SME Times News Bureau | 28 Apr, 2010
Employees' unions and the Indian Banks Association (IBA) Tuesday signed here a five-year wage agreement providing for a 17.5 percent hike in pay from 2007 to around 775,000 staffers of 46 banks whose annual wage bill will go up by Rs.5,200.

"We are satisfied with the wage agreement that is effective from 2007. The new settlement apart from increasing the wages for clerical grades and officers would also provide the employees one more option to join the pension scheme," said C.H. Venkatachalam, convenor, United Forum for Bank Unions.

The settlement covers 26 public sector banks, 12 private banks and 8 foreign banks and would benefit 477,000 workmen employees and 275,000 officers.

Venkatachalam said the new wage agreement will benefit around 775,000 bankers across the country.

With this agreement, the total wage bill of 26 state-owned banks, 12 private banks and eight foreign banks per year will go up by Rs.5,200 crore.

For a long time, both the parties - employees unions and the IBA - have been negotiating the wage settlement.

Public sector insurance companies are now expected to conclude wage talks with the unions after the wage settlement in the banks.