Centre approves hefty pay hike for PSU officers

Sandeep Joshi

NEW DELHI: The Centre on Thursday approved a hefty hike in the salaries of executives and non-unionised supervisors of Central Public Sector Enterprises (CPSEs). To be effective from January 1, 2007, the revised pay scales include over two- to three-fold increase in basic pay, besides a hike in allowances and performance-related incentives.

A Union Cabinet meeting, chaired by Prime Minister Manmohan Singh, gave the go-ahead for accepting the revised pay scales that cover around 2.58 lakh executives and over 1.2 lakh non-unionised supervisors.

However, not all of these executives and workers would be benefited as only profit-making CPSEs would be eligible for implementing the revised pay scales. Moreover, full or partial implementation of recommendations would also depend on the amount of profit a CPSE is making.

Union Minister for Heavy Industries and Public Enterprises Sontosh Mohan Dev told journalists that it was the “best-ever package” given by any Union government to CPSE employees.

“It will minimise disparity in the salary structures of public and private sectors and check attrition rate in CPSEs. It will also lead to higher productivity and ensure future growth,” the Minister said, adding that the Election Commission has given its clearance to revised pay scales in view of the ongoing Assembly elections in six States.

Department of Public Enterprises Secretary R. Bandyopadhyay said employees of only profit-making CPSEs would be benefited from the new salary structure.

“Of the 217 operational CPSEs, only 151 are profit-making. Out of these, only 76 CPSEs would be able to fully implement these recommendations, while other profit-making CPSEs would partially implement it. The new pay scales are also linked to year-on-year productivity,” he added.

Extra outgo

Informing that extra outgo of around Rs.9,000 crore on account of the new pay structure would be fully borne by individual CPSEs, Mr. Bandyopadhyay said a ceiling of 50 per cent of basic pay had been fixed for allowances, while performance-related pay would vary from 40 to 200 per cent. On an average, the hike would be around 100 per cent.

Uniform fitment of 30 per cent of basic pay plus dearness allowance has been approved for profit-making CPSEs, while for weak and non-profitable CPSEs, it would be in the range of 10-20 per cent, depending on their affordability.

The package would include revision in other allowances such as dearness allowance, house rent allowance, besides performance-related incentives.

New scales

The new scales are based on recommendations of the Committee of Secretaries that classify CPSEs into four categories – A, B, C and D. The chairman and managing director of ‘A’ category CPSE will now be eligible for Rs.80,000-Rs.1.25-lakh pay scale as against the existing Rs.27,750-Rs.31,500. While the revised basic pay scale for the lowest level supervisor would be Rs.12,600-Rs.32,500 against the existing Rs.6,550-Rs.11,350.

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