IDBI Bank has decided to review the variable pay system which it had implemented only a few months back. It was the only public sector lender to adopt this system of remuneration.

It was said by senior executives of the bank that a committee of executive directors had been appointed by the new MD and CEO of the bank, RM Bhalla to review the new remuneration structure along with the new service rules which had reduced the number of holidays and increased the working hours.

The committee had taken feedback from employees. "It is difficult to roll back the hike and say that the variable pay regime is off. Once you provide a hike, it's tough to tell people that we will do away with the 30 per cent variable component as well as the hike," said a senior executive.

The changes introduced by the former CEO and MD Yogesh Agarwal received flak from employees on grounds that it did not have any performance evaluation/ measurement system.

IDBI Bank had also been asked by the Government to hold back the implementation of the variable pay system.

Along with the introduction of variable pay, the bank had raised salaries by around 20 per cent.