NEWS
Govt defers PLI scheme for PSB staff after union talks
Govt puts performance-linked incentive scheme for public sector bank employees for FY26 in abeyance; to take up matter during ongoing bipartite settlement or joint note discussions.
Govt puts performance-linked incentive scheme for public sector bank employees for FY26 in abeyance; to take up matter during ongoing bipartite settlement or joint note discussions.
The government has deferred implementation of the performance-linked incentive (PLI) scheme for employees of public sector banks (PSBs) for FY26 following concerns raised by bank employees.
The finance ministry said in a statement on Monday it has decided to keep the implementation in abeyance. This follows a representation by bank employees seeking a review of the PLI’s existing structure.
The government will take up the matter during the ongoing bipartite settlement or joint note discussions.
"The government is committed to resolving issues through dialogue, consultation and mutual understanding in the larger interest of bank employees, customers and the banking sector," the ministry said.
Earlier in the day, Finance Minister Nirmala Sitharaman met with a delegation of bank employees representing different public sector banks, led by the Bharatiya Mazdoor Sangh. The delegation raised various issues relating to the banking sector and employees, including review of ex-gratia, medical facilities for retired employees and changes in the present structure of the PLI scheme applicable for bank staff.
Taking cognisance of the concerns raised, it was decided to keep in abeyance the implementation of the PLI Scheme dated November 19, 2024, for 2025-26, the ministry said.
Last month, the United Forum of Bank Unions (UFBU) minus BMS affiliates had called for a nationwide bank strike on 11 September over the delay in implementing five-day banking, differences over the PLI scheme and several pending demands, including pension-related issues.
Bank unions have objected to the government's PLI scheme for bank officers in Scale IV and above, saying it differs from the understanding reached with the IBA that PLI would be linked to the overall performance of individual banks and would be uniform for employees and officers up to Scale VII.
Under the government's scheme, officers in Scale IV and above could receive PLI of up to 365 days of basic pay based on individual performance, while workmen employees and officers up to Scale III would receive a maximum of 15 days' basic pay plus dearness allowance.
