Bank Union Rejected Government Demand of Performance Based Salary

Another attempt by Government to introduce the performance based salary structure in Public Sector Banks (PSB). Government has earlier hinted that existing salary structure may be Departing across banks, irrespective of size or financial health, public sector banks have proposed bank-wise compensation for executives, depending on the strength of each entity. 

Many of Public sector banks has approached Indian Banks Association (IBA) for productivity-linked salary rather than automatic hikes based on tenure. As of now Unions have opposed both the proposals but it will be interesting to see up to what time Union hold this. 


All India Bank Employees Association (AIBEA) has stated in an official statement that " Bank-wise settlement and productivity-linked compensation are something that IBA comes up with during the start of every bipartite discussion. Unions are opposed to both of them." 


Public sector banks are trying to bring in the 'cost to company' concept that is prevalent in the private sector. The banker's association plans to make a strong push for a large variable component in the compensation. 

Like in the pension reform, which was brought in by making it applicable to new employees, they may propose that variable pay be introduced for new hires.

Your Comments is highly appreciated !!!!!!!!!!!!
Previous Post Next Post