Public sector bank employees would soon be getting incentives as boosters to perform well and inculcate new set of skills in them. It has been recommended by a government committee that 15-20% variable component should be added to their salary package and also that the upper limit of their remuneration should be removed.

The committee has also indicated that the retirement age of employees should be raised to 62 years as against the current age of 60 years. The committee has been set up by the Finance Ministry and would be giving its report by nect week.

If the recommendations of the committee get acceptance then all banks would be given freedom to set their salary structure depending on their financial strength.

These proposals are being made with the motive of inducing heightened amount of professionalism in the banking industry.

India's 27 PSBs have a combined manpower strength of 7 lakh. But there is a shortage of taelnt pool in high end areas like risk management and treasury operations.

The panel is headed by Bank of Baroda's former chairman AK Khandelwal. Other members of the panel are MV Nair, CMD of Union Bank of India, Deepak B Phatak of IIT-Mumbai and TV Rao of IIM-Ahmedabad.