PSU MTNL has asked the government to pay for pensions to its retired employees.

“We have written to the Department of Telecommunications (DoT) saying that pension to our employees should be paid by the government, as in the case of BSNL. Both MTNL and BSNL are government-owned. If government is paying for BSNL, why not for MTNL?” said MTNL, Chairman and Managing Director R S P Sinha.

Inspite of trimming of work force under VRS, the PSU is yet to benefit out of this since it has to ultimately incur the pension bills of such employees.

Moreover the implementation of sixth pay commission has put additional burden on the firm.

In fiscal year 2009, the company’s wage bill rose by Rs 600 crore to Rs 2,200 crore mainly on account of pension payments. 48% of the company’s revenues were used to pay wage bills and salaries.