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Loss-making BSNL, MTNL fail to pay July salaries to 198,000 employees

Salary of employees is credited to their accounts on the last date of every month. However, this is for the second time the two companies have defaulted on payment of salaries this year

BSNL
Total monthly salary expenses of BSNL are in the range of Rs 750-850 crore while that of MTNL are around Rs 160 crore

Loss-making telecom PSUs Bharat Sanchar Nigam Ltd and MTNL have failed to clear salaries of their 198,000  employees for July in time, a union leader said Thursday.

While BSNL Chairman and Managing Director P K Purwar said that employees will get the July salary on August 5, the union leader said that no information has been shared by the management about the disbursal of the salary.

"Salary for the month of July has not come. There is also no information when will it be credited," All India Unions and Associations of Bharat Sanchar Nigam Limited (AUAB) Convenor P Abhimanyu told PTI.

When contacted, the BSNL CMD said that employees will get the salary on August 5.

"Funds are being arranged through internal accruals," Purwar said.

BSNL has 176,000 employees across India while MTNL has around 22,000 employees.

Salary of employees is credited to their accounts on the last date of every month. However, this is for the second time the two companies have defaulted on payment of salaries this year and for the first time after the new government took charge.

The two PSUs had delayed payment of salaries for February until mid-March due to a financial crisis. BSNL had then said that it used its internal accruals to clear the pending salaries.

Total monthly salary expenses of BSNL are in the range of Rs 750-850 crore while that of MTNL are around Rs 160 crore.

MTNL Human Resource and Enterprise Business Director Sunil Kumar said that the company is in the process collecting some dues after which the salary will be paid on a priority basis very soon.

Kumar has holds additional charge of MTNL CMD.