20 banks decide to implement new pay structure in April

Twenty two private banks have decided to implement the minimum wage structure fixed by the Bangladesh Bank for their officers and employees this month.

Sources in the central bank said most of the 52 private banks are expected to implement the structure in April.

As of Tuesday, 12 April, 20 banks have informed the central bank that they will pay out the salary and allowance to their employees according to the new structure from this month.

The banks are Dutch-Bangla, City Bank, Southeast Bank, Brac Bank, AB Bank, Prime Bank, Bangladesh Commerce Bank, Al-Arafah Islami Bank, Islami Bank, SIBL, Union Bank, First Security Islami Bank, EXIM Bank, Eastern Bank Limited and Mutual Trust Bank. Five other banks have also told the central bank about their progress in implementing the new structure this month but their names were not available immediately.

The central bank, in separate letters recently, asked the chief executive officers of the 52 banks to provide it with their progress in implementing the new pay structure by 12 April.

An official of the department concerned with the central bank said the banks have to abide by the central bank directive regarding the new salary.

Already 20 banks have said they have decided to implement. Some more banks are on the way to implementation. However, most of the banks will implement it by April.

Selim RF Hussain, chief executive officer of Brac Bank, told The Business Standard, "Brac Bank has already informed the central bank that the new salary-allowance will be implemented from April."

"All banks will implement it as directed by the central bank," added Selim RF Hussain, also chairman of the Association of Bankers, Bangladesh (ABB).

Tarique Afzal, managing director of AB Bank, told TBS AB Bank will implement the new salary and allowance in April because the increase in the salaries and allowances of the workers will increase the country's gross domestic product.

"We will eliminate the inconsistency from one position to another. Such inconsistency creates frustration among employees," he added.

Speaking to The Business Standard, Mutual Trust Bank Managing Director and CEO Syed Mahbubur Rahman said: "We have already implemented the new salary structure of the central bank. Besides, the bonus has also been given to the officers and employees on the occasion of Eid according to the new salary structure."

The Bangladesh Bank had earlier instructed private banks to implement the newly introduced salary structure for bank staff from 1 April this year.

However, the 4th generation banks licensed in 2013 and scheduled banks licensed after 2013 including Bangladesh Commerce Bank and ICB Islamic Bank were asked to pay current staff allowances from April next year.

According to the circular, banks will have to pay newly appointed general officers a minimum of Tk39,000 and new cash officers Tk36,000 as basics. Other benefits and allowances will add up to the basic pay by the scheduled banks.

According to the notification, the minimum monthly wage for trainee general officers will be Tk28,000 and for cash officers Tk26,000.

From 1 April to April 2023, general and cash trainees of the fourth-generation banks, Commerce Bank and ICB Islamic Bank will be receiving 50% of the gap between their current pay and the new salary scale.

Bank office assistants such as security guards, cleaners, and messengers will get Tk24,000, Tk21,000 and Tk18,000 as the minimum wage at divisional cities, district branches and upazilas, respectively.

Earlier, the Bangladesh Bank had fixed a minimum wage for private bank officials and stated bankers cannot be fired randomly if they do not achieve the target set by their employers, or on the excuse of incompetence.