The Utility Stores Corporation (USC) administration has issued a circular announcing the termination of all employees, effective September 1.
According to official documents, 11,406 employees will be let go under a government-approved compensation plan worth Rs. 25.5 billion, finalized by the Ministry of Industries. The package covers permanent, contractual, and daily wage staff, along with provisions for widows and institutional closure costs.
For regular employees, those with less than two years of service will receive salaries for the remaining months, while workers with over 20 years will be paid two basic salaries for each completed year. Employees with up to 20 years of service are entitled to either three basic salaries per completed year or 1.25 times their current salary for the remaining months.
The breakdown shows 5,229 regular employees allocated Rs. 13.18 billion, 3,323 contract workers earmarked Rs. 3.6 billion, and 2,854 daily wagers set to receive Rs. 2.71 billion. In addition, Rs. 5.75 billion has been reserved for closure expenses and benefits for widows of deceased employees.
Package Distribution:
Regular Employees
- 2 years or less to retirement: Rs. 357 million for 230 employees (≈ Rs. 1.52m each).
- Over 20 years of service: Rs. 2.21 billion (≈ Rs. 3.44m each).
- Under 20 years of service: Rs. 10.61 billion (≈ Rs. 2.43m each).
Contract Employees
- 2 years to retirement: Rs. 17m (≈ Rs. 414,000 each).
- Over 16 years of service: Rs. 2.97b (≈ Rs. 1.127m each).
- Up to 16 years of service: Rs. 611.5m (≈ Rs. 947,000 each).
Officials said the decision is part of USC’s restructuring plan, aimed at closing operations while ensuring financial settlements for all categories of staff.
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