Mumbai: Around 10 lakh employees of 43 banks, including public sector lenders, will get a 15 per cent hike in salaries, with the Indian Banks Association on Monday signing a wage agreement with employee unions and officer associations.
The revision, applicable retrospectively with effect from November 1, 2012, will benefit employees and officers in 43 banks including PSU banks, old private sector banks and a few foreign banks.
The 15 per cent hike would put an extra burden of Rs 4,725 crore on the banks.
"The 15 per cent 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," IBA chairman T M Bhasin told reporters here on Monday.
As a prudent measure, banks have been making provision for wage hike for last 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 to 11 per cent 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 has been increased 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 per cent of basic pay along with applicable dearness allowance has also been introduced.
Mr Bhasin said arrears to workmen will be given immediately and within 4-6 months for officers.
The bank employees will now soon get holidays on second and fourth Saturdays.
"RBI has given in-principle approval for it (holidays) and we have written to the government. We hope to get permission soon. We expect it should take 3-4 weeks' time to implement it," Mr Bhasin added.
The wage settlement has also introduced a medical insurance scheme for employees of member banks and their family members.
"Earlier, all banks were having reimbursement of hospitalisation and medical expenses on individual bank basis. Now, we have taken consolidated policy from four public sector non-life companies which gives a floater cover of Rs 3 lakh and Rs 4 lakh for family."
"There will be cashless facility available as we are giving them 100 per cent reimbursement for self and dependents," Mr Bhasin added.
In the wage revision exercise, 11 employee unions and officers associations participated.