1 Constitution of 3 rd PRC Constituted on: 9 th June 2016 Mandate: - PowerPoint PPT Presentation

3 rd Pay Revision Committee - Recommendations 1

Constitution of 3 rd PRC Constituted on: 9 th June 2016 Mandate: To Review and revise the existing structure of salary and emoluments of Board, below Board level Executives and non-unionized supervisory staff of CPSEs. Composition: Chairman : Justice Satish Chandra (Retd.) Members : (i) Shri Jugal Mohapatra, (Retd. Secretary GOI) (ii) Prof. Manoj Panda, Director, Institute for Economic Growth, Delhi (iii) Shri Shailendra Pal Singh, Ex Director (HR), NTPC Ltd. Ex-Offi ficio Member : Secretary, DPE Member Secretary : Additional Secretary, DPE 2

Applicability 1. Applicable to - Executives & Non-unionized Supervisors of CPSEs following 2007 IDA pay scales Date of applicability- 01.01.2017 inclusive of revised 2. compensation & benefits / allowances. 3. No. of CPSEs– 320 (244 in operation) 4. No. of Executives & Non-unionized Supervisors in CPSEs: Executives : 2,52,645, Non-Unionized Supervisors: 36,730 3

Key recommendations Affordability clause  15% Fitment benefi fit on BP + DA  No change in no. of Pay scales  Perks and allowances - ceiling of 35% of BP  Additional allowances introduced- Location based CA,  Project Allowance, Hardship Duty Allowance PRP calculation method modifi fied  Superannuation benefi fits - 30% of BP + DA.  Ceiling of gratuity enhanced –Rs. 20 lakh  Corpus fund from 3% of each year’s PBT for post  retirement medical benefi fits 4

Affordability Clause 3 rd PRC 2 nd PRC / DPE recommendation guidelines 1. Additional fi financial impact should not Dip should not exceed 20% be more than 20% of the average PBT of PBT of the year of the last 3 FYs preceding the year of preceding the year of implementation. implementation 2. If additional fi financial impact is more CPSEs which are not able than 20% then fi fitment benefi fit should to adopt revised pay be implemented partly. (5% or 10%) scales, may give a lower fitment benefit. 5

3 rd PRC 2 nd PRC / DPE Recommendation guidelines 3. Part fi fitment stages: CPSEs which are not Part Additional fi financial impact of Fitment able to adopt revised stage the full revised pay package benefi fit pay scales, may give s as a % of average PBT of last an increase on the 3 FYs BP+DA with a uniform I More than 20% but upto 30% 10% lower fitment benefit of avg. PBT of last 3 FYs of 10% or 20%, II More than 30% but upto 40% 5% depending upon their of avg. PBT of last 3 FYs affordability. III More than 40% of avg. PBT of Nil last 3 FYs 6

3 rd PRC 2 nd PRC / DPE guidelines recommendation 4. For Sick CPSEs referred to BIFR / Similar to 3 rd PRC. AAIFR : In accordance with rehabilitation package approved by Government  5. For CPSEs registered under Section These CPSEs should be taken out 25 of the Companies Act, 1956, or of proposed pay revision and Section 8 of the Companies Act, government may adopt scales of 2013 affordability condition is sixth CPC.  applicable. If not feasible, the CPSE concerned will follow pay package proposed for respective category to which they belong. 7

3 rd PRC 2 nd PRC / DPE recommendation guidelines  To be regulated as per 6. For CPSEs under construction/ yet to the projections made in start its commercial operations : the respective Cabinet Notes / Project Pay-revision would be decided by the Reports. government based on the proposal of concerned Administrative Ministry and  Alternatively, an interim in consideration of their fi financial status can be viability. considered till the CPSE becomes fully 8 operational.

