The employees union of Mahanagar Telephone Nigam Ltd has agreed to the Government’s proposal to bring parity of pay scales with their counterparts in Bharat Sanchar Nigam Ltd.
This will be done at the time of next wage revision in 2017. In exchange, the Government will finance the pension burden of MTNL partially.
At present, MTNL workers get higher pay compared to BSNL employees. The liability of the Government towards pension of absorbed employees of MTNL will be restricted to the equivalent scales of similarly placed employees in BSNL. In case MTNL decides to pay pension on the basis of existing pay scales, the liability arising from the same shall be borne by MTNL. High wage costs have been a concern for MTNL. Salary and pension expenses of MTNL employees are more than its revenues.