Exciting news for public sector bank employees! 17% salary increase announced for Public Sector Bank Employees. In this article stay updated on the latest wage revisions and how this hike impacts banking professionals.
Bank Employees Salary Increase
Bank Employees Salary Increase: The Indian Banks’ Association and workers’ unions agreed to increase the salaries of employees in public sector banks by 17%, amounting to Rs 12,449 crore. This decision will benefit about nine lakh employees, including 3.8 lakh officers, in PSU banks like SBI and some older private banks. The agreement was reached after talks on December 7, 2023, and a Memorandum of Understanding (MoU) was signed. The final details of the salary increase will be worked out within the next 180 days. The parties will meet to discuss and agree on various issues, aiming to finalize the agreement within this timeframe.
Bank Employees Salary Revision Latest News
Finally, after a long wait, the Indian Banks Association (IBA) and bank unions have agreed on a 17% increase in salaries each year for five years, starting from the fiscal year 2021-22. The wage revision will take effect from November 1, 2022. Although public sector bank employees have received a salary hike, it’s uncertain if their request for a 5-day work week will be accepted.
The unions have been asking for all Saturdays to be declared public holidays for banks before they agree to the wage agreement. The distribution of annual wage increases for bank employees will be calculated separately based on the breakdown of expenses for the fiscal year 2021-22.
Both parties will meet at mutually convenient times to finalize a detailed agreement on the issues where they have reached a consensus. They aim to complete this agreement within 180 days from the date of the memorandum of understanding (MoU). The IBA has already suggested to the government to declare all Saturdays as holidays for the banking industry under the NI Act, as discussed in previous negotiations with unions/associations. The unions/associations are pushing for the implementation of this recommendation before signing the final agreement.
Key Points on the Bank Employees Salary Increase Agreement
The new pay rates will start from November 1, 2022, and last for five years.According to the deal, there will be a 17% increase in salary and allowances, totaling Rs 12,449 crore for all public sector banks, including the State Bank of India.To calculate the new pay, the Dearness Allowance points up to 8088 will be combined with the basic pay as of October 31, 2022. Also, an additional 3% will be added, amounting to Rs 1795 crore.The annual wage increase for workers and officers will be decided separately based on the breakup of expenses in the fiscal year 2021-22.The discussion about updating pensions for retirees is ongoing, but a one-time ex-gratia amount is agreed upon for pensioners and family pensioners who were receiving pension as of October 31, 2022.The applicability of this ex-gratia for retirees of the current settlement period will be discussed later. It’s important to note that this amount won’t be affected by other allowances.The Indian Banks’ Association has suggested declaring all Saturdays as holidays for the banking industry under the NI Act. The status of this proposal is unclear.All other matters brought up during negotiations, including ex-gratia payments for pensioners of private sector banks and foreign banks, will be resolved to everyone’s satisfaction.
Bank Employees Salary Hike Calculator
The 12th Bipartite settlement for bank employees has been finalized, and now everyone is eager to calculate their new pay based on this increase. The salary hike in banks is set at 17%, which includes a 3% load factor. This means that your overall pay on the payslip will show a 17% increase. The Dearness Allowance (DA) is merged with the current basic pay. The Special Allowance, calculated on basic pay and DA, which was 16.4% in the 11th Bipartite settlement, is still pending as of 7/12/2023.
Here’s a breakdown of the 12th BPS salary calculation with a 17% hike:
Load Factor Explained:
The load factor, considered in the 12th BPS, benefits bank staff by taking into account both BASIC and DA. This load factor of 3% is applied to both BASIC AND DA.
Total Salary Increase:
The total salary increase is exactly 17% as per the 12th BPS settlement. For example, the gross salary before the 12th BPS was Rs. 74,125, and after the 12th BPS, it becomes Rs. 89,601, resulting in a 17% increase on the payslip, as stated in the 12BPS final negotiating committee.
Calculation for Officers’ Salaries:
A salary chart is provided for an employee who joined the bank in 2021 with a basic pay of Rs. 36,000 in the 11th BPS. The employee, having completed JAIIB and CAIIB certification courses, receives 1 increment for each. With two yearly increments in 2022 and 2023, the total increments are 4 (1+1+1+1). Each increment is Rs. 1490 in BASIC PAY for officers. The chart shows the salary calculation for an Officer employee with CAIIB qualification and 2 yearly increments.1 Lakh Plus Salary in Banks: An officer in banks with CAIIB qualification and 2 years of experience will receive a gross salary of 89k. With additional allowances like rent and petrol, the gross salary of an officer employee in banks can exceed 1 lakh, which is good news for bank staff.
Salary Slip Components Load Factor:
The components of the payslip for an officer employee in banks are BASIC, DA, SPECIAL ALLOWANCE, and LOAD FACTOR. The chart shows the load factor of 3%, calculated for the new basic pay of the 12th BPS and new DA, i.e., 3% of (56212+10286) = 1994.
Bank New Salary After Wage Revision
Good news for public sector bank employees!
A 17% wage hike is on the way, following the agreement between Indian Banks’ Association (IBA) and bank unions on the 12th bipartite settlement.The total annual salary for all banks, including the State Bank of India, is set at Rs 12,449 crore.The revision will be effective from November 1, 2022, for five years. New pay scales will consider a 17% increase in salary and allowances, with the Dearness Allowance and a 3% loading factor.IBA recommends a five-day work week, and unions want its implementation before the final agreement, expected in the next 180 days. This follows a 15% hike in July 2020 for around 850,000 bank employees.
