Unions, IBA agree on 15% hike in salaries; bank strike called off

The wage revision would benefit about 8.5 lakh employees and officers in 45 banks, including old generation private sector banks and a few foreign lenders.

By: Express News Service & PTI

The proposed four-day bank strike that was to begin on Wednesday has been called off after a memorandum of understanding (MoU) was signed between nine bank unions and the Indian Bank Association (IBA). A 15 per cent hike on pay slip components was agreed upon. The total annual wage rise will work out to be Rs 4,725 crore, a release issued by IBA said.

“In today’s talks with Indian Banks’ Association (IBA), wage revision has been settled at 15 per cent with effect from November 2012,” United Forum of Bank Unions (UFBU) Convener MV Murali said. “The cost of medical, hospitalisation scheme and on other items and the cost of superannuation, namely PF/Gratuity/ pension is being separately worked out,” he added.

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The wage revision would benefit about 8.5 lakh employees and officers in 45 banks, including old generation private sector banks and a few foreign lenders. Wage revision in PSU banks is done every five years.

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The previous revision was agreed upon in 2007.

“The IBA is pleased to announce conclusion of the 10th bipartite wage negotiations with bank unions and associations to be effective from November 2012,” IBA chairman TM Bhasin said. “The wage revision is effective from November 2012 and new pay scales will be constructed after merging corresponding All India Consumer Price Index, which was 4,440 points as on November 2011 and works out to be 60.5 per cent, with DA and adding a load factor of 2 per cent on basic pay,” AIBEA general secretary CH Venkatachalam said.

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