Indian Banks' Association and bank employee unions on Friday agreed on an annual wage hike of 17 per cent, a move that will result in an additional yearly outgo of around Rs 8,284 crore for public sector banks.

As many as 8 lakh bank employees are set to benefit from the wage hike, which will be effective from November 2022.

All India Bank Officers’ Confederation said that a joint note agreed to recognise all Saturdays as holidays, pending government notification.

The revised working hours will be effective after notification by the government, it said.

"The new pay scales have been constructed, after merging Dearness Allowance corresponding to 8088 points and additional load thereon," it said.

Under the new wage settlement, all women employees would be allowed to take one day sick leave per month without giving a medical certificate.

Accumulated privilege leave may be encashed up to 255 days at the time of retirement/upon death of an employee while in service, it said.

"Today marks a significant milestone for the #bankingindustry as IBA and #UFBU #AIBOA #AIBASM and #BKSM have signed the 9th Joint Note and 12th #Bipartite Settlement regarding #Wage Revision for Bank Officers and Employees, which will take effect on Nov. 1, 2022. @PIB_India #dfs," IBA Chief Executive Officer Sunil Mehta said in a tweet.

For the retired employees, it was agreed that the monthly ex-gratia amount shall be paid in addition to the pension/family pension paid by the Public Sector Banks including SBI, to pensioners and family pensioners, who became eligible to draw pension on or before October 31, 2022, including those who retired on the said date.

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