State-run Coal India Limited (CIL) has signed a pact with its trade unions to increase wages of workers by 25 per cent.

The hike will benefit over 3.7 lakh workers of the world's largest coal producer.

An agreement was signed between union representatives and CIL management for increase in the wages under which minimum guaranteed benefit would be 25 per cent of gross as on June 30 last year.

AIR correspondent reports, this would put an additional burden of 6,500 crore rupees on the public sector unit.