Mumbai, 29th February 2024: In a potential game-changing move for bank employees, the year 2024 is poised to usher in a positive shift with the prospect of a five-day work week and a salary hike on the horizon. The eagerly awaited changes, subject to approval from the Finance Ministry, could come into effect as early as June this year, providing a boost to the morale of the banking sector. The United Forum of Bank Unions, representing bank employee unions, has taken a proactive step by formally requesting Union Finance Minister Nirmala Sitharaman to advocate for the implementation of a five-day work week within the banking industry.
What Was Proposal to the Finance Ministry
The comprehensive proposal submitted to the Finance Minister assures stakeholders that any changes will not compromise customer service or the overall working hours of dedicated bank employees and officers. According to an Economic Times report, the United Forum of Bank Unions has stressed the importance of aligning the banking sector's workweek with the existing five-day model in institutions like the RBI and LIC.
Currently, many banks adhere to a schedule that designates the second and fourth Saturdays of each month as non-working days, as per the settlement reached in 2015. The 2015 settlement allowed for the consideration of declaring remaining Saturdays as holidays at a later stage, a topic now under reconsideration.
Salary Hikes for Bank Employees
In a significant development, a Memorandum of Understanding (MoU) was signed on December 7, 2023, between the Indian Banks' Association and bank unions addressing wage revision and service condition enhancements for bank personnel. Expressing gratitude for the Finance Minister's consideration of their demands, the United Forum of Bank Unions highlighted the acknowledgment of the timely conclusion of negotiations facilitated by the MoU between bank unions and the IBA.
It's worth noting that the MoU last year resulted in a remarkable 17% salary increase for employees across all public sector banks in India, amounting to a substantial Rs 12,449 crore.
If approved by the Centre, approximately nine lakh employees, including 3.8 lakh officers, in PSU banks such as SBI and various private sector banks, stand to benefit from both a salary hike and the potential introduction of a two-day weekend. The anticipation is high, and the banking community eagerly awaits a positive decision that could reshape their work dynamics and financial rewards in the coming months.
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