PSU banks roll out performance-linked incentives to employees
With a view to inculcate a sense of competition and to reward the performance, the concept of Performance Linked Incentive (PLI) scheme was introduced
PSU bank employees are in for a small bonanza as a part of their performance linked incentives.
According to a Times of India report, soon after announcing its Q4FY21 results, Canara Bank paid 15 days’ salary as a performance-linked incentive to its employees. Bank of Maharashtra, which reported Rs 165 crore profit, up 187% year-on-year, for the quarter ended March 31, 2021, also paid performance-linked incentive to its employees, the report added.
Country’s largest lender, State Bank of India, will announce its quarterly results today.
Wage agreement Indian Banks’ Association (IBA) in November 2020 had signed the 11th bipartite wage agreement with representative of bank employees paving the way for a 15% wage hike. With a view to inculcate a sense of competition and to reward the performance, the concept of Performance Linked Incentive (PLI) scheme was introduced, as a part of the agreement. The PLI scheme in public sector banks will be based on operating profit/net profit of the individual bank.
The calculation The PLI is only payable if the bank reports a net profit. If the net profit growth is less than 5%, employees still won’t be eligible for a PLI. If the growth is 5-10%, 5% incentive is paid out and if the growth is 10-15%, employees will get 10% incentive. If the net profit growth is more than 15%, PLI will be 15%.
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