PERFORMANCE-LINKED PAY FOR PSBs FROM NEXT YEAR

The salary packages of employees of Public Sector Banks could have a performance-linked variable component from the next financial year.

A senior finance ministry official said"We are trying to take the unions along with us on Performance Variable Pay, but if the current employees are not willing to accept a variable pay of 25-30% of salary, they will have to accept performance variable pay as part of the next hike". The Govt. is certain to include a variable component in the salaries of new recruits very soon.

The Finance Ministry has appointed a Panel headed by Mr. A.K. Khandelwal, former Chairman, Bank of Baroda, Mr. M.V. Nair, Chairman, Union Bank of India, Mr. T.V. Rao, IIM-Ahmedabad and Mr. Deepak Pathak-IIT-Bombay, to look at ways to professionalise the human resources practices at Public Sector Banks. The Committee would be submitting its report by March 31.

Source: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/Performance-linked-pay-for-PSBs-from-next-year/articleshow/5308991.cms