Why are bank employees going on strike even after govt withdrew PLI scheme?
Public sector bank employees in India are proceeding with a nationwide strike despite the government putting a controversial performance-linked incentive scheme on hold. The unions are also demanding the implementation of a five-day workweek.
Why it matters
Labor strikes in the banking sector can significantly disrupt financial services and reflect broader tensions between government policy and public sector labor unions.
The story so far : The Government recently announced that it was putting on hold the performance-linked incentive (PLI) system i t had planned to implement for public sector bank employees. However, the employees are still going ahead with their strike on September 11 , highlighting that not all of their grievances have been addressed.
One of the main reasons the United Forum of Bank Unions, the umbrella body of seven bank employee unions, called for a nation-wide strike on September 11 was to protest the PLI scheme announced by the Department of Financial Services in November 2024 and applicable for the financial year 2025-26.
This revised PLI scheme was applicable only to Scale IV officers and above, a major point of contention. This scheme allows these senior officers to receive PLI of up to 365 days of Basic Pay based on individual performance.
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