Bank Employees in India: State-owned and aging private sector banks are currently in discussions regarding a proposed 15 per cent increase in employee salaries. Additionally, they are planning to implement a five-day work week in the near future.
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According to a report on TOI, the Indian Banks’ Association has recommended a 15 per cent wage hike. However, reports suggest that labor unions are pushing for an even higher pay raise, along with other changes.
Notably, some banks, like PNB, have already begun setting aside increased provisions to cover the cost of this wage hike. For instance, instead of budgeting for a 10 per cent raise, PNB, headquartered in Delhi, allocated funds to accommodate a 15 per cent salary increase in the September quarter.
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Employees and their affiliated unions argue that banks have witnessed substantial profit growth in recent years.
They believe that considering the dedicated efforts made by employees to help these banks recover and thrive, especially during the challenges of the COVID-19 pandemic and the implementation of government schemes, they deserve more generous compensation. The ongoing negotiations are closely monitored by the finance ministry, PTI reported.
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With general elections scheduled for next year, there is an expectation that the wage settlement will be reached before that time, as bank employees represent a significant constituency. It’s worth noting that the previous wage settlement in 2020 was concluded after three years of negotiations.
