banks agree to increase officers salary by 17 iba recommends saturday as public holiday

The negotiating committee of the Indian Banks’ Association (IBA) and Bank Officers’ Associations on Friday signed on the dotted line for a 17 per cent increase in salary revision, translating into a collective outgo of ₹8,424 crore for 12 public sector banks (PSBs) which are party to the 12th industry-wide bipartite wage settlement.

Banks have already started making provisions since the beginning of the first quarter of FY24 for the salary revision.

Per the joint note, which will remain in force for five years from November 1, 2022, in terms of the December 7, 2023, IBA and the associations have reached an understanding for declaration of all Saturdays as public holidays under the Negotiable Instruments Act for the banking industry. And, IBA has accordingly recommended to the government for the same.

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“The due changes in the working hours will be effective after approval by the Government of India and necessary clearances from the government/Reserve Bank of India,” per the joint note.

Besides 12 PSBs, 10 private sector banks are part of the wage settlement.

The settlement is applicable to officers’ (who are on IBA scale) of Federal Bank, Karnataka Bank, Kotak Mahindra Bank, IDBI Bank (up to Scale III), South Indian Bank (up to Scale IV), and Jammu & Kashmir Bank, Karur Vysya Bank, RBL Bank, Nainital Bank, Dhanlaxmi Bank.