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Bank employees in India to get 15% pay hike

Staff writer |
More than one million employees of 43 banks, including state-owned ones, will finally get a 15 percent hike in salaries.

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The apex body of banks, Indian Banks Association, on Monday signed a wage agreement with unions and officers' associations that will impose an additional burden of up to Rs 8,370 crore on lenders.

The revision, applicable with effect from November 1, 2012, will benefit employees and officers in public sector banks, old private sector banks and a few foreign banks.

The 15 percent hike would put an extra burden of Rs 4,725 crore on banks, Indian Banks' Association (IBA) chairman T M Bhasin said here on Monday. “The wage revision would cost banks Rs 4,725 crore as incremental salary and allowances in a year. If superannuation cost is included, then the total burden would be around Rs 8,370 crore,” Bhasin said.

As a prudent measure, banks have been making provisions for wage hike for the past few years. For officers, the pay has been revised from existing range of Rs 14,500-Rs 52,000 to Rs 23,700–Rs 85,000.

A special allowance for officers ranging from 7.75-11 percent of basic pay along with applicable dearness allowance has been introduced.

The scale of pay of workmen and non-subordinate staff has been revised from Rs 7,200–Rs 19,300 to Rs 11,765–Rs 31,540 while the scale of pay of subordinate staff from Rs 5,850–Rs 11,350 to Rs 9,560–Rs 18,545.

As per the new pact, a special allowance for workmen at 7.75 percent of basic pay along with applicable dearness allowance has also been introduced.

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