5-day work week: Banks in talks to offer 15% wage hike to employees, says report

State-run and popular private-sector banks are reportedly in talks for a 15 per cent hike in salaries of their employees, a news report said on Saturday. In addition to this, the banks are also planning to implement a five-day workweek shortly, TOI reported. 

A five-day work week was approved by the Indian Banking Association (IBA) earlier this year, but the approval is awaiting the Ministry of Finance and RBI's go-ahead. 

At present, bank branches are operational on the first, third, and fifth Saturdays of the month, while the second and fourth Saturdays are holidays. Under the 10th Bipartite Settlement signed in 2015, RBI and the government agreed with the Indian Banks’ Association (IBA) and declared second and fourth Saturdays as holidays.

Bank unions have been demanding since 2015 that they be given time off on all Saturdays and Sundays. If it is approved by the government and RBI, it has been proposed that the daily work hours at branches would be extended by 45 minutes.

Earlier this week, the Indian Banks' Association had pitched a 15 per cent raise in the salaries, but the bank unions have been asking for more along with other demands. 

Besides, some of the banks, such as Punjab National Bank, have been making plans for a higher wage increase. The report said PNB is looking at a 15 per cent rise instead of a 10 per cent increase in the September quarter. 

Staff and workers' unions have been demanding a considerable hike in salaries on the back of a good increase in profits in recent years. The employees have noted that they have put in a lot of efforts getting the lenders back on track, besides working during Covid and pushing government's schemes. The finance ministry, as per the report, is closely observing the ongoing negotiations.

In August, Sushil Kumar Modi, member of the parliamentary committee on finance, told Moneycontrol that public sector bankers' demand for a five-day work week is genuine and the government should consider it as soon as possible.

"I think bankers' demand is very genuine. In many state and central services, employees have a five-day week," said Modi.

"You can increase the working hours by half an hour per day from Monday to Friday. The government should consider it as soon as possible," he said.

Also read: IDFC First Bank Q2 Results: Net profit surges 31% to Rs 747 cr, income rises to Rs 8,765.81 cr