1. After 7th Pay Commission payment, now 12 lakh CPSE staff to get Rs 20,000 cr windfall wages in 2017-18

After 7th Pay Commission payment, now 12 lakh CPSE staff to get Rs 20,000 cr windfall wages in 2017-18

Revision to be based on paying capacity

By: | New Delhi | Published: March 20, 2017 5:45 AM
The salary revision for four lakh CPSE executives will likely take place in July with retrospective effect from January 1, 2017, and is expected to cost R8,000 crore/year, sources told FE.

In a move that could boost consumption and stimulate the economy, central public sector enterprises (CPSEs) are likely to pay out an additional R20,000 crore in 2017-18 as recompense to 12 lakh employees. This would be the second time in two years that government employees are getting pay hikes; central government staff got hefty pay hikes last year following the implementation of the 7th Pay Commission’s recommendations.

The salary revision for four lakh CPSE executives will likely take place in July with retrospective effect from January 1, 2017, and is expected to cost R8,000 crore/year, sources told FE. These pay hikes are expected to be followed by a wage revision for over 8 lakh workers which would cost the CPSEs another R12,000 crore in a year, they added.
The salary revision exercise, based on the recommendations of the 3rd Pay Revision Committee (PRC) constituted by the department of public enterprises, will be carried out by each CPSE separately by negotiating with employee unions.

The 3rd PRC, which broadly followed the 7th Central Pay Commission award, has suggested a 15% pay hike (on sum of basic pay, stagnation increments and industrial dearness allowance) subject to ability of the CPSEs to bear the financial burden. The pay hike can be nil for executives of some CPSEs if the additional cost due to salary revision is over 40% of their average profit before tax of last 3 years. The 7th CPC had recommended a 14.3% pay increase for central government staff.

The PRC has recommended a minimum pay of Rs 30,000/month, from Rs 12,600/month now, for executives and a maximum of Rs 3.7 lakh for CMDs, from Rs 1.25 lakh, (for Schedule A CPSEs). The maximum pay of CMDs varies for other category CPSEs. Depending on profits, the CPSEs are categorised into different schedules, with highest being Schedule A, followed by B, C and D.

The PRC’s report on salary revision of executives is currently with the Cabinet secretariat. The government is likely to form a committee of secretaries shortly to look into the report before the Union Cabinet gives the go-ahead for its implementation around July.

The salary and wage bill of 235 operating CPSEs stood at Rs 1.27 lakh crore in FY15 and is estimated to have reached over Rs 1.4 lakh crore in FY17. The salary hike for executives, who share nearly 40% of the total pay bill of CPSEs, are likely to be implemented by only profitable companies, whose number is understood to have come down to 140 in FY16 against 157 in FY15. However, the wage hike for workers is likely to take place even in non-profitable ones, sources said.

The once-in-ten-years salary and pension revision for over 1 crore central government staffers and pensioners entailed an additional cost of Rs 84,933 crore in FY17. The revised allowances, if implemented from April, may cost an additional Rs 29,000 crore to the government (including railways) in FY18.

The 7th Pay panel’s award implementation is usually followed by the public sector undertakings as well as state governments. Besides additional pay to CPSE staff, the likely pay revision for state government staff could give a consumption-led boost to the economy in FY18.

