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In a major development, a tripartite settlement for wage revision of MOIL workers was signed between management of MOIL and the representatives of the recognized union, in presence of Chief Labour Commissioner, Government of India, at a function organized by the labour ministry office on Tuesday.

This wage revision is for 10 years' duration w.e.f August 1, 2017 up to July 31, 2027, benefiting close to 6,000 company employees. It is based on an MOU arrived at between management and recognized union of MOIL i.e. MOIL Kamgar Sanghatan (MKS).

The proposal includes fitment benefit of 20 per cent and perks/allowances at the rate of 20 per cent. An Interim relief of 12 per cent of Basic and DA was given by the company w.e.f May, 2019.

The company will be making the arrears payment in one go, which will have a financial impact of Rs 218 crore approximately for the period it is due i.e. from August 1, 2017 to September 30, 2021. The total financial impact of the proposed wage revision will be about Rs 87 crore per annum. MOIL LIMITED has already made full provisions for this wage increase in the books of accounts.

The agreement also specifies that the settlement will be implemented within 60 days of signing of the same.