Performance Based Pay Structure for PSU Bank Staff - March 5, 2011

The government is working on declaring performance linked incentives for public sector bank (PSU) employees.

The government is working on declaring performance linked incentives for public sector bank (PSU) employees. The scheme will be applicable on around 9 lakh public sector bank employees  and will help to pay off rewards to good performers for their contribution to the organization. This scheme was earlier discussed at the time of the last wage negotiation and is revived by an expert committee. Unions are not in favour of this variable pay scheme to be implemented, for which government is of the opinion that this can be over and above the 17.5% increase that has been agreed upon. With the scheme implemented for all banks from next financial year, banks will earmark 1% of their net profit for the payment of incentives to performing staff. Earlier for all public sector bank chiefs and EDs bonus amount was same irrespective of their performance.

Source: timesofindia.indiatimes.com, March 5, 2011. “Performance sops for PSU bank staff”

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