By
The Indian Bank Association (IBA) and bank employee unions have agreed on the 12th bipartite settlement, which will be effective from November 1, 2022. The settlement provides for a 31% increase in the basic pay of bank employees, along with other benefits such as a house allowance, medical allowance, and leave encashment.
The settlement was reached after 12 rounds of negotiations between the IBA and the unions. The unions had been demanding a 50% increase in the basic pay, but the IBA was able to negotiate a lower increase.
The 12th bipartite settlement is a major victory for bank employees. It comes at a time when the banking sector is facing challenges, such as the rise of digital banking and the increasing competition from non-banking financial institutions. The settlement will help to improve the morale of bank employees and help them to cope with the challenges that they face.
Here are some of the key features of the 12th bipartite settlement:
- A 31% increase in the basic pay of bank employees.
- A house allowance of Rs. 5,000 per month for employees in metros and Rs. 4,000 per month for employees in other areas.
- A medical allowance of Rs. 10,000 per annum for employees in metros and Rs. 7,500 per annum for employees in other areas.
- A leave encashment of 30 days for every completed year of service.
- A gratuity of 15 days’ salary for every completed year of service.
The 12th bipartite settlement is a welcome relief for bank employees, who have been demanding a wage revision for several years. The settlement will help to improve their salaries and benefits, and it will also help to boost their morale.
The settlement is also a positive development for the banking sector as a whole. It will help to attract and retain talented employees, and it will also help to improve the productivity of the sector.
The 12th bipartite settlement is a major milestone in the history of the banking sector in India. It is a testament to the hard work and dedication of the bank employees and their unions. The settlement will help to ensure that the banking sector remains strong and competitive in the years to come.
