PSU Panel for fatter pay packets
Written by Administrator on May 31st, 2008| The recommended hike ranges between 57 per cent and 379 per cent. | ||||||||||||||||||||||||||||||||||||||||||||
| Over 210,000 executives in estimated 240 central public sector undertakings are in for a bonanza with 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 across companies and levels. | ||||||||||||||||||||||||||||||||||||||||||||
| 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 in comparison even if one takes into account the recent hike recommended by the Sixth Pay Commission. | ||||||||||||||||||||||||||||||||||||||||||||
| The second PSU pay revision committee, headed by former Supreme Court Justice M Jagannadha Rao, submitted its recommendations today to Minister of Heavy Industries and Public Enterprises Sontosh Mohan Dev. | ||||||||||||||||||||||||||||||||||||||||||||
| "We are giving more authority to the companies. They can earn more profit and can share it with their employees," he said. The report has been sent to the Prime Minister’s Office and the finance ministry. After it is examined, a final proposal will be put up for Cabinet approval. The process could take three-six months. | ||||||||||||||||||||||||||||||||||||||||||||
Shorn of variable components like risk pay and performance-related pay, the effective pay hike works 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’s thinking on running a business enterprise. It does not put us on a par with private sector companies, but it is a very good beginning," he added.
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 and their private sector counterparts and introduce a performance-based compensation culture. |
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| In another far-reaching recommendation, the award calls for complete delinking of public sector and government pay scales. PSU employees are proposed to get much more than government officials. | ||||||||||||||||||||||||||||||||||||||||||||
| For instance, the chairman and managing director of a company like ONGC, NTPC or Bharat Sanchar Nigam Ltd is proposed to be paid Rs 52.20 lakh a year, much more than the annual 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 month in category A and Rs 65,000 a month in category D companies. In comparison, a government secretary will be paid a fixed Rs 80,000, while the cabinet secretary will be paid Rs 90,000 a month. | ||||||||||||||||||||||||||||||||||||||||||||
| The report also recommends that central PSUs be categorised into five (A +, A, B, C, D) based on turnover, manpower and geographical spread. | ||||||||||||||||||||||||||||||||||||||||||||
| "We want total delinking of PSUs from the government as we want them to become profitable and strong," said Board for Reconstruction of Public Sector Enterprises Chairman Nitish Sengupta, who was a member of the committee. | ||||||||||||||||||||||||||||||||||||||||||||
| The pay will be split into two components, basic pay and risk pay, with the latter depending on categorisation, profitability and the executive’s grade. Loss-making firms will not be required to shell out risk pay. | ||||||||||||||||||||||||||||||||||||||||||||
| Pay panel’s other recommendations | ||||||||||||||||||||||||||||||||||||||||||||
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June 1st, 2008 at 11:10 am
pl.state the period of Wage revision
June 1st, 2008 at 4:20 pm
Really good & detailed news informed to us. Thank you.
June 4th, 2008 at 11:09 pm
So no one thinks of the Group C & D Category of PSU Staffs. Its is expected for the Group A & B stafs as in the 6 CPC Report also marked. So in this country we cannot expect good for the Group C & D.
So can any one update when our Hounarable DPE is going to declare Pay review for the loww level staffs of PSU.
September 4th, 2008 at 9:35 am
Dear Sir,
It is very disheartening to know that the ceiling of Rs.3.5 lakhs Gratuity has not been looked into. I am under a lumpsum scheme and due to retire on 31.12.2008. All that I will get is Rs.3.5 lakhs from the Company towards Gratuity? Is this amount enough to survive in today’s times? The Government should have raised the Gratuity Limit for those not benefiting by the pension scheme and are under the one time lumpsum scheme.
September 10th, 2008 at 6:39 pm
can any one tell me how much e1 grade will get in group A P.S.U
September 11th, 2008 at 3:31 pm
Sir,
Just wanted to know if the new pay scales will be applicable to UTI Technology Services Ltd (a Govt. of India Company). At present the company’s pay structure does not include DA / IDA but only HRA, PF & other allowances but the leave and other rules are similar to that of other PSU. Can a Govt company has such type of pay structure?
November 16th, 2008 at 9:13 pm
sir
i want to knew when will be the 2 pay commission apply in psu& who much percantage salary increase in “c” grade company.
November 16th, 2008 at 9:14 pm
Anyone knew that the fixed stipend is also increase or not?
November 19th, 2008 at 10:55 pm
The much awaited PSU pay revision will be decided by government on 20.11.08. CNBC showed the news on headlines today….Keeping fingers crossed…..
November 22nd, 2008 at 6:57 pm
I am working in Bridge & Roof Co (india) Ltd. Our Company stand Grade -B. I have present Grade -E1 postion. Present Basic is Rs.8600. What will be new basic pay.
Thanking you
Prabhu nath prasad
December 21st, 2008 at 4:01 pm
I have retired from a Public sector company M/s Madras Fertilisers Ltd in 31st Jan,07 holding E-6 position. Please let me know whether I am eligible for enhanced graduitity amount with respect pay revision which was effective from 1.1.2007
March 12th, 2009 at 12:46 pm
I retired as a Supervisor from Mazagon Docks Ltd. (Ministry of Defence)on 31.12.2008. Till date, I have not received my Gratuity amount nor my leave encashment. I fail to understand why these amounts have been held up as I am losing heavily in terms of interest and moreover, the rates of interest have come down after 31.12.2008. This interest could have helped me run my daily expenses as I have no salary income. Would you be kind enough and inform me whether the Gratuity amount has been raised to Rs.10 lakhs for a Central Public Sector Undertaking as this atleast would give me some back up. Thanks.
April 6th, 2009 at 3:06 pm
can you tell me about pay revision of madras fertilizers ltd
April 6th, 2009 at 3:11 pm
I am working in PSU company Madras Fertilizer Ltd.Can you provide the current status of salary revision of the company?