Published On: Sat, Apr 30th, 2016

Telecom Commission recommends VRS for MTNL employees aged over 50 years

New Delhi:: The Telecom Commission, highest decision making body of the telecom ministry, on Saturday decided to offer a voluntary retirement scheme (VRS) to MTNL employees aged over 50 years, to save costs.

MTNL is to offer VRS to its Employees aged over 50 years.

MTNL is to offer VRS to its Employees aged over 50 years.

“Government can save around Rs 500 croreto Rs 600 crore in a year by giving VRS to employees aged over 50 years of Mahanagar Telephone Nigam Ltd (MTNL),” an official familiar with the decisions taken said asking not be named.

“Their employee cost is 78% of the revenue, so in effort to reduce employee cost that VRS scheme has been offered for three months, for 25% of their people above 50 years of age.” he added.

The official also added the government would spend around Rs 2,000 crore, including an ex-gratia of Rs 1000 crore for this VRS decision.

MTNL has around 46,000 employees, 26,000 of whom will be retiring in the next 10 years. Therefore, the government thought of saving costs by giving the VRS option to 20 per cent of its employees who are above 50 years of age.

The proposal of the VRS will get Cabinet nod in the next few days, the official confirmed.


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