Mumbai: The Indian Banks’ Association has signed a wage revision pact with nine bank unions, which will lead to an additional wage component of Rs5,200 crore for 46 banks, the All India Bank Employees Association said.
The break-up of the wage burden increase is Rs4,816 crore for 26 state-owned banks and Rs400 crore for private and foreign banks.
The revision takes effect retrospectively from November 2007 and will be effective for five years, benefiting 775,000 employees and officers.
The revision is 17.5% additional load from March 2007 levels.Under the settlement, the pay of scale I-VII officers will be in the Rs14,500-52,000 range. From May 1, the pay of clerks will be in the Rs7,200-24,900 range, and for subordinate staff in the Rs5,850-11,350 range.
The wage revision also provides 260,000 existing and 50,000 retired employees an option to join the defined benefit pension scheme in lieu of the contributory provident fund.
Employees joining April onwards will be governed by the contributory pension scheme as available to government employees.
“We are sure that this agreement on wage Increase coupled with the long-awaited option to join the existing pension scheme will bring relief to the employees and would be a motivation to improve our efficiency in our services to banking customers,” Vishwas Utagi, secretary, AIBEA, was quoted as saying in the release.
He said the revision also covers employees who have opted for the voluntary retirement scheme.
The revision enhances benefits such as house rent allowance, leave fare concession, and reimbursement of hospitalisation. Retirement benefits like gratuity and pension will also improve.