News: Banks may switch from gross salary to CTC for pay hike

Compensation & Benefits

Banks may switch from gross salary to CTC for pay hike

The finance ministry has asked Indian Banks’ Association (IBA) to consider moving towards a cost-to-company (CTC) structure in the next pay settlement to reflect their actual remuneration, Business Standard reported on April 17.

The finance ministry has asked Indian Banks’ Association (IBA) to consider moving towards a cost-to-company (CTC) structure in the next pay settlement to reflect their actual remuneration, Business Standard reported on April 17.

A government bank probationary officer gets a salary of about Rs 26,000 per month. The perks and facilities may add anything over Rs 10,000 to the salary. But, there is no upper limit on it. While these vary from bank to bank, the government believes in many cases the total cost incurred on an employee is double his basic salary. IBA is likely to ask for about 25 per cent hike for over 8,00,000 bank employees in the 10th bipartite agreement on wage revision. The hike is due from November 2012.
Though wage settlement negotiations usually go on for about two years as bank unions begin with exorbitantly high expectations, this time the government may settle it by the end of 2013 in the view of general elections in 2014.
 

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Topics: Compensation & Benefits, #Updates, #TotalRewards

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