The Cabinet on Thursday approved a pension proposal for 43,000 MTNL employees, who joined the public sector company from Department of Telecom, that would cost the government an estimated Rs 500 crore annually.
The decision to grant Pension for MTNL Employees is likely to bring additional amount of about Rs 1,500 crore (including interest) in the books of MTNL as refund from government for the pension that the PSU paid to its employees. “The Union Cabinet today approved that the erstwhile all categories of employees of the government absorbed in MTNL and who have opted for combined service may be given similar treatment in the matter of payment of pensionary benefits as available to the absorbed employees of BSNL,” an official statement said.
