3rd pay panel for CPSEs suggests min Rs 30,000 for executives
New
Delhi: The third pay revision committee for central public sector
enterprises has recommended minimum pay of Rs 30,000 per month for
executives and a maximum of Rs 3.7 lakh for CMDs.
As per the
recommendations, the minimum monthly salary of below Board level
executives will increase from Rs 12,600 to Rs 30,000.
However, in case of CMDs, the maximum monthly salary for Schedule A CPSEs will go up from Rs 1.25 lakh to Rs 3.7 lakh.
In case of Schedule B, C and D CPSEs, the maximum monthly salary will be Rs 3.2 lakh, Rs 2.9 lakh and Rs 2.8 lakh, respectively.
The
recommendations of the Justice Satish Chandra committee, which are to
come into effect from January 1, 2017, will be placed before the Union
Cabinet for approval.
Depending upon profits, the PSUs are
categorised into different schedules, with highest being Schedule A.
There are currently 64 Schedule A, 68 Schedule B, 45 Schedule C and 4
Schedule D CPSEs in the country.
The committee has recommended
that the rate of House Rental Allowance (HRA) will be revised to 27 per
cent, 18 per cent and 9 per cent when industrial dearness allowance
(IDA) crosses 50 per cent, and further revised to 30 per cent, 20 per
cent and 10 per cent when IDA crosses 100 per cent.
The panel recommended no change in the IDA pattern and the 100 per cent DA neutralisation shall continue to be applicable.
Revised
IDA from January 1, 2017, shall be linked to All India Consumer Price
Index (AICPI) (2001=100) series with the base of AICPI as on January 1,
2017 as per the quarterly average of AICPI of September, October and
November 2016.
The committee has also suggested that the annual increment be retained at 3 per cent of Basic Pay.
It
has further recommended that increment on promotion shall continue to
be at par with the annual increment rate (3 per cent of Basic Pay).
The panel has recommended no change in the retirement age for CPSE employees.
Besides,
it said that ESOP being a concept beneficial for both CPSEs and its
employees, the Department of Public Enterprises (DPE) should elaborate
the mechanism in consultation with concerned authorities to enable
introduction of ESOP in listed CPSEs with empowerment to the Board or
Administrative Ministry to approve the same.
It will be in lieu of part of performance related pay.
Profit
making CPSEs, which can bear the cost of VRS with their own surplus
resources, are allowed to implement VRS policy by allowing
compensation/ex-gratia on the revised pay scales proposed to be
effective from January 1, 2017.
The committee has also recommended
a modified performance related pay but said that the overall profit
distribution should be linked to 5 per cent of the annual profit
accruing from core business activity.
PTI
