Government Keeps PSB Employee PLI Scheme on Hold For 2025-26 Amid Union Concerns

As per a PTI news report, the government has decided to keep the performance-linked incentive (PLI) scheme for public sector bank (PSB) employees for 2025-26 in abeyance. The decision was taken after bank employees sought changes to the existing structure. 

The PLI scheme, dated November 19, 2024, will now be discussed as part of the ongoing bipartite settlement and joint note discussions between the government and bank employee representatives. 

Representation By Bank Employees 

As per the report, Finance Minister Nirmala Sitharaman met a delegation of employees from different PSBs, led by the Bharatiya Mazdoor Sangh (BMS). The delegation raised several issues related to employees and the banking sector. 

The demands included a review of ex-gratia payments, medical facilities for retired employees, and changes to the PLI structure currently applicable to PSB employees. 

The finance ministry said the government took note of the concerns raised during the meeting before deciding to keep implementation of the scheme in abeyance for 2025-26. 

Unions Raise Concerns Over PLI 

Bank unions have objected to the PLI structure for officers in Scale IV and above. They have said it differs from the understanding reached with the Indian Banks’ Association (IBA). 

According to the unions, PLI was to be linked to the overall performance of individual banks. They have also maintained that the incentive should have a uniform structure for employees and officers up to Scale VII. 

Under the government’s scheme, officers in Scale IV and above can receive PLI of up to 365 days of basic pay, based on individual performance. 

For workmen employees and officers up to Scale III, the maximum PLI is 15 days of basic pay plus dearness allowance. 

Strike Planned on September 11, 2026 

The decision comes ahead of a nationwide bank strike called by the United Forum of Bank Unions (UFBU), excluding BMS affiliates. The strike is scheduled for September 11, 2026. 

The unions have listed the delay in five-day banking, differences over the PLI scheme, and pending pension-related demands among the issues behind the strike. 

Read More: Government Reduces Rural LPG Refill Booking Gap From 45 Days To 25 Days! 

Conclusion 

The PLI scheme for 2025-26 has been kept in abeyance. The government will discuss the matter during the ongoing bipartite settlement and joint note discussions. 

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