PSU Employees – Keeping certain allowances outside the 50% ceiling

Ministry of Heavy Industries & Public Enterprises

Department of Public Enterprises

Public Enterprises Bhawan

Block No.14, CGO Complex

Lodi Road, New Delhi

Dated: 11 th June, 2013

OFFICE MEMORANDUM

The undersigned is directed to refer to this Department’s O.M. No.2(20)72012- DPE(WC) dated 29.6.2012 on the above mentioned subject, wherein it has been clarified and clearly mentioned that no allowance/benefit/perks other than those mentioned in DPE’s O.M. dated 26.11.2008 is admissible outside the 50% ceiling. This means that only 4 allowances namely (1) North-East Allowance; (ii) Allowance for Underground Mines; (iii) Special Allowance for serving in difficult and far flung areas; and (iv) Non-Practicing Allowance are outside the purview of the 50% ceiling.

2. In spite of the above clarification, it is gathered that DPE guidelines are not being strictly adhered to in some CPSEs and allowances in some form or the other are being availed by executives over and above the 50% ceiling. These would be construed as serious violations of DPE guidelines and would not stand scrutiny of audit and other oversight agencies. Hence, all CPSEs are requested to follow DPE guidelines in letter and spirit.

3. Administrative Ministries/Departments may issue suitable instructions to the CPSEs under their administrative control for their information and strict compliance with DPE guidelines.