Finance ministry asks PSBs to complete wage revision process in next 12 months

Finance Ministry has asked public sector banks to initiate the process of negotiations for the 13th Bi-partite settlement in a time-bound manner and finalise it in the next 12 months.

The wage revision for employees and officers of public sector banks would be due from November 1, 2027.

Public Sector Banks (PSBs) and financial institutions, including insurance companies revise wages of their employees every five years.

As part of the settlement, the Indian Banks’ Association (IBA) is expected to engage in dialogues with the employees’ unions/associations and arrive at a mutually agreeable wage settlement.

As the timely conclusion of the settlements is essential for maintaining industrial harmony, the Department of Financial Services advised PSBs in a communication to their heads to initiate the necessary measures to commence negotiations for the impending wage revision.

PSBs are advised to complete the negotiation process within a maximum period of 12 months, the communication dated April 20 said.

Just before the last settlement process, the finance ministry had asked IBA to ensure that all future wage negotiations should be finalised before the beginning of the subsequent period so that the wage revision could be implemented from the due date itself.

It has been observed that on previous occasions, consequential amendments to the permanent regulations have been affected after a considerable delay following the settlement, it said.