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vementsofDepartmentofPublicEnterprises
nister'sNationalReliefFund(PMNRF)arenotifiedfor100%deductionfromtaxableincomeunderSection80GoftheIncomeTaxAct,1961"

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RevisionofScalesofPayoftheExecutivesholdingpostsbelow
theBoardlevelandnonunionisedsupervisorsw.e.f.1.1.1992.
CHAPTERIV
WAGEPOLICIES&RELATEDMATTERS

Publications
Conferences/Seminars
Citizen'sCharter
Vigilance

(a)WagePolicy/PayRevision/HPPCRecommendations
6.DPE/Guidelines/IV(a)/6
RevisionofScalesofPayoftheExecutivesholdingpostsbelowtheBoardlevelandnon
unionisedsupervisorsw.e.f.1.1.1992.

RightToInformation
Tenders
RelatedLinks
BRPSE
SwachhBharat
WorkingHours
CPGRAMS
PMACell
NewPensionScheme

The scales of pay of the Executives holding posts below the Board level and nonunionised
supervisorsfollowingIDApatterninthePublicEnterpriseswerelastrevisedw.e.f.1.1.1987inthe
termsoftheguidelinesspeltoutinDPE'sD.O.letterofevennumberdated4.4.1990.

Search

RepliestoQuerieson
RFP(Appointmentof
Consultantfor
conductinga
benchmarkingstudy
ofOil&GasSector
withreferencetos
Proposalfor
engagementofretired
CentralGovernment
officersas
Consultantsinthe
DPE

2.Governmenthavenowdecidedthatthepayscalesoftheabovetwocategorieswouldstand
revisedwitheffectfrom1.1.92.

RFPfor
benchmarkingstudy
ofThermalandHydro
PowerSector.

3.IthasfurtherbeendecidedtoissueguidelinesasperdetailsgiveninAnnexureI.ThePSEs,
however,arebeinggiventheflexibilitytoadoptthepayscalesatPSEsleveldependingontheir
requirements.ThefitmentmethodwouldbeasindicatedinAnnexureII.

AdoptingElectronic
PaymentFramework

4. The Industrial DA at AICPI1099 as on 1.1.1992 admissible to the incumbents of the below

Boardlevelpostsintherevisedscalewouldbeasnil,astheamountofRs.787.75drawnasIDA
ason1.1.1992hasbeenmergedintherevisedbasicpay.TheDApayablefrom1.4.1992tothe
incumbentsofthebelowBoardlevelpostswouldbeaspernewDAscheme.Thedetailsofthe
schemeareindicatedinAnnexureIII

No.ofVisitors

5.(i)TheceilingforpaymentofHRAwithoutproductionofrentreceiptandmonetaryceilingfor
leased accommodation set out in subparagraphs (ii) and (v) of the paragraph 4 of the OM
No.2(8) /91DPE(WC) dated 3.3.92 would stand revised w.e.f.1.4.1994 as per details given in
AnnexureIV.Therewouldbenochangeintheplinthareaceilings.
(ii) Recovery towards rent for the furnished and unfurnished accommodation provided by the
public enterprises would be as per the details given in the Subparagraphs (x) and (xii)
respectively of paragraph 4 of the OM No.2(8)/91DPE(WC) dated 3.3.92. Rent recovery on
revisedpaywouldbecomputedw.e.f.1.4.94.
Fortheperiodbetween1.1.1992and31.31994HRA,leasedaccommodation&recoveryofrent
wouldbecomputedandpaidontheprerevisedbasicpay.
6.NonPractisingAllowance(NPA)tothemedicalexecutiveswouldstandrevisedw.e.f.1.1.92.
ThedetailsaregiveninAnnexureI.
7. City Compensatory Allowance would continue to be paid by the PSEs at the existing rates
withintheoverallceilingsgiveninAnnexureIV.
8.ThePaymentofGratuityAct,1972hasbeenamendedw.e.f.24.5.1994andnowallemployees
irrespective of the salary drawn by them are covered under the provisions of the Payment of
Gratuity Act. Thus, w.e.f. 24.5.1994 payment of gratuity would be regulated by the PSEs in
accordancewiththeprovisionsofPaymentofGratuityAct,1972,isamendedfromtimetotime.
For the period between 1.1.92 and 24.5.94, gratuity would be regulated by the PSEs in
accordance with the instructions issued by the DPE vide OM No.2(29)/75DPE(WC) dated
23.6.1988readwithsubsequentamendments.
9.Employer'sContributiontoPFbyallthePSEswouldcontinuetobeattherateof8.33%or10%
ofbasicpayplusDAplusPP(whereadmissible)ontherevisedpaystructurerightfrom1.1.1992.
10. Other perks like rates of conveyance reimbursement, transport subsidy, canteen subsidy,
Northeasternallowance,undergroundallowance,projectallowance,etc.,wouldbefrozenason
1.4.1994andliberalisationsallowedbythePSEsonunilateralbasisafter1.4.94wouldhaveto
berolledback.

