Central PSU Employees to get Pay Hike from January 1 2017
Central PSU Employees to get Pay Hike – The Third Pay Revision Committee, headed by retired judge Satish Chandra, is given six months to submit its report.
Directors, executives and other supervisory staff at companies run by the central government are in for a pay hike next year. The government appointed a committee to review and revise the structure of salary and emoluments of these employees at central public sector enterprises (CPSEs).
The Third Pay Revision Committee, headed by retired judge Satish Chandra, is given six months to submit its report, a government notification said. The government’s decision on the recommendations of the 3rd pay revision commitee for the Central PSU employees would take effect from January 1, 2017.
The step was taken on “recognising that in the prevailing business environment … the CPSEs have to be commercially viable and competitive, and that the employees of the CPSEs have to be provided with suitable working conditions, emoluments and incentives to motivate them to strive for further growth, productivity and profitability of their enterprises,” the notification said.
Other members of the committee are retired IAS officer Jugal Mohapatra, Institute for Economic Growth Director Manoj Panda, former NTPC Director Shailendra Pal Singh and the secretary at the Department of Public Enterprises.
The terms of reference of the committee are to review the structure of pay scales, allowances, perquisites, and other benefits for board-level functionaries, below-board-level executives and non-unionised supervisory staff, taking into account the salary, emoluments, incentives and other non-monetary benefits available to them and suggest changes “which may be desirable, feasible and affordable”.
The committee will make recommendations to enable CPSEs to become “modern, professional, consumer-friendly, commercially successful and competitive entities committed to national development goals and dedicated to service of the people,” as per the terms.
The committee has been asked to devise a comprehensive pay package for these three categories of employees that is suitably linked to promoting efficiency, productivity and profitability of CPSEs through rationalisation of structures, systems and processes with a view to leverage latest technology, management skills and global best practices.
Among other things, the committee will take into account the categorisation of CPSEs, their status as Maharatna, Navratna and Miniratna, the condition of companies making a loss or marginal profit, and the nature of the business, according to the terms.
The committee has also been asked to make recommendations that would equip the CPSEs to compete in the emerging domestic and global economic scenario.
“The committee set up to revise the salaries for the Central PSU employees will examine the concerns of the CPSEs including the general principles, financial parameters and conditions which should govern the desirability, feasibility and continuation/modification of the productivity-linked incentives scheme and performance-related payments.
While finalising its report, the committee will also take into account the report of the 7th (Pay) Commission,” the government said in its notification.