UFBU opposes DFS directive on PLI

United Forum of Bank Unions (UFBU) has expressed strong objection to the Department of Financial Services (DFS) directive dated March 18, 2026, advising public sector banks to implement Performance Linked Incentive (PLI) for officers in Scale IV to VIII and Deputy Managing Directors in SBI.
In a statement, UFBU termed the directive “premature and inappropriate”, noting that the issue of PLI was under active conciliation before the Chief Labour Commissioner (Central). It said the latest meeting on March 9 had recorded that the matter for FY 2024–25 was still under consideration, and any unilateral move would undermine the conciliation process.
UFBU stated that the directive violated the bipartite settlement framework, where PLI is linked to overall bank performance and paid uniformly. It alleged that the revised scheme, not demanded by employees, sought to replace the existing system with an individual performance-based mechanism for senior officers.
Highlighting financial concerns, UFBU said the new scheme proposed PLI of up to 365 days’ Basic Pay for senior officers, compared to 15 days under the current system, leading to a disproportionate increase in expenditure.
The forum warned that the move could create disparities within the workforce, affect morale, and disrupt industrial harmony. It added that such differentiation may lead to unrest and weaken collective unity in the banking sector.
UFBU urged DFS, Indian Banks’ Association and bank managements to keep implementation in abeyance and resolve the issue through established consultative and conciliation mechanisms.