PSU pay panel for 50-60% revision

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Siddharth Zarabi / New Delhi March 27, 2008

Over 1.6 million employees working in the estimated 240 central public sector undertakings (PSUs) are likely to receive a 50 to 60 per cent salary increase, possibly with retrospective effect from January 2006.

The second PSU pay revision committee, headed by former Supreme Court Justice M Jagannadha Rao, is in advanced stages of finalising its award due April-end and plans to submit its report to the government soon after.

Officials in the know of the committee deliberations added that two chapters of the report have already been finalised.

A committee member told Business Standard that PSU salaries cannot be equated with government wages as the public sector has to compete with private companies that offer much higher compensation.

“The sixth Pay Commission report has also said that PSU salaries should not be linked to government. We are taking a realistic view of the situation,” he said.

On public sector companies’ demand for a 100 per cent increase, the member said the committee “would take into account all such demands”.

“In 1997, when PSU pays were last revised, the hike in some scales was as much as 68 per cent. This time I expect a raise of 55 to 60 per cent, especially because of the overall growth in PSU profitability,” a serving director of a top-ranked PSU said.

By this reckoning, the chairman of a schedule A (top-ranked navratnas like IndianOil, ONGC and NTPC, among others) central PSU, whose annual cost to company (CTC) works out to Rs 12 lakh to Rs 14 lakh, could earn a gross Rs 20 lakh after the award.

This will be far in excess of what an additional secretary in the government of India will get on account of the new Pay Commission award.

At the bottom of the PSU pay scale, an entry level attendant in a leading power PSU has a CTC of around Rs 22,000 per month, which could go up to Rs 33,000.

Constituted in November 2006, the committee was given 18 months to submit its report. The members include Nitish Sengupta, chairman, Board for Reconstruction of Public Sector Enterprises; P C Parakh, former secretary, Department of Coal; and R S S L N Bhaskarudu, former director, Maruti Udyog Ltd and former chairman, Public Enterprises Selection Board.

www.business-standard.com
Also read:
March 26: 40% ‘peanuts’, we want 100% hike: PSU employees


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	Discussion Board / User Comments

varshith on 04-DEC-08

What is the exact increase for E1 Grade by this 2nd Pay revision?

Jack on 03-DEC-08

I fail to understand why PSU oil men are working with the companies like ONGC where they are being treated like beggars. Their counter parts in private sector oil companies are getting around ten times more, even for the inferior quality of out put as compared to them.

subhas on 30-NOV-08

what will be the new pay scale of govt. bank employees?

Hariharan on 27-NOV-08

There would be a single set of pay scales for below Board level executives instead of 5 sets of scales of pay as recommended. The existing categorization of CPSEs into 4 schedules will continue The ceiling of gratuity for the executives would now stand increased to Rs. 10 lakhs. The effective date of pay revision will be 01.01.2007. For more info...look at..... http://pib.nic.in/archieve/others/2008/nov/r2008112001.pdf Hariharan hariharan_h2k@yahoo.com

MANVEERSINGH on 27-NOV-08

sir i m working in BHARAT EARTH MOVERS LTD . In which category it comes and what will be the expectedsalery after pay revision . at that time after merging da my basic is 12900 and at the time of joining without merging da my basic was 8600/-

sharmah on 26-NOV-08

sir is it for all executives or will also for group c and d employes and if not than whats for those ppl. on the same table two ppl r working with this much diff>

sanjeev on 26-NOV-08

I am working in Bharat Electronics Limited. in which category it comes annd what will be expected salary for the scale which was 10600 basic in january,2007

Pallavi on 24-NOV-08

I am working in Bengal Chemicals & Pharmaceuticals Ltd(A Govt of India Enterprise). Under which group our company comes. What will be our salary hike.

biju on 21-NOV-08

when will be the first revised scale imlemented,What is the position of Hindustan Newsprint Ltd in ABCD group. What is the present recomonded scale of Executives(E1)

ko on 21-NOV-08

When will be the first revised salary will be given? What is the BSNL category in A,B,C,D group, as panel recommendation was A+?

saugatraychaudhury on 11-APR-08

Is this Pay review is effective for all PSU's as I am working in BSNL. Is our Pay also be effective with this review report ?

saugatraychaudhury on 11-APR-08

Is this report is for all PSU as I am working in Bharat Sanchar Nigam Limited. So do our Pay also be dependent on this Review ?

vkmehta on 09-APR-08

it will be effective jan07

apanneer on 09-APR-08

What will be the expected pay scales for PSU executives ?

mraghavaiah on 28-MAR-08

Is the PSU pay revision is effective from jan 2006 or jan 2007