Wage Revision Delays in India: Can Employees Claim Interest on Arrears?

Dear seniors, I am serving in a public sector company in India. The fifth long-term wage settlement has been due from 1.1.2007, but unfortunately, the wage revision hasn't been completed yet. Last time, the company did not pay any interest on the arrears amount. Are there any rules or rights for employees to receive the arrears with interest?

Please help. Thank you.

Regards, Surya Kumar.

Dear Surya Kumar Ji, I have worked for almost 41 years in a CPSE. To the best of my knowledge and belief, there is no provision in the government rules or, for that matter, in any central public sector enterprise for the payment of any interest on the delayed payment of arrears. Through notices issued by trade unions, we have demanded interest but never succeeded in actually getting it. The best way is to persuade the concerned authorities for speedy action and get your dues at the earliest possible.

Payment of Interest on Arrears

Payment of interest on arrears, the rate of interest, method of payment, etc., can be the terms of a bi-partite wage settlement agreement. The union should push for it.

Hello skbp79, I do not think that there is any such provision or mandatory rule regarding the payment of interest on arrears of wage revision. I am also working in a PSU, and our wage negotiation has been overdue, but still, negotiation is on the table, and it has not yet been settled.

Dear All,

Thank you for your valuable remarks. Regarding the same wage revision, there is an agreement/MoU between Management and the Union that was completed two months ago. The agreement copy, without any signatures, is expected to arrive. Some say it will need to go through an HR meeting and then to the Board. However, after a considerable period, there has been no confirmation message about the HR or Board's status where the issue remains pending.

My question is, how can I find out the actual status of the matter? Can I inquire about this through RTI? Please help.

Regards,
SKBP79
Surjya Kumar

Dear Surya Kumar Ji, you can seek information about the proposed agreement between the concerned PSU and the staff body, the present status of the agreement, etc., under the RTI Act, 2005. However, you have to carefully draft the proposed letter; otherwise, the babudom (Officialdom) may reject your application, stating that it is beyond the ambit of the RTI Act 2005.