5-Day work week with 17% salary hike for bank employees looms on the horizon
A five-day work week, which would correspond with the current schedule of government offices, the Reserve Bank of India, and the Life Insurance Corporation of India, was one of the unions' main objectives during discussions. After the IBA and unions gave their consent in November, the plan was forwarded to the Finance Ministry for review and approval.
Soon, bank employees in India, both public and private, will have the benefit of a five-day work week. This action is part of a larger deal between bank unions and the Indian Banks’ Association (IBA), which resulted in a 17 percent increase in staff salaries in December 2023.
A five-day work week, which would correspond with the current schedule of government offices, the Reserve Bank of India, and the Life Insurance Corporation of India, was one of the unions’ main objectives during discussions. After the IBA and unions gave their consent in November, the plan was forwarded to the Finance Ministry for review and approval.
Despite being in favor of the proposal, rumors state that the government was holding off on making the announcement until the “right moment.” Given the forthcoming Lok Sabha elections and the model code of conduct, the current atmosphere seems to be ideal.
The Indian Banks’ Association and bank staff unions have agreed to raise the yearly salary by 17%. The initiative estimates that public-sector banks will need to spend an extra Rs 8,284 crore annually.
An estimated eight lakh bank employees are expected to benefit from this pay hike starting in November 2022.
At the moment, banks in both the public and private sectors run on a six-day schedule, with the first and third Saturdays being set aside as working days. All Saturdays will be recognized as official holidays under Section 25 of the Negotiable Instruments Act if the proposal is adopted.
The painstakingly designed new pay structure incorporates an extra load and Dearness Allowance (DA) correlated with 8,088 points. Notably, female employees will no longer need a medical certificate in order to use their monthly allotted sick day.
Furthermore, accumulated privilege leave may be monetized for a maximum of 255 days upon retirement or in the sad event that an employee passes away while on the job.
Approximately 1.54 million workers in a variety of sectors, including banks in the public and private sectors, payment banks, and small financing banks, would be impacted by this shift. It will also affect some 95,000 workers who are employed by regional and rural banks.
A major change for the banking industry is the possible introduction of a five-day work week, which is the result of fruitful negotiations between the government and labor unions. This action not only helps workers balance their personal and professional lives, but it may also increase production and efficiency in the banking industry.
Employees who have accumulated paid leave days depending on their duration of service are eligible for accrued privilege leave, which is normally awarded on a yearly basis. For example, a firm might provide employees with 20 days of privilege leave annually; if they don’t take all of that time, the unused days roll over to the next year.
Over time, this accumulation allows workers to accrue a reserve of paid time off. Companies may also allow employees to monetize their accumulated leave, which would enable them to get paid for any time they did not use their leave accrued, either during their employment or when they retire.
The organization has defined the supply of a monthly ex gratia amount for retired personnel who are eligible and connected with public-sector banks (including SBI) and who are entitled to pension benefits on or before October 31, 2022, in addition to the pension or family pension.
In addition, all Saturdays will be formally observed as holidays in accordance with the joint declaration, provided that the new working hours are approved by the government.
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