Truemors
is reporting from
Member
NP Rank:
NP Rank:
PSU Pay Revision in India - Public Sector Undertakings more Lucrative employment options
Share:
by Ravi Dixit | November 20, 2008 at 09:44 pm
25449 views | 45 Recommendations | 31 comments
Videos
Upward pay revisions in the times of Global meltdown and with the top two economies of the world in Recession? Sounds too good to be true but that is what has happened in India.
.37 million executives of Public Sector Undertakings (PSUs) like SAIL, ONGC etc. have been raised in the run up to the National General Elections in India. Apart form these perks the most important factor that makes employment in these PSUs is the job security and perks like health benefits. Department of Public Enterprises (www.dep.nic.in) that provides overall guidance to PSUs and formulates policies pertaining to the role of PSUs in the Indian Economy. A wealth of infrmation can be had on the site about Indian Public Sector Enterprises.
In this era of downsizing the workforce even students form the Premier Management Institutes like IIMs also are looking at PSU as lucrative employment options to ride the rough times and have peaceful stable life for a while.
In effect government is just implement the recommendations of Jagannadha Rao committee's pay revision recommendations, but in these times it has made PSU a very lucrative career option.
Executives of central public sector units have been given pay hikes of 25 to 45 per cent in the middle of Assembly elections. The raise benefiting over 3.7 lakh executives will be implemented with retrospective effect from January 1, 2007.
Heads of central enterprises like SAIL and ONGC will see their basic salary go up from Rs 31,500 to Rs 1.25 lakh a month. The new package also offers employees’ stock options (Esops), variable pay and risk rewards.
The implementation will be linked to the performance of each PSU.
“This is the best-ever package given by any central government to the executives. The entire exercise was based on the premise that the existing disparity between the salaries in the private sector and the PSUs should be minimised as far as practicable,” said Santosh Mohan Dev, the Union minister for public enterprises.
Although the basic salary has gone up by an average 67 per cent, the increase in average gross emoluments ranges between 25 and 45 per cent because of adjustments with existing allowances. The gross pay increase is comparable with the package offered to central government employees earlier this year.
The PSU executives’ salary is being revised after a gap of 10 years. The wages of workers are revised by each PSU separately through negotiations with labour organisations.
Analysts said compared with blue-chip private sector salaries, the PSU pay was not much to write home about. “The difference in pay scale is higher at the top level, compared to the private sector, than at the lower level,” Sushma Errevelles of Talisman Management Services said.
However, given that several private companies are planning to tighten belts to cope with a feared downturn, the “safer” PSU jobs are now considered lucrative enough.
PSUs are expected to lineup at IIMs for summer placements this year and with the hike it may seem like a lucrative and stable option at least for the time being.
Nov. 17--AHMEDABAD, India -- After several days of strain and anxiety, first year students at IIMA have now taken a breather. The summer placements for the batch is still midway, yet most of the 230 students have already been placed.
This year, unlike earlier, a lot of public sector undertaking firms are expected to throng the campus for summer placements. As many as 15-20 PSU firms are expected to visit the campus for picking students for summer placements.
Indian PSUs : An initiation
Indian PSUs took root when Indian was still struggling with its socialist beginings and government believed that almost all the businesses had to be run by itself and it should offer the citizens of the country employment. It was also believed that public enterprise would be exploitative and hence was not liked and or promoted. To do business in India in the 1970's and 1980's very restrictive/ difficult and each private business would have to deal with various form of government control in the form of Licenses. It was also called the License Raj.
Post 1991 Indian Economy Opened up and private enterprise was encouraged and red tape in the form of licenses was cut down. This was done out of compulsion as an IMF fund of US$ 1.8 billion was exhausted and Indian Federal Government headed by Late Mr. P V Narsimha Rao (His Finance Minister was Dr. Manmohan Singh _ Current Indian PM) was served a notice: Open up or no more funding. What happened after most of the Public Enterprises were opened up and the red tap was cut is History.
