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Telecom panel proposes VRS for MTNL employees | Canindia News

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Telecom panel proposes VRS for MTNL employees

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CanIndia New Wire Service 0 comments

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New Delhi, April 30 (IANS) The inter-ministerial Telecom Commission on Saturday proposed voluntary retirement scheme (VRS) for state-run MTNL employees who are 50 years of age and above.

“Employee cost for MTNL is about 78 percent of its revenues against an industry average of 3 percent. The government would spend around Rs.2,000 crore in all for VRS and can save around Rs.500 crore-Rs.600 crore in a year,” said an official.

The company has around 46,000 employees, out of which 26,000 will be retiring in the next 10 years. The government plans to give VRS option to 20 percent of its employees who are above 50 years of age.

The proposal will go to the cabinet for approval in a month’s time.

–IANS

ag/vd

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