The United Forum of Bank Unions, which is a coalition of bank employees’ unions, proposed the implementation of a 5-day working week in banks in a letter to Union Finance Minister Nirmala Sitharaman. Currently, the second and fourth Saturdays of the month are holidays for banks employees. The new proposal assures that there will be no reduction in banking hours for customers or in the total working hours for employees and officers.
In their proposal, the United Forum of Bank Unions assures that if the transition to a five-day week is sanctioned, there will be no reduction in total banking hours for customers or in the total working hours for employees and officers. This stance aligns with an understanding reached with the Indian Banks' Association.
According to reports, the union requested the finance minister to review the matter favourably and the direct the Indian Banks’ Association (IBA) accordingly. They point out that a 5-day week is already in effect at RBI and LIC. The schedule of two Saturdays off was decided in a settlement in 2015, during which it was also said that holiday on the rest of the Saturdays will also be considered.
A Memorandum of Understanding (MoU) was signed between the IBA and bank Unions on December 7, 2023, regarding wage revision and service condition enhancements for bank employees. The MoU resulted in an agreement for a 17% increase in wages in public sector banks across India. This hike was said to benefit 9 lakh employees, including 3.8 lakh officers, spanning PSU (Public Sector) banks like SBI and old-generation private banks.
Negotiations held on December 7, 2023 between the IBA and representative of the union resulted in signing of the MoU. Key details of the agreement include implementation of a wage revision from November 1, 2022, for a five year duration. The 17% increase in salary and allowance was calculated on the basis of fiscal year 2021-22 pay slip expenses. It amounts to Rs. 12,449 crore for all public sector banks, including the State Bank of India.