Amid bank strike calls, govt puts PSB executives' PLI scheme on hold

The government has decided to keep in abeyance the performance-linked incentive (PLI) scheme for executives of public sector banks for 2025-26 following concerns raised by bank employees, the finance ministry said on Monday.

The decision was taken after Finance Minister Nirmala Sitharaman met a delegation of bank employees representing various public sector banks and led by the Bharatiya Mazdoor Sangh on Monday.

The delegation raised several issues relating to the banking sector, including review of ex-gratia, medical facilities for retired employees and changes to the existing PLI scheme for PSB employees.

"On the representation received on the PLI structure, it was decided to keep in abeyance the implementation of the PLI Scheme dated 19.11.2024 for FY 2025-26 and take up the same during the ongoing Bipartite Settlement/Joint Note discussions," the finance ministry said.

The government said it was committed to resolving the issues through dialogue, consultation and mutual understanding in the larger interest of bank employees, customers and the banking sector.

The move comes amid a series of strike calls by the United Forum of Bank Unions (UFBU), which represents seven bank employee and officer unions, over the PLI scheme and other demands, including implementation of a five-day banking week.

The UFBU has called for an all-India strike on September 11, followed by a three-day strike from September 28 to 30. It has also announced an indefinite strike from October 26.

The unions have been demanding withdrawal of the government's revised PLI scheme for senior bank officers, its modification through bilateral discussions and implementation of five-day banking.

Under the 12th Bipartite Settlement/9th Joint Note signed on March 8, 2024, the Indian Banks' Association had agreed to introduce a five-day working week by increasing daily working hours by 40 minutes from Monday to Friday. The proposal was subsequently sent to the government for consideration.

The UFBU has said the incentive was agreed with the IBA to be based on the overall performance of a bank, with the number of PLI days uniform for all employees and officers up to Scale VII.

The unions have objected to a separate scheme for officers in Scale IV and above, saying it was unilateral and discriminatory.

According to the UFBU, around 40,000 officers are in Scale IV and above out of about eight lakh bank employees and officers.

The unions have also argued that the proposed incentive structure could result in senior officers receiving substantially higher PLI than other employees and impose a disproportionately high cost on banks.

The PLI issue had earlier gone into conciliation before the Central Labour Commissioner and is also under litigation before the Delhi High Court, according to the UFBU.

The government decision to keep the scheme in abeyance is likely to provide room for the issue to be taken up as part of the ongoing bipartite settlement and joint note discussions.

However, the union has not called off the planned strikes on September 11.