Govt puts bank staff performance-linked incentive scheme on hold ahead of strike
The Indian Ministry of Finance has put a performance-linked incentive (PLI) scheme for public sector bank employees on hold following protests from labor unions. The unions argue the scheme unfairly favors senior executives over lower-level staff.
Why it matters
The dispute highlights ongoing tensions regarding labor rights and compensation structures within India's public banking sector ahead of a planned nationwide strike.
The Ministry of Finance has said that it has decided to keep in abeyance the performance-linked incentive (PLI) scheme it had initially planned for 2025-26 for public sector bank employees, following a meeting between Finance Minister Nirmala Sitharaman and a delegation of bank employees led by the Bharatiya Mazdoor Sangh, the labour wing of the RSS.
This decision came days before the September 11 nationwide one-day bank strike the United Forum of Bank Unions (UFBU) had announced, demanding a review of the PLI scheme, the institution of a five-day work-week for bank employees, apart from other issues.
“The delegation raised various issues relating to the banking sector including review of ex-gratia, medical facility for retired employees, revisiting the present structure of PLI Scheme applicable for the employees of PSBs, and other concerns related to employees,” the Ministry of Finance said in a release following the meeting.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in