PSU Sixth pay revision

Govt approves higher pay for central PSU officers 20, 2008

Union Cabinet today (November 20) has approved revised pay scales for Central Public Sector Undertaking (CPSU) employees.Union Cabinet approved uniform fitment of 30% of basic pay plus dearness allowance (DA) for profit making PSUs with effect from Jan. 1, 2007. The decision, taken by the Cabinet at a meeting chaired by Prime Minister Manmohan Singh today, was based on recommendations given by the Second Pay Revision Committee.
For weak and non-profitable PSUs, the fitment will depend on their affordability and will range between 10% and 20%.
The package would include revision in other allowances like house rent allowance (HRA), besides performance related incentives, said Prithviraj Chavan, minister of state in prime minister`s office.While the new pay structure would be implementable from Jan. 1 2007, the new allowances would accrue to employees only after the decision is notified by individual units.
The Cabinet relied on the committee of secretaries recommendations to classify PSUs into four categories - A, B, C and D, instead of five categories - A+, A, B, C and D recommended by the Rao Committee in May.

The package would include revision in dearness allowance and other allowances, besides performance related incentives. Extra outgo on account of the new pay structure would be borne by individual CPSUs and no budgetary support is involved. While the new pay structure would be implementable from January 1, 2007, the new allowances would accrue to employees only after the decision is notified by individual units.

Related links:
PSU pay panel for 50-60% revision

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