Government of India had implemented 2nd PRC report on 26 November 2008 which was applicable from 01.01.2007. The term of 2nd PRC is going to be end on 31.12.2016. The employees of Central Public sector employees are waiting for their next pay revision which will come into force from 01.01.2017. Government of India already announced the formation of Committee for next pay revision in PSUs. The committee is headed by Justice Satish Chandra (Retired) & It has to submit it’s report to Government within a period of six months from the date of constitution of committee.
Based on the report & views of other departments final order will be issued by Department of Public Enterprises with the approval from Government. Now the question is how much one can expect salary hike after implementation of 3rd PRC report.
7th CPC benefit vs 3rd PRC
Although 3rd PRC & 7th CPC are entirely different but the fitment varies little bit between both. In the 6th CPC fitment was 24 % for Central Government Employees & 2nd PRC, it was 30% for the CPSEs employee. Again in 7th CPC fitment is around 15% Which is applicable for Central Government Employees.
Expected increase in salary of PSU employees
By observing previous record, we are assuming that employees of Public Sector Undertakings get 20% fitment benefit on their basic pay and D.A. So someone who is working on E1 pay scale (16400-40500) with current basic pay of 16400, after 3rd PRC his/her new basic pay would be like this
New pay = 16400 + 16400X120.3% + (16400 +16400X120.3%)X15%
= 16400 + 19729.2 + 5419.38
= 41548 ~ 40000
After Rounding off the amount New basic pay will be = 40000
On the basis of above facts new pay scales for the executives of PSUs would be like below table
| Pay Scale | Existing Pay Scales | Revised Pay scale |
|---|---|---|
| E0 | 12600-32500 | 30000 - 120000 |
| E1 | 16400-40500 | 40000 - 140000 |
| E2 | 20600-46500 | 50000 - 160000 |
| E3 | 24900-50500 | 60000 - 180000 |
| E4 | 29100-54500 | 70000 - 200000 |
| E5 | 32900-58000 | 80000 - 220000 |
| E6 | 36600-62000 | 90000 - 240000 |
| E7 | 43200-66000 | 100000 - 260000 |
| E8 | 51300-73000 | 120000 - 280000 |
| E9 | 62000-80000 | 150000 - 300000 |
Now those who are planning to join Government companies through GATE 2017, they can get idea about their salary after the implementation of the 3rd Pay revision Committee report. Most of the organizations recruit new engineers at the level of E1, E2 or E3. Here is the table which will provide you expected salary of fresh Graduates in top PSUs
| PSU Name | Name of the Post | Expected Initial basic Pay in Rs | Expected Gross salary per Month |
|---|---|---|---|
| Oil and Natural Gas Corporation (ONGC) | Assistant Executive Engineer | 65000 | 120k to 140k |
| National Thermal Power Corporation Limited (NTPC) | Executive Trainee | 65000 | 120k to 140k |
| Bharat Petroleum Corporation Limited (BPCL) | Management Trainees | 65000 | 120k to 140k |
| Hindustan Petroleum Corporation Limited (HPCL) | Officers | 65000 | 120k to 140k |
| Indian Oil Corporation Limited (IOCL) | Engineers/Officers | 65000 | 120k to 140k |
| Oil India Limited (OIL) | Executive Trainees | 65000 | 120k to 140k |
| Gas Authority of India Limited (GAIL) | Graduate Trainees (GTs) | 65000 | 120k to 140k |
| Power Grid Corporation of India Limited (PGCIL) | Executive Trainee | 65000 | 120k to 140k |
| Neyveli Lignite Corporation Limited (NLC) | Graduate Executive Trainee | 65000 | 110k to 130k |
| Steel Authority of India Limited (SAIL) | Management Trainee | 65000 | 110k to 130k |
| Hindustan Aeronautics Limited (HAL) | Management Trainee | 65000 | 110k to 130k |
| Bharat Heavy Electricals Limited (BHEL) | Engineer Trainee | 65000 | 110k to 130k |
| Coal India Limited (CIL) | Management Trainees | 54000 | 100k to 120k |
| National Hydroelectric Power Corporation(NHPC) | Graduate Engineers | 54000 | 100k to 120k |
| Mahanagar Telephone Nigam Limited (MTNL) | Junior Telecom Officer (JTO) | 54000 | 80k to 100k |
| Mazagon Dock Shipbuilders Limited (MDL) | Graduate Trainees | 43300 | 80k to 100k |
| National Buildings Construction Corporation Limited (NBCC) | Management Trainee | 43300 | 80k to 100k |
| Bharat Sanchar Nigam Limited (BSNL) | Junior Telecom Officer (JTO) | 43300 | 65k to 80k |
| Bharat Electronics Limited (BEL) | Deputy Engineer | 43300 | 65k to 80k |
Now we can conclude that where should a graduate engineer apply for the job.
- The CPSEs who are recruiting on existing 24900-50500 pay scales, they may provide starting basic pay of 65000 to fresh graduates. Name of these CPSEs are ONGC, NTPC, BPCL, IOCL, HPCL, BHEL, PGCIL, OIL, HAL
- The Companies like NHPC, CIL & MTNL which are appointing on 20600-46500, are going to provide initial basic of Rs 54000 for the engineers.
- Remaining PSUs which are recruiting young engineers on 16400-40500, they may provide the starting basic pay of 43300 to graduates.
So the difference in the salary of fresh engineers in companies mentioned in point 1 & 3, would be 50% after the implementation of 3rd PRC report. Hence every engineering student should try to get the job in the PSUs mentioned in point 1. Apart from the best initial basic pay, they provide around 50% perks allowances plus performance related pay.
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