Tuesday, 21 March 2017

7th Pay Commission: CPSEs to spend Rs 20,000 crore on salary hikes


7th Pay Commission: CPSEs to spend Rs 20,000 crore on salary hikes

After getting pay hikes last year on implementation of the 7th Pay Commission, the central public sector enterprises (CPSEs) are likely to spend additional Rs 20,000 crore in the next fiscal year (FY17-18) as recompense to 12 lakh employees.

As per 7th Pay Commission, in the first installment, four lakh CPSE executives will likely to receive salary revision in July with effect from January 1, 2017. The expected cost for the same will be Rs 8,000 crore per year, as reported by The Financial Express.

Additionally, the pay hikes are likely to be followed by a wage revision for over 8 lakh workers which will cost CPSEs nearly Rs 12,000 crore, the report said quoting a source.

As per the report, this salary revision is based on the recommendations of the 3rd Pay Revision Commission (PRC), which constitutes the department of public enterprises, and the exercise will be carried out by each CPSE separately after negotiating with the employee unions.

Last year in June, as per The Economic Times report, the government had appointed a committee to review and revise the structure of salary at CPSEs.

That time, the government had released a notification, which said, The step was taken on recognising that in the prevailing business environment the CPSEs have to be commercially viable and competitive, and that the employees of the CPSEs have to be provided with suitable working conditions, emoluments and incentives to motivate them to strive for further growth, productivity and profitability of their enterprises.

Source: Zee News

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