Bank employees to get up to 12% salary hikes

by NG MIN SHEN/ graphic by TMR

SOME 20,000 clerical and non-clerical bank employees will receive salary hikes of up to 12%, alongside enhanced benefits and allowances including 0% interest housing loans, under the new collective agreement (CA).

The new CA for the period of Jan 1, 2018, to Dec 31, 2020, was signed by the Malayan Commercial Banks’ Association (MCBA) and the National Union of Bank Employees (NUBE) yesterday.

The MCBA was represented by its president Nora Abd Manaf and ED Lam Yoo Yuen, while NUBE was represented by its president Tan Eng Hong and general secretary J Solomon.

“We believe that this renewed CA will motivate employees of member banks to strive their best to further boost productivity at their respective workplaces,” Nora said at the signing ceremony in Kuala Lumpur.

She added that the total remuneration package offered under the new CA, combined with the career and learning opportunities offered by lenders, will ensure the banking sector remains the most sought-after industry in attracting and retaining best talents.

Meanwhile, Solomon said the CA was concluded harmoniously, with participation and mutual respect from both the banks’ and the union’s negotiation teams.

Under the new CA, the 20-member banks of MCBA will grant a salary adjustment of 10% to 12% to all clerical and non-clerical employees respectively, subject to the maximum salary in their respective salary ranges.

Close to 20,000 employees employed by the banks will benefit from this adjustment, which is backdated from Jan 1 last year.

The starting salary for the different employee groups covered by the CA will also increase by 12% to 16%, with their maximum salary raised by 16%.

Banks in turn will adjust the existing monthly cost-of-living allowance payable from the current rate of RM400 to RM600, effective from Jan 1, 2019.

All member banks have also agreed to grant staff housing loans with 0% interest rates for the first RM100,000 effective April 1, 2019, for the employee groups that fall under the CA.

The 0% interest rate also applies to employees who have existing staff housing loans.