Banks are in the process of implementing the 5-day workweek system and may roll out it soon, according to reports. They also said government banks and old private generation lenders are discussing an average 15 per cent salary hike.
While the five-day workweek has already been approved by the Indian Banks’ Association (IBA) earlier this year, the approval is awaiting from the Ministry of Finance and the RBI.
According to a Times of India report, the IBA on Thursday proposed a 15 per cent hike in salaries but the unions are said to be demanding a higher increase, along with other changes. Some lenders, including PNB, have also started making higher provisions for the wage increase.
The negotiations are closely being monitored by the finance ministry.
Employee unions are seeking higher salary hikes due to good financial performance by banks in recent years. They mention employees’ efforts to brings the banks on track, including working during the COVID-19 pandemic and pushing the government’s schemes.
Currently, bank branches are closed on second and fourth Saturdays. Banks unions have been demanding since 2015 offs on all Saturdays and Sundays. Under the 10th Bipartite Settlement signed in 2015, RBI and the government agreed with the IBA and declared second and fourth Saturdays as holidays.
Sushil Kumar Modi, member of the parliamentary committee on finance, in August told Moneycontrol that public sector bankers’ demand for a five-day work week is genuine and the government should consider it as soon as possible.
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