FITMENT BENEFIT 3 rd PRC 2 nd PRC / DPE 7 th CPC recommendation guidelines 15% of BP+DA 30% of BP+DA 14.22% of BP+DA = = Fitment factor Fitment factor - 2.57 2.52 times of BP (IDA times of BP (CDA was is 119.5%) 125%). 9

Pay Scales 2 nd PRC/ DPE 3 rd PRC 7 th CPC guidelines • Existing categorization of CPSEs i. Common set of New model in e. Schedule A, B, C & D for 10 model pay the form of Pay determining pay scales retained. scales continued matrix with • 10 pay scales based on existing by DPE. distinct pay pay-scales, full DA neutralization levels. (18 levels & fi fitment benefi fit. for staff and • Relativity ratio between entry level officers). to top level scale = 1:4 to 1:7 Relativity ratio depending upon CPSE schedule. (for Sch-A) = 1: 6.3 10

Pay scales –Schedule A CPSE Grade / Pre-revised Revised Level w.e.f. 1.1.2007 w.e.f. 1.1.2017 Min. Max. Min. Max. Below Board Level Executives: 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 Board Level Executives: Director (Sch-A) 75000 - 100000 180000 - 340000 CMD (Sch-A) 80000 - 125000 200000 - 370000 11

Pay scales –Schedule B CPSE Grade / Pre-revised Revised Level w.e.f. 1.1.2007 w.e.f. 1.1.2017 Min. Max. Min. Max. Below Board Level Executives: 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 Board Level Executives: Director (Sch-B) 65000 - 75000 160000 - 290000 CMD (Sch-B) 75000 - 90000 180000 - 320000 12

Pay scales –Schedule C CPSE Grade / Pre-revised Revised Level w.e.f. 1.1.2007 w.e.f. 1.1.2017 Min. Max. Min. Max. Below Board Level Executives: 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 Board Level Executives: Director (Sch-C) 51300 - 73000 120000 - 280000 CMD (Sch-C) 65000 - 75000 160000 - 290000 13

Pay scales –Schedule D CPSE Grade / Pre-revised Revised Level w.e.f. 1.1.2007 w.e.f. 1.1.2017 Min. Max. Min. Max. Below Board Level Executives: 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 Board Level Executives: Director (Sch-D) 43200 - 66000 100000 - 260000 CMD (Sch-D) 51300 - 73000 120000 - 280000 14

Increments/ HRA 3 rd PRC recommendation 2 nd PRC / DPE guidelines Annual increment (3%) Same as in Central Government. Promotion increment (3%) Provision for Pay Protection on promotion HRA Classifi fication of cities Rates of HRA Classifi fication of cities Rates of HRA X-class (50 lakh & X-class (50 lakh & above above popln) 30% of Basic Pay popln) 24% of Basic Pay Y-class (5 – 50 lakh Y-class (5 – 50 lakh popln) 16% of Basic Pay popln) 20% of Basic Pay Z-class( below 5 lakh Z-class( below 5 lakh popln) 8% of Basic Pay popln) 10% of Basic Pay 15

House Rent Recovery 3 rd PRC recommendation 2 nd PRC / DPE guidelines • Board empowered to decide the lease Board of CPSEs are rental ceilings for different level of empowered to decide the executives. Amount of lease should be level of executives who will be decided on merit keeping in view various provided with leased factors including pay scale of executive, accommodation and the size, classifi fication of city, HRA, HRR etc. type and locality of such • If an executive’s house is taken as lease accommodation. accommodation for self-occupation No difference in the purpose, in such case lease rental guidelines between Company ceilings (after adjusting the House Rent lease and Self-lease (i.e. lease Recovery amount) should not exceed the for self-occupation). net HRA amount. 16

3 rd PRC recommendation 2 nd PRC / DPE 7 th CPC guidelines LEASED ACCOMMODATION:- House Rent Recovery (HRR) would be as HRR for License fee as given below or actual rent for leased Company leased stipulated by accommodation or standard rent for or owned for the type of company owned, fi fixed by CPSE accommodation accommodati whichever is lower : @10% of BP . on by government Classifi fication of cities Rates of HRR X-class 7.5% of Basic Pay Y-class 5% of Basic Pay Z-class 2.5% of Basic Pay 17

Perks & Allowances (P&A) 3 rd PRC recommendation 2 nd PRC / DPE guidelines Executives can choose P&A under Executives can choose under ‘cafeteria approach’, subject to ceiling ‘cafeteria approach’ subject to a of 35% of BP . (Enhancement in ceiling maximum ceiling of 50% of BP . by 25% of 35% whenever IDA rises by 50%) Recurring expenditure on Cost incurred on infrastructure running & maintaining the facilities not to be charged within the infrastructure facilities to be recommended ceiling on perks & loaded within ceiling of 50% of allowances. BP . 18