Banks offer 5-day work week, offer 15% wage hike

Oct 28, 2023

Synopsis
Government-owned and established private-sector banks are currently in discussions to grant their employees an approximately 15% salary increase and are considering implementing a five-day workweek. While the Indian Banks' Association proposed the 15% raise, unions are pressing for more significant improvements.

Government-owned and long-established private-sector banks are in negotiations for an approximate 15% salary increase for their staff, and they are also planning to implement a five-day workweek in the near future, reported TOI.

On Thursday, the Indian Banks' Association suggested a 15 per cent raise, but reports suggest that the unions are pushing for a more substantial increase along with other alterations. Separately, some of the banks, such as PNB, have started making higher provisions for the wage increase. Instead of budgeting for a 10 per cent increase, in the September quarter, the Delhi-headquartered lender has set aside funds for a 15 per cent rise.

Employees and unions are arguing that banks have seen a good increase in profits in recent years and given the efforts that employees have put in getting the lenders back on track, apart from working during Covid and pushing government's schemes, they are entitled to better compensation. The finance ministry is closely observing the ongoing negotiations.

Anticipating the upcoming general elections next year, it is expected that the wage agreement will be reached before then, given that bank employees constitute a significant voting bloc. In 2020, the previous wage settlement was reached after a three-year negotiation process.

[The Times of India]