Unions and IBA ink wage pact

The 15 per cent wage revision would cost banks Rs 4,725 crore. If superannuation cost is included, then the total burden will be around Rs.8,370 crore.

Published - May 25, 2015 11:55 pm IST

Covers over five lakh workmen and three lakh officers

The 10 bipartite wage settlement for bank employees was signed by United Forum of Bank Unions (UFBU) and Indian Banks Association (IBA) in Mumbai on Monday.

UBFU was represented by nine unions of bank employees and officers. The settlement covers 25 public sector banks, 11 private banks and seven foreign banks. It would apply to five lakh workmen employees and three lakh officers.

An agreement to this effect was signed by IBA Chairman T.M. Bhasin and IBA Chief Executive Mohan V. Thanksale. UFBU was represented by its general secretary C.H. Venkatachalam and others.

“We were able to conclude the agreement after having 18 rounds of talks. It was sealed on February 23, 2015. The new agreement will come into force from November 2012, and will be in force for five years. Initially, the employees demanded a hike of 25 per cent of pay-slip cost and finally came down to 15 per cent. IBA, on its part, started at nine per cent, and finally agreed to pay 15 per cent,” Mr. Venkatachalam said.

The settlement would see the banks’ wage bill going up by Rs.4,725 crore a year, which is an increase of 15 per cent over the existing wage cost.

As per the revised pay scales, a subordinate staff would get a minimum basic pay of Rs.9,560 and a maximum of Rs.23,785; clerical staff from Rs.11,765 to Rs.42,020 and officers Rs.23,700 to Rs.85,000.

According to the notification, the monthly emoluments of a subordinate staff joining the bank would be Rs.15,000, and a newly-appointed graduate clerk would get an initial salary of Rs.20,000. Dearness allowances, house rent allowances, qualification allowances, special allowances etc. would also be revised. A new health coverage scheme is being introduced, by which all the hospitalization expenses of the employees and the family members would be reimbursed, says an official release.

The minimum salary of Class IV employee ranges from Rs.2,200 to Rs.5,500, and for clerical employee from Rs.2,500 to Rs.8,000 per month.

Under this settlement, every second and fourth Saturday would be a holiday. The remaining Saturdays would be full working days. The benefits of this settlement would be implemented within 90 days.

IBA has already initiated steps to get clearances from the RBI for declaration of every second and fourth Saturday of the month as holidays. The change will become effective after the issuance of notification by the Centre, an IBA spokesman said.

1. Will result in 15 per cent hike in wages.

2. Net outgo to banks is Rs.4,725 crore a year.

3. Those in rural and semi urban area will get enhanced HRA.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.