City Bank approves salary increment of Tk162 crore for 2024 to support employees amid inflation
City Bank has announced a salary restructuring initiative to align with market standards and ensure employee well-being amidst rising inflation.
Its 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, according to City Bank sources.
"Our employees are the backbone of City Bank. By aligning compensation with market standards, we aim to create a workplace where everyone thrives," Aziz Al Kaiser, chairman of City Bank, told TBS.
The move will increase the bank's total salary expenditure to Tk1,210 crore annually by next year, according to the bank's estimate.
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The initiative follows an in-depth salary survey conducted by Cerebrus Consultants Ltd, comparing City Bank's compensation packages with those of peer banks.
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, said the sources.
From assistant officer to senior executive vice president levels, the salary increments range from 10% to 50%, with an average increase of around 23%.
Regardless of current salary levels, a minimum increment of Tk10,000 has been ensured for all employees, while the maximum increase in some cases has reached Tk60,000.
All support staff, outsourced staff, contractual employees, and management trainees are also receiving these raises.
The new salary structure will take effect from 1 November 2024, with employees receiving the updated amounts in their December payroll, including arrears for November.
City Bank MD and CEO Mashrur Arefin said, "The bank's profit has increased manifold during my six-year tenure as CEO. Operating profit, which stood at Tk699 crore, is now even surpassing the Tk2,000-crore mark this year. It is our moral obligation to ensure our staff can lead comfortable lives with their families during these challenging times."
