Centre advances September salaries, pensions to September 25 ahead of three-day bank strike

The Centre has decided to advance the payment of September salaries, wages and pensions for central government employees and pensioners to September 25 in view of a proposed three-day nationwide bank strike beginning September 28.

The decision will cover employees of all central government offices, including Defence, Posts and Telecommunications, as well as industrial employees and central government pensioners, according to an office memorandum issued by the Controller General of Accounts under the Finance Ministry.

The United Forum of Bank Unions (UFBU), which represents a large majority of employees and officers in the banking sector, has called the strike from September 28 to 30 over a charter of demands that includes the introduction of a five-day banking week. The timing is particularly significant as the strike would run into September 30, the half-yearly closing date for banks.

Payments brought forward

“In view of a three-day nationwide bank strike proposed from September 28-30, 2026... the Government has decided that the salary/wages/pensions of all Central Government Employees for the month of September 2026 may be drawn and disbursed by the Central Government offices (including Defence, Posts & Telecommunications) on September 25, 2026 (Friday),” the memorandum said.

The September wages of industrial employees of the central government may similarly be released on September 25. Banks and Pay and Accounts Offices have also been permitted to disburse September pensions to central government pensioners on the same date.

The Finance Ministry clarified that the early disbursements would technically be treated as advance payments since the month would not have ended when the money is released.

Once the full salary, wages or pension payable for September is determined, the advance will be adjusted accordingly. Any adjustment required will be made “without exception” from the salary or wages payable for October, the memorandum said.

The move is intended to ensure that employees and pensioners do not face delays if normal banking operations are affected during the proposed strike.

End-month transactions may be advanced

The government has also asked ministries and departments to consider processing payments and other banking transactions scheduled towards the end of September in advance wherever feasible.

With the proposed strike covering the closing days of the month and quarter, the Finance Ministry said such steps could help avoid delays and disruption. Ministries and departments have been asked to immediately communicate the instructions to their offices so that necessary action can be taken.

The Reserve Bank of India has also been requested to convey the instructions to bank branches responsible for making the payments.

September 30 is particularly important for banks because it marks the end of the first half of the financial year. Banks typically undertake reconciliation, provisioning and treasury and market-related operations around the closing date, adding to concerns about the impact of a three-day stoppage.

Banks asked to open Sunday

In another step aimed at reducing inconvenience to customers, the Finance Ministry has directed banks, including Regional Rural Banks, to remain open on Sunday ahead of the proposed strike.

Several public sector banks have meanwhile begun issuing advisories asking customers to complete important transactions before the strike period. Customers have also been encouraged to use digital channels, including mobile and internet banking, UPI, ATMs and banking correspondent points, for routine requirements if the strike goes ahead.

While digital banking services are expected to remain available, branch-based services could face disruption depending on participation in the strike.

The UFBU has said the proposed action is part of its push for pending employee demands, with implementation of a five-day banking week among the principal issues. The forum has claimed representation of around 90 per cent of the banking workforce.

With the proposed strike coinciding with both the end of the month and the half-yearly closing, the Centre’s decision to advance salaries and pensions is intended to limit the immediate impact on government employees and pensioners while giving departments additional time to complete critical transactions.