Mumbai: After years of long negotiations salaries and allowances of bank employees will increase by 15 per cent as UFBU (United Forum of Bank Unions), an umbrella of nine unions and industry body Indian Banks’ Association (IBA) have formally signed the agreement. The new wage revision will be effective retrospectively from 1 November 2012 and will benefit about 10 lakh employees from public sector banks, old private banks and some foreign banks.
On February 23 this year, the parties had announced a deal under which employees would be given 15 per cent wage hike on pay-slip components, which will result in an additional salary burden of Rs 4,725 crore per year to the banking system. With the additional provisioning towards superannuation costs and other benefits (towards retired staff) the outgo comes to Rs 8,370 crore. Following the wage revisions, the scale of pay of officer-level employees has been revised from Rs14,500 – Rs 52,000 to Rs.23,700–Rs.85,000, including special allowance and dearness allowance. The scale of pay of workmen , non-subordinate staff has been revised from Rs 7,200 – Rs 19,300 to Rs 11,765 – Rs 31,540, while the scale of subordinate staff has been revised from Rs 5,850 – Rs 11,350 to Rs 9,560 – Rs 18,545, including allowances.
The wage settlement also includes a medical insurance scheme for the families of employees and additional holidays on the second and fourth Saturdays of a month. The first and third Saturdays will be regular full working days.The RBI has given an in-principle approval for the Saturday holidays and it is expected to start by July after the approval from the Government and the Law ministry.