Brief Details about Superannuation Benefit to Direct Recruits

What is 30% superannuation benefit?

Employees of any PSU is covered under three financial benefits..

• Serving benefit (Basic +DA)

• Retirement benefit (PF + Gratuity + Post Retirement Medical + Pension)

• Other benefits (Perks, Allowances, Incentives etc.)

Out of three serving benefits is statutory while working for the company even company goes in seek condition. Some portion of retirement benefit is also statutory and some portion is variable depending on financial health of the company. Other benefits like Perks and allowance are totally variable and depend on the financial health of the company and individual performance. First, company has to pay serving benefits in totality and then retirement benefits and then only other benefits.

BSNL is paying serving benefits to all employees in totality except those who have recruited on or after 01-01-2007 as per the latest recommendations of PRC.

BSNL is also paying retirement benefits in totality to all absorbed employees (About 3.5 Lakhs since formation of BSNL) but paying partially to direct recruits. As per the 2nd PRC, PSU have to contribute totally 30% of Basic + DA but BSNL is only making contribution of statutory portion i.e. EPF (12%) + Gratuity (4.5%) and post retirement medical benefit (1.5%) total comes to 18%. We are yet short of 12% which BSNL has to contribute in the name of superannuation benefit like NPS, contributory fund etc in respect of direct recruits.

Affordability of BSNL can not be the reason for not paying the superannuation benefits in totality to direct recruits of this company as it is already paying to about 3 lakhs employees in the name of pension contribution even on maximum of the basic. All other benefits recommended by 2nd PRC is already extended in totality to about 3 Lakhs employees considering company was in profit during 2006-2007. Moreover company is already paying 2% professional upgradation, transport allowance etc as perks and allowance to about 3 Lakhs employees which can not be paid before covering the retirement benefits of every employees. First of all company has to cover serving and retirement benefits in totality in respect of every employees before entering into the perks and allowance. This is totally due to discrimination by the management and our weakness to raise the voice strongly. In this proposed strike we are committed to resolve this issue and force management to contribute remaining 12% of Basic +DA (which comes around 5000 to 6000 per month)