Some of the PSUs were retained and cutting forward to 2006 and referring to the Times of India Report seventeen or 51% of the 33 Indian companies that figured in the Forbes list of 2000 corporate titans were PSUs. This says a lot about the constitution of Indian Corporate sector where the Government is still in business and does not still believe in the Dictum “ There is no business of the Government to be in Business”. Government owned enterprise are still performing and contributing to the rise of India as an economic superpower. The pros and cons of this can be discussed but that is a different arena.
NEW DELHI: Here's the global might of India's state-owned enterprises. Seventeen -- or over 51% -- of the 33 Indian companies that figured in
the Forbes 2000 list of Corporate Titans released on Friday, are government-owned firms.
India's largest integrated oil and gas
company ONGC led the Corporate India pack, followed by Reliance Industries and State Bank of India. However, in the global ranking, ONGC figured only in the 256th position while Reliance was placed 298th.
Ranked on four metrics of sales, profits, assets and market value
, CitiCorp was ranked the global leader, with General Electric, Bank of America, American International Group (AIG) and HSBC Group making the rest of Top Five Global Titans.
Among the Indian firms on the list, 36% of the firms -- or 12 out of 33 -- are from the banking sector, while five firms belonged to the oil and gas industry and three to the IT and software sector.
What is NowPublic?
NowPublic lets people work together to cover news events around the world.
Most Recommended Comment
LALLOO PRASAD CHOURASIYA (not verified)
Crowd Power
Ravi Dixit
Mumbai, India
Most Recommended Stories in World
Recommendations (45)
jjenet
Ilford, Essex, United Kingdom
Sanjay Jha
New Delhi, India
Paschen
Narita, Chiba, Japan
Amitjha
new delhi, IndiaAnonymous users (26)
Most RecentMost Recommended Comments (31)
at 22:00 on November 20th, 2008
Thats good news for employee in inflationary market and dry wallets.
at 22:16 on November 20th, 2008
Yes Amit and I hope the best perofrming organizations do get some more bright individuals and also this step goes some distance to rekindle demand in Indian Economy where "Hold Cash" has become the dictum
at 22:27 on November 20th, 2008
I think this revision was long due and i guess government should reward the performing state owned companies. While there are many companies who gets featured in Forbes list regularly. Many of the PSU are sick and employees don't deserve any kind of hike. But overall good attempt from government to infuse fresh energy into state owned companies.
at 22:57 on November 20th, 2008
Yes Sanjay, it was overdue and the revision happening at this time with retrospect is great news for the employees. The differentiation between the performing and non performing does not happen usually, in public enterprise..
at 09:20 on December 11th, 2008
hi,
from the statement u made about the differentiation of the employees it is true that many of the ineligible employees are benifited.but to carry out the process in the right perspective one should get a hike based on their performance.then the government firms are going to adopt the private firms ethics and rapid growth This would also cope up with our country's economical condition.
at 21:40 on November 26th, 2008
hi sanjay
i read ur comments. i feel you are not right in commenting that sick PSU employees do not deserve any pay hike.
It is disheartening to note that, your comments are baseless. Sickness of a company does not merely depend on the employees alone. Many other factors attribute to the sickness of the company, which you may not be aware of. Hence, stop commenting on such issues as you are damaging the very basic sentiment of the employees.
at 09:25 on December 13th, 2008
Very disappointing comment by you. It shows your low mentality. Can you tell why does Government help PSU oil companies in selling LPG and kerosene on subsidized rates and why does Government not increase student pass rates from Rs 13.00 per month to further in last 25 years in Delhi Transport Corporation. Even the Government can't reply to this and more questions. If the Govt. is to decide train, bus fares keeping public in mind so it should also fix electricity price to 50paise per unit (Power Companies to State Electricity Boards)then how will NTPC, NHPC earn huge profits. Can you tell how can you can compare different PSU employees serving the nation as per Govt. policies.
