Despite the government advisory, IDBI Bank has switched over to a variable pay structure for its officers. They are now eligible for a fixed portion of 70% in their salary. With this, it has become the first public sector bank to opt for this structure as other banks have given up on this plan due to opposition from employee unions.
This step has surprised the IDBI Bank managers, who observed the change in their January salary. The bank has also hiked the salaries by about 20%, as per 3 bank executives. Though IDBI Bank Executive Director (HR), Pramod Joshi acknowledged the change, he failed to answer the e-mailed questionnaire.
Most executives were surprised by this move as there is no system available to judge their performance. Moreover last May, the government had written to IDBI Bank not to go ahead with its plans to move over to the variable pay and better service conditions, stating the proposals need a closer examination. Bank employees had got a stay after intervening by labour commissioner. Subsequently the bank put its plans on hold.
This scheme is believed to come into retrospective effect and the bank has said it would pay the arrears over the subsequent few days.
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