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Bank employees' dearness allowance hiked for May to July | Check Details

In March this year, IBA and bank employee unions agreed on annual wage hike of 17%, which will result in additional yearly outgo of Rs 8,284 crore for public sector banks

Written by  Jasleen Kaur -- June 11th 2024 08:22 PM
Bank employees' dearness allowance hiked for May to July | Check Details

Bank employees' dearness allowance hiked for May to July | Check Details

PTC Web Desk: The Indian Bank's Association (IBA) on Tuesday announced a hike in dearness allowance (DA) for bank employees to 15.97% for the months of May, June, and July. This adjustment, outlined in clause 13 of the 12th Bipartite Settlement dated March 8, 2024, and clause 2 (i) of the Joint Note from the same date, is based on changes in the Consumer Price Index (CPI).

The confirmed All India Average CPI for Industrial Workers (Base 2016=100) for the quarter ending March 2024 is as follows:

January 2024: 138.9

February 2024: 139.2

March 2024: 138.9

The average CPI for this period is 139, which is 15.97 points above the base index of 123.03. The previous quarterly average CPI was 138.76, resulting in a 0.24 point increase for May, June, and July 2024.

In March 2024, the IBA and bank employee unions agreed on a 17% annual wage hike, effective from November 2022. This agreement will add approximately Rs 8,284 crore to the annual expenses of public sector banks and benefit around 8 lakh employees. According to the 9th Joint Note on Officers' Wage Revision, this increase applies to the pay slip component of establishment expenses.

Additionally, the notification highlighted that officers who have completed the Certified Associate of the Indian Institute of Bankers (CAIIB Part-II) will receive two increments starting from November 1, 2022. The new pay scales, ranging from Rs 48,480 to Rs 1,73,860, cover all scales from I to VII, effective from November 1, 2022.

The joint note also mentioned a shift in the DA index from the 1960=100 to the 2016=100 series, changing the conversion factor from 0.06 to 0.99. This shift benefits bank employees by enhancing their dearness allowance.

Five-Day Workweek Proposal

Bank employees have long advocated for a five-day workweek. The IBA and bank unions have agreed on this proposal, which is now awaiting government approval. The joint declaration in March 2024 supports this change, recognising all Saturdays as bank holidays.

The Reserve Bank of India (RBI) will provide guidance on the implementation, ensuring compliance with specific minimum working hours and customer service requirements. The revised working hours will take effect following government notification.


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