Top
Millennium Post

Cabinet clears pension benefits for MTNL staff

The cabinet has approved a pension proposal for 43,000 Mahanagar Telephone Nigam Limited (MTNL) employees, who joined the public sector company from Department of Telecom on Thursday.
 
The decision, which will cost the government an estimated Rs 500 crore yearly, is likely to bring an additional amount of about Rs 1,500 crore (including interest) in the books of MTNL as refund from the government for the pension that the PSU pays to its employees.

An official statement released by the cabinet, reads: ‘The union cabinet today approved that the erstwhile all categories of employees of the government absorbed in MTNL and who have opted for combined service may be given similar treatment in the matter of payment of pensionary benefits as available to the absorbed employees of Bharat Sanchar Nigam Limited (BSNL)’.

There are 43,000 employees including 16,000 retired and about 27,000 existing employees of the PSU. ‘The proposal entails an estimated recurring expenditure of approximately Rs 500 crore per annum besides adjustments in respect of government pension liability previously discharged by MTNL,’ the statement said. As compare to BSNL, the pay scale at MTNL is comparatively higher and the government will bear the cost of pension similar to the amount paid to the latter.
Next Story
Share it