Wage revision of MOIL workers announced
This wage revision is for 10 years’ duration w.e.f 01.08.2017 up to 31.07.2027, benefitting close to 5,800 company employees
Union Minister for Road Transport & Highways Nitin Gadkari and Ram Chandra Prasad Singh, Minister of Steel, on Sunday gave their approval of the wage revision of MOIL workers. MOIL Limited is a Schedule-A, Miniratna Category-I CPSE under the administrative control of Ministry of Steel, Government of India.
This wage revision is for 10 years’ duration w.e.f 01.08.2017 up to 31.07.2027, benefitting close to 5,800 company employees. It is based on an MOU arrived between management and recognized union of MOIL i.e. MOIL KamgarSanghatan (MKS). The proposal includes fitment benefit of 20% and perks/allowances at the rate of 20%. An Interim relief @ 12% of Basic and DA was given by the company w.e.f May, 2019.
The company announced that it will be making the arrear payment in one go, which will have a financial impact of Rs. 218 crores approximately for the period it is due i.e. from 1st August, 2017 to 30th September, 2021. The total financial impact of the proposed wage revision will be about Rs.87 crores per annum. MOIL Limited has already made full provisions for this wage increase in the books of accounts.
In addition, the production linked bonus for all employees at Rs 28,000/- for the year 2020-21 which will be paid before Deepawli was also announced.