# UFBU Meets IBA on PLI Issue; Protests Discriminatory Scheme for Scale IV and Above Officers
**Date:** 20 August 2026
**Circular No.:** 30/19/2026/52
A bipartite meeting was held on 20 August 2026 in Mumbai between the Indian Banks’ Association (IBA) and the United Forum of Bank Unions (UFBU) primarily to discuss the contentious Performance Linked Incentive (PLI) issue.
## Background of the PLI Dispute
The PLI Scheme was introduced in November 2020 under the 11th Bipartite Settlement/8th Joint Note, providing all employees and officers (from part-time to Scale VII) up to 15 days’ BP+DA based on bank performance.
In November 2024, the Department of Financial Services (DFS), Ministry of Finance, unilaterally announced a revised PLI scheme applicable only to Scale IV officers and above. This new scheme allows PLI up to 365 days of Basic Pay (12 months’ BP) based on individual performance — a starkly discriminatory departure from the uniform 15 days BP+DA formula applicable to the rest of the workforce.
UFBU strongly protested this unilateral and divisive scheme. The issue was included in the strike calls of 24–25 March 2025. Following conciliation before the Chief Labour Commissioner (CLC) and bilateral discussions, the matter remains pending with DFS. Managements have implemented PLI for 2024-25 only up to Scale III, while DFS has directed implementation of the new scheme for Scale IV and above. The issue is currently under litigation in the Delhi High Court.
## Key Points Raised by UFBU in Today’s Meeting
– Payment of PLI for 2024-25 only up to Scale III is unfair; Scale IV and above officers must also receive PLI as per the BPS/Joint Note. – Without prejudice to legal proceedings, UFBU is willing to discuss modifications to the existing scheme if DFS/IBA propose changes. – The proposed DFS scheme for Scale IV+ officers would involve enormous cost (approximately 40,000 officers, or 5% of the workforce, but payable up to annual Basic Pay).
– The scheme is highly discriminatory, deviates from the principle of uniform incentive, and risks creating division and disharmony among senior officers instead of motivation.
– UFBU requested IBA to take up the matter with CLC and DFS to arrive at an amicable, mutually acceptable formula.
IBA agreed to follow up the issue with CLC/DFS.
## Other Issues Discussed
– **5 Days Banking**: Continued government delay may force UFBU to launch further agitational programmes and strike actions.
– **Armed Guards**: Urgent recruitment of adequate armed guards in branches due to rising attacks on banking staff and managers. – **Uniform DA Formula** for all pensioners.
– **Group Medical Insurance Policy 2026-27**: Enhanced room rent (₹7,000) and ICU charges (₹9,500) will also apply to Hyderabad and Bengaluru.
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## Full Original Circular Text
**ALL INDIA BANK EMPLOYEES’ ASSOCIATION**
Central Office: “PRABHAT NIVAS” Regn. No.2037
Singapore Plaza, 164, Linghi Chetty Street, Chennai-600001
Phone: 2535 1522 Web: www.aibea.in
e mail ~ chv.aibea@gmail.com & aibeahq@gmail.com M 98400 89920
**CIRCULAR No. 30/19/2026/52** 20-8-2026
To Office Bearers, State Federations and All India Bankwise
Federations, All unions
Dear Comrades,
**BIPARTITE MEETING WITH IBA**
**UFBU CIRCULAR NO. 16**: A round of Bipartite meeting was held today between IBA and UFBU at Mumbai. Representing UFBU, Com. C H
Venkatachalam and Com. B. S. Rambabu (AIBEA), Com. Rupam Roy and Com. R Sekaran (AIBOC), Com. L Chandrasekhar and Com. R Balaji (NCBE), Com. Sanjay Kumar Khan (AIBOA), Com. Debasish Basu Chowdhary (BEFI), Com. Prem Makker (INBOC) and Com. O. P. Sharma (INBEF) participated in the meeting.
From IBA, Shri. A.K. Goel, Chief Executive, Shri. Gopal Murli Bhagat, Dy. Chief Executive, Shri Arvind Misra, Sr. Advisor-HR&IR, Shri. S. Sankararaman, Advisor-HR&IR participated in the discussions.
