After government servants, a bonanza awaits employees of central public sector undertakings (CPSU).
The pay revision committee headed by former Supreme Court Justice M Jagannadha Rao has recommended a hefty hike ranging
between 25 and 45 per cent for 2.5 lakh officers of over 200 CPSUs.
The compensation package of the remaining 14 lakh CPSU employees will be worked out after talks with employee unions.
However, it is likely to be on similar lines. "The government will take a view on the recommendations by December 31," said Minister for Heavy Industry Santosh Mohan Dev after receiving the report on Friday. He hinted the government could further enhance the compensation structure over and above the panel’s recommendations.
"The proposals are aimed at stopping the exodus of CPSE employees to the private sector," the minister said.
The committee has recommended that performance-related pay (PRP) and employees stock options be included in the compensation package.
The panel has recommended that effective date for new scales and allowances be fixed as January 1, 2007.
The committee observed that the "progressively executive compensations in CPSEs should be aligned with their counterparts in the private sector."
The recommendations brought cheer among public sector executives. Director General of Standing Conference of Public Enterprises S M Diwan welcomed the recommendations.
"Recommendations relating to the performance related variable pay for executives and directors in CPSEs and introduction of risk pay are highly appreciable steps," Diwan said. "These will go a long way in equipping PSEs to induct, nurture and retain talent."
Under the proposed dispensation, CPSEs will be divided into five categories depending upon the turnover, manpower and geographical spread. The basic pay of CMDs of CPSEs falling in different categories will range from Rs 55,000 to Rs 1 lakh per month.
The Committee recommended that all state owned units should formulate ESOPs and 10 to 25 per cent of the performance related pay should be paid as ESOPs.