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Finmin asks IBA to finalise wage revision of bankers of PSU Banks
July 11, 2023
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, said a senior official. The wage revision for employees and officers of the public sector banks is due from November 1, 2022.
The early wage revision would help improve working conditions and incentivise the banking sector employees, the official said.
Further, the official said, the finance ministry has asked IBA to ensure that all future wage negotiations should be finalised before the beginning of the subsequent period so that the wage revision could be implemented from the due date itself.
As a part of the settlement, the IBA is expected to engage in dialogues with the employees’ Unions/ Associations and work out to arrive at a mutually agreeable wage settlement.
The government has stressed the importance of fairness and equity in the revision, ensuring that the compensation structure remains competitive with other players in the banking industry, the official said.
“Wage settlement for banks has always been a tedious and time-consuming process with bank managements, represented by IBA, and employees’ unions engaging in tough negotiations. Historically, delays of 2-3 years in wage settlement have led to a substantial accumulation of arrears, which are eventually disbursed in a lump-sum.
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