United Forum of Bank Unions (UFBU) and Indian Banks Association(IBA) signed the 12th Bipartite Settlement on 8th March 24 at Mumbai. The 9th Joint Note for the Officers Associations was also signed simultaneously.

History of 12th Bipartite Settlement

UFBU submitted Charter of Demands on 4 November 2022. A Memorandum of Understanding (MOU) was signed on 7 December 2023.
5-day working week for the bank employees and officers found place in MoU as well as the final settlement. It will be implemented shortly, after Government/RBI notify it.

Besides 12 PSBs, 10 private sector banks are part of the wage settlement. The settlement is applicable to officers’ (who are on IBA scale) of Federal Bank, Karnataka Bank, Kotak Mahindra Bank, IDBI Bank (up to Scale III), South Indian Bank (up to Scale IV), and Jammu & Kashmir Bank, Karur Vysya Bank, RBL Bank, Nainital Bank and Dhanlaxmi Bank.
In the case of workmen, the wage settlement would be applicable to the employees of the aforementioned banks and three foreign banks—Citibank N.A., HSBC, and Standard Chartered Bank

Key highlights of Settlement


Pay scales have been arrived at by merging Dearness Allowance (DA) corresponding to 8088 points—the average index points for the quarter of July, August, and September 2021—to the basic pay as of October 31, 2022.at 8088 points of All India Consumer Price Index for Industrial Workers Base 2016=100.
In the settlement, the index for dearness allowance is shifted from 1960=100 series to 2016=100 series resulting into shifting the conversion factor from 0.06 to 0.99 as per 2016=100 series. The factor of 0.99 as per 2016=100 series is converted to 1.00.
The Dearness Allowance shall be payable as 1.00 % of ‘pay’ per percentage point of Index.
The DA in the above manner shall be paid for every variation of rise or fall over123.03 points in the quarterly average of the All-India Consumer Price Index for Industrial Workers Base 2016=100. 0.01% change in DA on ‘pay’ for change in every second decimal place of CPI 2016 over 123.03 points.
Dearness Relief on pension in the above manner shall be paid half yearly for every variation of rise or fall over 123.03 points in the quarterly average of the All-India Consumer Price Index for Industrial Workers Base 2016=100.
Monthly ex-gratia amount for workmen/Officers shall be paid in addition to the pension/family pension paid by the public sector Banks including SBI, to pensioners and family pensioners, who became eligible to draw pension on or before 31st October 2022 including those who retired on 31.10.2022. Such fixed monthly ex-gratia shall be payable for the month of November 2022 and onwards during the period 01-11-2022 to 31-10-2027.

Annual Wage Hike: Bank employees are set to receive a 17% annual wage hike. This increase is expected to benefit up to 8 lakh bank employees across the country.
Total Expenditure: The total amount allocated for wage revision works out to be Rs 12,449 crore for all banks, including the State Bank of India³.

Sick Leave for Female Employees: All female employees will be permitted to take one sick day each month under the new wage settlement without having to provide a medical certificate. Enhanced Compensation Package: The new wage settlement aims to enhance the overall compensation package for bank officers.

Special Allowance: Bank employees will receive a special allowance as part of the wage settlement.

2. Pension Scheme Improvements: The settlement aims to improve the pension scheme for bank employees.
In summary, this joint note represents a positive development for bank employees, ensuring better wages and improved benefits. It’s a step toward recognizing their valuable contributions to the banking sector in India. Moreover, it strives to address various aspects of employee welfare and financial well-being, ensuring a more favorable work environment for bank staff in India.

This Settlement also paves the way for wage revision in RRBs, RBI, LIC, GIC, NABARD, Co-operative Banks.

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