Neha Katoch

8/3/2019 Neha Katoch

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govt approves revised pay scales for psuemployees PSU CPSU New Pay Revision

Scales Grades Updates74rate or flag this pageTwitter

Bybhagwat dig it

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Update is DPE approved in Increased salary structure check details and DPE guidlines releasedon April 2 2009.

Govt approves revised pay scales for psu employees, In summary the government on Thursdayannounced a hefty 50 to 300 percent increase in pay-packages with effect from January 1, 2007.

The new scales for 1,20,000 non-unionised supervisory staff and 2,58,000 board level officers in216 operational Central PSUs. approved uniform fitment of 30 percent of basic pay plus dearnessallowance for profit making PSUs with effect from January 1, 2007.

For weak and non-profitable PSUs, the fitment will depend on their affordability and will rangebetween 10 percent and 20 per cent. The Cabinet relied on the Committee of Secretariesrecommendations to classify PSUs into four categories - A, B, C and D, instead of fivecategories - A+, A, B, C and D recommended by the Rao Committee in May. The chairman of'A' category PSU will now be eligible for Rs 80,000 to 1,25,000 pay scale as against Rs 18,500to 23,900 currently. There are 247 CPSEs, of which 216 are in operation. In all 16,14,000 areemployed in these, of which 12,36,000 are unionised workmen who negotiate their wagesdirectly with their respective companies. reports zee news

Govt approves higher pay for central PSU officers The government has given its approval toincrease pay for officers of central Public Sector Undertakings(PSUs) with effect from January 1,2007. psu wage revision, dpe, cpsu, zee businessIt pays to work for PSUs; employees get salaryhike Employees of private companies may fear for their jobs, but for their counterparts in publicsector companies its bonanza time. The Government on Thursday announced a pay hike forcentral public sector undertakings (PSU), a decision which would benefit 2.5 lakh employees inover 200 companies. The new compensation package will come into effect from January 1, 2007and the basic pay of chiefs of central PSUs will now range from Rs 55,000 to Rs one lakh

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 effectfrom January 2006. The second PSU pay revision committee, headed by former Supreme CourtJustice M Jagannadha Rao, is in advanced stages of finalising its award due April-end and plansto submit its report to the government soon after.

The sixth Pay Commission report has also said that PSU salaries should not be linked togovernment. We are taking a realistic view of the situation, ndtv, govt approves revised payscales for psu employees, psu pay commission, cpsu pay revision, dpe

the chairman of a schedule A (top-ranked navratnas like IndianOil, ONGC and NTPC, amongothers) central PSU, whose annual cost to company (CTC) works out to Rs 12 lakh to Rs 14
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lakh, could earn a gross Rs 20 lakh after the award. This will be far in excess of what anadditional secretary in the government of India will get on account of the new Pay Commissionaward. At the bottom of the PSU pay scale, an entry level attendant in a leading power PSU has aCTC of around Rs 22,000 per month, which could go up to Rs 33,000.

Also check out department of public enterprises DPE website for

Pay Revision Committee for Executives and Non-unionised Supervisors of CPSEs

Report of 2nd Pay Revision Committee For Executives of CPSEs

at http://dpe.nic.in/

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Rediff.com Business Salary windfall for PSU staff soon

Salary windfall for PSU staff soonMay 31, 2008 11:11 IST

Over 210,000 executives in estimated 240 central public sector undertakings are in for a bonanzawith a pay revision committee recommending a massive hike in their annual cost-to-company.The hike ranges between 379 per cent at the highest level and 57 per cent at the lowest acrosscompanies and levels.
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This is assuming the maximum possible payout an executive can get. The award, if accepted,would mean that government servants, particularly defence personnel, would be paid far less incomparison even if one takes into account the recent hike recommended by the Sixth PayCommission.

The second PSU pay revision committee, headed by former Supreme Court Justice M

Jagannadha Rao, submitted its recommendations on Friday to Minister of Heavy Industries andPublic Enterprises Sontosh Mohan Dev.

"We are giving more authority to the companies. They can earn more profit and can share it withtheir employees," he said. The report has been sent to the Prime Minister's Office and the financeministry. After it is examined, a final proposal will be put up for Cabinet approval. The processcould take three-six months.

