IBA Pay Hike Unveiled

MUMBAI, INDIA (GaeaTimes.com)- The unions of bank employees in India managed to get a lucrative pay hike of 17.5 per cent by making the IBA or the Indian Banks Association sign an accord. The 9th bipartite pay revision agreement was signed by the IBA, four officers associations and six workmen unions yesterday. The new pay revision will bring good news for the 750,000 bank employees and the officers working in 12 private sector banks, eight foreign banks and 26 nationalized banks. This will be effective from November 2007. The entry level employees will get fewer hikes. The IBA said that compared to the pay scale of INR 10,000, the entry level officers will get a basic pay ranging between INR 14,500 and INR 52,000 a month.

As per the IBA agreement, the basic pay of the clerical staff will be between INR 6,200 and INR 23,900 per month. The basic pay scale of the subordinate staff will hover between INR 5500 and INR 13,800 a month. As per the new accord, the employees and officers who enjoy PF coverage have a choice to avail the pension scheme benefits. Apart from that, a contributory retirement benefit scheme available to the central government employees will be made available for the bank employees. This will include the officers and employees who join bank services on and after April 2010.

The IBA offering will be beneficial to 800,000 bank workers. As per AIBEA, or the All India Bank Employees Association, backed by CPI, this is a landmark wage revision in the history of Indian banking sector and will most certainly be welcomed warmly by one and all.