1. After 7th Pay Commission report windfall for babus, PSU officers to get massive pay hikes; Air India, BSNL, SAIL demur

After 7th Pay Commission report windfall for babus, PSU officers to get massive pay hikes; Air India, BSNL, SAIL demur

Loss-making PSUs like BSNL, Air India won’t hike salaries, some like BHEL will be less generous.

By: | New Delhi | Updated: June 21, 2017 1:20 PM
7th pay commission, PSUs, airtel A number of loss-making CPSEs with huge manpower such as BSNL (2.11 lakh), Steel Authority of India (88,600) and Air India (12,800) won’t be able to give a pay hike to their staff. Other loss-making CPSE. (Image: PTI)

For large sections of the officers at the central public sector enterprises (CPSEs), the tantalising wait for a pay hike, similar to the one given to government employees after the 7th Pay Commission (SPC), will end soon. While there are 244 operating CPSEs, the pay revision might be restricted to some 100 of them, official sources said. This is because only these 100 firms would meet the “affordability criteria” suggested by the 3rd Pay Revision Committee (PRC), constituted by the department of public enterprises (DPE).

The pay hike for CPSE officers would cost these units Rs 7,000 crore in 2017-18. Most likely the revised salaries will take retrospective effect, from January 2017.

A pay revision of the same proportion would follow for the CPSE workers (non-officer staff), who constitute more than two-third of the total CPSE manpower. While a final estimate is yet to be made, the pay increase for workers is expected cost the firms about Rs 10,000 crore annually, the sourced added.

The PRC, which broadly followed the SPC award, has suggested a maximum of 15% pay hike (on sum of basic pay, stagnation increments and industrial dearness allowance) subject to the ability of the firms concerned to bear the consequent financial burden. The pay hike can be fully implemented by CPSEs if the additional financial impact due to salary revision for officers is not more than their average profit before tax of the last 3 years. If the financial burden is between 20-40% of the average PBT, then, the pay increase will be 5-10%. However, the pay hike will be nil for executives of CPSEs if the additional cost due to salary revision is over 40% of their average PBT of last 3 years.

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  (Depending on profits, the CPSEs are categorised into different schedules, with highest being Schedule A, followed by B, C and D). The pay increase varies across the CPSE categories.

According to the sources, the DPE has already circulated a draft cabinet note on the CPSE pay revision  for inter-ministerial consultations. After pay revision of officers are implemented, the CPSEs, individually, would negotiate with the respective employee unions on the pay hike for workers.

The total workforce with the 244 operating CPSEs is estimated at 12.3 lakh, of which 3.8 lakh are officers and the rest non-officer staff. An estimate of the staff strength of the 100 firms that meet the norms for pay hike was not immediately available.

A number of loss-making CPSEs with huge manpower such as BSNL (2.11 lakh), Steel Authority of India (88,600) and Air India (12,800) won’t be able to give a pay hike to their staff. Other loss-making CPSEs, including Bharat Heavy Electricals (42,000), may be less generous than others who will announce pay increases, due to the stringent affordability criteria recommended by the 3rd PRC.

The FY16 salary and wage bill of all CPSEs stood at Rs 1.28 lakh crore, 40% of which was accounted for by executives.

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The SPC recommendations were out in November 2016 and the government implemented these with effect from January 2016, although the release of the higher pay was from August.The SPC had recommended a net 14.3% pay increase for the central government staff.

As FE reported recently, 4.9 million central government employees will likely start receiving revised allowances, including for house rents (HRA), from July, 2017.

