All utility stores employees terminated

ISLAMABAD: The Utility Stores Corporation (USC) administration has issued a statuary circular declaring all the employees redundant with effect from September 1.

According to the decision, 11,406 USC employees would be given a government-authorized financial package.

The Ministry of Industries has completed a Rs. 25.5 billion payment plan for employees who have been hit by Utility Stores Corporation restructuring, as per official documents. The package includes allocations for regular, contract, and daily wages staff, as well as for widows and institutional closure.

Permanent Employees

Permanent workers who have served for two years and below will be paid full salaries for the remaining months, as per the official release.

Workers who have served for more than 20 years will receive two current basic wages for every completed year. On the other hand, workers who have served for 20 years and below will be paid either three current basic wages for every completed year or 1.25 times the current basic wage for the remaining months.

The Utility Stores Corporation has 5,229 regular employees with whom Rs. 13.18 billion has been allocated. Rs. 3.6 billion has been allocated for 3,323 contract employees, and Rs. 2.71 billion worth of benefits will be given to 2,854 daily wage workers.

Rs. 5.75 billion has been allocated for organizational wind-up costs and widow benefits for deceased employees.

The following is the division of packages among regular and contract employees:

Regular Employees

• Two-year-and-under-of-age employees: Rs. 357 million to be kept aside, each of the 230 employees to get about Rs. 1.52 million.
• More than 20 years of service: Rs. 2.21 billion to be kept aside, each to get Rs. 3.44 million.
• Less than 20 years of service: Rs. 10.61 billion to be kept aside, each to get Rs. 2.43 million.

Contract Employees

• Employees with two years of service left: Rs. 17 million earmarked, each to receive Rs. 414,000.
• Employees who have served more than 16 years: Rs. 2.97 billion earmarked, each to receive Rs. 1.127 million.
• Employees with a service of 16 years or less: Rs. 611.5 million earmarked, each to receive Rs. 947,000.