then minimum 2nd slab of 5 days will be payable
(The PLI will be applicable from FY- 2020-21)
6. From the calendar year 2020, besides
encashment of PL at the time of retirement and during availment of LFC,
PL Encashment would be permitted at 5 days every calendar year (7 days
in case of employees/officers of 55 years of age and above) at the time
of any festival of their choice.
7. It has been agreed to increase the
banks contribution to the NPS fund to 14%, i.e. 14% of Pay &
Dearness Allowance instead of the present rate of 10% from the
prospective date of signing the settlement subject to approval of the
Govt.
8. All other issues of the Managements
and Unions/Associations discussed during the process of negotiation will
be settled to the mutual satisfaction.
9. The parties will meet on mutually
convenient dates to draw out a detailed Bipartite Settlement/Joint Note
on the various issues on which consensus positions have been reached.
The parties will endeavor to finalize the Bipartite Settlement /Joint
Note within a period of ninety days from the date of this minutes.
Signed at Mumbai on 22nd July, 2020
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