Indian Banks Association (IBA) has suggested a 15 percent pay increase for government and some older private sector bank employees.
They are also considering moving to a five-day workweek soon.
A proposal was made on Thursday to raise employee salaries, but many unions are demanding further pay hikes and other changes.
In contrast, banks like PNB have begun setting aside more money to cover the cost of raising salaries.
They are creating a special budget to increase salaries by 10 percent.
Additionally, a sum of money has been set aside for a 15 percent salary increase.
This means that if both these plans get the go-ahead, employees at these banks might see their salaries go up by 25 percent.
Workers and unions are asking for higher pay increases
In this case, worker unions and employees believe that banks made significant profits in the September quarter of FY 2024.
They also point out that during the COVID-19 pandemic, employees worked diligently and helped advance government initiatives while getting the lenders back on the right path.
Because of this, employees should receive better pay, and the salary increase should be more than 15 percent.
A possible gift might come before the general elections
Next year, there will be general elections, and discussions with the Finance Ministry are being closely watched.
There’s an expectation that the plan to raise employee salaries might be approved before the general elections.
The last time bank employees’ salaries were increased was in 2020, after three years of lengthy discussions with the government.
Work five days a week
Additionally, there is a proposal to implement a five-day workweek rule for bank employees.
Once this plan is put into action, employees will work longer hours, but they’ll also have two days off each week.
