Good news for bank employees in the Corona era: get a 15% pay rise

New Delhi Dated 23rd July 2020 Thursday

The government decided to give a 15 per cent pay hike to the employees of government banks in the Corona era where most of the jobs are not getting adequate pay and people are suffering.

They will also be paid incentives based on the quality of work. Most importantly, the 15 per cent pay hike will be implemented from November 2017. Another implication of implementing this increase from November 2017 is that every bank employee will get the benefit of arrears.

The various unions of bank employees had long demanded that the bank employees not get the pay hike for a long time. Negotiations were ongoing with the government in this regard. On Wednesday, various unions of bank employees and the Indian Banks Association concluded the 11th phase of negotiations and agreed to give a 15 per cent pay hike to bank employees under an agreement.

The pay hike will cost banks a total of Rs 7,988 crore. According to Bloomberg, the pay hike will take effect from March 31, 2017, the new fiscal year 2017. The last time the salaries of bank employees were increased was in 2012. Five years later, it was decided to increase this salary by fifteen per cent for five years from 2017 to 2022. The bank unions demanded 20 per cent while the Indian Banks Association demanded 12.5 per cent.

For the last two years there have been constant negotiations between the managers of the banks and the employee unions. If we do not accept our demand, we will have to resort to strike, the bank employees' unions warned. Both the parties agreed on the issue that incentives should now be paid on the basis of efficiency even in government banks. However each bank will make this payment based on its own profits.