Rs 3bln needed to clear dues of gratuity PSM’s ex-employees: Senate told

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ISLAMABAD, Nov 5 (APP): Minister for Industries and Production Ghulam
Murtaza Jatoi Thursday told the Senate that an amount of Rs 3 billion was required to clear the dues of gratuity to ex-employees of Pakistan Steel Mills (PSM) upto 30-06-2015.
In a written reply, Ghulam Murtaza said there was no pension scheme for
the PSM employees as they were entitled for gratuity at the time of retirement/leaving the corporation. He said officers become entitled for gratuity after completion of five years service of the Corporation at the rate of one month basic pay for each year of service.
The minister said that unionized staffs were entitled for gratuity after completion of three years service of the corporation at the rate of one month gross pay for each year of service.
Gratuity Fund Trust is in place for managing the gratuity schemes by the trustees and Union members and management representatives, the minister added.
Due to severe financial crisis faced by the corporation, he said, the government was making net payments of monthly salary to PSM employees and gratuity fund contribution was not being paid by the government.Ghulam Murtaza said that Pakistan Steel has paid gratuity fund to its entitled ex-employees upto April, 2013.
To another question, the minister said that presently, Ministry of Industries and Production does not deal with the special package for the revival of sick industrial units.
However, Finance Division has informed that a comprehensive law titled
“The Corporate Rehabilitation Bill” has been drafted by the Securities and Exchange Commission of Pakistan (SECP), Ministry of Finance, he added.
Ghulam Murtaza said the matter is actively under consideration of the government and SECP to evolve consensus and finalize the Corporate Rehabilitation Law.
The minister said the Senate Standing Committee on Finance and Revenue discussed Corporate Rehabilitation Bill, 2015 in its meeting held on July 28, 2015.
The committee had decided to grant a time period of eight months to SECP for finalization of the draft Corporate Rehabilitation Law in consultation with all the stakeholders, he added.