A wage revision pact has been signed by the Indian Banks' Association with nine bank unions. The new wage agreement will bring an additional wage component of Rs. 5, 200 crore for 46 banks. This has been said by the All India Bank Employees Association.

The increase in wage burden is worth Rs. 4, 816 crore for 26 public sector banks and Rs. 400 crore for private and foreign counterparts.

The revision has taken a retrospective effect from November 2007 and will hold effect for five years. This would benefit 775, 000 bank employees and officers.

The revision will bring an additional loas of 17.5% as compared to the March 2007 levels. The revision standard would leave the pay of scale I-VII officers in the range of Rs14,500-52,000. With effect from 1st May 2010, the pay scale of clerks would be in the range of Rs7,200-24,900 and in the Rs5,850-11,350 range for subordinate staff.

The revision would also provide 260,000 existing and 50,000 retired employees an option of monthly income pension scheme in lieu of a part of their provident fund.

"We are sure that this agreement on wage Increase coupled with the long-awaited option to join the existing pension scheme will bring relief to the employees and would be a motivation to improve our efficiency in our services to banking customers," Vishwas Utagi, secretary, AIBEA said.

Utagi said that the revision would also encompass those employees who have opted for voluntary retirement scheme.