By Special Correspondent
New Delhi: The United Forum of Bank Unions (UFBU) has strongly objected to the recent directive issued by the Department of Financial Services (DFS), Ministry of Finance, mandating public sector banks to implement Performance Linked Incentive (PLI) for officers in Scale IV and above.
In a press release dated March 19, 2026, UFBU stated that the directive, issued on March 18, is premature as the matter remains under active conciliation before the Office of the Chief Labour Commissioner (Central). The latest meeting on March 9 had recorded that discussions on PLI for senior officers were ongoing, with further steps to be taken through established consultative mechanisms.
The union argued that the unilateral move undermines the bipartite industrial relations framework that has guided the banking sector for decades. It also disregards existing agreements where incentives are linked uniformly to overall bank performance.
UFBU further contended that the revised scheme, which introduces individual performance-based incentives for senior officers, could create divisions within the workforce and weaken collective unity.
Raising financial concerns, the forum noted that while current incentives are capped at 15 days’ basic pay plus dearness allowance, the new scheme allows up to 365 days’ basic pay, significantly increasing expenditure.
UFBU has demanded that the directive be kept in abeyance until the issue is resolved through dialogue.
