Reported by: banking|Updated: May 27, 2015
The Indian Banks Association has concluded a wage agreement with employee unions and officer associations of 43 banks in the country, including public sector banks. The agreement provides for a15% increase in salaries of nearly 10 lakh employees in these banks. The agreement has a retrospective effect from 1 November 2012. The banks will have to meet a financial burden of Rs 4725 crore on these banks. The burden will go up to Rs 8370 crore if superannuation costs are included. The officers will get revised salaries in the range of Rs 23,700-Rs 85,000 as against the current Rs 14,500-Rs 52,000. They will also be entitled to a special allowance ranging from 7.75% to 11% of basic pay along with applicable dearness allowance. In the case of employees – workmen and non-subordinate staff – the scale has been revised from Rs 7,200-Rs 19,300 to Rs 11,765-Rs 31,540. For subordinate staff the revision will be from Rs 5,850-Rs 11,350 to Rs 9,560-Rs 18,545. A special allowance for workmen at 7.75% of basic pay along with applicable dearness allowance has also been introduced. Besides, the employees will be entitled to medical insurance scheme. Banks, in terms of the new agreement will observe second and fourth Saturdays as holidays.