Mumbai: Bankers will have fatter wallets this year.
Almost 5 lakh bank employees and 2.5 lakh officers will get a pay increase of 17.5 percent after the unions signed their ninth bipartite wage revision agreement on April 28, with the Indian Banks’ Association (IBA), the bank employer’s forum.
The wage hike will be effective from November 1, 2007.
The accord will raise the wage bill of the banking sector by over Rs. 5,200 crore, annually.
In public sector banks, the additional outgo will be Rs. 4,816 crore. For private and foreign banks, it will amount to Rs. 400 crore.
The wage bill of nationalized banks stood at Rs. 27,520 crore as on March 31, 2007.
The settlement will cover 26 nationalized banks, 12 private sector banks and eight foreign banks.
The IBA, six workmen unions and four officers’ associations signed the agreement that will be valid for five years.
The basic pay of officers at the entry level will be between Rs. 14,500 and Rs. 52,000 per month (compared with a floor of Rs. 10,000, earlier).
The basic pay for clerical staff will range between Rs. 6,200 and Rs. 23,900. Subordinate staff will get between Rs. 5,500 and Rs. 13,800 per month.