Search

Bank Salaries Agreement

Bank Salaries Agreement

Banks and trade unions have agreed on a 15% pay increase for 2017-22. After the revision, the wage bill increase for the banking sector amounted to $7,898 per year. Banks and trade unions signed the memorandum in July. Unions and the IBA have also agreed to lift the pension cap, under which families of deceased bank employees receive a pension of up to $30,000, up from $11,000 previously. “In today`s banking scenario, there is fierce competition between different categories of banks – the public sector, the private sector and foreign banks. In order to give a sense of competition and reward performance, the Linked Pay performance concept is introduced,” says the MoU. Since November 2017, most banks have increased the payroll by between 12 and 14 per cent and taken the corresponding provisions for their balance sheets, so that the two-party plan does not immediately hit lenders` finances. The wage increase came at a time when most OF the PSU banks had reported significant losses in recent quarters. In addition, losses and non-performing assets (NPAs) are expected to increase if the credit moratorium announced by the RBI to combat the effects of the Covid 19 pandemic is cancelled in August. However, industry sources said the increase should not be considered in the context of Covid-19, which is expected to affect bank profits in the medium term. Negotiations on wage increases have been ongoing for almost three years. “The increase will not weigh on the banks as planned and will provide them accordingly,” a banking source said. Nearly 800,000 employees of public, private and foreign banks are facing a festive ceremony in which bankers` unions and the Association of Indian Banks officially sign the 11th Bipartite Settlement.

The salary project is an agreement between a company and Pivdenny Bank to pay the salaries by payment card. They also agreed to introduce a Performance Incentive (PLI) to reward employees based on the Bank`s annual performance. PLI will be paid to all workers each year above the normal salary. 3,385 crowns are provided for non-officers; The rest for the officers. The collective agreement applies from November 2017 to October 2022. Banking administrations and trade unions have also agreed to introduce the Performance Incentive System (PLI) in public sector banks for the first time. The wage change will take effect on November 1, 2017. In addition, a system of performance incentives is put in place to encourage workers in a competitive scenario. Wage negotiations involved 29 banks – 12 public sector banks, 10 private banks and 7 foreign banks – and 500,000 employees in the banking sector.


Comments are closed.
error: Copy Protected