Finance Ministry Rejects Five-Day Work Week Claims as Bank Unions Prepare for Nationwide Strike

The dispute over the five-day work week stems from the 12th Bipartite Settlement and 9th Joint Note. The Indian Banks' Association (IBA) and bank unions signed this agreement on March 8, 2024. Bank unions maintain the agreement included a transition to a five-day work week. The Finance Ministry formally denied this commitment.

These negotiations previously resolved other issues, such as revisions to family pensions and pension options for employees who resigned. The United Forum of Bank Unions (UFBU) represents approximately 90% of the banking workforce. The group states the five-day work week proposal requires increasing daily working hours by 40 minutes from Monday through Friday. The impasse resulted in a planned three-day strike.

1. The government directed public sector banks to remain open on September 27, 2026. This order ensures customer access before the planned work stoppage.

2. The Finance Ministry addressed union concerns regarding family pensions. It also updated pension options for employees who resigned. The Times of India reported that these resolutions occurred during earlier negotiations.

3. The central government authorized early payment of salaries and pensions for employees for September 2026. The Controller General of Accounts ordered this disbursement on September 25, 2026. This action occurred before the scheduled strike dates.

4. The Controller General of Accounts ordered early disbursement of September 2026 salaries and pensions for central government employees on September 25, 2026. This payment occurred before the scheduled strike dates.

1. The United Forum of Bank Unions (UFBU) asserts that the Indian Banks' Association agreed to a five-day work week. This agreement was part of the 12th Bipartite Settlement and 9th Joint Note signed on March 8, 2024. Union leaders describe the current denial as a departure from that established agreement.

2. The United Forum of Bank Unions (UFBU) proposed a five-day work week. Union leaders describe this plan as balanced. The proposal adds 40 minutes to each daily shift from Monday through Friday.

3. The United Forum of Bank Unions (UFBU) represents 90% of the banking workforce. The group identified several unresolved demands. They seek updated pensions and a uniform dearness allowance formula for all pensioners.

4. Unions want National Pension System (NPS) members to have the option to switch to the Old Pension Scheme (OPS). They also demand the withdrawal of the Performance Linked Incentive (PLI) scheme. The government currently has the PLI program in suspension.