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Tamil Nadu

Tamil Nadu: Transport corporations seek additional financial assistance

The 15th wage agreement, signed on May 29, grants a 6 per cent salary hike for approximately 1.09 lakh employees. As per the revised structure, workers will receive a minimum monthly increase of Rs 1,420 and a maximum of Rs 6,460.

DTNEXT Bureau

CHENNAI: State-run transport corporations in Tamil Nadu have sought an additional financial assistance of Rs 30 crore from the State government to implement the newly signed wage agreement for their employees, which is scheduled to come into effect next month.

The 15th wage agreement, signed on May 29, grants a 6 per cent salary hike for approximately 1.09 lakh employees. As per the revised structure, workers will receive a minimum monthly increase of Rs 1,420 and a maximum of Rs 6,460.

Transport department sources said the revised salaries would be implemented from July. In the meantime, the corporations have submitted a proposal to the State government, requesting financial support to manage the increased expenditure resulting from the pay hike.

Officials pointed out that 54 per cent of the corporations’ total operational expenditure, or over Rs 900 crore every month, goes towards employee-related costs such as salaries, pensions, and retirement benefits. The transport undertakings currently operate at a daily loss of Rs 18.63 crore.

The new wage structure is expected to create an additional monthly financial burden of Rs 45 crore for the corporations. Of this, Rs 30 crore is required immediately to meet statutory deductions such as provident fund contributions.

“We have written to the State government seeking Rs 30 crore in assistance. Once we receive the funds, we will implement the new pay structure from next month,” a senior official said.

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