New Delhi, Nov 20: Its bonanza time for public sector employees as Government on Thursday, Nov 20 announced a pay hike for Central Public Sector Undertakings (PSU). This decision will benefit about 2.5 lakh government employees in over 200 companies. A Cabinet meeting, chaired by Indian Prime Minister Manmohan Singh, approved the new scales for 1,20,000 non-unionised supervisory staff and 2,58,000 board level officers in 216 operational Central PSUs.
As per the reports the new compensation package will come into effect from Jan 1, 2007 and the basic pay of the chiefs of Central PSUs will now range from Rs 55,000 to Rs 1 Lakh. The revised pay package also have stock options and performance-related incentives. Government"s decision is aimed at stopping the migration of Central PSU employees to the private sector. The Cabinet Committee decided on pay-hike based on the recommendations given by the Second Pay Revision Committee. Prithviraj Chavan, the Minister of State in PM's office said that the package would include revision in dearness allowance performance related-incentives and other perks.
In India there are about 247 Central Public Sector Undertakings, of which 216 are in operation. The companies employ around 16,14,000 people, of whom 12,36,000 negotiate their wages directly with their respective companies.
Government had approved the implementation of the Sixth Pay Commission for Central government staff earlier this year and it was implemented on Sep 1, 2008.