IBA and Workmen Union agreed on the wage increase for PSU officers

by Psu Connect
Date: 16-11-20

Finance Minister Nirmala Sitharaman stating at the IBA's 73rd annual general meeting on November 10, "the public sector banks need to do more to end discrimination in terms of pension against employees who may wish to retire early."

New Delhi: The Indian Bank's Association and Workmen Unions agreed on the increment on the total quantum of wage increase is Rs 3,385 crore. This wage revision case for the public sector bank officers has been pending since 2017. Now it is signed, sealed, and delivered.

There is 15 percent of the payslip component. It is a long wait of three years for the public sector bank employees on the wage revision. Now it is finalized at Rs 1,100 increase in salary for officers. However, the 5-days working criteria are still on hold and not changed.

Finance Minister Nirmala Sitharaman stating at the IBA's 73rd annual general meeting on November 10, "the public sector banks need to do more to end discrimination in terms of pension against employees who may wish to retire early."

She hints banks to adopt the One Rank, One Pension (OROP) scheme, which describes, no matter the retirement date or the rank of an employee, everyone will get the same quantitative pension.

For Grade A officers at public sector banks 2.5% load factor hits a 15 percent bump which is only results in a net increase of Rs 1,100 to their in hand salary at an individual level. And, it merges the DA (Dearness Allowance) of 6352 points.

“It is agreed that family pension shall be payable at the uniform rate of 30 percent of the Pay of the deceased employee and that there shall be no ceiling on family pension. It is agreed that these provisions, when approved by the Government shall apply to SBI also,” said the IBA’s notification.