Banks mull 5-day work week and 15% wage hike, report says negotiations underway

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Times of India, adding, that the unions are mulling to implement a five-day workweek in the near future. Earlier on Thursday, the Indian Banks' Association suggested a 15 percent raise, however, along with other alterations, they are also pushing for a more substantial hike. The report says that PNB has started making higher provisions for the wage increase, i.e.

the public sector bank has set aside funds for a 15 percent raise instead of budgeting for a 10 percent hike. Arguing the hike proposal, employees and unions said that banks have seen a good profit increase in recent years and the bank staff are entitled to better compensation. They cited working during COVID-19 and pushing the government's schemes.

Meanwhile, the Union Finance Ministry is closely monitoring the developments. ALSO READ: Bank Holiday Dusshera 2023: Banks in THESE states will remain closed today. Check full list With the 2024 Lok Sabha Elections months away, it is expected that the wage agreement will be reached before then.

Earlier, the wage settlement was reached after a three-year negotiation process in 2020. The Indian Banking Association has already approved the five-day work week, however, it is awaiting the approval of the Ministry of Finance and RBI. Currently, the second and fourth Saturdays are designated as holidays, while bank branches operate on the first, third, and fifth Saturdays of the month.