Diwali bonanza for bank employees : Good News! Bank Employees to Get One Month Extra Salary as Advance Ahead of Diwali

Diwali bonanza for bank employees : Good News! Bank Employees to Get One Month Extra Salary as Advance Ahead of Diwali

Around 14 lakh bank employees are in for a festival bonanza with the Indian Banks’ Association asking top managements of private sector, public sector and foreign banks to pay one month’s salary as advance ahead of Deepawali. It has been decided that pending the wage revision talks, an ad hoc amount, equivalent to one month’s salary (basic plus dearness allowance) may be disbursed to all permanent workmen, staff, and officers, said a letter signed by VG Kannan, Chief Executive of the Indian Banks’ Association.

The IBA letter dated October 1, which was reviewed by the Financial Express Online, states that this one month salary will be paid only to those permanent employee who were on the bank’s roll on November 1, 2017 and who are still in service.

Those bank employees who have joined the service between November 1, 2017 and March 31, 2019 will be paid half the amount (15 days salary – basic plus DA).

Workmen staff and officer employees may be advised by the concerned banks that the ad-hoc payment is being made to them as a gesture of goodwill by the management and the amount being paid now will be adjusted against the actual arrears payable after the outcome of the ongoing wage negotiation talks," VG Kannan, Chief Executive, IBA, said a statement.

"Banks may be advised to ensure that all statutory deductions like TDS be necessarily made as per the prevailing rules while making payment. Banks may accordingly take the necessary action as above with the approval of the competent authority," Kannan said further in the statement.

Bank employees across the country are set to receive a month's salary in view of the ongoing festival season. The Indian Banks' Association (IBA) has asked all banks - both PSU and private -to disburse the amount to permanent employees as an advance on the arrears in pay increases for which negotiations are underway.
In a latter to the managements of all banks, the IBA noted that the salary hike negotiations with the United Forum of Bank Unions (UFBU) have not been completed and will require more time. It suggested that the banks pay employees an adhoc amount of one month's pay - basic and dearness allowance - in view of the festival season.