The banking sector has witnessed a significant development as the Indian Banks’ Association (IBA) and the United Forum of Bank Unions (UFBU) have officially signed the preliminary Memorandum of Understanding (MOU) for the 9th Joint Note that promises a brighter future for bank employees, officers, and pensioners. It is the first MOU that has been signed within 14 months of the expiry of the previous settlement. There is a positive development for pensioners, as all pensioners as on 31st October 22 will now receive a long-awaited “ex gratia” amount.
Key Highlights of the MOU:
1. Effective from November 1, 2022 for a period of 5 years.
2. An annual increase in salary and allowances has been agreed upon at 17% of the annual pay slip expenses for the financial year 2021-22.
3. Dearness Allowance shall be merged 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.
4, Pensioners and Family Pensioners shall be eligible for a monthly ex-gratia amount (without any allowances) to be considered along with the pension by Public Sector Banks (PSBs) for pensioners and family pensioners who were drawing a pension as of October 31, 2022.
The applicability of the said ex-gratia for the retirees of the current settlement period will be discussed further.
5. UFBU have obtained a commitment on record to implement the five-day banking before the finalization of the joint note settlement.
Details of the MOU:
Wage Revision Effective Date:
The wage revision, as per the MOU, will be effective from November 1, 2022, and will span a period of five years.
Annual Salary Increase:
An annual increase in salary and allowances has been agreed upon at 17% of the annual pay slip expenses for the financial year 2021-22. This increment translates to a substantial amount of ₹12,449 crores across all public sector banks, including the State Bank of India (SBI).
New Pay Scales: The new pay scales will be constructed by merging the Dearness Allowance 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. Additionally, a loading of 3%, amounting to ₹1795 crores, will be added.
Distribution of Wage Increase:
The distribution of the annual wage increase between workmen and officers will be determined separately and proportionately, based on the breakup of establishment expenses for the financial year 2021-22.
Pensioners and Family Pensioners:
In a move that underscores the commitment to the welfare of retirees, the MOU includes a provision for a monthly ex-gratia amount to be considered along with the pension by Public Sector Banks (PSBs) for pensioners and family pensioners who were drawing a pension as of October 31, 2022. This ex-gratia amount will not attract any other allowance, including dearness allowance.
Looking Ahead:
This agreement is on account of collaborative efforts of the IBA and UFBU in addressing the long-standing demands of bank employees. It not only ensures a fair wage revision but also demonstrates a shared vision for the well-being of the banking community’s retired members.
The MOU is a pivotal step towards fostering a more equitable and prosperous future for those who form the backbone of India’s banking industry. It is a reminder that through unity and dialogue, progress is not just possible but achievable.
For detailed information on the MOU and its implications, members are encouraged to refer to the official document and stay informed about the developments as they unfold. Together, let’s embrace this new chapter in the banking sector with hope and determination.
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