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.

“The concerns expressed by bank employees were taken cognisance of, and in response to the representation received on the PLI structure, it was decided to keep in abeyance the implementation of the PLI Scheme dated 19.11.2024 for FY 2025-26 and take up the same during the ongoing Bipartite Settlement/Joint Note discussions,” it added.

The bank employees had opposed the PLI scheme as, according to them, the formula heavily favoured senior executives, who would be eligible to 365 days of basic pay, while limiting workmen and officers up to Scale III to a maximum of 15 days of basic pay plus DA.

“The Government is committed to resolve issues through dialogue, consultation and mutual understanding in the larger interest of bank employees, customers and the banking sector,” the release said.

The UFBU has not as yet called off its strike.