The ongoing negotiations between the bank union and the Indian Banking Association (IBA) regarding the salaries of bankers were completed on Wednesday. This will increase the salary of about 8.5 lakh employees working in the country’s banks by 15 years.

IBA Chief Executive Officer Sunil Mehta said on Wednesday that the IBA is announcing the conclusion of the 11th bilateral pay agreement with the bank unions and unions on 11 November.

This agreement provides for a 15 percent increase in salary slip. This increase will come into effect from November 1, 2017 and will be valid for five years. About 37 banks, including public, private and foreign banks had authorized the IBA to negotiate with the unions on wage increases for employees.

The new salary scale will cost banks an additional Rs 7,898 crore annually. The IBA further said that for the first time, the Performance Linked Incentive (PLI) scheme is being launched to reward bankers on the basis of performance. The scheme will be effective from the current financial year.