A bonanza awaits executives of central public sector undertakings (CPSU) with the Cabinet on Monday approving higher salaries for 2.5 lakh officers in more than 200 such companies with raises ranging between 25 and 80 per cent per cent, compared to existing emoluments.
The Cabinet also approved a proposal to merge 78.2 per cent of dearness allowance (DA) with basic pay as against the 68.8 per cent DA merger announced in November last year. The basic pay of chief executives in CPSUs falling in different
categories will range from Rs 55,000 to Rs 1 lakh per month.
A committee headed by former Supreme Court Judge M. Jagannadha Rao had recommended allowances and perks to be made 50 per cent of the revised basic pay. The government has improved upon that.
The cabinet also has allowed performance related pay (PRP) and employees stock option scheme (ESOPs) to be made a part of the compensation package.
The Prime Minister had in early January constituted the Committee of Ministers headed by Home Minister P Chidambaram after oil PSU executives demanding better compensation went on strike from January 7, crippling fuel supplies.
As per the revised pay, the total emolument corresponding to a basic pay of Rs 100 would become Rs 231.66 , nine per cent more than what was awarded in November which the executives had rejected.
The improved pay packages will also include increases in house rent allowance and retirement benefits. The new scales will be applicable to 1.2 lakh non-unionised supervisory staff in addition to the 2.58 lakh board-level officers.
The revised allowances are likely to be implemented with retrospective effect from November 26, 2008.