Wage revision process for PSE staff gathers steam

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The government has set in motion the process of revising the pay scales of employees in public sector enterprises (PSEs) by circulating a Cabinet note for the purpose.

The note has been moved by department of public enterprises and would be taken to the Cabinet for approval after the Sixth Pay Commission for the central government employees is constituted, sources said.

The Cabinet note has names of as many as 12 former judges from among whom the chairperson of the committee would be selected, they added. The government has already cleared the proposal to set up the Sixth Pay Commission.

The revision of pay scales would benefit more than 3.5 lakh employees of the central PSEs. The pay scales were last upgraded in 1999 on the basis of Justice S Mohan committee report. The committee was set up in 1996 and its report came in 1998. The Cabinet accepted the recommendations of the committee in 1999 but the hikes were applicable from January 1997.

As this committee’s reward was applicable for 10 years, a new committee has been necessitated. The last wage revision had put an additional burden of Rs.2,000 crore per year .

It had doubled the basic pay scales of the executives and officers and allowed for 100% neutralisation of dearness allowance and enhanced city compensatory allowance.

The last wage increase brought the house rent allowance of the employees at par with central government employees and allowed for payment of allowances and perquisites up to a maximum of 50% of basic pay.