Mumbai: BEST Wage Revision To Cost ₹1,111 Crore Annually; Wet-Lease Pay Parity Alone ₹475 Crore

Mumbai, September 3, 2026: The proposed wage revision for BEST employees and wet-lease workers could add Rs 1,111 crore a year to the undertaking's salary bill, even as BEST is already dependent on borrowings to meet its wage obligations.

Of this, Rs 475 crore annually will be required to bring around 9,000 wet-lease workers—more than 7,000 of them drivers—on a pay scale equivalent to BEST's permanent employees performing similar work.

The proposal, recommended at Thursday's BEST Committee meeting, is now set to be sent to the Brihanmumbai Municipal Corporation (BMC) and the state government's Study Committee for consideration.

The proposed revision covers around 38,200 BEST employees and workers. Around 27,000 regular employees are expected to benefit from retrospective wage revision for 2016-2025, with the implementation of the 7th Pay Commission-linked settlement estimated to create an arrear liability of around Rs 6,000 crore.

A further Rs 300 crore could be required for notional pay fixation for around 2,200 casual workers who were absorbed into regular service from March 31, 2016, in line with High Court orders.

The recurring cost of the wage revision for BEST's regular employees is estimated at Rs 636 crore a year, taking the total annual burden to Rs 1,111 crore when wet-lease workers are included.

Wet-Lease Pay Parity

The wet-lease parity proposal is politically significant as it addresses a long-standing demand of unions representing contractual workers. Around 9,000 workers employed through wet-lease operators are proposed to receive wages at par with permanent BEST employees doing similar work.

"The proposed wage revision is towards improving the pay scales of wet lease staff. This has been the demand of the unions which is being met and rightly so. The state government has agreed for the need of pay parity," a BEST official said.

The demand for pay parity was also a key issue during the recent agitation by the BEST Sanyukt Kamgar Kruti Samiti. The unions had launched an indefinite strike in June seeking implementation of the 7th Pay Commission, settlement of pending wage issues and improved conditions for contractual and wet-lease workers.

The strike was called off after the state government agreed to a monthly increase of Rs 3,000 for permanent employees and Rs 2,000 for contract workers, along with other assurances.

A Study Committee headed by the additional chief secretary of the Urban Development Department was subsequently constituted to examine the long-pending demands. It held its first meeting on August 20, after which discussions were held between the BEST administration and trade unions.

Pay Levels Under 7th Pay Commission

The BEST Committee has now recommended that employees be placed in pay levels equivalent to those applicable to Maharashtra government and BMC employees under the 7th Pay Commission.

Sources said the recommendations are based on legal opinions from the state's Law and Judiciary Department and provisions of Rules 21 and 25 of the Maharashtra Contract Labour Rules, 1971.

Funding Remains Key Concern

However, the financial implications remain a major concern. BEST currently spends around Rs 128 crore every month on salaries, according to officials. The administration will first forward the proposal through the BMC, BEST's parent organisation, to the state Study Committee.

If the BMC does not agree to provide the required financial support, sources said, the matter could be taken up with the Urban Development Department, which may either fund the requirement or direct the BMC to meet the cost.

Also Watch:

Key Figures

● Rs 1,111 crore: Total additional annual wage burden

● Rs 475 crore: Annual cost of wet-lease pay parity

● Rs 636 crore: Annual cost for BEST's regular employees

● Rs 6,000 crore: Estimated arrears for around 27,000 employees

● Rs 300 crore: Cost of notional pay fixation for around 2,200 casual workers

● Rs 128 crore: BEST's average monthly salary expenditure

● 38,200: Employees/workers expected to benefit

● 27,000: Employees eligible for retrospective wage revision

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