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11.ThepayrevisionoftheexecutivesholdingpostsbelowtheBoardlevelandnonunionised
supervisorswouldbepermittedsubjecttotheconditionsstipulatedintheDPE'sOMNo.1(3)/86
DPE(WC)dated12.4.93and17.1.94.Theseconditionsprescribethatthereshallbenoincrease
in labour cost per physical unit of Output. The Government shall not provide any budgetary
supporttothePSEsformeetingtheenhancedliability.ThePSEswhicharemonopoliesornear
monopolies or having an administered price structure, it must be ensured that increase in
salaries/wagesdonotresultinanautomaticincreaseinadministeredpriceoftheirgoodsand
services. Requisite resources for the pay increases, must be found from within own internal
generation.
12. Procedure for approval and adoption of new scales of pay and the IDA pattern by PSEs
wouldbeasperthedetailsgiveninAnnexureV.TheprocedureoutlinedinAnnexureVmustbe
scrupulouslyfollowed.
13. For sick PSEs registered with the BIFR, pay revision and grant of other benefits will be
allowedonlyifitisdecidedtorevivetheUnit.Therevivalpackageshouldincludetheenhanced
liabilityonthisaccount.Thebenefitofpayrevision,etc.,shallbeextendedtoIISCOandfinancial
liabilitythereofshallbemetbySAIL.
14.Therevisedpayscalesfornonunionisedsupervisorsandexecutiveswouldbevalidfora
periodof5yearsw.e.f.1.1.92.
15.AcopyoftheadvicegiventothePublicEnterprisesmaybeendorsedtotheDPE.
(DPEO.M.No.2(50)/86DPE(WC)dated19thJuly,1995)
ANNEXUREI
GuidelinesforRevisedScalesofPayfortheExecutivesHoldingPostsBelowTheBoardLevel
w.e.f.1.1.92

ExistingW.E.F.1.1.1987

GuidelinesW.E.F1.1.1992

E0

21009025501003450
21009025501003550
21001003600
21009025501003650
21001003700
21509026901003390
21501003850
22001003600
22001003800
22009026501003850
22501004150
23009027501003750
23501004150

35001506200

E1

24001103940
240010030001203960
240010030001204080
24001204320
24501204370
25001204300
25001204540
25001254625
265012044501305100
280012034501304830

40001757150

E2

300012037201404560
30001304560
310013037501405150
32001205120
345014047701505470

480020058002508275

E3

370014045401505480
370014044001505900
385014045501506050
40001505950

540022563002509050

E4

415015048001606340
430015050501605850
440015054501556225
44001506350
450016051401756365
460015053501606790

650025075002759425

E5

490016057001756400
500016058001756850
50001706870
51001756850
510016059001756950
520016060001756875

700027581003009600

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E6

55001757075
55501656870
56001757175
56501757225
57501757325
58001757200

75003009900

E7

a.62501757475
b.65001757725

a.825030010050
b.850030010300

E8

72502008250

950040011500

E9

82502009250

1150040013500

Guidelines for revised scales of pay for the NON UNIONISED SUPERVISORS W.E.F.
1.1.1992