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    ak gupta
    Aug 7, 2017 at 6:18 pm
    In PSU we earn our profit then we gets the ry, however the officers from the parent min comes for enjoyment. This report needs to do some home work before writing article.
    Reply
    1. S
      Suresh
      May 31, 2017 at 6:13 pm
      After reading this news, I looked at dictionary thinking meaning of HEFTY is revised.😂😂
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      1. M
        Mohit Kumar
        Mar 20, 2017 at 2:30 am
        A PSU pays its employee out of profit so stop projecting it as burden on taxpayer... Unlike other govt jobs where even if u don't work u are paid
        Reply
        1. S
          Sam
          Mar 20, 2017 at 3:06 pm
          During previous revision also media gave negative publicity under some "influence". Why don't you analyse pay pattern in pvt sector, including your own media, and film industry, etc? Bigger worms are hidden there.
          Reply
          1. S
            sameer sharma
            Mar 20, 2017 at 5:03 pm
            we consute that 1% of the total potion of this country which is honestly paying tax on their income. giving a mere 15% hike and that too in a span of 10 years and calling it hefty is an absurd joke. PSUs are meant to be exploited by the politicians/ministers in the name of arranging various events/ political gatherings.
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            1. R
              Raju
              Mar 20, 2017 at 10:53 am
              Please don't mention that it is hefty ry hike,the net increase in ry is very less.Due to the news in Nadia,it is not the govt employee are getting benefit but the house rents are getting increased.Govt employee are only the people who are paying the taxes as per the rule,after deducting the tax it is just a yearly hike.please don't mention as bumper or any exeggrating word for pay commission hike.
              Reply
              1. S
                Sini
                Mar 20, 2017 at 4:34 pm
                Quality of journalism is also at stake now, may be cost cutting measures in action, I am fed up with media, DD is much better
                Reply
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                  Ashok kumar
                  Mar 20, 2017 at 2:50 pm
                  A misleading article. It seems that writer of the article do not know meaning of hefty.
                  Reply
                  1. M
                    MANISH SHARMA
                    Mar 20, 2017 at 3:27 pm
                    Misleading journalism. Even some section of govt servant like defence yet to receive even 7th pay commision. Once in10yr they revise the pay thru commision which itself takes 2-3yrs for conclusion & implementation. To use word hefty hike is totally bogus
                    Reply
                    1. N
                      Narayana Rao C K
                      Mar 20, 2017 at 10:29 am
                      What about Autonomous bodies fate?
                      Reply
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                        Chanakya
                        Mar 20, 2017 at 4:41 am
                        MR RAKESH - PSUS are a common mans pain- come to office late by half hour, spend another 15 minutes washing face, combing hair, drinking chai, then sit in seat and exchange pleasantries for another half hour............ start work at 12 pm..............leave for lunch at 1 pm and come back late by 30 minutes....................chai again at 3.30 pm................ look at clock for exit and bang 5 pm................... exit the seat.............. leave energised .............with more energy than what the employee brought into office.................... nnot all do this but I have seen quite a few........... and these chaps want a pay rise................is this not tax payers money ? or is it money falling from heaven ???
                        Reply
                        1. C
                          Chanakya
                          Mar 20, 2017 at 4:42 am
                          money fell from heaven ? whose money / govts money is tax payers money ? or did you bring it from your home ???/
                          Reply
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                            Arvind
                            Mar 20, 2017 at 1:59 am
                            And put the burden on on common man, when will all this end
                            Reply
                            1. I
                              indian
                              Mar 20, 2017 at 3:05 pm
                              The reporter needs to do his homework properly. Central staff and public sector are not same. It is once in 10 years and not 2 years. First stop his ry for misguided reporting. This so called increase is peanuts. Private sector, MLA's and MP's get it every year or every few years. For public sector employees 101 committees are set up. We are the only sector making profits and paying taxes honestly. The reporter should be pulled up first and he should apologise in public.
                              Reply
                              1. M
                                Muzaffar Tauhid
                                Mar 20, 2017 at 4:42 am
                                CPSEs executives first gives taxes & then takes ry .But private companies only shows loss every year & don't pay taxes on overall income .The private companies executives takes sodexo vouchers to save rather cheat taxes .CPSEs build nation & Private executives build bank balance .
                                Reply
                                1. K
                                  kadalirao
                                  Mar 20, 2017 at 1:35 pm
                                  Not correct to say as Hefty increase for 10 Years as code employees to earn for revision unlike cg employees for 7cpc.
                                  Reply
                                  1. K
                                    K.V.Krishnamurthy...ex employee
                                    Mar 20, 2017 at 5:06 pm
                                    There is one category of central government employees who are not enled for pension viz. Public Sector Units.Due to privatisation, the employees of these units opted Volunteer Retirement.Whatever financial benefits they got was spent on settlement of family like building house,higher education/marriages of offsprings etc.They do not belong to BPL category.,.the interest on meagre Fixed Deposits that serve as monthly income is reduced further.Curiously many of them are not even income-tax payers thus not avail benefits under the new schemes.Will the new budget provision extend any benefit to them?
                                    Reply
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                                      parthasarathy
                                      Mar 20, 2017 at 2:52 pm
                                      Media without homework they say hefty hike, really it is simply DA merger.
                                      Reply
                                      1. S
                                        sabutech pallisabu
                                        Mar 21, 2017 at 1:36 am
                                        India escaped the financial debacle of 2008 ---reason PSU banks The oil price in stan is 1/3 of that of India --reason ..One big private sector Cement companies are making price decision their own after forming oligarchy ...reason : NO major PSU in Cement sector Whenever Govt wants stability in the stock market it relys on the PSU, LIC not on Private sector The demonetization exercise could be done only because there were PSU banks was downed by the corruption of Private sector banks ...Telecom sector has not become another Cement sector ..reason BSNL still exist and Jio and other PVT..sector is waiting for its fall
                                        Reply
                                        1. R
                                          ravindra kumar
                                          Mar 20, 2017 at 2:17 am
                                          you take good ry, good benefits, lot of holidays now where is the need for corruption.don't be too greedy and expect two pay checks, one for Rama's account and another for Krishna's account.have a heart and serve the nation it is tax payer's money.
                                          Reply
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                                            Raghunath
                                            Mar 20, 2017 at 8:38 am
                                            CPSE pay hike is absolutely different from the Govt servants pay hike as there's no financial burden on the Govt.It may be noted that there is no budgetory allocation for the CPSE which generates wealth doing business competing with private players including MNCs on its own and contribute to the nation and its shareholders thru dividend payments. Having left to feed on its own, I wonder what the PRC means, unlike the CPC for the Govt servants.
                                            Reply
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