According to data compiled by BS Research Bureau for BSE 100 companies, seven public sector companies -- Indian Oil Corporation (IOCL), Bank of India, Union Bank, Bharat Petroleum (BPCL), Oil and Natural Gas Corporation (ONGC), Hindustan Petroleum (HPCL) and GAIL -- have reduced their employee costs ranging from one per cent to 21 per cent.
IOC led with a 21 per cent decline in employee costs in financial year 2011-12 compared to 2010-11.
Hindustan Petroleum followed with a 19 per cent reduction in staff costs.
ONGC reduced manpower costs marginally (one per cent) compared to the previous year.
The voluntary retirement scheme (VRS) availed by employees is the primary reason for the companies to show a drop in employee costs, say experts. D K Joshi, chief economist at CRISIL, said, "It is surprising to note that employee costs are down at a time when inflation has gone up and PSUs are not firing people.
"The only reason that the costs have come down could be that a lot of people retired during financial year 2011-12. The companies
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