ExistingW.E.F.1.1.1987

S1

S2

GuidelinesW.E.F1.1.1992

1700702260802580
1700802260903070
1750602170652690
1750652075753125

28009034301004930

1875601995702905
1875702365752965
1875702015802975903155
1900752275852870
1950702300802700903420

300010537351105055

S3

2000803280
2000903450
2050802450903170953550
2075702215803255
2075802635853315
20758022359033151003615

320011039701205290

S4

2250852930903740
23008027001003700

337512043351405735

Footnote:
ForExecutivesandNonunionisedsupervisorspayscales.
E9 scale can be adopted only by a PSE which is in Schedule "A" and other posts in the
CompanyattheBoardLevelareinSchedule"B".Aschedule"B"companyisnotauthorisedto
adoptthisscaleofpay.
E8scalescanbeadoptedbyPSEwhichisinSchedule"A"aswellasinSchedule"B".IfaPSE
whichisinSchedule"C",butdoesnothaveanyBoardLevelpostitcanadoptthescaleofpay
givenatE8foritsExecutiveDirectors/SGMs/CGMs.
There is no bar to the adoption of the revised scales of pay as proposed at E7 by PSEs
belongingtoeither"A","B","C"and"D"schedule.
ThescalesofpayofthenonunionisedsupervisorswhoareonIDApatternwouldstandrevised
w.e.f.1.1.1992asabove.
Incase,aPSEhasgotonlythreescalesofpayfornonunionisedsupervisors,itispermissiblefor
themtoadoptthreereplacementscalesasindicatedinthepreceedingtable.
These scales of pay can also be adopted by these PSEs in respect of Unionised supervisors
provided they are willing to have a understanding with the Management of the PSEs to have
separate cadre for them independent of the unionised employees. They then would not be
eligible for the benefits admissible to the unionised employees as per the wage settlement
signedbytheManagementwiththerecognisedUnions.
NonPracticingAllowance(NPA)
RatesofNonPracticingAllowancetothemedicalexecutiveswouldstandrevisedw.e.f.1.1.1992
asfollows:
BasicPay
range(Existing)

Existing
entitlement

BasicPay
Range(Proposed)

Proposed
entitlement

UptoRs.3500

Rs.600/

UptoRs.5000/

Rs.1000/

Rs.35014300

Rs.850/

Rs.50016500

Rs.1250/

Rs.43016500

Rs.950/

Rs.65019500

Rs.1330/

Rs.6501andabove

Rs.1000/

Rs.9501andabove

Rs.1500/

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NonpracticingAllowancewouldcountaspayforthepurposeofDearnessAllowance.Gratuity
andEmployerscontributiontoCPFbutwouldnotbetakenintoaccountforpurposesoffixation
ofpayintherevisedscale.
ANNEXUREII
FitmentMethod:
FitmentMethodwouldbeasfollows:
Basicpayinrevisedscalewouldbefixedasunder:
a.Basicpayintheexistingscaleofpayason1.1.1992Plus
b.ActualDAason1.1.1992atAICPI1099:
c. The fitment amount on account of revision of pay shall be "upto 20%" of basic pay in the
existingscalepayason31.12.1991.(FitmentnottobecomputedonNPApayabletoMedical
Executives)Plus
d. Personal Pay/Personal Allowance/Personal DA wherever payable along with existing basic
pay.
On the aggregate pay fixed in the revised scale, where the total does not fit in a stage of the
revisedscaleofpay,thepaywillbefixedatthenexthigherstage.
Ifinsomecasesthetotalofthe(a)to(d)asaboveexceedsthemaximumoftherevisedscaleof
pay, or wherever the basic pay so fixed on the revised scale, does not allow grant of three
increments to an Executive/Nonunionised supervisor as on 1.1.1992, then in such
circumstances,thepayoftheconcernedexecutiveornonunionisedsupervisorsshouldbefixed
atthreestagesbelowthemaximumofthescaleandthebalanceamountshouldbetreatedas
PP.Onpromotionorappointmentinthenexthigherscale,hispaywouldbefixedinthenormal
course,i.e.takingintoaccountonlytheBasicPayforthepurpose.PPwouldbeallowedtobe
carried forward in addition and this would be adjusted in the next pay revision. Detailed
instructionswouldbeissuedbytheDPEtothePSEsinthisregard.
ANNEXUREIII
PUBLICSECTORDEARNESSALLOWANCESCHEME
SalientFeatures
A.AllIndiaConsumerPriceIndexnumberforindustrialworkers(general)basedon1960=100
(AICPI)isusedforgrantofcompensationtotheemployeesofPSEsforpricerise.
B.DAinstallmentswouldbereleased4timesayearw.e.f.1stJanuary,1stApril,1stJulyand1st
October.
C.DAwouldbepaidfortheincreaseinAICPIabovequarterlyindexaverageof1099towhich
therevisedscalesofpayarerelated.
D.ThepercentageincreaseinthequarterlyaverageoftheAICPIfortheperiodendingFebruary,
May,AugustandNovemberoverindex1099wouldbetakenuptoonedecimalpoint.
E.TherateofcompensationoftheemployeesofPSUsoverthebasicpayatindexaverageof
1099isalsoinwholenumberswithfractionscarriedforward.
F.Thepercentageneutralisationtoemployeesindifferentpayrangeswouldbeasunder:
PayRangesBasicPay

