Yes, you read it right.The salary of bank employees could see an increase, yet again as the Government of India has issued a notification about the next wage revision talks (11th Bipartite Settlement).Although there is demand to join banking sector,public sector bank jobs salary are still not par with other govt jobs.With 7th pay commission also to be implemented, the upcoming wage revision for banks is expected to address these issues.
Salary is one of the most important factor looked by candidates while applying for government jobs.Recently LIC AAO salary was the talking point when they came out with a recruitment.
Why Salary Revision for Banks Again?
This could be the big question in many of your minds because it was only in May 2015, an agreement was reached on 15% increase in salary for bankers.
The hike in May 2015 was part of the 10th Bipartite Settlement which should have been completed in the year 2012 itself.
But the negotations between Indian Bankers Association (IBA) & Employee unions broke down regularly dragging it for nearly 3 years.Finally it was signed in May 2015.
These settlements are valid only for 5 years following which a new committee is formed which will meet & discuss about the demands.
The new salary structure for bank jobs shall be effective from November 1, 2017 as the previous agreement was dated Nov 2012.
Hence the time has come for the management & union members to return back to the negotiating table.
Govt Initiates Action, for the First Time
All this buzz about the 11th Bipartite Settlement started with a circular from Department of Financial Services (Ministry of Finance), Government of India.It was addressed to Cheif executives of all Public Sector Banks.
The letter signed by Shri.Manish Kumar (under secretary to Govt of India) says,
“Subject: Next Wage Revision in Public Sector Banks (PSB)
I am directed to request PSBs to intiate the process of negotiations/ next wage revision of the employees & conclude it prior to the effective date ie.1.11.2017”
Bank officials are terming this intiative as unprecendented.They say it is the first time in wage revision history, the government has requested concerned parties to arrive at a conclusion before the last date.
PSBs had to pay a total of Rs.4725 crores as arrears in a year because of 15% wage hike.Because of this huge outgo of funds that banks had to incur due to the delay in finalizing salaries, the govt is looking for an earlier resolution, experts feel.
New Salary Scale for Bank Jobs & Demands
With the govt setting up the stage for 11th wage revision talks, now IBA & Employee union associations must start the formal process.
There are a total of 11 employee associations working across India for the welfare for bank employees, who will take part in the process of preparing the charters of demands.
All India Bank Employees Association (AIBEA), one of the oldest, has welcomed the govt`s move at their meeting held in Chennai on Jan 13, 2016.They have also formed a sub-committee to work with other unions in finalising the demands.
We think the following points could find a place in that list:
- Higher pay scale for bank staff will be demanded because of the latest change in LIC employees salary (see Bank PO vs LIC AAO) & 7th central pay commission
- Regulation of working hours
- 5 day work week & Holiday issues
- Promotion process
- Transfer policy
After the hike last year, a Bank PO salary is approximately between Rs.30 – 35,000/ month (take home) & Bank Clerk Salary is around Rs.20 - 22,000 /month (take–home)
What will be the new salary of Bank PO & Clerk in 2017 depends on the outcome of the upcoming discussions.We will keep you updated on that anyway.
As a bank job aspirant, what demands do you think are necessary?