The management of Coal India Ltd (CIL) has decided to provide an additional 7 per cent salary on basic and dearness allowance that would replenish employees’ pension fund that is facing a shortfall of Rs 25,000 crore. It is expected to cost the company an additional Rs 1000 crore annually. A gazette notification to this effect is expected soon following which it would be implemented, said a CIL executive.
This 7 per cent contribution would be matched by a similar 7 per cent contribution by the employees to the fund. It is over and above the 12 per cent of basic and dearness allowance they contribute to the pension fund which is also matched by a similar contribution from the company.
The development comes a year after salaries were raised by about a fifth followed by a coal price hike in January this year. “At present, the outgo will be part of wages and salaries, which would be paid from normal income of the company. There are no decisions on raising prices yet,” the CIL executive told ET. Read More