NeutralisationPercentage

UptoRs.3500

100*

Rs.35016500
Rs.65019500

75
60

Subjecttomarginaladjustments

Rs.9501andabove

50

*Subject to a minimum of Rs2/ per point shift in AICPI quarterly average beyond 1099 w.e.f.
1.1.1992.
Footnote:I
Quarterlyaverageswouldbecomputedinthefollowingmanner:
QuarterlyAverages

Payablefrom

September,OctoberandNovember

1stJanuary

December,JanuaryandFebruary
March,AprilandMay

1stApril
1stJuly

June,JulyandAugust

1stOctober

Footnote:II

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The quarterly average of AICPI for the months of September, October and November, 1991
worked out to 1099 and the DA under the IDA scheme at the admissible rates payable from
1.1.1992isbeingmergedinthebasicpay.DAadmissibleunderthenewformulaevolvedforthe
publicsectoremployeeswouldbeNILon1.1.1992.ThefirstinstalmentofDAwouldbecomedue
from1.4.1992.
STATEMENT SHOWING ILLUSTRATION COMPENSATION TO BE WORKED OUT UNDER
PERCENTAGEDASCHEME

Basicpay
upto
Rs.3500/pm

Basicpay
Basicpay
aboveRs.3500/ aboveRs.6500/
pmandupto
pmandupto
Rs.6500/pm
Rs.9500/pm

Basicpay
above
Rs.9500/pm

%Neutralisation

100

75

60

50

Qtrly.Arithmeticaverage
towhichrelated

1099

1099

1099

1099

QtrlyAverageofAICPI
endingFeb.1992
payablefrom1.4.92
(1121points)

2%ofpay
subjecttoa
minimumof
Rs.44/

1.5%ofpay
subjecttoa
minimumof
Rs.70/

1.2%ofpay
subjecttoa
minimumof
Rs.98/

1%ofpay
subjecttoa
minimumof
Rs.114/

QtrlyAverageofAICPI
endingMay1992
payablefrom1.7.92
(1141points)

3.8%ofpay
subjecttoa
minimumof
Rs.84/

2.8%ofpay
subjecttoa
minimumof
Rs.134/

2.3%ofpay
subjecttoa
minimumof
Rs.182/

1.9%ofpay
subjecttoa
minimumof
Rs.219/

QtrlyAverageofAICPI
endingAug.1992
payablefrom1.10.92
(1183points)

7.6%ofpay
subjecttoa
minimumof
Rs.168/

5.7%ofpay
subjecttoa
minimumof
Rs.266/

4.6%ofpay
subjecttoa
minimumof
Rs.371/

3.8%ofpay
subjecttoa
minimumof
Rs.437/

QtrlyAverageofAICPI
endingNov.1992
payablefrom1.1.93
(1202points)

