PSU Salary structure for Engineers through GATE 2019

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.

Executives

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.

Non-executives

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


Basic Pay

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.

Allowances

Let’s check each type of allowances one by one.

DA Rates

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
X- Class 24% 30% 30%
Y – Class 16% 20% 20%
Z – Class 8% 10% 10%

Perk

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.

Table

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
E-0 40% 40% NA
E-1 40% 40%
E-2 40% 40%
E-3 40% 40%
E-4 50% 50%
E-5 50% 50%
E-6 60% 60%
E-7 70% 60%
E-8 80% 70%
E-9 90% 70%
Director (C & D) 100% 100%
Director (A & B) 125% 150%
CMD (C & D) 125% 150%
CMD (A & B) 150% 200%

Superannuation Benefits

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

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