Reported by Financial Express, both public and private Indian bank employees may soon enjoy a 5-day work week. This move is part of a larger agreement between the Indian Banks’ Association (IBA) and bank unions, which provided a 17% salary hike for employees in December 2023.
One of the primary demands of the unions during negotiations was a five-day work week, which mirrors the current schedule of government offices, the Reserve Bank of India, and the Life Insurance Corporation of India. After approval by the IBA and unions in November, the proposal was sent to the Finance Ministry for consideration.
According to reports, the government is supportive of the idea but was waiting for the “opportune time” to announce the change. The current context appears to be that opportune time, with the model code of conduct for the upcoming Lok Sabha elections looming.
Currently, public and private sector banks operate on a six-day schedule, with the first and third Saturdays designated as working days. If the proposal is approved, all Saturdays will be considered official holidays under Section 25 of the Negotiable Instruments Act.
This change will affect approximately 1.54 million employees across various categories, including public and private sector banks, payment banks, and small finance banks. Additionally, it will impact around 95,000 employees working in Regional Rural Banks.
The potential implementation of a 5-day work week marks a significant shift for the banking sector and represents a successful negotiation between unions and the government. This move not only improves work-life balance for employees but could also potentially enhance efficiency and productivity within the banking system.
