A significant and historic development has taken place in the ongoing struggle to resolve the long-pending HR issues of employees of Bharat Sanchar Nigam Limited and
Mahanagar Telephone Nigam Limited.
For the first time, a major national trade union platform — Bharatiya Doorsanchar Manch (BDM) — under the leadership of Ravi Shil Verma (Chairman, BDM & GS AIGETOA) and R.C. Pandey (Convener, BDM & GS BTEU BSNL) — has formally adopted two of the most crucial demands affecting BSNL employees, especially Direct Recruits (DRs).
The memorandum is proposed to be submitted to the Hon’ble Prime Minister and the Hon’ble Minister of Labour & Employment at a Pan-India level.
This movement is not merely an internal service matter — it is linked to national telecom strength, institutional stability, and long-term public sector resilience.
🔴 The Two Major Demands Raised
1️⃣ Implementation of 3rd PRC Recommendations & Standard Pay Scales
The demand seeks:
Immediate implementation of 3rd Pay Revision Committee (PRC) recommendations.
Restoration of standard pay scales for BSNL/MTNL employees.
Removal of prolonged wage stagnation.
Financial parity with other Central Public Sector Enterprises (CPSEs).
Why This Is Important?
For years, BSNL employees have served in financially constrained and operationally challenging environments, ensuring rural connectivity, border communications, and emergency services.
Implementation of 3rd PRC would:
✔ Increase basic pay
✔ Improve DA calculation
✔ Enhance retirement benefits
✔ Restore employee morale
✔ Improve talent retention
A financially secure workforce directly strengthens institutional performance.
2️⃣ Extension of Full Pensionary Benefits as per Rule 37-A to BSNL Recruits
This is the most crucial demand for Direct Recruits.
Currently:
DoT absorbed employees receive pension under Rule 37-A.
Direct Recruits are under EPF + EPS-95.
This dual system within the same organisation has created structural disparity.
🔍 Understanding the Difference: EPS-95 vs Rule 37-A
🟢 Rule 37-A (Government Pension Model)
Applies to former DoT employees absorbed in BSNL.
✔ Pension = 50% of last drawn basic pay
✔ Full Dearness Relief (DR)
✔ Linked with Central Pay Commission
✔ Paid by Government of India
✔ Strong family pension security
This is a defined benefit Government-backed pension system.
🔵 EPS-95 (Employees’ Pension Scheme 1995)
Managed by
Employees' Provident Fund Organisation
Applies to BSNL Direct Recruits.
✔ Pension calculated by formula:
(Pensionable Salary × Service) ÷ 70
✔ Earlier salary cap ₹15,000 (unless higher option taken)
✔ Not linked with CPC
✔ Limited revision mechanism
This is a contribution-based social security pension, not a full Government pension.
📊 Practical Financial Difference (Illustrative Example)
Assume:
Last basic salary: ₹60,000
Service: 30 years
🟢 Under Rule 37-A:
Pension = 50% of ₹60,000
= ₹30,000 per month
If DR is 50%:
₹30,000 + ₹15,000 = ₹45,000 per month
Annual pension ≈ ₹5.4 lakh
For 20 years post-retirement:
₹5.4 lakh × 20 = ₹1.08 crore
And this amount increases with CPC revisions.
🔵 Under EPS-95 (Without Higher Option):
Salary capped at ₹15,000:
(15,000 × 30) ÷ 70
= ₹6,428 per month
Annual ≈ ₹77,000
20-year total ≈ ₹15.4 lakh
🔵 Under EPS-95 (With Higher Option):
(60,000 × 30) ÷ 70
≈ ₹25,714 per month
Annual ≈ ₹3.08 lakh
20-year total ≈ ₹61.6 lakh
Even then, there is no CPC linkage.
📌 Lifetime Gap
Rule 37-A lifetime value ≈ ₹1.08 crore
EPS (higher option) ≈ ₹61.6 lakh
Difference ≈ ₹46 lakh
Without higher option, difference exceeds ₹90 lakh.
This gap is not symbolic — it materially affects retirement dignity.
🇮🇳 Why This Is a National Interest Issue
1️⃣ Strategic Telecom Security
BSNL provides:
Border connectivity
Rural network services
Disaster communication support
Sovereign telecom backup
A secure workforce strengthens national communication sovereignty.
2️⃣ Talent Retention in Public Sector
Young technical professionals evaluate retirement security before committing long-term.
Pension parity would:
✔ Reduce attrition
✔ Enhance organisational loyalty
✔ Attract high-quality technical manpower
Institutional continuity depends on stable HR policies.
3️⃣ Economic Stability
Stable pension ensures:
Sustained middle-class consumption
Reduced dependency risks
Long-term financial security for families
A secure retiree contributes to economic circulation and social stability.
4️⃣ Institutional Equity
Two employees:
Same office
Same responsibilities
Same national duty
But vastly different retirement outcomes.
Correcting this disparity promotes administrative harmony and institutional justice.
🟠 30% Superannuation Benefit & PRC Impact
Alongside pension parity, the 30% superannuation benefit and 3rd PRC implementation would:
Strengthen retirement corpus
Improve long-term financial planning
Align BSNL with other CPSE standards
Restore internal structural balance
🔵 Why This Moment Is Historic
Never before have:
3rd PRC implementation
Standard pay scales
Rule 37-A parity for Direct Recruits
30% superannuation benefit
been raised collectively at the highest national level.
This elevates the issue beyond departmental concern into a matter of public institutional reform.
📝 Conclusion
The difference between EPS-95 and Rule 37-A is not merely technical — it defines retirement dignity and long-term institutional morale.
Extending Rule 37-A style pensionary protection to BSNL Direct Recruits is:
A step toward fairness
A reinforcement of public sector strength
An investment in national telecom resilience
When employees safeguard India’s communication backbone for decades, ensuring their post-retirement security becomes a matter of national responsibility.
This initiative deserves collective, constructive support not just for employees, but for the strength and stability of India’s public telecom system.
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