Uttar Pradesh government on Saturday decided to revise the pay scale of staff of all state-owned enterprises and corporations and to provide other benfits as per the recommendations of the Sixth Pay Commission with effect from January 1, 2006.
The decision will benefit about 98,000 employees and officers of public sector enterprises and corporations except energy sector undertakings, a government spokesman said in Lucknow.
It will entail an additional burden of Rs 305 crore annually which will be borne by the enterprises and corporations.
However, the benefits of revised pay scale and other benefits will be subject to the economic capability of corporations and certain conditions, he said.
"No government assistance will be provided," the spokesman said.
The government also decided to relax rules regarding payment of dearness allowance to the staff of enterprises and corporations and merge 50 per cent of the DA with the salary.
As per the decision, DA could be paid after assessiong the financial condition on the basis of audited balance sheet.
To simplify the process, it has been decided to set up an empowered committee at the level of public enterprises department, the official spoeksman said.