MUMBAI: An agreement has been signed between Indian Banks Association (IBA) and nine bank Unions, settling the long-pending demand for wage revision here on Tuesday.

The Agreement covers all the 26 public sector banks, 12 private sector banks and eight foreign banks. The Agreement, which will be effective for a five years period with effect from November 2007, is the ninth successive industry level Bipartite Settlement ever since the 1st Settlement was signed in 1966, a release said.    This increase represents 17.5 per cent of additional load on the wage bill as existed in March 2007.  The agreement also provides for extending another option to about 2,60,000 existing employees and officers and another about 50,000 retired employees and officers to join the existing Defined Benefit Pension Scheme in lieu of contributory
Provident Fund. Employees and Officers who join the banks from April, 2010 would be governed by Contributory Pension Scheme as is available to the Government employees.  Consequent to this agreement, the Pay Scales and Allowances of the bank staff have been revised and increased.
The arrears of this emoluments would be payable from November 2007. The agreement also provides for improvement in House rent and other allowances benefits like Leave Fare Concession, Reimbursement of Hospitalisation Scheme, etc.
In view of revised Pay Scales, the retirement benefits viz, Gratuity and Pension stands improved besides higher contribution of Provident Fund.