The Government of India has decided to keep the payment of Performance Linked Incentive (PLI) to executives of Public Sector Banks (PSBs) in abeyance for the financial year 2025-26, until further orders.
The decision has been communicated by the Department of Financial Services (DFS), Ministry of Finance, through a letter dated September 7, 2026, addressed to the Chairman of State Bank of India and the Managing Directors & CEOs of all Nationalised Banks.
According to the DFS communication, the decision relates to the Performance Linked Incentive (PLI) Scheme for Whole Time Directors and Senior Executives of Public Sector Banks, which was issued by the Department vide its letter dated November 19, 2024.
The Government stated that representations had been received from bank employees regarding the PLI scheme. After considering the matter, it has been decided that:
“The payment of PLI to the Executive of PSBs (Scale IV to VIII) for FY 2025-26 shall remain in abeyance until further orders.”
Importantly, the Government has also stated that the issue will be taken up during the ongoing discussions for the 13th Bipartite Settlement / 10th Joint Note.
This indicates that the matter concerning PLI for executives in Scale IV to VIII could become part of the broader discussions between the banking industry and employee organisations.
A copy of the DFS letter has also been sent to the Chief Executive, Indian Banks’ Association (IBA), Mumbai, indicating that the banking industry body has been formally informed about the decision.
The development is significant as bank employees and their organisations have raised concerns regarding the existing PLI structure and its distribution among different categories of bank employees.
With the payment for FY 2025-26 now kept in abeyance, the issue is expected to receive further attention during the ongoing 13th Bipartite Settlement/10th Joint Note discussions.
No comments:
Post a Comment