The Union Ministry of Finance met with representatives of bank employees from across India’s public sector banks on 7 September 2026. The delegation, led by the Bharatiya Mazdoor Sangh, brought concerns about multiple workplace matters affecting their members. Following this meeting, the government decided to pause a key incentive scheme that was set to take effect.
What was decided
The Performance Linked Incentives (PLI) Scheme for executives working in public sector banks was scheduled to begin in the financial year 2025-26 under rules announced on 19 November 2024. However, after hearing employee concerns about how the scheme was structured, the Ministry of Finance chose to suspend its rollout temporarily. The scheme will now be revisited during ongoing salary and benefits discussions between the government and bank unions.
Beyond the PLI decision, the employee delegation raised several other matters for government attention:
- Review of ex-gratia payments to bank staff
- Improvements to medical benefits for retired employees
- Concerns specific to the PLI scheme design
- Other employee-related issues in the banking sector
The Finance Ministry stated it would continue addressing these points through formal dialogue channels and mutual consultation with worker representatives and bank management.
What this means for you
If you work as an executive in a public sector bank, the variable incentive payment structure you were expecting to receive from April 2025 will not start yet. Instead of immediate implementation of the PLI scheme, your bank and the government will use this period to reconsider its terms based on worker feedback. Retired bank employees seeking better medical coverage and ex-gratia adjustments can expect the government to examine these matters during formal settlement talks. The delay gives space for bank unions to negotiate modifications before the scheme eventually launches, though no new timeline has been announced.