The Indian Banks' Association and bank employee unions have reached an agreement on a 17% annual salary increase, which will result in an extra expense of about Rs 8,284 crore for public sector banks annually.

Starting in November 2022, up to 8 lakh bank workers are expected to gain from the pay increase. In a joint statement, the All India Bank Officers Confederation stated that all Saturdays will be observed as vacations till further notice from the government.

The government's announcement of the new working hours will take effect, it stated. According to the statement, the new pay scales were created by combining the Dearness Allowance, which is equivalent to 8088 points, with an extra burden.

All female employees would be permitted to take one sick day each month under the new wage settlement without having to provide a medical certificate. According to the statement, accumulated privilege leave can be paid for up to 255 days upon retirement or the passing of an employee while they were still employed.

The signing of the 9th Joint Note and 12th Bipartite Settlement addressing the revision of wages for bank officers and employees by IBA, UFBU, AIBOA, AIBASM, and BKSM today represents an important milestone for the banking sector. These settlements will go into effect on November 1, 2022. IBA Chief Executive Officer Sunil Mehta said on X, "@PIB_India #dfs."

It was decided that for retired employees, the ex-gratia amount would be paid each month on top of the pension or family pension that Public Sector Banks, such as SBI, would pay to pensioners and their families who became eligible to draw pensions on or before October 31, 2022, including those who retired on that date.