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Bank of India to Absorb Full Perquisites Tax After FBOIOA’s Persistent Push
Bank of India absorbs full perquisites tax after Federation of Bank of India Officers’ Association’ s push. Relief granted, setting a strong precedent for employees rights advocacy.
Author: Saurav Kumar
Published: 16 hours ago
In a major relief for its employees, the Bank of India (BOI) has decided to absorb 100% of the perquisites tax liability arising from concessional and interest-free loans provided to staff members. The move comes after persistent efforts by the Federation of Bank of India Officers' Association (FBOIOA).
The decision is set to benefit nearly 53,000 BOI employees, offering much-needed financial relief.
FBOIOA’s Push Secures Relief
The Federation of Bank of India Officers’ Association (FBOIOA) played a decisive role in ensuring this breakthrough, spearheading relentless negotiations and sustained advocacy. Over three months of persistent representations and high-level dialogues, the association successfully convinced the management to implement this employee-friendly decision, shielding the workforce from an unexpected financial burden.
In an exclusive conversation with Kanal, Nilesh Pawar, General Secretary of FBOIOA, lauded the move, stating, “The decision to completely absorb the perquisites tax liability is a significant boost to employees dignity and financial security.”
Highlighting the urgency of the demand and its resolution, he added, “The tax deductions, which began in January 2025, drastically reduced salaries, leaving employees with nominal pay—sometimes as low as a few hundred or thousand rupees. This triggered widespread distress. To counter the impact, FBOIOA launched ‘Sahayya,’ a special interest free advance of Rs 50,000 offering immediate relief to affected officers.”
Financial Strain on Employees
According to FBOIOA, over 1,400 officers received less than ₹20,000 as salary for February 2025, with some even facing nil salary credits after tax deductions—causing severe financial distress.
Bank of India is now the fourth Public Sector Bank to fully absorb the perquisites tax, following State Bank of India, Union Bank of India, and Bank of Baroda. In contrast, Punjab National Bank opted to bear only 50% of the liability.
Bank of India's decision follows sustained efforts by FBOIOA to address the tax burden on employees, aligning with similar measures taken by other public sector banks.