The Hindu Business Line : Higher pay for Central PSU officers gets Cabinet nod

New Delhi, Nov 20 After Government employees, it is now the turn of public sector executives to reap the pay revision bonanza. On Thursday, the Union Cabinet gave its nod to a pay enhancement for officers of Central Public Sector Enterprises (CPSEs). This will be implemented with retrospective effect from January 1, 2007.

Announcing the decision, the Minister of State in the Prime Minister’s Office, Mr Prithviraj Chavan, told reporters that the CPSEs will bear the entire burden of hike in wages, and allowances. The new pay-scales would be based on recommendations given by the Second Pay Revision Committee.

It is also for the first time that the Government is introducing performance-related pay (PRP). Besides, the highest ceiling for gratuity payment has been increased from Rs 3.5 lakh to Rs 10 lakh.

The new pay-scale will be applicable for all 217 CPSEs, but only 151 profitable companies will be able to implement it. However, given their present level of profitability, only 76 CPSEs would be immediately able to implement the package fully.

Other profitable CPSEs have been asked to take a phased approach and implement the new scheme over a period of time, depending on their growth in profits. However, the new pay-scale continues with the earlier categorisation of CPSEs into four groups – A,B,C, and D – based on capital employed and profitability.

A total of 3.78 lakh employees, which include board-level and below board-level executives and non-unionised supervisory level employees of these companies, will be entitled to the benefits.

The existing total salary bill of the 217 CPSEs stands at Rs 13,000 crore yearly. The new pay-scale would involve an additional yearly payout of Rs 9,000 crore. According to the new scheme, the dearness allowance as on January 1, 2007 would be merged with the basic and the increments would be calculated based on the combined amount.

The Minister for Heavy Industries and Public Sector Enterprises, Mr Santosh Mohan Deb, later in the day told reporters, “The PRP would be in the range of 40 per cent to 200 per cent based on the performance of the companies. The average annual increase in the gross package of the employees would be around 67 per cent.”

A rough comparison with the recently approved revised pay-scales for Government employees shows that the B level company CMD could earn a maximum basic of Rs 90.000 per month, which is at par with the Cabinet Secretary. While the minimum basic for a CMD of an A category company would be Rs 80,000 per month, which would be at par with the maximum basic pay of a Secretary.

Related Stories:
Central PSU chiefs set for hefty pay hike

More Stories on : PSU | Human Resources | Policy

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page