Banks, trade unions agree on 15% hike in existing wage bill of 35 lenders

All employees will get additional pay to the tune of 5-15 days of basic and dearness allowance components of their salary.

Bank managements and trade unions on Wednesday agreed on a 15 per cent hike in the existing wage bill of 35 lenders, along with a first-of-its-kind performance-linked incentive (PLI) for state-owned banks.

“The annual wage increase in salary and allowances is agreed at 15 per cent of the wage bill as of March 31, 2017, which works out to be Rs 7,898 crore on pay slip components (annually),” according to a memorandum of understanding between the Indian Banks’ Association and the United Forum of Bank Unions, representing workmen unions and officers’ associations. The wage revision will be effective from November 1,