The Maharatna & Navratna Public Sector Enterprises offers the top package to the fresh engineer who joins these government companies at the executive level. The total compensation was further increased due to the implementation of the 3rd Pay Revision Committee report in the profit-making CPSEs.
In this post, I will discuss the PSU salary structure for the graduate engineers.
PSU Pay Revisions
The public sector enterprises pay structure differs from the central government employees pay patterns. The Department of Public Enterprises issues orders relating to pay & allowances for the employees working in the CPSEs.
Like central government organizations, PSU employees also get pay revision after every 10 years.
The most recent pay revision for the CPSEs was the 3rd PRC (Pay Revision Committee) which was applicable from 01.01.2017. The next pay revision will get implemented from 01.01.2027.
In the central government, the pay revision order issued by the Govt. of India for all the employees irrespective of their designation. However, in the case of PSUs, the Department of Public Enterprises issues the pay revision guidelines only for the executives or officers.
Each Public Sector Undertaking frames the rules for the pay revision of non-executive cadre employees (Mostly Group C & D). So the pay scales at the staff level are not the same across all PSUs.
PRC & Pay Scales
Till date, 3 Pay Revision Committees recommendation has been constituted by the government for the employees of central public sector enterprises.
There is a total of 10 numbers of executive level in the government companies and the pay scale associated with each of these levels get revised after 10 years.
The following table represents the pay scales of officers in the PSUs from 01.01.1997.
|Grade/Level||3rd PRC||2nd PRC||1st PRC|
|E-0||30,000 -1,20,000||12,600 – 32,500||6,550 – 200 – 11,350|
|E-1||40,000 – 1,40,000||16,400 -40,500||8,600 -250 – 14,600|
|E-2||50,000 – 1,60,000||20,600 – 46,500||10,750 -300 – 16,750|
|E-3||60,000 – 1,80,000||24,900 – 50,500||13,000 – 350 -18,250|
|E-4||70,000 – 2,00,000||29,100 – 54,500||14,500 – 350 – 18,700|
|E-5||80,000 – 2,20,000||32,900 – 58,000||16,000 – 400 – 20,800|
|E-6||90,000 – 2,40,000||36,600 – 62,000||17,500 – 400 -22,300|
|E-7||1,00,000 – 2,60,000||43,200 – 66,000||18,500 – 450 – 23,900|
|E-8||1,20,000 – 2,80,000||51,300 – 73,000||20,500 -500 – 26,500|
|E-9||1,50,000 – 3,00,000||62,000 – 80,000||23,750 -600 – 28,550|
|Director (D)||1,00,000 – 2,60,000||43,200 – 66,000||18,500 – 450 – 23,900|
|CMD (D)||1,20,000 – 2,80,000||51,300 – 73,000||20,500 – 500 – 25,000|
|Director (C)||1,20,000 – 2,80,000||51,300 – 73,000||20,500 – 500 – 25,000|
|CMD (C)||1,60,000 – 2,90,000||65,000 – 75,000||22,500 – 600 – 27,300|
|Director (B)||1,60,000 – 2,90,000||65,000 – 75,000||22,500 – 600 – 27,300|
|CMD (B)||1,80,000 – 3,20,000||75,000 – 90,000||25,750 – 650 – 30,950|
|Director (A)||1,80,000 – 3,40,000||75,000 – 1,00,000||25,750 – 650 – 30,950|
|CMD (A)||2,00,000 – 3,70,000||80,000 – 1,25,000||27,750 – 750 – 31,500|
Note: A, B, C, & D are the Schedules of CPSEs.
There are many PSUs which haven’t implemented the one or more PRCs due to the financial constraint in the organization. So pay revisions in the Government companies directly depend on the financial performance of the PSU. That’s why I would recommend new engineers to check the financial health of a company before joining the same.
Recruitment of Engineers
As per the DPE guidelines, individual PSU can recruit executives or engineers can recruit the professional on any level from E-0 to E-9 depending upon the requirement.
But in general, most of the CPSEs prefer to recruit the graduate engineers at E1/ E2 level. The following table contains the graduate engineers pay scale and post name in the individual PSUs.
|PSU Name||Post Name||Pay Scale||Details|
|ONGC||Assistant Executive Engineer||60,000 – 1,80,000||Check Here|
|IOCL||Officers/ Engineers||60,000 – 1,80,000||Check Here|
|NTPC||Executive Engineer||60,000 – 1,80,000||Check Here|
|CIL||Management Trainee||60,000 – 1,80,000||Check Here|
|BPCL||Management Trainee||60,000 – 1,80,000||Check Here|
|BHEL||Engineer Trainee||60,000 – 1,80,000||Check Here|
|GAIL||Executive Trainee||60,000 – 1,80,000||Check Here|
|NALCO||Graduate Engineers||60,000 – 1,80,000||Check Here|
|EIL||Management Trainee||60,000 – 1,80,000||Check Here|
|PGCIL||Executive Trainee||60,000 – 1,80,000||Check Here|
|POSOCO||Executive Trainee||60,000 – 1,80,000||Check Here|
|HPCL||Officers||60,000 – 1,80,000||Check here|
|NLC||Graduate Executive Trainee||50,000 – 1,60,000||Check Here|
|ECIL||Senior Technical Officer||50,000 – 1,60,000|
|MDL||Senior Engineer/ Executive Trainee||40,000 – 1,40,000||Check Here|
|Vizag Steel||Management Trainee||20,600 – 46,500||Check Here|
|SAIL||Management Trainee||20,600 – 46,500||Check Here|
|MTNL||Assistant Manager||20,600 – 46,500|
|BSNL||Junior Telecom Officer||16,400 – 40,500|
You might have seen the official notifications of the PSUs for the recruitment of engineers. This advertisement contains the pay scales mentioned in the above table.
Suppose an engineer recruited in the pay scale of 60,000 – 1,80,000 then after the regular appointment, his basic pay will Rs 60,000/-. The executives in the government company also get the DA, TA, HRA, EPF, Perk and other allowances as per the individual PSUs rules.
Let’s check each type of allowances one by one.
It is commonly known as Industrial Dearness Allowances (short form IDA), it gets revised after every three months, it means, it gets revised 4 times in a calendar year. By visiting the following URLs, you can check the IDA rates associated with each PRC.
House Rent Allowances
Like Pay Scales, the House rent allowances also get changed after each pay revision. The comparison of HRA rates for all three PRCs shown in the table.
|City Type||HRA Rate|
|3rd PRC||2nd PRC||1st PRC|
|Y – Class||16%||20%||20%|
|Z – Class||8%||10%||10%|
The profit-making CPSEs pays Perk (a type of allowance) to their employees. These are also known as the cafeteria allowances in most of the PSUs. The ceiling of the perk mentioned hereunder.
Performance Related Pay
This term came into the picture after 2nd PRC and now an integral part of PSU salary structure. The portion of PRP directly depends on the performance of an engineer. Executive level wise PRP ceiling (% of basic pay) shown in the following table.
|PRP Rates (Ceiling)|
|Grade/Level||3rd PRC||2nd PRC||1st PRC|
|Director (C & D)||100%||100%|
|Director (A & B)||125%||150%|
|CMD (C & D)||125%||150%|
|CMD (A & B)||150%||200%|
A PSU pays up to 30% of the basic pay plus DA to each employee of the company. From this amount, 12% is being paid against employer side EPF contribution. And the remaining amount is deposited for the Gratuity, Post Retirement medical Benefit (PRMB), and pension.
Other Allowances & Benefits
- Club Membership
- Location Based Allowance
- Leave Encashments
- Leave Travel concessions
Source: Department of Public Enterprises