20 banks decide to implement a new compensation structure in April
Twenty-two private banks have decided to implement the minimum wage structure set by Bangladesh Bank for their managers and employees this month.
Central bank sources said most of the 52 private banks are expected to implement the structure in April.
As of Tuesday, April 12, 20 banks have informed the central bank that they will pay salary and allowance to their employees under the new structure starting 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 Bank with limited liability and mutual. Five other banks also informed the central bank of their progress in implementing the new structure this month, but their names were not immediately available.
The central bank, in separate letters recently, asked the chief executives of the 52 banks to report on their progress in implementing the new compensation structure by April 12.
An official from the central bank’s relevant department said banks must comply with the central bank’s directive on the new salary.
Already 20 banks have declared that they have decided to implement it. Other banks are about to be implemented. However, most banks will implement it by April.
Selim RF Hussain, Managing Director 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 per the guidelines of the central bank,” added Selim RF Hussain, also chairman of the Bangladesh Bankers Association (BBA).
Tarique Afzal, Managing Director of AB Bank, told TBS that AB Bank will implement the new salary and allowances in April as the increase in workers’ salaries and allowances will increase the gross domestic product of the country.
“We will eliminate inconsistency from one position to another. Such inconsistency creates frustration among employees,” he added.
Speaking to The Business Standard, Managing Director and CEO of Mutual Trust Bank, Syed Mahbubur Rahman said: “We have already implemented the new central bank salary structure. to managers and employees on the occasion of Eid. according to the new salary structure.”
Bangladesh Bank had previously requested private banks to implement the newly introduced salary structure for bank staff from April 1 this year.
However, 4th generation banks licensed in 2013 and scheduled banks licensed after 2013, including Bangladesh Commerce Bank and ICB Islamic Bank, have been 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 Tk 39,000 and new treasury officers Tk 36,000 as a basis. Other benefits and allowances will be added to the base salary by the scheduled banks.
According to the notification, the minimum monthly salary for trainee general officers will be Tk 28,000 and for cash officers Tk 26,000.
From April 1 to April 2023, generalist and cash trainees of fourth generation banks, Commerce Bank and ICB Islamic Bank will receive 50% of the difference between their current remuneration and the new salary scale.
Bank office assistants such as security guards, cleaners and messengers will receive Tk 24,000, Tk 21,000 and Tk 18,000 respectively as minimum wages in division towns, district branches and upazilas.
Earlier, the Bangladesh Bank set a minimum wage for private bank managers and said bankers could not be fired at random if they failed to meet the target set by their employers or on the pretext of incompetence.