12th Bipartite Wage Settlement for the bank employees are almost in the final stage and the Indian Bank Association (IBA) has agreed to the 12th BPS that will be effective for the next five years since November 1, 2022 and within the deadline given by the Government i.e. before 01st Dec 2023. The statement is provided by Rupam Roy, General Secretary, All India Bank Officers' Confederation (AIBOC).
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About DA Merger
It was also agreed that DA (dearness allowance) up to 8088 points of price index would be merged with the basic pay. The increment on the DA merger is not yet decided. Probably it will be 15% same as earlier settlement.
Earlier, the government has asked the Indian Banks' Association (IBA) to initiate the process of negotiations for the 12th Bi-partite settlement in a time-bound manner and to finalise it by December 1, 2023.
The early wage revision would help improve working conditions and incentivise the banking sector employees.
Last time, in November 2020, IBA said it has signed a bipartite settlement with bank unions agreeing a 15 percent increase in pay slip for bank employees.
The 15 percent wage bill hike is for the five-year period between November 2017 and October 2022.
Also, 'to inculcate a sense of competition and also to reward the performance, the concept of Performance Linked Pay has been introduced for the first time' IBA said in a press release
A 15 percent hike in wage cost will mean a yearly burden of Rs 7,900 crore for the banking industry. The meeting was held between IBA representatives and bank employee union representatives led by UFBU Convener, C H Venkatachalam.
The IBA and trade unions negotiate wages for over 8 lakh bank employees in member banks once in every five years.