IBA pushes for five-day bank week proposal, post MoU on 17% salary hike

The big question doing the rounds in banking circles, is whether Indian Bank's Association's (IBAs) proposal to implement a five-day banking week will receive approval.

Recently, Bhagwat Karad, Minister of State for Finance, confirmed that the government had received IBA's proposal for same purpose.

IBA, is a major representative of the banking sector that employees 1.5 million individuals, including foreign banks that have a presence in one of the fastest growing world economies.

Since 2015, banks in India have had non-working days on second and last Saturday of each month. Along with the request for every Saturday, and Sunday be declared as off-days, an additional suggestion was made earlier this year for a 15 per cent hike in salaries, as per media reports.

In October, public sector and multiple private banks were involved in similar discussions. It is to be noted that Punjab National Bank in the same period had begun earmarking funds for a raise hike of 15 percent, instead of 10 per cent.

The latest update on the matter being bank unions and IBA have mutually decided upon a 17 per cent hike in raise for bank employees, instead of the earlier suggested 15 per cent.

The IBA, and bank unions signed an memorandum of understanding (MoU) on the 12th bipartite settlement for a 17 per cent raise for public sector bank employees has been accepted.

The wage revision will be with effective from November 1, 2022 for five years and the yearly increase in salary and allowances will be 17 per cent of the annual pay slip expenses for the previous year.

Ahead of inking the final bipartite in a period 180 days, the banking unions, and IBA have their hopes raised for the their five-day banking week proposal to meet approval.