The Union Government has announced a huge pay hike for executives and non-unionized supervisors of Central Public Sector Enterprises (CPSEs). They had earlier threatened to start agitation in case the government failed to meet their demands. The revised pay hike would be effective from January 1, 2007. PSU officers would also be entitled to get performance related incentives besides two to three fold increase in basic pay and allowances.

The decision regarding the pay hike is taken in the meeting of Union Cabinet, chaired by Prime Minister Manmohan Singh. The recent decision would benefit about 2.58 lakh executives and over 1.2 lakh non-unionized supervisors. However, only executives and workers of profit-making CPSEs would be entitled to implement revised pay structure. Out of all the operational CPSEs, only 151 are profit-making as per Central Department of Public Enterprises Secretary, R. Bandyopadhyay.

Union Heavy Industries and Public Enterprises Minister, Sontosh Mohan Dev said it is the best ever package provided by government to officers of Central Public Sector Enterprises. It would help to minimize attrition rate in CPSEs and lead to increase productivity and efficiency. Government announced the pay hike according to recommendations of the Committee of Secretaries, in which CPSEs are classified into four categories – A, B, C and D. The chairman and managing director of ‘A’ category would draw pay scale of Rs.80,000-Rs.1.25-lakh as compared to existing Rs.27,750-Rs.31,500.