Govt keeps PSB employees' PLI scheme for FY26 in abeyance after union representation
The ministry said it will review employee concerns as unions press for changes to the incentive formula and other banking demands.
- On Monday, Finance Minister Nirmala Sitharaman met a delegation led by the Bharatiya Mazdoor Sangh , after which the government suspended the 2025-26 performance-linked incentive scheme for public sector bank employees.
- Bank unions argue the scheme unfairly favors senior executives eligible for up to 365 days of basic pay, while workmen and officers up to Scale III receive a maximum of 15 days of basic pay plus dearness allowance.
- Unions claim the formula contradicts agreements reached with the Indian Banks' Association , contending that incentives should be linked to overall bank performance and remain uniform for employees and officers up to Scale VII.
- Government officials will address the PLI structure during ongoing Bipartite Settlement and Joint Note discussions, reiterating commitment to resolving grievances through dialogue benefiting employees, customers, and the banking sector.
- Despite the suspension, the United Forum of Bank Unions has not called off its nationwide one-day strike scheduled for September 11, pressing demands including a five-day work week for bank employees.
13 Articles
13 Articles
Government Puts Executive PLI Scheme in Public Sector Banks on Hold; AIBOC Calls It Victory of Collective Unity
Get latest articles and stories on India at LatestLY. The Department of Financial Services (DFS), Ministry of Finance, has decided to keep in abeyance the payment of Performance Linked Incentive (PLI) to Scale IV to VIII executives of Public Sector Banks (PSBs) for the financial year 2025-26, following widespread representations from bank employees. India News | Government Puts Executive PLI Scheme in Public Sector Banks on Hold; AIBOC Calls It …
The Economic Times
Times of IndiaGovt keeps PSB employees' PLI scheme for FY26 in abeyance after union representation
The government has postponed the performance-linked incentive scheme for bank employees. This decision follows employee representations seeking a review of the existing structure. Finance Minister Nirmala Sitharaman met with bank employee representatives to discuss their concerns. The scheme's implementation for 2025-26 will be kept in abeyance. Discussions will continue through bipartite settlement and joint note talks.
Coverage Details
Bias Distribution
- 57% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
