New Delhi: Bank employees' unions and the Indian Banks' Association (IBA) have reached an agreement for a 15 per cent annual hike in wages, a move that will result in an additional yearly outgo of nearly Rs 7,900 crore by lenders.
The decision was taken at a meeting held between the IBA - representing managements of banks - and members of the United Forum of Bank Unions (UFBU) representing workmen unions and officers' association.
The wage revision would be effective from November 2017, according to the agreement signed by bank unions and the IBA.
The annual wage increase in salary and allowances has been agreed at 15 per cent of the wage bill as on March 31, 2017, which works out to be Rs 7,898 crore on payslip components, as per the agreement.
Close to 37 banks, including public, private and foreign banks, have mandated the IBA to decide on wage hikes for their employees.