Pay Commission for non-executive employees of PSUs: Rajya Sabha QA

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF PUBLIC ENTERPRISES
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RAJYA SABHA
UNSTARRED QUESTION NO. 1501
TO BE ANSWERED ON THE 20th December, 2022

Pay Commission for non-executive employees of PSUs

No. 1501. Shri Dhiraj Prasad Sahu:

Will the Minister of Finance be pleased to state:

(a) the reasons behind not constituting any Pay Commission for all the non-executive employees working in the public sector;

(b) the reasons behind the disparity that the salary hike of officers working in the same public sector is decided by the Pay Revision Committee while the salary hike of non-executive employees is done as a result of bargaining between the unions and the management; and

(c) whether the percentage of increase in pay and allowances of officers and employees working in the same PSU 1s fixed equally, if not, the reasons thereof?

ANSWER

THE MINISTER OF STATE FOR FINANCE
(DR. BHAGWAT KISHANRAO KARAD)

(a) & (b) As per convention, the revision of wages of unionised workmen/workers (non-executive employees) of Central Public Sector Enterprises (CPSE) are done as per the Wage Settlement arrived at between Trade Union/Association and the management of the CPSE concerned under the broad parameters fixed by the Government.

While approving the pay revision with effect from 01.01.1992, Government decided that the next pay revision of CPSE executives and non-unionised supervisors would be effective from 01.01.1997 and would be on the basis of recommendations of a Committee in order to bring about the element of equity and fair play. In pursuance of this decision, Government set up the 1st Pay Revision Committee (PRC) vide resolution dated 10.12.1996. Since then, two more PRC has been constituted to review the structure of pay scales, allowances, perquisites, and other benefits for the Board level functionaries, Below board level executives and Non-unionised supervisory staff in CPSE taking into account the salary, emoluments, incentives and the other benefits available to them and suggest changes which may be desirable, feasible and affordable.

(c) The percentage of increase in pay and allowances of officers and employees working in the same CPSE is not fixed equally since both sets of employees are separate entity and are governed by separate sets of rules/instructions of pay revision issued by government from time to time. The periodicity of wage revision of unionised workmen/workers and pay revision of executives and non-unionised is also different.

Source: Rajya Sabha