Standard Bank Namibia employees have agreed to a 6% salary increase and improved allowances, bringing an end to a long-standing wage dispute.
This comes after the workers, through the Namibia Financial Institutions Union (Nafinu), threatened to go on strike while demanding better wages.
Included in the new wage agreement are free banking benefits. Employees will, therefore, no longer pay bank charges.
The agreement, signed between Standard Bank Namibia and Nafinu on 17 July, is effective retrospectively from 1 March this year.
This ends a dispute that saw 91.7% of employees who participated in a strike ballot vote in favour of industrial action.
Nafinu secretary general Asnath Zamuee says the settlement represents a compromise by both parties.
“The workers accepted a 6% increase, which was a win-win situation, as we were demanding 7% and the bank was offering 5%,” she says.
Zamuee says the employees also secured a N$300 increase in their transport allowance.
Standard Bank Namibia says the agreement reflects a shared commitment to recognising employees’ contribution while ensuring the bank’s long-term sustainability.
“The agreement reflects the shared commitment of both parties to recognising the contribution of employees, supporting their well-being and financial security, and ensuring the long-term sustainability and success of the bank,” the bank says in a joint statement with the union.
The bank says negotiations had been thorough but constructive, with both parties remaining committed to finding a balanced solution without disrupting services to customers.
Standard Bank Namibia chief executive Erwin Tjipuka says the agreement is fair to employees while remaining sustainable for the organisation.
“Our people are central to our success, and this agreement reflects our continued investment in their well-being, financial security and future,” he says.
The settlement ended a wage dispute that had threatened industrial action after negotiations reached a deadlock.
Nafinu had initially demanded a 7% salary increase and higher transport and rental allowances, arguing the bank’s offer did not reflect employees’ contribution or the rising cost of living.
Standard Bank had initially offered a 5% salary increase, a N$50 increase in the transport allowance, and additional employee benefits.
The dispute unfolded despite the bank reporting a N$1.059-billion group net profit for the 2025 financial year and N$46.9 million in total remuneration for key management personnel.
The strike threat had prompted concerns over possible disruptions in banking services.
THE NUMBERS
According to the bank’s latest annual report, SBN Holdings Group had a net profit of N$1.059 billion, up from N$974 million in 2024.
The company’s net profit also increased to N$1.045 billion, compared to N$941 million a year earlier.
On 5 March, the board of directors declared a final dividend of 17 103 cents per ordinary share.
This translates into a total payout of N$342 million, up from N$301 million in the previous year, showing improved returns to shareholders.
Total employee compensation rose to N$1.04 billion for the 2025 financial year, compared to N$942.5 million in 2024.
This includes N$934.3 million in salaries and allowances, N$83.6 million in pension contributions, and N$22.2 million in post-employment medical benefits.
Share-based payments and incentive schemes accounted for a further N$8.8 million.
Key management personnel received a total of N$46.9 million in compensation, covering salaries, short-term benefits and share-based rewards.
