The stalemate between Coal India management and unions over the issue of salary hike has come to an end as both have reached an understanding.

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"We have reached an understanding with the Coal India management for 20 per cent minimum guaranteed benefit," D D Ramanandan, General Secretary of CITU-affiliated All India Coal Workers Federation, told PTI.

The central trade unions at the coal PSU had been demanding 25 per cent increase on gross wages as on June 30, 2016, plus 4 per cent as perks.

Ramanandan said the unions have settled for 20 per cent minimum guaranteed benefit as the management was earlier not contributing to the medical scheme, but now has agreed to provide Rs 18,000 per person.

"Already, the management is contributing 1.16 per cent for the pension funds, which will be increased to 7 per cent," he added.

Every five years, all central workmen unions negotiate with the management for a salary hike through a series of meetings. Validity of the last pay hike expired on June 31 last year.

S Q Zama, Secretary General of Indian National Mine Workers Federation affiliated to INTUC, said the 25 per cent increase on gross wages is less than its expectations.

The trade unions and the Coal India management met for three days -- on August 17-19 -- in Ranchi and in the national capital yesterday to deliberate on the issue of wage hike.

The five operating central unions in the coal industry are INTUC, BMS, HMS, AITUC and CITU.