5 Day Banking and Salary Hike for Bank Employees expected in June

Bank employees in India may soon have a reason to rejoice as the government is likely to accept their long-standing demand for a 5-day workweek. According to media reports, the bank employees are expected to receive 5 working days in a week, subject to approval by the finance ministry. Additionally, a salary hike is also anticipated in June 2024. If the government accepts the demand of bankers, then it is expected that 5 day banking and salary hike may be introduced in June 2024. It is to be noted that bank unions have said that they will not sign the salary hike agreement without declaration of 5 day banking. This is based on the sources and news published in reputed news websites as mentioned below. There is no official communication from any bank union or IBA yet

Demand by Bank Unions

The United Forum of Bank Unions, a coalition of bank employee unions, has written a letter to Finance Minister Nirmala Sitharaman requesting the implementation of a 5-day workweek for the banking sector. They have assured that the proposed change will not result in reduced banking hours for customers or a decrease in the total working hours for employees and officers.

The unions have urged the finance minister to review the matter favorably and direct the Indian Banks’ Association (IBA) accordingly. Currently, bank branches are closed on the second and fourth Saturdays as per the 10th Bipartite Settlement signed in 2015, which declared these days as holidays

Regarding salaries, the IBA and bank employee unions reached an agreement last year for a 17% salary hike across all public sector banks (PSBs) in India, totaling ₹12,449 crore. This salary increase, if approved by the Centre, will benefit approximately 9 lakh employees, including 3.8 lakh officers, across all PSBs and select old-generation private banks.

The Memorandum of Understanding (MoU) between the IBA and bank employee unions, which was reached after negotiations held on December 7, 2023, includes a commitment to finalize the wage revision within 180 days.

Overall, bank employees are hopeful that their demand for a 5-day workweek will be met, along with the anticipated salary hike. These developments will have a positive impact on the work-life balance of bank employees and contribute to their overall well-being.