PSBs offer sops to bridge pay divide with private banks; new benefits include maternity leave through surrogacy
Maternity leave for women who have babies through surrogacy. Reimbursement of medical expenses without hospitalisation. Extra leave for organ donors.
These aren't part of the HR code of aSilicon Valley company -they are the new benefits for over 8 lakh employees in government-owned banks.
The perks were introduced in the backdrop of a huge pay disparity between employees of private banks and state-owned lenders.Chanda Kochhar, MD & CEO of ICICI Bank, drew an annual salary of Rs 5.85 crore in FY15, while Arundhati Bhattacharya, chairman of State Bank of India, the country's largest lender, earned about Rs 25 lakh.
According to a deal signed in February, the details of which were finalised recently, mothers who have babies through surrogacy will be entitled to six months of maternity leave and those who adopt will get a similar period as `bonding' leave. Fathers will get 15 days of paternity leave.
"As of now, women account for just 20 per cent of the total staff strength at public sector banks. But the benefits of this deal will accrue over a period of time since 50 per cent of new employees are women," said CH Venkatachalam, general secretary of the All Indian Bank Employees' Association. In addition, all expenses on child delivery, whether normal or by Caesarean section -will be borne by the bank, a benefit that's been made available for the first time.
Employees will be able to claim expenses incurred on diseases cured even without being admitted to hospital, which is a key condition of most medical insurance policies. In cases of critical illness, employees would not only be reimbursed fully but also receive an additional Rs 1 lakh to cover incidental expenses.
Employees who donate organs, say a kidney, would be entitled to take one month of paid sick leave over and above the 15 days sick permitted previously. However, employees won't be able to take leave without pay for a period of two years as against one year previously.
The banks will take insurance for employees from the four public sector insurers, with Rs 4 lakh cover for officers and Rs 3 lakh for the remaining staff.
Employees can claim medical expenses incurred not only on their parents and children but also on dependent relatives such as a divorced sister or a widowed sister's child.
The agreement covers employees of 45 banks -all government-owned lenders, some old generation private banks and select employees of foreign banks. The managements agreed to give a 15% salary raise to employees, according to the deal they signed with officers and unions.
These aren't part of the HR code of aSilicon Valley company -they are the new benefits for over 8 lakh employees in government-owned banks.
The perks were introduced in the backdrop of a huge pay disparity between employees of private banks and state-owned lenders.Chanda Kochhar, MD & CEO of ICICI Bank, drew an annual salary of Rs 5.85 crore in FY15, while Arundhati Bhattacharya, chairman of State Bank of India, the country's largest lender, earned about Rs 25 lakh.
According to a deal signed in February, the details of which were finalised recently, mothers who have babies through surrogacy will be entitled to six months of maternity leave and those who adopt will get a similar period as `bonding' leave. Fathers will get 15 days of paternity leave.
"As of now, women account for just 20 per cent of the total staff strength at public sector banks. But the benefits of this deal will accrue over a period of time since 50 per cent of new employees are women," said CH Venkatachalam, general secretary of the All Indian Bank Employees' Association. In addition, all expenses on child delivery, whether normal or by Caesarean section -will be borne by the bank, a benefit that's been made available for the first time.
Employees will be able to claim expenses incurred on diseases cured even without being admitted to hospital, which is a key condition of most medical insurance policies. In cases of critical illness, employees would not only be reimbursed fully but also receive an additional Rs 1 lakh to cover incidental expenses.
Employees who donate organs, say a kidney, would be entitled to take one month of paid sick leave over and above the 15 days sick permitted previously. However, employees won't be able to take leave without pay for a period of two years as against one year previously.
The banks will take insurance for employees from the four public sector insurers, with Rs 4 lakh cover for officers and Rs 3 lakh for the remaining staff.
Employees can claim medical expenses incurred not only on their parents and children but also on dependent relatives such as a divorced sister or a widowed sister's child.
The agreement covers employees of 45 banks -all government-owned lenders, some old generation private banks and select employees of foreign banks. The managements agreed to give a 15% salary raise to employees, according to the deal they signed with officers and unions.
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