at 02:34 on November 21st, 2008
Yes, Ravi, it is really a welcome change, though PSU salaries can never match the private sector. Just because there is a current slowdown globally, people from IITs and IIMs may also consider joinning PSUs. Otherwise, who cares to join a DESI company without the glamour existing in MNCs.
at 02:36 on November 21st, 2008
Yes, Ravi, it is really a welcome change, though PSU salaries can never match the private sector. Just because there is a current slowdown globally, guys from IITs and IIMs may also consider joining PSUs. Otherwise, who cares to join a DESI company without the glamour existing in MNCs.
at 03:07 on November 21st, 2008
yes this time the disparity between private & psu seems to be narrowed.further the hoping from psu to private will be eliminate gradually,
at 03:32 on November 21st, 2008
Pay revision commette is sieletn about the Transfer Policy in PSU , people are woking in far flung ares , away from their hometown , they deserve the benifit , but this pay revision is quite low as compare to the
at 05:07 on November 21st, 2008
Thanks Ranjay, Naved , Pappu for your comments... the point to be noted here that the pay hike is happening after 10 years...
at 07:26 on November 21st, 2008
Althou there is some increase in PSU salry but it is not upto the expectations of PSU employee.In this age of "Mahgai" tis is nothing but "Unt ke munh me jeera"
at 09:53 on November 23rd, 2008
THE PERFORMANCE OF COMPANY MAY NOT IMPROVE BY SIMPLY HIKING THE PAY.AS THE HIKE IS MORE THAN EXPECTIONS,INDIVIDUAL/HEADS SHALL BE MADE ACCOTABILITY FOR IMPROVEMENT IN PERFORMENCE/PROFITABILITY.
at 03:40 on November 25th, 2008
The wage disparity is at lower levels (front line officer)and mid levels of the management. These form the crucial backbone of teh company as they are at a youing age learn quickly gain experience and resign after 5-10years experience to join pvt sector. This is where the psu scale are not sufficient. Take the basic of a starting officer add 50% max benefits , that is the salary he is getting. In the middle level where the pvt sector pays approx 1 lakh per year of experience, the disparity is very high. The scales for director and CMD (CEO) being 200 times of existing pay has been blown out of proportion. there is only one CMD and 3-4 directors. Ultimately "Pasia Pais ko khinchta hai" and you dont pay good salary's, you dont get good staff, existing staff doesnot perform, company suffers, hence cannot pay properly, thus starting a visicous circle which becomes very difficult to break over a period of time.
at 22:43 on November 26th, 2008
sir i m working in BHARAT EARTH MOVERS LTD. (UNDER MINISTRY OF DEFENCE)
SIR I WANT TO KNOW THAT IN WHICH GRADE MY ORGANISATION WILL COME AND WHAT WILL BE MY EXPECTED SALERY. AT PRESENT MY BASIC IS 12900/- AFTER MERGING DA
at 00:23 on November 27th, 2008
Dear Manveer,
You should look at the website of Department of Public Enterprises (www.dep.nic.in)for all the details.
at 22:31 on December 11th, 2008
The revision wef 01.01.97 was implemented during 2007. As such, whatever may be the effect of revision should be implemented by the individual PSU's at the earliest possible.
at 02:12 on December 15th, 2008
Hi Jiten,
Dont get so impatient. As per the way of working in CPSEs are concerned, they will take another 3-4 months to actually implement the changes. Thoda sabr karo yaar!
at 06:43 on December 27th, 2008
Dear Sir,
I am working in Life Insurance Corporation of India as an Assistant Administrative Officer.My present basic is 11100.Can someone tell what would be my new basic?