9.4%ofpay
subjecttoa
minimumof
Rs.206/

7%ofpay
subjecttoa
minimumof
Rs.329/

5.6%ofpay
subjecttoa
minimumof
Rs.455/

4.7%ofpay
subjecttoa
minimumof
Rs.532/

QtrlyAverageofAICPI
endingFeb.1993
payablefrom1.4.93
(1193points)

8.5%ofpay
subjecttoa
minimumof
Rs.188/

6.4%ofpay
subjecttoa
minimumof
Rs.298/

5.1%ofpay
subjecttoa
minimumof
Rs.416/

4.2%ofpay
subjecttoa
minimumof
Rs.485/

QtrlyAverageofAICPI
endingMay1993
payablefrom1.7.93
(1207points)

9.8%ofpay
subjecttoa
minimumof
Rs.216/

7.3%ofpay
subjecttoa
minimumof
Rs.343/

5.9%ofpay
subjecttoa
minimumof
Rs.475/

4.9%ofpay
subjecttoa
minimumof
Rs.561/

QtrlyAverageofAICPI
endingAug.1993
payablefrom1.10.93
(1248points)

13.5%ofpay
subjecttoa
minimumof
Rs.298/

10.1%ofpay
subjecttoa
minimumof
Rs.473/

8.1%ofpay
subjecttoa
minimumof
Rs.657/

6.7%ofpay
subjecttoa
minimumof
Rs.770/

QtrlyAverageofAICPI
endingNov.1993
payablefrom1.1.94
(1292points)

17.6%ofpay
subjecttoa
minimumof
Rs.386/

13.2%ofpay
subjecttoa
minimumof
Rs.616/

10.6%ofpay
subjecttoa
minimumof
Rs.858/

8.8%ofpay
subjecttoa
minimumof
Rs.1007/

QtrlyAverageofAICPI
endingFeb.1994
payablefrom1.4.94
(1302points)

18.5%ofpay
subjecttoa
minimumof
Rs.406/

13.9%ofpay
subjecttoa
minimumof
Rs.648/

11.1%ofpay
subjecttoa
minimumof
Rs.904/

9.2%ofpay
subjecttoa
minimumof
Rs.1055/

QtrlyAverageofAICPI
endingMay1994
payablefrom1.7.94
(1328points)

20.8%ofpay
subjecttoa
minimumof
Rs.458/

15.6%ofpay
subjecttoa
minimumof
Rs.728/

12.5%ofpay
subjecttoa
minimumof
Rs.1014/

10.4%ofpay
subjecttoa
minimumof
Rs.1188/

QtrlyAverageofAICPI
endingAug.1994
payablefrom1.10.94
(1384points)

25.9%ofpay
subjecttoa
minimumof
Rs.570/

19.4%ofpay
subjecttoa
minimumof
Rs.907/

15.5%ofpay
subjecttoa
minimumof
Rs.1261/

12.9%ofpay
subjecttoa
minimumof
Rs.1473/

QtrlyAverageofAICPI
endingNov.1994
payablefrom1.1.95
(1427points)

29.8%ofpay
subjecttoa
minimumof
Rs.656/

22.3%ofpay
subjecttoa
minimumof
Rs.1043/

17.9%ofpay
subjecttoa
minimumof
Rs.1450/

14.9%ofpay
subjecttoa
minimumof
Rs.1701/

QtrlyAverageofAICPI
endingFeb.1995
payablefrom1.4.95

30%ofpay
subjecttoa
minimumof

22.5%ofpay
subjecttoa
minimumof

18%ofpay
subjecttoa
minimumof

15%ofpay
subjecttoa
minimumof

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(1429points)

