KUALA LUMPUR: The Malayan Commercial Banks Association (MCBA) and the Association of Bank Officers Peninsular Malaysia (ABOM) have signed a new collective agreement that will greatly benefit bank officers across Peninsular Malaysia.

Under this agreement, ABOM members will receive a nine per cent salary increase, effective Jan 1.

The 15th CA, which covers the period from 2024 to 2026, will impact approximately 3,500 bank officers working in 10 commercial banks across Peninsular Malaysia.

Apart from the salary increase, the agreement also introduced several additional benefits, including an annual festival allowance and a monthly digital allowance.

MCBA president Datuk Dr Nora Abd Manaf said that the agreement marks the beginning of a new era in cooperation between the two parties after eight months of smooth negotiations.

"ABOM played an important and responsible role in this industry relationship, and the success of this agreement demonstrates the strong cooperation between us," she said in a statement.

The signing of the agreement was attended by Nora and MCBA executive director Looi Heong Meng, while ABOM was represented by its president Suhairun Mohd Nawir and secretary-general Ng Choo Seong.

According to Suhairun, the spirit of cooperation, reciprocity and compromise demonstrated throughout the meeting with MCBA was the key factor in the swift resolution of the agreement.

"We greatly appreciate the amicable approach taken by MCBA in reaching this agreement," he said.

Among the benefits of the new collective agreement is a nine per cent salary adjustment, which will result in an additional annual cost of RM32 million for the banks involved.

The bank officers would also receive an annual increase of approximately five percent each year.

Additionally, for the first time, bank officers will receive an annual festival allowance of RM1,800, reflecting recognition of the diverse cultural backgrounds of employees.

The collective agreement also introduced a monthly digital allowance of RM90 to help cover mobile data costs, aligning with the needs of today's digital world.

The agreement also provides additional increments for officers who have reached their maximum salary, as a token of appreciation for their service and experience.

Additionally, the rural housing allowance has been increased by up to 43 per cent. The monthly allowance for single workers would increase from RM700 to RM900, while for married workers, from RM800 to RM1,100.

The annual medical benefit limit for families saw an increase of 27 per cent, from RM3,300 to RM4,200 per year.

Various other benefits enjoyed by ABOM members were also maintained and enhanced under the new collective agreement.

https://www.nst.com.my/news/nation/2024/09/1100854/bank-officers-peninsular-malaysia-receive-nine-cent-salary-increase