ISLAMABAD: The government has prepared a severance package of Rs 25.3 billion for over 8,000 employees of the Utility Stores Corporation (USC), who are going to be laid off as a result of the closure of the USC’s operations.
A document of the Ministry of Industries and Production revealed that apart from regular employees, a compensatory package for contractual, daily wagers and widows of the late employees has been worked out.
According to the severance package for regular employees, 230 employees with two or fewer remaining years will get an amount of Rs 357 million. Whereas 643 employees who have completed service for more than 20 years will get Rs 2.21 billion under the severance package.
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The 4356 employees having less than 20 years of service will be compensated with a total amount of 10.61 billion. The total severance package for 5229 regular USC employees stood at 13.18 billion.
Among the 3323 contractual employees, 41 workers having less than two or fewer remaining years will be paid Rs. 17 million. 649 employees having service up to 16 years would be compensated with the amount of Rs 615 million. Whereas 2633 employees having service above 16 years will get compensatory packages amounting to Rs 2.97 billion. The total severance package for USC contractual employees amounts to Rs 3.6 billion.
For the daily wagers, 39 employees having two or fewer remaining years will get Rs 317 million. 1447 daily wagers with up to 10 years of service will get a compensation of Rs 1.5 billion. With the service above 15 years, 797 employees will get compensation of Rs 885 million.
The total severance package for 2854 contractual employees amounted to Rs 2.72 billion. Apart from this, the terminal dues and widows’ package Rs 5.75 billion is also part of the severance package.
It may be mentioned here that in compliance with the Prime Minister’s direction, USC operations have been discontinued on July 31, 2025, and the entity is included in the first phase of the privatisation process.
Copyright Business Recorder, 2025