IBA wage settlement sprouts 15% hike

Published on May 26, 2015 13:44:31 PM
Business

Indian Banks Association (IBA) has entered into wage agreement with employee unions and officers’ Associations on Monday.

As per the settlement, there would be a salary hike of 15 per cent and allowances to over 10 lakh bank employees with newly introduced medical insurance scheme for families of employees.

This wage revision would benefit officers and employees from 43 banks including old private sector banks, public sector banks and some of the foreign banks.

This is the tenth wage agreement and would be effective from November 1, 2012 and valid for 5 years.

The pay scale of officers is revised to Rs 23,700 – Rs 85,000 from Rs 14,500 – Rs 52,000 and special allowances are given to the officers whose basic pay ranges in between 7.75 per cent – 11 per cent with applicable DA has also been introduced.

The pay scale of Workmen & non-subordinate is revised to Rs 11,765 – Rs 31,540 from Rs 7,200 – Rs 19,300 and special allowances for workmen with basic pay at 7.75 per cent with applicable DA. The pay scale of Subordinate staff is increased to Rs 9,560 – Rs 18,545 from Rs 5,850 – Rs 11,350.

IBA’s chairman T M Bhasin said, “The 15 per cent wage revision would cost banks Rs 4,725 crore as incremental salary and allowances in a year. If superannuation cost is included, then the total burden would be around Rs 8,370 crore."

The arrears to the workmen will be released immediately and the arrears for officers will be released in a period of 4-6 months.



Sl. No



Employee Level



Pay Scale ( from - to)



1



Officers



Rs 14,500 – Rs 52,000 to to Rs 23,700 – Rs 85,000



2



Workmen & Non-subordinate



Rs 7,200 – Rs 19,300 to Rs 11,765 – Rs 31,540



3



Subordinate staff



Rs 5,850 – Rs 11,350 to Rs 9,560 – Rs 18,545