PSU Bank Employees to Receive 17% Salary Hike in DA

PSU Bank Employees to Receive 17% Salary Hike in DA

by

Following fruitful negotiations between the Indian Banks Association (IBA) and several bank employees’ unions, PSU bank employees are poised to reap a host of benefits. The agreement, referred to as the IBA and bank unions pact, promises a noteworthy 17% hike in monthly salaries, along with aligning the Dearness Allowance (DA) to 8088 points, slated to take effect from November 1st, 2023. Furthermore, this pact heralds a significant shift in the work culture, as all Saturdays are now officially recognized as holidays for PSU bank employees.

Here are the top 5 benefits that state-owned bank employees are set to receive after the IBA and bank employees’ unions pact:

  1. 17% Salary Hike: PSU bank employees are in line for a substantial 17% salary increase following the IBA and bank employees union pact. This wage revision amounts to over ₹828 crore, representing 17% of the establishment expenses of public sector banks’ payslip component. The salary hike will take effect from November 1st, 2022, with officers who have completed CAIIB (CAIIB Part-II) eligible for two increments from the same date.
  2. Dearness Allowance (DA) Merger: The new pay scales for PSU bank employees will incorporate the merger of Dearness Allowance corresponding to 8088 points. This integration of DA, along with an additional load, will result in an effective load on the basic pay post-merger of dearness allowance at 4.20%.
  3. 5-Day Workweek: PSU bank employees can look forward to a more balanced work-life schedule as the pact introduces a 5-day workweek. All Saturdays have been officially recognized as bank holidays, providing employees with additional time for personal pursuits and relaxation.
  4. Reworking of DA Formula: The index for DA is shifted from 1960 = 100 to 201+6 = 100 series, resulting in a shift in the conversion factor from 0.06 to 0.99 as per the 2016 = 100 series. This adjustment benefits bank employees with enhanced dearness allowance, ensuring fair compensation in line with current market standards.
  5. New Pay Scales: Effective from November 1st, 2022, PSU bank employees will witness revamped pay scales ranging from ₹48,480 to ₹1,73,860, covering all scales from scale I to VII. This comprehensive update aligns pay structures with current market standards, ensuring equitable compensation across different levels within the organization.