New Delhi: Employees of private companies may fear for their jobs, but for their counterparts in public sector companies it’s bonanza time.
The Government on Thursday announced a pay hike for central public sector undertakings (PSU), a decision which would benefit 2.5 lakh employees in over 200 companies.
The new compensation package will come into effect from January 1, 2007 and the basic pay of chiefs of central PSUs will now range from Rs 55,000 to Rs one lakh.
Performance-related incentives and stock options could also be part of the revised pay package. The government’s decision is aimed at stopping the exodus of CPSU employees to the private sector.
The pay-raise decision was at a Cabinet meeting chaired by Prime Minister Manmohan Singh on Thursday and was based on recommendations given by the Second Pay Revision Committee.
The package would include revision in dearness allowance performance related-incentives and other perks, said Prithviraj Chavan, Minister of State in Prime Minister's Office. Money for the pay hike would come from individual companies.
There are 247 central public sector undertakings, of which 216 are in operation. The companies employ around 16,14,000 people, of whom 12,36,000 negotiate their wages directly with their respective companies.
Earlier this year, the government had approved implementation of the Sixth Pay Commission for central government staff and it was implemented from September 1, this year.
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