Payment of DA to Board level/below Board level executives and non-unionized supervisors following IDA scales of pay in Central Public Sector Enterprises (CPSEs) on 1987 and 1992 basis

Payment of DA to Board level/below Board level executives and non-unionized supervisors following IDA scales of pay in Central Public Sector Enterprises (CPSEs) on 1987 and 1992 basis

F. No. W-02/0003/2014-DPE (WC)-GL-XX VI/18

Government of India
Ministry of Heavy Industries & Public Enterprises
Department of Public Enterprises

Public Enterprises Bhawan
Block 14, CGO Complex,
Lodi Road, New Delhi-110003
Dated: 3rd October, 2018

OFFICE MEMORANDUM

Subject:- Payment of DA to Board level/below Board level executives and non-unionized supervisors following IDA scales of pay in Central Public Sector Enterprises (CPSEs) on 1987 and 1992 basis.

The undersigned is directed to refer to para No. 4of this Department's O.M. No. 2(50)/86- DPE (WC) dated 19.07.1995 wherein the rates of DA payable to the executives holding Board level post have been indicated. In accordance with the DA scheme spelt out in Annexure-III of the said O.M, the installments of DA become payable from 1st January, 1st April, 1st July, 1st October, every year based on the price increase above quarterly Index average of 1099 (1960=100).

2. In continuation of this Department's O.M. of even No. dated 04.07.2018. the rates of DA payable to the executives of CPSEs holding Board level post, below Board level post and Non-Unionized Supervisors following IDA pattern of 1992 pay scales may be modified as follows:-

(a) Date from which payable: 01.10.2018
(b) AICPI (Linked to 1960=100) for the quarter June, 2018 - Aug., 2018

June, 2018	6641
July, 2018	6872
Aug., 2018	6872
Average of the quarter	6795

(c) Increase over link point : 5696 (6795-1099) (41) % increase over link point: 518.3% (5696/1099*100)
(d) % increase over link point: 518.3% (5696/1099*100)

DA Rates for various Pay Ranges

Basic Pay per Month	DA Rates
Upto Rs. 3500	518.3% of pay subject to minimum of Rs. 11392/-
Above Rs 3500 and Upto Rs. 6500	388.7% of pay subject to minimum of Rs. 18141/-
Above Rs 6500 and Upto Rs. 9500	311% of pay subject to minimum of Rs. 25266/-
Above Rs 9500	259.1% of pay subject to minimum of Rs. 29545/-

3. The payment on account of dearness allowance involving fractions of 50 paise and above may be rounded off to the next higher rupee and the fractions of less than 50 paise may be

4. The quantum of IDA payable from 01.10.2018 at the old system of neutralization @ 2.00 per point shift for increase of 222 points, may be Rs. 4441- and at AICPI 6795 DA payable may be Rs. 12179.75 to the executives holding Board level post, below Board Level post and non-unionised supervisors following IDA pattern in the CPSEs of 1987 pay scales.

5. All administrative Ministries/Department of Government of India are requested to bring the foregoings to the notice of the CPSEs under their administrative control for necessary action at their end'.

(Samsul Haque)
Under Secretary

Cabinet approves Wage Policy for the 8th Round of Wage Negotiations for workmen in Central Public Sector Enterprises

Cabinet approves Wage Policy for the 8th Round of Wage Negotiations for workmen in Central Public Sector Enterprises

The Union Cabinet chaired by the Prime Minister Narendra Modi has approved the Wage Policy for the 8th Round of Wage Negotiations for workmen in Central Public Sector Enterprises (CPSEs).

Highlights:

  i. Management of the CPSEs would be free to negotiate wage revision for workmen where the periodicity of wage settlement of five years or ten years has expired generally on 31.12.2016 keeping in view the affordability and financial sustainability of such wage revision for the CPSEs concerned.

ii. No budgetary support for any wage increase shall be provided by the Government. The entire financial implication would be borne by the respective CPSEs from their internal resources.

iii. In those CPSEs for which the Government has approved restructuring/  revival plan, the wage revision will be done as per the provisions of the approved restructuring / revival plan only.

iv. The management of the concerned CPSEs have to ensure that negotiated scales of pay do not exceed the existing scales of pay of executives/officers and non-unionized supervisors of respective CPSEs.

v. The Management of CPSEs where the five year periodicity is followed have to ensure that negotiated scales of pay for two successive wages negotiations do not exceed the existing scales of pay of executives/officers and non- unionized supervisors of respective CPSEs for whom ten years periodicity is being followed.

vi. To avoid conflict of pay scales of executives/non-unionised supervisors with that of their workmen, CPSEs may consider adoption of graded DA neutralization and/or graded fitment during the wage negotiations.

vii. CPSEs must ensure that any increase in wages after negotiations does not result in increase in administered prices of their goods and services.

viii. The wage revision shall be subject to the condition that there shall be no increase in labour cost per physical unit of output. In exceptional cases where CPSEs are already working at optimum capacity, the administrative Ministry / Department may consult DPE considering industry norms.

ix. The validity period of wage settlement would be for a minimum period of five years for those who opted for a five year periodicity and for a maximum period of ten years for those who have opted for a ten year periodicity of wage negotiation w.e.f. 01.01.2017.

x. The CPSEs would implement negotiated wages after confirming with their Administrative Ministry/Department that the wage settlement is in conformity with approved parameters.

