New Delhi, June 11, 2024.
The dearness allowance (DA) for bank employees has been hiked to 15.67% for the months of May, June, and July as per the notification from the Indian Bank’s Association (IBA), on Monday.
“In terms of clause 13 of the 12th Bipartite Settlement dated 08.03.2024 and clause 2 (i) of the Joint Note dated 08.03.2024, the rate of Dearness Allowance payable to Workmen and Officer employees for the months of May, June & July 2024 shall be 15.97% ‘of ‘pay’ (0.01 % change in DA on ‘pay’ for change in every second decimal place of CPI 2016 over 123.03 points),” said the notification.
The average CPI for this quarter is calculated as 139. Taking into account the base value of 123.03, the difference in points amounts to 15.97 (139 – 123.03).
Compared to the previous quarterly average CPI of 138.76, there has been a slight increase of 0.24 points for the months of May, June, and July 2024.
In March this year, the Indian Banks’ Association (IBA) and bank employee unions reached an agreement on an annual wage increase of 17%.
This decision will lead to an additional annual expenditure of approximately Rs 8,284 crore for public sector banks. About 800,000 bank employees are expected to benefit from this wage hike, which is scheduled to take effect from November 2022.
According to the 9th Joint Note on Officers’ Wage Revision, the overall wage increase amounts to more than Rs 8,284 crores, which represents a 17% rise in the payslip component of public sector banks’ establishment expenses.
The notification also said, “Officers who have completed CAIIB (CAIIB Part-II) will be eligible for two increments starting from 01.11.2022.” Additionally, it notes, “The new pay scales will range from Rs 48,480 to Rs 1,73,860, covering all grades from Scale I to VII, effective from 01.11.2022.”
The joint note further mentions that the index for Dearness Allowance (DA) has shifted from the 1960 = 100 series to the 2016 = 100 series, resulting in a change in the conversion factor from 0.06 to 0.99. This shift will benefit bank employees by providing an increased dearness allowance.
Bank employees have voiced their demand for a five-day workweek, and now, the Indian Banks’ Association (IBA) and bank unions have agreed on this proposal, pending government approval.
In a joint declaration made in March 2024, it was announced that the agreement would establish a five-day workweek for PSU bank employees, with all Saturdays recognised as bank holidays.
The Reserve Bank of India (RBI) has specific guidelines regarding minimum working hours and customer service periods that banks must follow. The central bank’s guidance will play a key role in determining if Public Sector Undertaking (PSU) banks can move to a five-day workweek.