Update on Bankers wage revision

Salary revision for Bankers is due since November 2017. Last Salary revision which was due on November 2012 which was finally negotiated in February 2015, almost 3 years later. In banks wage revisions are done every 5 years unlike central Government institutions where wage revisions are done every 10 years.

What is the current position of wage revision?

Negotiation for wage revisions are done between UFBU (United Forum of Bank Unions) and IBA (Indian Bank’s Association) who have till now held over 4 meetings on the issue. In the initial meetings IBA citing huge losses had proposed a meager 2% salary hike. On meeting held on 30th July 2018, IBA has proposed 6% wage hike.

What are the chances of wage revision before 2019 Lok Sabha Polls?

As regime changed in 2014, negotiations were completed in 2015 regarding wage revisions which were due since 2012. Keeping Lok Sabha polls in mind, it is unlikely that the present Modi Government would like to face the ire of already frustated bankers.

What else Banker’s are demanding For ?

All Saturday Off. Currently only 2nd and 4th Saturday are off. Banker’s have proposed that bank timings for the same should be increased by 1 hour daily.
Medical Scheme for pensioners
Change in HRA slabs
Change in CCA slabs
And others.

Current State of Indian State Banks?

Indian PSU Banks are in not very good health due to their rising NPA, aggregating losses. But most banks have already made provisions for increase in salaries which had been due since November 2017. Keeping this in view the present state of Indian PSU banks won’t be a worry towards wage revision.

What is IBA?

Indian Bank’s Association was formed for development, coordination and strengthening of Indian banking, and assist the member banks in various ways including implementation of new systems and adoption of standards among the members on 26th September 1946. It was formed as a representative body of management of banking in India operating in India – an association of Indian banks and financial institutions based in Mumbai.

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