Shorn of variable components like risk pay and performance-related pay, the effective pay hikeworks out to between 25 per cent and 40 per cent, according to SM Dewan, director general,Standing Conference of Public Enterprises. "This is a paradigm shift in the government'sthinking on running a business enterprise. It does not put us on a par with private sectorcompanies, but it is a very good beginning," he added.

PSU GRAVY TRAIN

No of

CPSUs

CMDDirector

sE5 E0

E/P E/P E/P E/P

CategoryA+11

10.89/52.20(379.33%)

10.35/36.96(257.10%)

6.96/15.92(122.98%)

3.8/7.66(101.57%)

Category A45

10.89/41.76(283.47%)

10.35/34.21(230.53%)

6.96/12.69(82.32%)

3.80/6.23(63.94%)

Category B51

10.35/38.7(273.91%)

9.13/29.28(220.70%)

6.96/13/48(93.67%)

3.8/6.97(83.42%)

Category C52

9.13/29.28(220.70

%)

8.36/21.42(156.22

%)

6.96/12.79(83.76

%)

3.8/6.35(67.10

%)

Category D57

8.36/24.96(198.56%)

8/19.56(44.50%)

6.96/12.18(75%)

3.8/5.98(57.36%)

Figures in Rs lakh/ annum are the total cost-to-company, inclusive of basic, risk pay, allperks and performance related pay.These


4/10

amounts are the maximum payable. Figuresin bracket are the % increase over existingannual CTCE0: Entry level; E5: Mid level; E/P:

Existing/Proposed

The revised salary structure is proposed to come into effect from January 1, 2007.

The proposed pay structure seeks to reduce the disparity between public sector executives andtheir private sector counterparts and introduce a performance-based compensation culture.

In another far-reaching recommendation, the award calls for complete delinking of public sectorand government pay scales. PSU employees are proposed to get much more than governmentofficials.

For instance, the chairman and managing director of a company like ONGC [Get Quote], NTPCor Bharat Sanchar Nigam Ltd is proposed to be paid Rs 52.20 lakh a year, much more than theannual compensation of Rs 15 lakh (inclusive of all allowances and perks) that a secretary in the

central government will get if the Sixth Pay Commission award is implemented in toto.

On a strictly fixed-pay basis, a public sector chairman and director will get Rs 1.25 lakh a monthin category A and Rs 65,000 a month in category D companies. In comparison, a governmentsecretary will be paid a fixed Rs 80,000, while the cabinet secretary will be paid Rs 90,000 amonth.

The report also recommends that central PSUs be categorised into five (A +, A, B, C, D) basedon turnover, manpower and geographical spread.

"We want total delinking of PSUs from the government as we want them to become profitableand strong," said Board for Reconstruction of Public Sector Enterprises Chairman NitishSengupta, who was a member of the committee.

The pay will be split into two components, basic pay and risk pay, with the latter depending oncategorisation, profitability and the executive's grade. Loss-making firms will not be required toshell out risk pay.

Pay panel's other recommendations

Employee stock options, linked to performance pay

Performance-related payout amounting to 40-200 per cent of basic pay

Risk pay of Rs 1,100 to Rs 25,000 per month

New pay scale of Rs 65,000 - 75,000 of E-10 in A+ companies

Sick companies to be allowed pay revision (without risk pay or variable pay) if they

make cash profit

Central PSUs not making cash profits to be examined by the Board for Reconstruction ofPublic Sector Enterprises

CMDs and directors of sick central PSUs which have seen a turnaround will retire at 60

No upper limit on gratuity

Separate fund for post-retirement medical treatment and to meet emergency needs ofthose who have retired
http://money.rediff.com/quotes/oil+&+natural+gas+corporation+ltdhttp://money.rediff.com/quotes/oil+&+natural+gas+corporation+ltdhttp://money.rediff.com/quotes/oil+&+natural+gas+corporation+ltdhttp://money.rediff.com/quotes/oil+&+natural+gas+corporation+ltd


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Revision of pay for non-unionised supervisors to be decided by board of directors

Retirement benefit of 30 per cent of basic pay, which includes CPF, pension, gratuity andpost-retirement medical benefits

The sixth pay commision: Complete coverage

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6/10

How 'Arab Awakening' has transformed the Muslim world

The long arm of Pakistan's ISI

August 19, 2008

4 states to implement pay panel recommendations

August 18, 2008

Pay hike for govt staff: What about guarantee of output?