Background:

There are about 12.34 lakh employees in 320 CPSEs in the country. Out of these, about 2.99 lakh employees are Board level and below Board level executives and non- unionized Supervisors. The remaining about 9.35 lakh employees belong to the unionized workmen category. Wage revision in respect of unionized workmen is decided by trade unions and managements of CPSEs in terms of guidelines issued by the Department of Public Enterprises (DPE) for wage negotiations.

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Performance of Central Public Sector Enterprises (CPSEs) during 2015-16

Performance of Central Public Sector Enterprises (CPSEs) during 2015-16

The Public Enterprises Survey (2015-16), brought out by the Department of Public Enterprises, Ministry of Heavy Industries & Public Enterprises, Government of India on the performance of Central Public Sector Enterprises was placed in both the Houses of Parliament on 21st. March, 2017. There were 320 CPSEs in 2015-16, out of which 244 were in operation. Rest (76) of the CPSEs were under construction. The major Highlights of the performance of Central Public Sector Enterprises (CPSE), during 2015-16 are mentioned below:

Performance of Central Public Sector Enterprises (CPSEs) during 2015-16.

2015-16	2014-15
Overall net profit of 244 CPSEs is Rs.1,15,767 crore in 2015-16	Overall net profit of 236 CPSEs is Rs.1,02,866 crore in 2014-15
165 CPSEs posted net profit of Rs.1;44,523 crore in 2015-16	159 CPSEs posted net profit of Rs.1,30,364 crore in 2014-15
78 CPSEs incurred net loss of Rs.28,756 crore in 2015 -16	76 CPSEs incurred net loss of Rs.27,498 crore in 2014-15
Total investment in 320 CPSEs stood at Rs. 11,77,844 crore in 2015-16	Total investment in 298 CPSEs stood at Rs. 10,95,554 crore in 2014-15
Dividend paid by CPSEs during 2015-16 is Rs. 70,954 crore	Dividend paid by CPSEs during 2014 -15 is Rs. 56,527 crore

Highlights

• Total paid up capital in 320 CPSEs as on 31.3.2016 stood at Rs. 2,28,334 crore as compared to Rs. 2,13,020 crore as on 31.3. 2015 (298 CPSEs), showing a growth of 7.19%.
• Total investment (equity plus long term loans) in all CPSEs stood at Rs.11,71,844 crore as on 31.3.2016 compared to Rs.10,95,554 crore as on 31.3.2015, recording a growth of 6.96%.
• Capital Employed (Paid up capital plus reserve & surplus and long term loans) in all CPSEs stood at Rs. 19,68,311 crore on 31.3.2016 compared to Rs. 18, 66,944 crore as on 31.3.2015 showing a growth of 5.43 %.
• Total turnover/gross revenue from operation of all CPSEs during 2015-16 stood at Rs 18,54,667 crore compared to Rs. 19, 95,176 crore in the previous year showing a reduction in turnover of 7.04 %.
• Total income of all CPSEs during 2015-16 stood at Rs. 17,64,754 crore compared to Rs. 19, 65,657 crore in 2014-15, showing a reduction in income of 10.22%.
• Profit of profit making CPSEs stood at Rs. 1,44,523 crore during 2015-16 compared to Rs 1,30,364 crore in 2014-15 showing a growth in profit by 10.86%.
• Loss of loss incurring CPSEs stood at Rs.28, 756 crore in 2015-16 compared to Rs 27, 498 crore in 2014-15showing an increase in loss by 4.57 %.
• Overall net profit of all 244 CPSEs during 2015-16 stood at Rs 1,15,767 crore compared to Rs 1,02,866 crore during 2014-15 showing a growth in overall profit of 12.54%.
• Reserves & Surplus of all CPSEs went up from Rs. 7,71,389 crore in 2014-15 to Rs 7,96,467 cores in 2015-16, showing an increase by 3.25 %.
• Net worth of all CPSEs went up from Rs 9,84,409 crore in 2014-15 to Rs. 10,20,737 crore in 2015-16 registering a growth of 3.69 %.
• Contribution of CPSEs to Central Exchequer by way of excise duty, customs duty, corporate tax, interest on Central Government loans, dividend and other duties and taxes increased from Rs 2,00,593 crore in 2014-15 to Rs 2,78,075 crore in 2015-16, showing a growth of 38.63%.
• Foreign exchange earnings through exports of goods and services decreased from Rs 1,03,071 crore in 2014-15 to Rs 77,216 crore in 2015-16, showing a reduction of 25.08%.
• Foreign exchange outgo on imports and royalty, know-how, consultancy, interest and other expenditure decreased from Rs.5,44,561 crore in 2014-15 to Rs.3,88,045 crore in 2015-16 showing a reduction of 28.74%.
• CPSEs employed 12.34 lakh people (excluding contractual workers) in 2015-16 compared to 12.91 lakh in 2014-15, showing a reduction in employees by 4.42%.
• Salary and wages went up in all CPSEs from Rs.1,26,777 crore in 2014-15 to Rs 1,28,263 crore in 2015-16 showing a growth of 1.17 %.
• Total Market Capitalization Market Capitalization (M-Cap) of 46 CPSEs traded on stock exchanges of India is Rs. 11,06,766 crore as on 31.03.2016 as compared to Rs. 13,27,393 crore as on 31.03.2015 showing a reduction of 16.62% .
• M-Cap of CPSEs as per cent of BSE M-Cap decreased from 13.08% as on 31.3.2015 to 11.68% as on 31.3.2016.

