93,000 Retired BSNL Employees Will Get Limited Pension As Govt Caps Payout; Pension Delayed By 5-Yrs For Employees Under 55-Yrs
The centre has now announced that the employees of BSNL and MTNL who retired on January 31 will be offered ex-gratia pension and pay-out as well.
As much as 93000 employees will be covered under this new development, and it is estimated to save the PSU from the huge payout bill.
What is this new development and how will it affect the employees of BSNL and MTNL? Find out right here!
93000 BSNL and MTNL Employees Will Be Given Ex-Gratia Pension and Pay-out
The documents that revealed the details were accessed which revealed that the ex-gratia pay-out will be given to 35 days for each year of service completed and 25 days for each year of balance service until the actual date of retirement.
As per reports, the people will be divided into two groups – one will comprise of people above 55 years of age and the other will hold people below the age of 55.
Employees Under 55-Yrs Will Get Delayed Pension
Those above 55 years of age will be given a lump sum amount when they reach 60 and those below 55 will get their pension in 2024-25. Gratuity dues will also be given similarly.
Additionally, this ex-gratia payment will have a cap of Rs. 125 per cent of the present basic and dearness allowance. The ex-gratia payment has been decided to be paid for only 40 months, regardless of the employees’ remaining service term of January 31.
A senior DoT (Department of Telecommunication) official revealed that the PSU will be saved the trouble of a huge payout bill. The ex-gratia payment has been divided between this and next financial year equally, and the pension payout will be given over a period of next ten years. This would result in a saving of Rs. 2000-2500 crore.
The official said, “The ex-gratia payment is divided equally for this and the next financial year and the pension will be spaced over the next 10 years. The immediate estimated savings would be around Rs 2,000 crore to Rs 2,500 crore.”
In simpler terms, if an employee earned Rs. 10,000 per month and has completed 40 months of service at the time of VRS, the pay-out through the ex-gratia and pension benefit payment for the remaining service would be around Rs. 6 lakh.
But now, the actual pay-out will be 125% of their current salary or rs. 5 lakh. If the employee has 79 or more months of service left, they will be paid a lump sum amount only for 40 months and as less than 125 percent of salary.