MSRTC workers demand one-time Rs 7,500 crore package to clear pending payments

19 June,2026 01:31 PM IST |  Mumbai  |  mid-day online correspondent

The demand was raised by Shrirang Barge, General Secretary of the Maharashtra ST Employees Congress, during a meeting with Transport Minister and MSRTC Chairman Pratap Sarnaik at the corporation’s headquarters in Mumbai Central on Thursday

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The pending dues of nearly 86,000 officers and employees of the Maharashtra State Road Transport Corporation (MSRTC) have crossed Rs 7,500 crore, prompting employee representatives to urge the state government to provide one-time financial assistance to help clear the liabilities.

The demand was raised by Shrirang Barge, General Secretary of the Maharashtra ST Employees Congress, during a meeting with Transport Minister and MSRTC Chairman Pratap Sarnaik at the corporation's headquarters in Mumbai Central on Thursday. Barge submitted a memorandum outlining the scale of the pending payments and the financial difficulties faced by employees due to prolonged delays.

Financial strain on employees highlighted

According to the memorandum, the corporation's worsening financial condition has made it difficult to settle various employee-related dues accumulated over several years. Employee representatives argued that without government intervention, clearing the backlog would remain a challenge.

Barge stated that thousands of employees and officers have been waiting for payments linked to salary revisions, allowances, provident fund contributions and other benefits. He said the delay has placed a significant financial burden on workers and their families.

Wage increment and allowance arrears among major liabilities

The memorandum details several categories of pending dues. One of the largest components is the unpaid annual wage increment arrears for the period between 2016 and 2020. Employees are yet to receive the 1 per cent annual increment applicable during those years, with the outstanding amount estimated at around Rs 1,600 crore.

In addition, arrears related to Dearness Allowance (DA) and House Rent Allowance (HRA) are estimated at approximately Rs 970 crore.

Provident Fund-related liabilities form another significant portion of the dues. Around Rs 1,400 crore in employee subscriptions and employer contributions is yet to be deposited with the concerned trust. A further Rs 1,400 crore remains unpaid towards contributions to the Gratuity Trust.

Salary-related deductions remain unsettled

The memorandum also points to pending leave encashment dues amounting to Rs 60 crore, while unpaid medical and travel allowances are estimated at Rs 12 crore.

Employee representatives further claimed that although salaries were paid between December 2025 and May 2026, only the net salary amounts were credited to employees. Various deductions that were supposed to be transferred to relevant institutions were allegedly not remitted, creating an additional liability of Rs 633 crore.

Apart from these dues, other liabilities and cost-to-company (CTC) related payments are estimated at Rs 1,418 crore.

Call for one-time government support

Barge said that a one-time financial package of Rs 7,500 crore from the Maharashtra government would help MSRTC clear the accumulated dues and provide relief to employees awaiting payments.

The memorandum urges the state government to consider immediate financial assistance, arguing that timely intervention would help address long-pending employee liabilities and improve confidence among the corporation's workforce.

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