Bank Employee Salary Hike Proposal: 15% Increase and Shift to Five-Day Workweek

Bank Employees Salary Hike: The Indian Banks Association (IBA) has suggested a 15% salary increase for government and certain older private sector bank employees. The proposal also includes transitioning to a five-day workweek. While this proposal to increase salaries has been presented, several unions are pressing for further salary increments and other modifications.

Bank Employees May Receive 15% Salary Hike and Transition to Five-Day Workweek

In contrast, banks like PNB have begun setting aside higher provisions to accommodate the salary increases. They have allocated a separate budget for a 10% salary increase and have also earmarked funds for the proposed 15% salary growth. If both proposals are approved, bank employees' salaries in these banks may increase by 25%.

Employees and unions are advocating for more substantial salary hikes, emphasizing that banks have reported robust profits during the September quarter of FY 2024. Additionally, employees have played a crucial role in supporting government initiatives and steering the banks back on course, particularly during the challenges posed by the COVID-19 pandemic. As a result, they believe that their compensation increase should exceed the proposed 15%.

With general elections scheduled for next year, discussions with the Finance Ministry are closely monitored. It is anticipated that the proposal to increase employee salaries will be endorsed before the general elections. The last time bank employee salaries were increased was in 2020, following protracted negotiations with the government. The proposal also includes transitioning to a five-day workweek, which will increase employees' working hours while affording them two days off each week.

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