Rs.660/

Rs.1050/

Rs.1463/

Rs.1710/

AnnexureIV
PaymentofHRAtotheemployeesofCentralPSEsandleasingofresidentialaccommodationfor
ChiefExecutives,FunctionalDirectorsandkeyofficialsandrecoveryofrentthereofetc.
TheCommitteeofSecretariesattheirmeetingheldon3.2.1992approvedtheDPEsproposalfor
continuedpaymentofHRAatthefollowingrates:
Delhi,Bombay30%ofBasicPay
Other"A"classcities25%ofBasicPay
B1,B2classcities15%ofBasicPay
"C"classandotherunclassifiedareas10%ofBasicPay
Payment of HRA at the above rates would, however, be subject to the proviso that these
employees/executiveswouldhavetobear10%oftheirbasicpaytowardshouserent.Payment
wouldalsobesubjecttotheirproducingtherentreceiptfromtheirlandlords/valuationcertificate
issuedbytheMunicipalAuthorityinrespectofthehouseoccupiedbythem.Theratesindicated
aboveareinthenatureofceilings.IfsomePSEshaveagreedtopayHRAattherateswhichare
either high or lower than the norms indicated above under the subsisting wage
settlement/understandingarrivedatwiththeunionisedstaff,nonunionisedsupervisorsandthe
executives, their cases need not to be reopened during the period of validity of the wage
settlement/period of understanding with the unionised and nonunionised staff. However, the
ceilings on payment of HRA as spelt out above should be incorporated in all further wage
settlements/payrevisionsfortheexecutivesaspertheoverallpay/wagepackage.Thequantum
ofHRApaidtoanexecutiveoranemployeeintermsoftheexistingwagesettlement/officerspay
revisionunderstandingcouldbeprotectedaspersonaltotheindividualemployeeifthequantum
ofHRAworkedoutonthebasisoftherevisednormsresultsinlowerpaymenttotheindividual.
HRAwithoutProductionofRentReceipt:
TheceilingsforpaymentofHRAwithoutproductionofrentreceiptfortheexecutivesandnon
unionisedsupervisorsfollowingIDApatternwouldstandrevisedw.e.f.1.4.1994asfollows:
S.No.

City

IDAPSEs
Rs.
Proposed

CDAPSEs
Rs.
Existing

Rs.
Existing

1.

Delhi,Bombay

1500

1000

1250

2.

Other"A"classcities

1500

1000

1000

3.

"B1","B2"classcities

1500

1000

680

4.

"C"classcities

750

500

340

5.

Unclassifiedareas

450

300

310

There would be no increase in the ceilings for the payment of HRA without production of rent
recieptforemployeeswhocontinueonCDApattern.
CeilingsforLeasedAccommodation:
The monetary ceilings for leased accommodation set out in para (iv) and (v) of para 4 of the
DPEsOMdated3.3.92,whichhadbeenworkedoutwithrelationtotheprerevisedscalesofpay
wouldstandrevisedasperdetailsgiveninthefollowingtable:
RevisedCeilingsforleasedaccommodationforkeyofficialsholdingpostsbelowtheBoardLevel
incentralPSEsfollowingIDApatternpayscales:
Pay
Scale
Range

Plinth
Area

Rs. Sq.Ft.

Delhi
Bombay
Calcutta

Ahmedabad,Madras,Bangalore,
Hyderabad,&Other"A"ClassCities

B1,B2"C"Class
Citiesandother
Areas.

Rs.

Rs.

Rs.

11500
13500

1500

5400

4700

3400

9500
11500

1200

4600

4100

2900

8500
10300

1200

4100

3600

2600

7500
9900

1200

4000

3500

2500

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CCA
Classificationof
Cities
Ratesatwhich
CCAispayable

