Indian Banks' Association (IBA) today said it has reached a broad agreement with bank unions to provide one more pension option and a salary hike, ending the 2-year-long stand-off between the two.
"We have reached a broad agreement with representatives of bank unions. It has been decided that one more option for pension and a salary hike of 17.5 per cent will be given to the employees," IBA Chief Executive K Ramakrishnan told PTI.
The agreement was reached at a meeting between top IBA officials, including Chairman M V Nair and IBA Chief Executive K Ramakrishnan and representatives of all nine bank employees unions.
A second option for pension will benefit nearly 2.72 lakh serving employees and around 60,000 retired employees, IBA said.
As per the understanding, bank managements will pay 70 per cent towards the difference in actuarial cost while the balance 30 per cent will be borne by the employees.
IBA and bank unions are expected to sign the final agreement in the next few months.