Expected pay scales of CPSE employees after 3rd PRC

Government of India had implemented 2nd PRC report on 26 November 2008 which was applicable from 01.01.2007. The term of 2nd PRC is going to be end on 31.12.2016. The employees of Central Public sector employees are waiting for their next pay revision which will come into force from 01.01.2017. Government of India already announced the formation of Committee for next pay revision in PSUs. The committee is headed by  Justice Satish Chandra (Retired) & It has to submit it’s report to Government within a period of six months from the date of constitution of committee.

Based on the report & views of other departments final order will be issued by Department of Public Enterprises with the approval from Government. Now the question is how much one can expect salary hike after implementation of 3rd PRC report.

7th CPC benefit vs 3rd PRC

Although 3rd PRC & 7th CPC are entirely different but the fitment varies little bit between both. In the 6th CPC fitment was 24 % for Central Government Employees & 2nd PRC, it was 30% for the CPSEs employee. Again in 7th CPC fitment is around 15% Which is applicable for Central Government Employees.

Expected increase in salary of PSU employees

By observing previous record, we are assuming that employees of Public Sector Undertakings get 20% fitment benefit on their basic pay and D.A. So someone who is working on E1 pay scale (16400-40500) with current basic pay of 16400, after 3rd PRC his/her new basic pay would be like this

New pay = 16400 + 16400X120.3% + (16400 +16400X120.3%)X15%

=  16400 + 19729.2 + 5419.38

=  41548 ~ 40000

After Rounding off the amount New basic pay will be = 40000

On the basis of above facts new pay scales for the executives of PSUs would be like below table

Pay Scale Existing Pay Scales  Revised Pay scale
E0 12600-32500 30000 - 120000
E1 16400-40500 40000 - 140000
E2 20600-46500 50000 - 160000
E3 24900-50500 60000 - 180000
E4 29100-54500 70000 - 200000
E5 32900-58000 80000 - 220000
E6 36600-62000 90000 - 240000
E7 43200-66000 100000 - 260000
E8 51300-73000 120000 - 280000
E9 62000-80000 150000 - 300000

Now those who are planning to join Government companies through GATE 2017, they can get idea about their salary after the implementation of the 3rd Pay revision Committee report. Most of the organizations recruit new engineers at the level of E1, E2 or E3. Here is the table which will provide you expected salary of fresh Graduates in top PSUs

PSU Name Name of the Post Expected Initial basic Pay in Rs Expected Gross salary per Month
Oil and Natural Gas Corporation (ONGC) Assistant Executive Engineer 65000 120k to 140k
National Thermal Power Corporation Limited (NTPC) Executive Trainee 65000 120k to 140k
Bharat Petroleum Corporation Limited (BPCL) Management Trainees 65000 120k to 140k
Hindustan Petroleum Corporation Limited (HPCL) Officers 65000 120k to 140k
Indian Oil Corporation Limited (IOCL) Engineers/Officers 65000 120k to 140k
Oil India Limited (OIL) Executive Trainees 65000 120k to 140k
Gas Authority of India Limited (GAIL) Graduate Trainees (GTs) 65000 120k to 140k
Power Grid Corporation of India Limited (PGCIL) Executive Trainee 65000 120k to 140k
Neyveli Lignite Corporation Limited (NLC) Graduate Executive Trainee 65000 110k to 130k
Steel Authority of India Limited (SAIL) Management Trainee 65000 110k to 130k
Hindustan Aeronautics Limited (HAL) Management Trainee 65000 110k to 130k
Bharat Heavy Electricals Limited (BHEL) Engineer Trainee 65000 110k to 130k
Coal India Limited (CIL) Management Trainees 54000 100k to 120k
National Hydroelectric Power Corporation(NHPC) Graduate Engineers 54000 100k to 120k
Mahanagar Telephone Nigam Limited (MTNL) Junior Telecom Officer (JTO) 54000 80k to 100k
Mazagon Dock Shipbuilders Limited (MDL) Graduate Trainees 43300 80k to 100k
National Buildings Construction Corporation Limited (NBCC) Management Trainee 43300 80k to 100k
Bharat Sanchar Nigam Limited (BSNL) Junior Telecom Officer (JTO) 43300 65k to 80k
Bharat Electronics Limited (BEL) Deputy Engineer 43300 65k to 80k

Now we can conclude that where should a graduate engineer apply for the job.

  1. The CPSEs who are recruiting on existing 24900-50500 pay scales, they may provide starting basic pay of 65000 to fresh graduates. Name of these CPSEs are ONGC, NTPC, BPCL, IOCL, HPCL, BHEL, PGCIL, OIL, HAL
  1. The Companies like NHPC, CIL & MTNL which are appointing on 20600-46500, are going to provide initial basic of Rs 54000 for the engineers.
  2. Remaining PSUs which are recruiting young engineers on 16400-40500, they may provide the starting basic pay of 43300 to graduates.

So the difference in the salary of fresh engineers in companies mentioned in point 1 & 3, would be 50% after the implementation of 3rd PRC report. Hence every engineering student should try to get the job in the PSUs mentioned in point 1. Apart from the best initial basic pay, they provide around 50% perks allowances plus performance related pay.

 

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