Suvabrata
at 21:02 on January 6th, 2009
There is too much of flexibility in operation in public sector enterprises. There are no proper checks and controls in place.No accountability.Great job security.Employees do not identify their work output with the corporate goal.No proper performance reporting system. No weightage for the merit.Seniority is the only criteria.The meritorious candidates and the performers some time feel let down and have a feeling that why at all we need to exert more. Let things improve and the employees can be suitably rewarded by way of better wage revision.
at 23:21 on January 28th, 2009
If the psu employees do not deserve pay hike at this time global recession (according to Mr Dixit) then why should the central govt. employees, the MPs, judges for that matter? For vote bank? Remember, the extra money needed for pay hike in PSUs for implementation of pay committee report is entirely borne by the individual PSUs, not by the govt. Instead, the govt. sucks the money in crores to give subsidy to the common people in the name of vote bank politics. Common people thinks this subsidy is from the govt. In absence of subsidy in petrol, diesel, kerosene, LPG etc., these PSUs' net profit would have been much more, may be double or triple.
at 03:38 on February 11th, 2009
Everybody is talking about PSU`s excluding our own nationalized Banks they are also categorized as PSU Bank.
But at this side there is different story , lot of work pressure baisc aminities for employee is more or less not existing at par,and about pay revision no body is thinking about that.
At present the salary of a new officer in these PSU bank is much more less than as compare to other sector including PSU(oil companies,sail,ongc. central govt. etc)
at 01:13 on March 3rd, 2009
like any other subject , we do have many opinions and options. someone had said , why employees of p.s.u.'s should not get new wages , when central govt. employees are getting new wages. I , personally fail to understand the difference between a central p.s.u. and a central govt. department. See , all these p.s.u.'s are owned , controlled and even operated by central govt. itself. many a p.s.u.'s have their higher management on deputation from central govt. take the example of bharat sanchar nigam ltd. When almost entire top management got new wages as per 6th pay commission out of earnings of b.s.n.l. , the other employees had to wait for implementation of 2nd pay revision committee recommendations. even then , there is no guarantee that they will get the risk pay ( so called grade pay in case of central govt. ). Also , the govt. has not implemented the recommendtions of 2nd prc by following the grades of p.s.u.'s such as A+ / A / B / C / D , etc. and the pay scales approved differ a lot. many more points can be raised, but one must stop somewhere.
at 10:54 on March 6th, 2009
Dear Sir,
I am working in NHPC as an Jr. Engg. My present basic is 9383.Can someone tell what would be my new basic?
at 02:14 on March 20th, 2009
Dear Friends,
We can't blame to the people like Mr. Ravi Dixit, because they see the only their side of field and never tried to see across the boundry. PSU's are not doing just because of non-performers, there are many more who works better than their private sector counterparts, and I think this views like this in article is clear abuse to their hardwork and sincerity. It is clear that PSU employees are step childern to the govt and will be punished even for doing good jobs what is happening now.
I must admit that non other than we are responsible for all these miseries to all PSU employees. We have selected such a government which has back stabbed all the PSU employees and is dancing like a puppet in the hand of IAS officers, who have clearly shown their supremecy on govt by making a difference in pay of IAS and IPS cadre.
The only way to change it to show your solidatory and must vote against this UPA govt.
at 07:18 on April 3rd, 2009
Dear Sir,
I am working in ONGC as an AEE(E1). My present basic is 12000.Can someone tell what would be my new basic?
at 12:13 on April 11th, 2009
I am a non-executive employee of POWERGRID Corporation of India Ltd. As I feel, we should not forget the contribution of Un-organised sector workers also, those are working with us in these highly profit making PSUs'.We should take care on their safety-security- revision of their minimum wages etc as they are also an inevitable part of our own working arena.
at 04:08 on April 17th, 2009
Dear Sir,
I am working in ONGC as an AEE(E1). My present basic is 12000.Can someone tell what would be my new basic?
at 01:30 on April 20th, 2009
What is new pay scale for supervisor of BHEL (BHARAT HEAVY ELECTRICAL LTD)