Government bank workers might receive some good news soon. The Indian Banks Association (IBA) has suggested a salary increase of 15 to 20 percent for these employees.
Additionally, there’s a possibility of reducing the workweek to 5 days. According to the Financial Express report, discussions between the IBA and bank unions are in the final stages, and a decision on these matters could be imminent.
In a conversation with Financial Express, IBA mentioned that this marks the first time salary increase discussions have commenced from 15 percent.
This could result in a favorable salary hike ranging from 15 to 20 percent, which is the most significant improvement in recent years.
The existing wage agreement between Public Sector Banks (PSBs) and IBA expired on November 1, 2022.
Ongoing negotiations between bank unions and IBA have been centered on the salary increase.
If an agreement is reached on both the five-day workweek and salary hike, these rules may extend to Regional Rural Banks’ employees as well.
Demand for a five-day workweek
Bank unions have long been advocating for a five-day workweek. Currently, banks observe a holiday on the second and fourth Saturday.
If the request for a five-day workweek is granted, the banks’ working hours might extend by 30 to 45 minutes on the remaining five days of the week. A decision on this matter is anticipated in mid-December.
Possible pre-election gift
With general elections scheduled for the next year, the Finance Ministry might grant two days off per week, along with a salary increase, to thousands of bank employees nationwide.
Once an agreement is reached between the IBA and Bank Union, this proposal will be forwarded to the Finance Ministry.
The new regulations will be put into effect upon receiving approval from the Finance Ministry.