The meeting was primarily for discussing the issue of PLI. Unions are aware that Performance Linked Incentive (PLI) Scheme was introduced in November, 2020 from the Financial Year 2020-21 as part of the 11th BPS/8th Joint Note under which all employees and officers from part time employee to Scale VII officers are eligible to be paid PLI Incentive upto a maximum of 15 days BP+DA based on the performance of the Bank.
In November, 2024, the Department of Financial Services, Ministry of Finance, Government of India unilaterally announced a revised Scheme on PLI applicable for Scale IV Officers and above. This unilateral and discriminatory Scheme envisaged PLI based on individual performance of these officers upto 365 days Basic Pay as against 15 days BP+DA for others.
Hence UFBU protested against this nakedly discriminative scheme. Hence this issue became an important issue in our call for Strike on 24th and 25th March, 2025. Since the IBA and DFS came forward to discuss and resolve our demands, we had deferred our strike. Since then, this issue has been seized into conciliation before the Chief Labour Commissioner. Since the issue was under conciliation before the CLC, obligations under Sec. 33 of the Industrial Disputes Act to maintain status quo was made applicable on Banks/IBA. Hence managements were required to maintain status quo and not to proceed further in the matter of PLI scheme.
In the meantime, as per the advice of CLC, IBA and our Unions bilaterally discussed the issue and our suggestions to modify the PLI scheme has been duly sent to DFS. The issue is still pending with the DFS.
However, managements implemented PLI payments for 2024-25 only for employees and officers upto Scale III. In March, 2026, DFS advised the Banks to implement their unilateral scheme for officers from scale IV and above. Hence the issue was litigated before the High Court of Delhi and its decision is still awaited.
In this background, the IBA had invited us for a bilateral meeting to find some amicable solution to resolve the PLI issue.
In today’s meeting, we have pointed out that payment of PLI for 2024-25 only for employees and officers upto scale III is unfair and improper and Scale IV and above officers should also be paid PLI as per BPS/Joint Note. Without prejudice to our standpoints and contentions before the Delhi High Court and the CLC, we further pointed out that if DFS and IBA/bank managements want to modify the existing PLI scheme, we are ready to discuss the issue and find amicable solutions. But we informed them that DFS has not responded to our earlier suggestions nor IBA has proposed any further modifications in the scheme.
We also pointed out that the proposed DFS scheme meant for Scale IV officers and above would entail a huge cost as PLI is payable upto Annual Basic Pay (monthly Basic Pay x 12). We are aware that out of about 8 lacs of employees and officers of public sector banks, the number of Scale IV officers and above would be only around 40,000 i.e. 5% of the total workforce and would involve a very huge cost.
We pointed out that hence the DFS scheme is highly discriminatory besides deviating from the basic formula of uniform incentive to PLI based on individual performance which would result in division and disharmony amongst the senior officers and Executives instead of motivation and incentivisation.
We requested the IBA to accordingly take up the issue with the CLC and DFS to find out an amicable and mutually acceptable formula and scheme and avoid further precipitation.
IBA heard our views patiently and agreed to suitably follow up the matter with CLC/DFS.
**Other issues:** The following issues were also taken up during the meeting today.
a. We pointed out that the continued neglect of the Government and delay in approving the introduction of 5 days banking would result in UFBU deciding further agitational programmes and strike actions.
b. In view of the increasing instances of attacks on banking staff and Managers in the branches by unruly customers, adequate number of Armed Guards should be recruited in the Banks on an urgent basis.
c. Uniform DA formula for all pensioners.
d. Group Medical Insurance Policy for 2026-27: It has been agreed that enhanced room rent charges at Rs. 7000 and ICU charges at Rs. 9500 will also apply to Hyderabad and Bengaluru.
With greetings,
Yours Comradely,
C.H. VENKATACHALAM
GENERAL SECRETARY
*Source: Official AIBEA Circular No. 30/19/2026/52 dated 20 August 2026 (UFBU Circular No. 16).*
*Original PDF archived for reference.*
2026-08-20_AIBEA_Cir_30_19_2026_52_Bipartite_Meeting_PLI_IBA.pdf