Devidas Tuljapurkar, Secretary General of the Maharashtra State Bank Employees` Federation, said the wage bill increase of 7.898 billion euros would apply to all public banks (PSBs), former private banks, some foreign banks and regional rural banks (RRBs). “The Association of Indian Banks is pleased to announce the conclusion of the 11th bilateral wage negotiations with trade unions and banking associations, which are expected to come into force on November 1, 2017. The agreement reached today (Wednesday) provides for a 15% increase in the payroll,” IBA Chairman Sunil Mehta said in a statement. The 15 per cent pay increase would apply over a five-year period starting November 1, 2017. A detailed two-part count or joint communiqué was signed with the UFBU and also BKSM (Bank Karamchari Sena Mahasangh), who were parties to the agreement, according to the statement. More than 8.5 lakh employees, facing embarrassing projects by state-owned banks (PSBs), will receive a 15% pay increase at the end of the 11th bipartisan wage negotiations on Wednesday. After three years of intense negotiations, the UFBU, which represents four bankers` associations and five workers` unions, and the IBA concluded a Memorandum of Understanding (MoU) on 22 July for an annual increase of 15%. In a major boost to more than 8 lakh employees in the public, private and foreign banking sector, the Indian Banks` Association officially signed the 11th Bipartite Settlement, under which these employees would receive about a 15 percent pay increase for the period 2017-22. Bank unions had called for a 20 per cent increase, with the IBA initially increasing by 12.25 per cent for employees.
After a series of discussions, the last annual increase of 15 per cent was announced. – The annual increase in wages and allowances was agreed with 15 per cent of the wage bill as of 31 March 2017, which amounts to Rs 7,898 on the components of the payslip, as stipulated in the agreement between the IBA and the banking unions, in accordance with the new guidelines which receive 15 days` salary for bank employees who make 15 per cent of annual operating profit. Similarly, bank employees who make an operating profit of 10 to 15 per cent would receive 10 days` pay. – The PLI quantum will be zero if a bank`s operating profit is less than 5 percent. As part of the 11th bipartisan payroll, which will come into effect from November 1, 2017 to October 31, 2022, bank employees – executives, employees and under-employees – will benefit from a 15% increase in the payroll component and, from gJ21, a performance incentive (PLI) that public sector banks will implement. The new proposals also mention annual performance-based incentives for bankers, based on their bank`s performance.