The 11th bipartite settlement was officially agreed by the banks association on July 22, 2020. As per the latest status update, public sector bank employees salary will increase by 15%.It has also been decided to introduce performance linked incentive (PLI) in govt owned banks to boost competitive spirit with private banks.
The final decision on more demands like 5 day banking, leave rules, pension etc that were also part of the 11th bipartite settlement will be known once a detailed settlement note is released.
Once in every five years, the Indian Banks Association (IBA) and bank employee trade unions negotiate wages for over 8 lakh bank employees working in public sector banks.
The 11th bipartite wage settlement is due from November 2017.The IBA and bank unions have failed to reach a mutual consensus on various issues, despite several rounds of talks that have happened over the past 30 months.
Demands of the union, as part of the 11th bipartite settlement:
1. Wage revision settlement at 20% hike on pay slip components with adequate loading thereof
2. 5 day banking
3. Merger of special allowance with basic pay
4. Scrap New Pension Scheme (NPS)
5. Updation of pension
6. Improvement in family pension
7. Allocation to staff welfare fund based on operating profits
8. Exemption from income tax on retiral benefits without ceiling
9. Uniform definition of Business Hours, Lunch Hour, etc. In Branches
10. Introduction of Leave Bank
11. Defined working hours for officers
12. Equal wage for equal work for contract employees/Business Correspondents
July 2020 news: The 11th bipartite settlement involving wage revision was officially agreed and a memorandum of understanding (MOU) was signed between Indian banks association (IBA) & bank unions on July 22, 2020,
The salary of public bank employees will be hiked by 15% and this wage revision will be effective from 1.11.2017, says the official minutes statement released by IBA.
A detailed joint note on the 11th bipartite settlement will be drawn and finalized within the next 90 days.It will give more clarity on the points that reached consensus mutually.
February 2020: After multiple agitations and 2 day nationwide bank strike in January 2020 called upon by the bank unions, another round of talks were held in February 2020.
AIBOC after the meet, on their website had released the minutes of 11th bipartite settlement pdf, that confirms the offer of 15% salary hike, along with few other updates.They are :
1) Offer on Pay slip cost increased to 15%.
2) 5 Day banking will be taken forward by further discussions.
3) Demand for loading more than 2%will be considered by a Joint Committee of IBA and UFBU.
4) In addition to 15% offer, encashment of Privilege Leave at 5 days per year.
5) Improvement in Family Pension –matter recommended to Government, will be expedited.
6) On pension updation, IBA agreed that some improvement in the pension would be worked out for the retirees of earlier settlements period by working out the cost.
7) Revised offer on PLI was given at 1.37%, 2.74% and 4.11%
The 10th bipartite settlement saw a 15% salary increase and alternate work on Saturdays awarded by IBA. It was signed only in February 2015 after numerous discussions but should have been finalized in November 2012.
In the case of 15% hike, the new salary of a bank PO after the 11th bipartite will be ₹46,000 – 50,000 /month (gross, including allowances).
Similarly, the new salary of a bank clerk after the 11th bipartite will be ₹23,000 – 27,000 /month (gross, including allowances).
But do remember that the negotiations between bank unions and IBA are not yet concluded.
Hence, will bank employees get their desired 20% salary increase (which seems distant currently) or they have to settle only for 15% would be known in the coming months after a mutual agreement is reached.