Government hikes PSU officers' pay by another 20 per cent
30 Mar 2009
The government today bettered the previously announced hike in emoluments for officers of all public sector companies, including oil PSUs, giving up to 20 per cent additional increase in emoluments.
A cabinet committee headed by prime minister Manmohan Singh 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 increase, taking into account only allowances, was 18.37 per cent on basic pay and 19.37 per cent after house rent allowance was also considered, official sources said.
The total emolument on a basic pay of Rs100 would become Rs231.66 after considering 30 per cent fitment on basic pay plus DA and differential pay (DP) as against Rs219.4 in the previous merger proposal. After considering allowances of 50 per cent and 10 per cent house rent allowance, it would swell to Rs370.49.
Adding superannuation benefits of 30 per cent and the performance-related pay of 40 per cent, this would rise to Rs532.65 as against Rs504.7 previously.
The decision for bettering the pay packages just ahead of the general elections was taken after government took the clearance from the Election Commission.
Home minister P Chidambaram, who briefed the press on the cabinet decisions, said the total benefits to the officers and non-unionised supervisory staff after the revision would depend on individual PSUs.
