ISLAMABAD: The government laid off all 11,406 employees of the Utility Stores Corporation effective September 1, offering over Rs25 billion severance package as part of a sweeping restructuring plan, official documents show, The News reported on Friday.
The package covers the country's largest state-run retail chain's 5,229 regular employees (Rs13.18 billion set aside), 3,323 contract employees (Rs3.6 billion) and 2,854 daily wage workers (Rs2.71 billion). An additional Rs5.75 billion has been earmarked for organisational closure costs and support for widows of deceased employees.
Under the circular, permanent staff with two years or less remaining in service will receive gross pay for the remaining months. Employees with more than 20 years of service will receive two times their current basic pay for each completed year.
Those with fewer than 20 years may receive three current basic pays for each completed year or 1.25 times their running basic pay for remaining months of service — capped at 50 months — whichever is higher.
Contract employees will be paid as follows: running basic pay for each remaining month for staff with two or fewer years left; 30 running basic pay for employees with up to 16 years' service; and 35 running basic pay for those with more than 16 years.
Daily wagers will receive a flat calculation based on a Rs37,000 benchmark. Rs37,000 for each remaining month for those with two or fewer years remaining; 15 × Rs37,000 (Rs555,000) for up to 10 years of service; 28 × Rs37,000 (Rs1,036,00) for those who had served for 10 to 15 years; and 30 × Rs37,000 (1,110,000) for those who had served USC for more than 15 years.
The circular also instructs that pending salaries, wages and terminal dues admissible under USC service rules will be paid and that affected employees are being notified separately and will be helped to obtain NOCs from relevant departments so that the dues can be processed once federal funds are released.