City Bank announces major salary restructuring to support employees amid inflation

City Bank has announced a salary restructuring initiative to align with market standards and ensure employee welfare amid rising inflation.

The board approved an annual salary increase of Tk 162 crore for 2024, which will result in a total increase of Tk 300 crore by the end of 2025, including PMP adjustments and bonuses.

The move will take the bank’s total salary expenditure to Tk 1,210 crore per annum 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 was designed to bring salaries closer to market averages while prioritizing equity. Employees whose current salaries are significantly below market standards will receive higher percentage increases, while those who are closer to market averages will receive comparatively smaller increases.

Highlights of the restructuring include:

• AO to SEO Notes: Increment ranges from 10% to 50%, with an average of 28%.
• AVP to SVP grades: adjustments are based on performance:
• AVP to VP: 5% to 35%, an average of 18%.
• FVP to SVP: 3% to 25%, an average of 13%.
• Minimum increments: A minimum increment of Tk 10,000 for all employees, irrespective of their current salary position.
• Support and outsourced staff: Support staff will receive an increase of 10% or Tk 5,000, whichever is higher. Outsourced staff will also get monthly increments of Tk 5,000.
• The new salary structure will come into effect on November 1, 2024, with employees receiving the updated amounts on their December pay, including November arrears.

“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 said.

Mashrur Arefin, Managing Director and CEO of City Bank, said: “We believe that a happy and motivated workforce will lead to happier customers and ultimately better results for our shareholders. »

This bold move demonstrates City Bank’s vision to foster a sustainable and employee-centric environment, thereby strengthening its position as a leading employer in the banking sector.