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Last Updated : Nov 08, 2019 01:14 PM IST | Source:

BSNL employees demand pay revision before VRS: Report

The union has demanded that the pay revisions must be with effect from January 2017

BSNL Office In Mumbai
BSNL Office In Mumbai

A Bharat Sanchar Nigam (BSNL) employees' union has demanded pay revisions before the Centre sanctions voluntary retirement scheme (VRS), Financial Express reported.

The All India Bharat Sanchar Nigam Executives Association (AIBSNEA), in a letter to telecom minister Ravi Shankar Prasad, demanded that the pay revisions must be with effect from January 2017, the paper added.

Moneycontrol could not independently verify the report.


This could be a hiccup for the government which is trying to consolidate the number of BSNL employees from its current 1.65 lakh strong force. Since the VRS package is determined on the last-drawn salary, an upward revision would bloat costs above estimated numbers.

The Cabinet sanctioned a Rs 70,000 crore bailout package for BSNL in October, of which nearly Rs 30,000 crore would be used to conduct the VRS process.

The letter mentions that they would like their industrial dearness allowance (IDA) be merged up to 50 percent with basic pay.

Currently, the employees’ IDA is 119.5 percent of the basic salary. This means, for Rs 100 basic pay with IDA added, it would be Rs 220. Under the proposed revision, the basic would increase to Rs 150; it would be Rs 255 with IDA added.

The publication said analysts feel the government should reject the union’s demand as complying with it would defeat the purpose of the bail-out plan.

On the other hand, direct recruits to BSNL enjoyed their last pay revision in 2007. They missed the 2017 revisions as BSNL registered losses and did not qualify under the department of public enterprises guidelines.

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First Published on Nov 8, 2019 01:14 pm
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