Westpac opts for teller raise over bonus

Westpac will replace incentives with fixed pay increases for 2,300 frontline bank tellers in a move to improve trust with customers.

Westpac has scrapped teller incentives in favour of a $500 pay raise. (AAP)

Westpac has scrapped bonuses for its 2,300 bank tellers as it aims to rebuild customer trust damaged during the banking royal commission.

Westpac, which removed product-related incentives for branch personnel in 2016, will remove customer satisfaction-linked bonuses from April and replace them with a $500 fixed pay increase.

"A simple fixed, pay only model takes us a step further to reinforce the importance of putting the customer first, and providing our 2,300 tellers with more clarity and fairness around how their work is remunerated," retail chief executive George Frazis said.

Westpac say the industry-leading move will give customers the assurance they are being served over-the-counter based on their banking needs, not sales outcomes.

Previous incentives were influenced by factors including branch location and product features, while the new pay increase will ensure recognition is based on individual service provided to customers.

The change for bank tellers will affect those from Westpac across Australia and its subsidiaries St George, Bank of Melbourne and Bank SA.

On Friday chief executive of Westpac, Brian Hartzer, along with executives from Commonwealth Bank of Australia, will front a parliamentary committee about how they are responding to the Royal Commission's recommendations.