New Delhi, The Indian Banks Association (IBA) and bank employee unions have successfully negotiated the 12th bipartite wage hike settlement, effective for the next five years from November 1, 2022. According to the Memorandum of Understanding (MOU), bank employees will witness a 17% increase in salary during this period.
Rupam Roy, General Secretary of All India Bank Officers’ Confederation (AIBOC), informed Moneycontrol that the final agreement is anticipated to be signed within two months. The new pay scales will be established by merging Dearness Allowance and adding a 3% loading, amounting to Rs 1795 crore.
The MOU also includes provisions for an additional 3% loading after the merger of DA, contributing to pension improvements for retirees from 1986 under the proposed 12th bipartite settlement. The MOU specifies that a one-time measure will be considered for the current bipartite monthly ex-gratitude amount for pensioners and family pensioners drawing pensions as of October 31, 2022.
In response to the agreement, Krishna Kumar, General Secretary of All India Punjab National Bank Officers Federation, expressed dissatisfaction, stating that the 17% increase should have been at least 20%. He emphasized that the loading in the basic should have been around 8%, critiquing the 3% loading as inadequate.
The MOU also revealed that bank unions have requested the implementation of the settlement before the final bipartite agreement is signed. The IBA has recommended to the government the declaration of all Saturdays as holidays for the banking industry.
