Coal India concludes wage revision; agrees on 25% allowance hike

After the agreement is implemented, approximately 2.81 lakh non-executive employees of CIL and SCCL, who were employed by the company as of July 1, 2021, will be the recipients of the benefits


Coal India (CIL), the state-owned company, announced on May 22, 2023, that it has successfully reached an agreement with its 238,000 non-executive workers regarding wage revisions. The agreement guarantees a minimum benefit of 19 percent from July 1, 2021, on various emoluments such as basic pay, variable dearness allowance, special duty allowance (SDA), and attendance bonus. Additionally, allowances will see a 25 percent increase. This information was disclosed by Coal India in a filing to the stock exchanges.

The National Coal Wage Agreement (NCWA)-XI, recommended and signed by the Joint Bipartite Committee for the Coal Industry (JBCCI)-XI, has received approval. The committee consists of representatives from Coal India management, Singareni Collieries Company (SCCL), and five central trade unions: BMS, HMS, AITUC, CITU, and Indian National Mine Workers’ Federation (INMF). The agreement will be in effect for a duration of five years, commencing from July 1, 2021.

With the implementation of this agreement, around 281,000 employees of Coal India and SCCL, who were employed as of July 1, 2021, will benefit from the revised wages. Coal India has set aside a provision of Rs 9,252.24 crore to accommodate the wage revisions for a period of 21 months, spanning from July 1, 2021, to March 31, 2023.

The final impact of the 25 percent increase in allowances will be communicated soon, but it is not expected to have a significant impact. It is worth noting that Coal India revises the wages of its non-executive workers, which make up 94 percent of its workforce, every five years.

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