AClassCities

6%ofBPsubjectto
maxofRs.100/

B1Cities

4.5%ofBPsubjectto
maxofRs.75/

B2Cities

3.5%ofBPsubjectto
max.ofRs.20/

ANNEXUREV
PROCEDUREFORAPPROVALANDADOPTIONOFNEWSCALESOFPAYUNDERTHEIDA
PATTERNBYPSES
ProfitmakingPSEs,lossmakingPSEsandPSEbeforeBIFR:
Public Sector Enterprises are considered as State under the Provisions of Article 12 of the
Constitution of India. Both the Supreme Court and the various High Courts have been giving
directionsintherecentpasteitherforrestorationofparityinthescalesofpayinonePSEwith
thatofanotherPSEorremovalofanomalies.Inordertoavoidfurtherlitigation,ithas,therefore,
beenproposedthatthescalesofpayoftheincumbentsofthetopposts,executivesholdingposts
belowtheBoardlevelandnonunionisedsupervisorswouldbesimilarinallPSEsirrespectiveof
profitorlossmadebythem.Unlikeworkers,executivesandtheBoardMembersareanswerable
andaccountabletotheGovernmentasownersofthePSEsandhencetheirentitlementsrequire
clearancebytheGovernmentatleastinthecaseoflossmakingandBIFRcasesetc.andforany
deviation.Thefollowingprocedurewouldbeadopted:
a)PSEswhichhavebeenmakingprofitconsistentlyforthelast3yearsviz.199192,199293
and 199394: These PSEs would be allowed to adopt the scales of pay for the executives
holdingpostsbelowtheBoardlevelandnonunionisedsupervisorsasgiveninAnnexureI
b)PSEswhichdidnotmakeprofitduringthelast3years:PSEswhichdidnotmakeprofitduring
the last 3 years viz, 19911992, 199293 and 199394 or had incurred net loss during any of
these financial years would also be allowed to adopt these scales of pay of their executives
holding posts below the Board level and nonunionised supervisors with the approval of the
Government i.e. the administrative ministry acting in consultation with the DPE, provided they
giveanestimateastohowresourceswouldbegeneratedbythemtomeettheextraexpenditure.
c)SickPSEsSickIndustrialCompanies(Specialprovisions)Act,1985hasbeenamendedand
thePSEshavebeenbroughtwithinitspurview.Sofar50PSEshavebeenregisteredwiththe
BIFR.Havingregardtothenewdevelopments,itissuggestedthatthePSEswhichhavebeen
referredtoBIFRwouldnotbeallowedthebenefitofrevisedscalesofpayfortheirBoardlevel
executives, executives holding posts below the Board level and nonunionised supervisors
unless and until the verdict of the BIFR is available. Where BIFR has ordered closure of the
PSEs,actionwouldbeexpeditedtopaythecompensationaspertheprovisionsoftheActand
close down the PSEs. Wherever revival plan for a PSE has been approved by the BIFR,
proposalsforadoptingrevisedscalesofpayforBoardlevelexecutivesholdingpostsbelowthe
BoardlevelandnonunionisedsupervisorsaswellasthenewDAformulaw.e.f.1.1.1992would
berequiredtobesubmittedbythesePSEstotheGovernmentforappropriateapprovalbythe
administrativeministryactinginconsultationwiththeDPEprovidedtheygiveananalysisoftheir
wagebillandalsospelloutmeasurestomobiliseresourcestomeettheextraburden.
d)PSEsunderconstructionornewPSEs:EightPSEsareunderconstruction.SomePSEshave
beencreatedbymergerofexistingestablishmentse.g.PowerGridCorporationofIndia.These
PSEsshouldsubmittheirproposalsforadoptionofrevisedscalesofpayandDApatternfortheir
executivesholdingpostsattheBoardlevel,belowBoardlevelandnonunionisedsupervisorsto
theiradministrativeministriesforappropriateapprovalinconsultationwiththeDPE,givingdetails
oftheirlikelydateofgoingoncommercialproduction,etc.
e)Wheremattersaresubjudice:AsperSupremeCourtsdirectionsdated3.5.90and28.8.91,
employees/executivesappointedonorafter1.1.89inthe69PSEswhichhithertofollowedCDA
pattern have been placed on IDA pattern and related scales of pay to be prescribed by
Government in its discretion. The executive associations of some other PSEs which have
approached various High Courts/Supreme Court for review of the directions of the Supreme
Court and for permission to draw salary as per HPPCs, scales of pay and DA pattern. The
revisedscalesofpayandthenewDAformulawhichisbeingnotifiedforallothersPSEscould
alsobeoptedbythemattheirownvolition.ThesescalesofpayandDAsystemwouldnotbe
applicabletoDTCastheyhavesecuredanOrderfromtheSupremeCourttocontinueonthe
GovernmentscaleandDApattern.
f) The conditions prescribed for wage negotiations of unionised workers in BPEs OMs dated
12.4.93and17.1.94shouldbefulfilledfortheabovepayrevisions.
g)DPEwillissuedetailedinstructions,wherevernecessary,regardingthemattersdealtwithin
theNote.

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