City Bank has announced a major salary restructuring initiative aimed at supporting its employees amid rising inflation and ensuring their overall wellbeing. The bank’s Board of Directors has approved a Tk162 crore salary increment for 2024, with plans for this to reach a total of Tk300 crore by the end of 2025, factoring in performance-based adjustments and bonuses.
As a result of this initiative, City Bank’s total annual salary expenditure will rise to Tk1,210 crore by next year, according to the bank’s estimates. This move follows a comprehensive salary survey conducted by Cerebrus Consultants Ltd., which compared City Bank’s compensation packages with those of major banks, including BRAC Bank, EBL, MTBL, Prime Bank, and Dhaka Bank.
The goal of the restructuring is to bring employee salaries in line with market standards while promoting fairness across the organization. For employees whose current compensation is well below the market average, the salary increase will be more significant, while those whose pay is closer to the industry benchmark will see more modest raises.
Some of the key highlights of the salary restructuring are:
- AO to SEO Grades: Salary increments range from 10% to 50%, with an average increase of 28%.
- AVP to SVP Grades: Adjustments are performance-based:
- AVP to VP: Increases range from 5% to 35%, with an average of 18%.
- FVP to SVP: Increases range from 3% to 25%, with an average of 13%.
- Minimum Increments: Every employee will receive a minimum increase of Tk 10,000, regardless of their current salary level.
- Support and Outsourced Staff: Support staff will receive either a 10% raise or Tk5,000, whichever is higher, while outsourced staff will receive a Tk5,000 monthly increase.
The new salary structure will come into effect on November 1, 2024, with employees seeing the updated amounts reflected in their December payroll, including arrears for November.
Aziz Al Kaiser, Chairman of City Bank, commented, “Our employees are the backbone of City Bank. By aligning our compensation with market standards, we are creating an environment where everyone can thrive and succeed.”
Mashrur Arefin, MD and CEO of City Bank, added, “We believe that a motivated and satisfied workforce leads to better customer experiences and, ultimately, stronger performance for our shareholders.”
With this move, City Bank continues to demonstrate its commitment to building a sustainable, employee-focused culture, reinforcing its position as a leading employer in the banking sector.
