The annual wage hike of 15% has been finalised for bank employees after severe deliberation between IBA and union of bank employees. "Today IBA & UFBU have signed an MoU for 15% increase in pay slip component of Bank Employees, in Principal agreement to remove cap & offer 30% of Basic Pay as family Pension," IBA Chief Executive Officer Sunil Mehta said in a tweet. The hike in wages has been made effective since November 2017.
And as the new hike will be implemented and there are changes introduced in it, on some aspects, NPS contribution for these employees shall increase. This is from the employer's or bank's side which shall now be 14% of pay and dearness allowance.
This is because as per the IBA statement, the basic pay and dearness allowance has been merged bank employees.
With the move, NPS contribution of 8.5 lakh bank employees will increase.