New Delhi: Indian state-run and established private banks are currently engaged in discussions concerning a proposed 15% wage increase for their employees, coupled with the implementation of a five-day work week.
The Indian Banks’ Association put forth a 15% wage increase proposal on Thursday, yet unions are reportedly pushing for a higher raise, alongside other modifications. Some banks, including Punjab National Bank (PNB), have already begun to allocate more substantial provisions to accommodate this wage increase. Rather than budgeting for a 10% raise, PNB has earmarked funds to cover a 15% hike in the September quarter.
Employees and union representatives argue that the banking sector has witnessed significant profit growth in recent years. Given the considerable efforts bank personnel have dedicated to revitalizing the industry, including their tireless work during the COVID-19 pandemic and the promotion of government initiatives, they advocate for a more equitable compensation package. These ongoing negotiations are closely monitored by the finance ministry.
With the upcoming general elections slated for next year, expectations are that the wage agreement will be reached prior to this significant event, as bank employees constitute a substantial constituency. It’s worth noting that the previous wage agreement in 2020 concluded after three years of negotiations.
