Photo: Collected
City Bank has announced a salary restructuring initiative to align with market standards and ensure employee wellbeing amidst rising inflation. The Board of Directors has approved an annual salary increment of Tk162 crore for 2024, which will culminate in a total increase of Tk300 crore by the end of 2025, including PMP adjustments and bonuses.
This move will increase the bank's total salary expenditure to Tk1,210 crore annually by next year, according to the bank's estimate. The decision follows an in-depth salary survey conducted by Cerebrus Consultants Ltd., comparing City Bank's compensation packages with those of BRAC Bank, EBL, MTBL, Prime Bank, and Dhaka Bank.
The restructuring has been designed to bring salaries closer to market averages while prioritising fairness. Employees whose current salaries are significantly below market standards will receive higher percentage increases, while those closer to market averages will receive comparatively smaller increments.
Key highlights of the restructuring include:
AO to SEO Grades: Increment ranges from 10% to 50%, averaging 28%.
AVP to SVP Grades: Adjustments are performance-based:
AVP to VP: 5% to 35%, averaging 18%.
FVP to SVP: 3% to 25%, averaging 13%.
Minimum Increments: A minimum increase of Tk 10,000 for all employees, regardless of current salary position. Support and Outsourced Staff: Support staff will receive a 10% increase or Tk5,000, whichever is higher. Outsourced staff will also get Tk5,000 monthly increments.
The new salary structure will take effect on 1 November 2024, with employees receiving the updated amounts in their December payroll, including arrears for November.
"Our employees are the backbone of City Bank," said Aziz Al Kaiser, chairman of City Bank. "By aligning compensation with market standards, we aim to create a workplace where everyone thrives," he stated.
City Bank's MD and CEO Mashrur Arefin noted, "We believe that a happy and motivated workforce will lead to happier customers and, ultimately, better outcomes for our shareholders."
This bold move demonstrates City Bank's vision to foster a sustainable, employee-centric environment, strengthening its position as a leading employer in the banking sector.
Messenger/JRTarek