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  1. Better Self Much Better
    Mar 4, 2018 at 2:21 pm
    It would be most foolish statement after Independence of India that the babus of govt departments are very hard working and deserve ry hike while those employees of public sector companies burdened with implementation of fake govt schemes only to show that each scheme launched by the govt is a hit, are inefficient. Govt's inefficient schemes and the pressure behind the curtain to implement them so that they can tell the numbers in their "bhashans" is the real reason for the loss of these en ies. Who better knows than the common man the level of corruption in departments ranging from transport to pwd to judiciary. From getting a driving license to registering a property these babus would suck the blood of common man. For those who don't know, decision maker in Pvt companies is the management while in public limited companies is the govt who is the major shareholder.
    1. S
      Sep 11, 2017 at 1:07 pm
      nobody is forcing these PSUs into losses....they are themselves doing it....day to day functioning policies are framed by PSUs not the government.....they have not streamlined processes and lossing customers to compe ion...where the PSUs were smart, they are champions like NTPC, Ongc...so it is pity for Employees of AIR INDIA, BSNL, MTNL etc to ask for hike when they should be aware that they are not keen to work with full enthusiasm... their respective ry is higher than the compe ion.....these PSUs should be left to die...no need to show pity on them...we are moving towards a developed economy where sickunits running on tax payers money have no right to exist......
      1. sabutech pallisabu
        Jul 21, 2017 at 12:44 pm
        Not even a single telecom company (Including Private operators ) in India is really making profit ..There may be some paper gimmick to satisfy the share holders..But these companies are having a BANK DEBT of about 7.5 L Crore !!!!! ..Such is the situation in India ..and even i this pathetic circumstance ,BSNL has no debt !!! ..It is really reeling under the thoroughly negative policies of the Central Govts .. and now they are nailing the last coffin to annihilate all the PSUs from the Indian Radar ..The profit making PSUs can expect the same fate of BSNL ---(BSNL was making profit till 2008 ) ....Here the villains are both Govt. and employees ( 20 employees and 80 policies )
        1. S
          SHANTHAVEERA . S.
          Jul 20, 2017 at 1:39 pm
          At least , for the employees served sincerely in the former P T then in DOT shifted to BSNL MTNL after conversion of Dept. into a corporation, now at the verge of superannuation / already retired, the Government should be kind enough to reconsider its decision to help them . It is not the fault of such employees to push these companies to heavy losses. Before conversion of such company to a public sector company under The control of government political persons, one should think of its employees / their children family also.
          1. G
            Gangadhara. P. V.
            Jul 20, 2017 at 1:19 pm
            The BSNL MTNLs are forcibly pushed to undergo loss. Also the mentality of the officers staff is PROGRAMMED for SSMG ( simply sitting monthly getting ). Only God can save these companies their consumers.
            1. Rangarajan R
              Jul 20, 2017 at 9:58 am
              bsnl is a govt psu 100 govt either govt can give 7 cpc instead of 3 prc ny advise once get profitable you can re revise r. rangarajan Hr Professional
              1. P
                Jul 2, 2017 at 12:03 pm
                The project investments in sail were meant for pocketing contractors and politicians UPA and corrupt top brass and MECON ex MD around 25,000 crores went to corrupt pockets. Read organiser. Com article in April 2013. Investment in Bethea, Kangra , jagdishpur steel processing unit itself is an example. The product mix of isp burnpur itself a corrupt. Hon pm should remove all corrupt and split sail .
                1. P
                  Jul 1, 2017 at 6:46 pm
                  Sail should be split and bhilai and south indian units along with chandrapur with RINL immediately. where honest sincere and qualified executives are there in RINL. Sail profits are eaten away by corrupt bokaro gang with falsified age by reducing to 5 years. investgate the two year transfers and lateral recruitments, promotions and project investments and appointing the corrupted advisers since 2000 onwards by CBI.
                  1. M
                    Jun 23, 2017 at 6:20 pm
                    The top management including concerned ministry/Secretary are responsible of any PSU who are now declared as Loss making and are not eligible for revision the 3rd RP'2017. B'cos, for running any CPSE the whole Policy / MOU are made between the two parties looking ahead of profits. But, sometimes it seem not implementing the policy/MOU by the top management and use Give and Take policy .( U know, Give - Take 0, so, result is Loss).
                    1. K
                      Jun 22, 2017 at 4:30 pm
                      PSUs r running loss due to Govt policy concerned ministry, why employees will suffer. Pay is basic need of employee and their dependent not for luxury to beat INFLATION. Govt may or may not approve additional facility.
                      1. K
                        Jun 22, 2017 at 4:20 pm
                        PSUs are running losses due to Govt Policy and concerned Ministry. Why employee suffer, is not it. Its(PPP-Pay, Promotion Pension) employees rights due to beat INFLATION. Govt may or may not approve the additional facility.
                        1. R
                          Jun 21, 2017 at 4:38 pm
                          The loses are due to Government policy decision and non-release of subsidy to PSUs. Then why should employees suffer?
                          1. A
                            Jun 20, 2017 at 11:14 pm
                            These press people fools all to increase TRP. PSUs do not come in the purview of pay commission. If compared, BSNL, Air India is in the range if 5th pay commission standard.
                            1. V
                              V MANI
                              Jun 20, 2017 at 10:27 pm
                              Cong govt as well as present govt systematically made things difficult for BSNL and waiting for an opportune time to sell it to private operators. Loss making is not because of staff but because of successive govts failure to provide support to BSNL.
                              1. B
                                B.Sandeep kumar
                                Jun 20, 2017 at 5:26 pm
                                are u sure 30000...!!! any formula..?
                                1. J
                                  Jun 20, 2017 at 5:09 pm
                                  In case of all the three PSUs the management and the erstwhile UPA govt is responsible for such a mess. After 10 years these PSU executives will not get any pay hike and jealously look at their peers in other PSUs. What about the affordability criteria for mundane Central govt employees? It will be managed by public debts and raising taxes. Jai Hind!
                                  1. J
                                    J S Roy Choudhury
                                    Jun 20, 2017 at 2:32 pm
                                    "ability of the firms concerned to bear the consequent financial burden" - so that is the key word? Pray, who decides that capacity or PBAT for the "Babu"s? What is the "profit" or "productivity" of a govt department ? How dare they usurp the hard earned tax money contributed​ by us without any iota of accountability of performance? Bring out some semblance of parity in performance assessment to ensure that the fat cats don't take away the cream.
                                    1. B
                                      B.Sandeep kumar
                                      Jun 20, 2017 at 1:12 pm
                                      Hi... I work for BHEL my current basic is 12700. what will be my basic after 7th pay revision...
                                      1. Pradeep Behera
                                        Jun 20, 2017 at 3:34 pm
                                        Hope for the best...
                                        1. C
                                          Jun 20, 2017 at 3:49 pm
                                          1. B
                                            B.Sandeep kumar
                                            Jun 20, 2017 at 5:47 pm
                                            Hi Chandra... ru sure 30000!!! any formula..?
                                            1. N
                                              Jun 20, 2017 at 8:54 pm
                                              It will include basic DA
                                            2. K
                                              Jun 20, 2017 at 9:15 pm
                                              26650 if 5Percent hike. If not then 25400 Only. Pray to god for more....
                                            3. R
                                              Jun 20, 2017 at 10:51 am
                                              Great news....now govt employees should show more responsibility
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