Public sector banks pin hopes on new Govt for higher PLI for employees
performance-linked incentive (PLI) for their employees as a new coalition government takes charge. They are also likely to push for a five-day banking week.
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Both bank unions and employee associations have been demanding a review of the existing PLI scheme and approval for a five-day banking week. «We are hopeful that our demands will be heard by the government and force the Indian Banks' Association (IBA) to revise the existing structure,» said a union member, requesting anonymity.
The PLI was first introduced in 2020 under the 11th Bipartite Agreement between the IBA, officers associations of banks and employee unions. Accordingly, bankers were eligible for a maximum of 15-days salary as PLI if year-on-year growth exceeded 15%. «Some of the parameters governing the PLI, like the final settlement, should not be only based on operating profit but take into account performance on other financial parameters,» said another bank executive.
Last year, the IBA had unions agree to the 12th bipartite wage hike settlement, under which bankers were to get a 17% increase in salary. This settlement will be in effect for the next five years, starting November 1, 2022, and translate into an outgo of ₹12,589 crore for 12 public sector banks (PSBs), including State Bank of India.
«While banks have made provisions for PLI outgo as per