August 16, 2008

Pay is ok, what about work?Pay panel: States can bear the burden, say experts

August 14, 2008

Govt nods 21% pay hike; arrears from 2006Pay hike impact on inflation factored in: FMPay Panel: Lalu thanks PMArmed forces react positively to Pay Panel

March 31, 2008

Pay panel, an attempt to destabilise India

March 28, 2008

Armed forces seek 50% pay hikeGovt to lure faculty with big pay package

March 27, 2008

PSU pay panel for 50-60% revisionFewer holidays, bigger challengePay revision to swell tax coffersSteep hike for regulators may attract more talentPensioners angry at 2006 'divide'Pay hike: No direct impact on IITs, IIMs
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7/10

March 26, 2008

40% 'peanuts', we want 100% hike: PSU employeesPay panel report: Defence unhappy

March 25, 2008

Bureaucrats' salaries still lowlyA 3.2 times hike for defence forcesNow, work just 20 years for full pensionGovt staff to get effective salary hike of 28%Most states to implement Pay Panel proposalsEntry-level govt pay higher than in pvt sector'Flexi hours to help women take care of kids'

March 24, 2008

Pay panel: All about the revised pay scales6th Pay Commission for 40% salary hikeWhat is a Pay Commission?CPI opposes govt staff pay hikeIt's not possible to please all: Pay panel chiefPay hike to cost Rs 12,561 cr in first year

6th pay panel for 40% pay hikePay hike: Good news for defence staffAvoiding office? Harder for govt staff now

Pay hike to drive inflation further: BJPSebi, Trai, Irda bosses' pay hikedShould govt, pvt sector staff get same pay?Industry hails 6th Pay Commission reportExternal link: Full report of the Sixth Central Pay Commission

March 3, 2008

Sixth Pay Commission impact may top Rs 20,000 crore

Previously...

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Pay Commission: The Election AngleSixth Pay Commission may derail economy
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9/10

Now, defence PSUs can have JVs withcorporates

NEW DELHI: The government on Thursday made a significant step for bolstering

domestic defence industrial base by clearing of guidelines for its defence PSUs to

establish joint ventures with private firms. This could increase opportunities for

obtaining advanced technologies from foreign sources.

However, though the defence sector was opened up in 2001-02 to 100% private

investment, with up to 26% FDI, it did not have the desired impact on the

performance of the eight defence PSUs.

"The Union Cabinet today approved the guidelines for establishing Joint Venture

Companies by Defence Public Sector Undertakings (DPSUs). The guidelines containprovisions for important matters that are critical from a national security

perspective," an official release said.

"The ministry will issue the guidelines to harness the emerging dynamism of the

private sector in India and increasing opportunities to obtain advanced technologies

from foreign sources through adoption of appropriate partnership approaches by

DPSUs," it said.

There was urgency in laying down guidelines as the government is in the process of

negotiating over 40 offset contracts worth Rs 50,000 crore with global armamentfirms. Besides, the $20 billion MMRCA project will have 50% offsets.

JVs were allowed in the Defence Production Policy released last year but was put on

hold by the ministry after the Mazagon Dockyards Limited (MDL) tied up with a

private shipyard, which was opposed by rival companies. Officials said the

guidelines would help in "enhancing fairness and transparency in the selection of

the JV partner" by DPSUs while ensuring a "well-defined nature and scope" of the tie

up.

According to the guidelines, DPSUs will retain the "affirmative rights" for taking key

decisions in the JV company.

The DPSUs will have the right of "prior approval to key JV decisions, such as

amendments to the articles of association of the JV company, declaration of

dividend, sale of substantial assets, and formation of further subsidiaries," the

release said.
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10/10

The guidelines provide a "streamlined, fair and transparent framework for entering

into JVs by DPSUs, with the ultimate objective of better risk-management and

shorter time frames for delivery to meet the increasing demands of our armed

forces."

Neha Katoch

Documents

Transcript of Neha Katoch