A big controversy has unfolded in the public sector banks in India. Yesterday, the Government of India sent letters to the banks to credit PLI to Scale IV and above officers. This new PLI scheme was introduced by the Government in 2024 and aims to provide Performance-Linked Incentive (PLI) to Scale IV and above officers.
But this scheme has been in controversy since its launch. Why? Let’s understand. This PLI scheme divides bank officers in two sections – Scale I to Scale III and Scale IV and above. Scale I to Scale III will get PLI of up to 15 days of the basic salary, whereas Scale IV will get PLI upto 70% of their annual basic pay. Scale V and VI officers can get 80% of their annual basic pay. Scale VII officers can get 90% of their annual basic pay. EDs and MDs can get PLI up to 100% of their annual basic pay.
The United Forum of Bank Unions (UFBU) has strictly opposed this PLI scheme. The matter reached the Office of Labour Commissioner. UFBU said that PLI should be paid proportionately to all Officers starting from Scale I. The latest meeting was held on 9th March 2026 between UFBU and the government representatives and it was decided to discuss further on this matter.
The unions warned that if the payment for officers from Scale IV and above is made under the new scheme, it could lead to significant cost escalation for banks, which may affect the banks’ profits and create other related issues.
The Chief Labour Commissioner (CLC) ordered IBA to provide details of the financial impact on Banks due to new PLI scheme. The CLC said that a letter would be written to DFS to pay PLI to Scale IV and above as per the old scheme. But yesterday, Govt ordered all Banks to credit PLI for Scale IV and above officers.
This has raised a lot of questions?
- If the matter was under discussion, then how can Govt order Banks to credit PLI for Scale IV and above?
- In the meeting, the DFS said clearly that PLI to Scale IV and above will be paid as per the new norms. Bank Unions did not mention any strict action against DFS if PLI is paid.
- Earlier, the banks had credited the PLI for Scale I to Scale III, but Unions did not strongly object to this, and the matter has been pending at CLC for approximately a year. Had Unions taken strong action, the matter could have been resolved by now.
- Why has the matter been under discussion for the last 1 year? This matter should have been resolved by now. Why did Bank Unions not try to resolve the matter at the earliest?
It seems Bank Unions are hiding something and Bank Officers are not happy with this. Bank Officers are severely criticizing Bank Unions on Social Media for not being able to resolve the issue of PLI.