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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

Superannuation Benefits Schemes for employees of CPSEs - Clarification regarding Technical Formality

Superannuation Benefits Schemes for employees of CPSEs - Clarification regarding Technical Formality
No.W-02/0017/2014-DPE(WC)-GL-IV/17

Government of India
Ministry of Heavy Industries & Public Enterprises
Department of Public Enterprises

Public Enterprises Bhawan
Block No.1, CGO Complex, Lodhi Road,
New Delhi, the 1st February, 2017

OFFICE MEMORANDUM

Subject: Superannuation Benefits Schemes for employees of CPSEs - Clarification regarding Technical Formality

The undersigned is directed to refer to this Department's OM of even number dated 21.05.2014 regarding clarification of Pension and superannuation Medical Benefits Scheme in CPSEs.

2. Para xvi) of the said OM specifies that in cases where a Central Public Sector Enterprises (CPSE) employees has applied for a post in the same or other CPSE through proper channel and on selection to the said post, is required to resign the previous post for administrative reasons. Resignation submitted for other reasons or if competent authority has not allowed him to forward his application through proper channel is a resignation and benefit of past service will not be admissible.

4. The above clarification is only for the purposes of Superannuation Benefits Schemes implemented in CPSEs in light of DPEs OM dated 26.11.2008 and 21.05.2014 and subsequent DPE guidelines on Superannuation Benefits Schemes.

5. All the administrative Ministries/Departments are requested to bring the above to the notice of the CPSEs under their administrative control.

sd/-
(Samsul Haque)
Under Secretary

Authority: http://dpe.gov.in/

Report of 3rd Pay Revision Committee for CPSEs

Report of 3rd Pay Revision Committee for CPSEs

Report of 3rd Pay Revision Committee for Central Public Sector Enterprises Effective from 1st January 2017.

3RD PAY REVISION COMMITTEE

The Government of India appointed the 3rd Pay Revision Committee on 9.6.2016 and the committee was assigned the time-frame to submit its recommendation within a period of six months from the date of its constitution.

The Complete Report of the Committee has been published through official portal of Department of Public Enterprises (dep.gov.in).

For Download or View the Complete Report of 3rd Pay Revision Committee

Government constitutes 3rd pay Revision Committee for the executive of CPSUs

Government constitutes 3rd pay Revision Committee for the executive of CPSUs

The Ministry of Heavy Industry & Public Enterprises has constituted the 3rd Pay Revision Committee for the executives of the Central Public Sector Undertakings under the chairmanship of Justice Satish Chandra (Retd.). The other members of the committee will be Shri Jugal Mohapatra, Ex-IAS Officer, Prof. Manoj Panda, Director, Institute for Economic Growth Delhi and Shri Shailendra Pal Singh, Executive Director (HR), NTPC Ltd. The Secretary Department of Public Enterprises will be the Ex-Officio Member while the Joint Secretary/Additional Secretary, DPE will be the member secretary for the committee.

The last pay revision for the executives of Central Public Sector Undertakings came into effect from 1.1.2007.

The Committee will provide its recommendations on the matter to the government, covering Board level functionaries, below–Board level executives and non-unionized supervisory staff of CPSEs. While submitting the final recommendations to the government, the Committee shall also take into account the Report of the 7th Central Pay Commission. The Pay Revision Committee will make its recommendations within 6 months from the date of its constitution. The decision of the Government on the recommendations of the Committee will take effect from 1.1.2017

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