• Home
  • 7th Pay Matrix
  • Pay Calculator
  • DA Table
  • DA News
  • 8th CPC News
  • KV Fees

Central Government Employees Latest News

7th Pay Commission Latest News Today 2023, 7th Pay Matrix Table PDF, Expected DA Calculation, DA Rates Table, 8th Pay Commission Latest News

Latest 7th pay commission pay scale calculator
  • Holidays 2023
    • Holidays 2022
    • Holidays 2021
    • Holidays 2020
    • Holidays 2019
    • Holidays 2018
  • DoPT Orders
  • Expected DA
    • AICPIN
  • CSD AFD
  • Retirement Age
    • CGHS Subscription
    • CGHS Hospitals
    • CGHS Rates
    • OROP-2 Table
  • Gold Price
    • KVS Admission 2023-24
You are here: Home / CPSE Pay Revision 2017 / 3rd Pay Revision for CPSE : Performance Related Pay (PRP)

7th Pay Commission Latest News Today 2023
Central Government Employees News Today 2023
7th Pay Salary Calculator 38% DA 7th CPC Increment Calculator
Expected DA for January 2023 8th Pay Commission News

7th CPC Pay Fixation Calculator Retirement Date Calculator 2023
Leave Encashment Calculation & Calculator 2023 KVS Fee Online Payment 2023-24
18 Months DA Arrears for CG Employees Govt First Salary Calculator
Latest News from 7thpaycommissionnews.in

3rd Pay Revision for CPSE : Performance Related Pay (PRP)

August 9, 2017 admin Leave a Comment

3rd Pay Revision for CPSE : Performance Related Pay (PRP)

Performance Related Pay (PRP) :- The admissibility, quantum and procedure for determination of PRP has been given in Annexure- IV. The PRP model will be effective from FY 2017-18 and onwards. For the FY 2017-18, the incremental profit will be based on previous FY 2016-17. The PRP model will be applicable only to those CPSEs which sign Memorandum of Understanding (MOU), and have a Remuneration Committee (headed by an Independent Director) in place to decide on the payment of PRP within the prescribed limits and guidelines.

Performance Related Pay

(I) Allocable profits:
a. The overall profits for distribution of PRP shall be limited to 5% of the year’s profit accruing only from core business activities (without consideration of interest on idle cash / bank balances), which will be exclusively for executives and for non-unionized supervisors of the CPSE. The ratio of break-up of profit
accruing from core business activities for payment of PRP between relevant year’s profit to Incremental profit shall be 65:35 to arrive at the Allocable profits and the Kitty factor.

(I) PRP differentiator components:
(A) PRP payout is to be distributed based on the addition of following parts / components:-

Part-1 : CPSE’s performance component:-
(a) Weightage = 50% of PRP payout
(b) Based on CPSE’s MOU rating:

Part-2 : Team’s performance component:- *

(a) Weightage = 30% of PRP payout

(b) Based on Team rating (i.e. linked to Plant / Unit’s productivity measures and operational / physical performance):

* In case of a CPSE not having Plants/Units and if there is a no Team Performance areas/rating, then the PRP for such CPSE will be determined based specifically on MoU rating after merging the weightage of Team performance component to the Company’s performance component.

(c) The Team rating shall be linked to individual Plant / Unit’s productivity measures and operational / physical performance, as primarily derived from CPSEs’ MOU parameters and as identified by CPSE depending on the nature of industry / business under the following suggested performance areas:-

Achievement Areas’, in which performance has to be maximized (e.g. market shares, sales volume growth, product output / generation, innovations in design or operation, awards and other competitive recognition, etc.); and

Control Areas’ in which control has to be maximized (e.g. stock / fuel loss, operating cost control, litigation cost, safety, etc.).

(d) For office locations of CPSEs, the Team rating should be linked to the Plant / Unit as attached to the said office; and if there is more than one Plant / Unit attached to an office or in case of Head Office / Corporate Office of the CPSE, the Team rating shall be the weighted average of all such Plants / Units. The weighted average shall be based on the employee manpower strength of the respective Plants / Units.

[Plants/Units shall primarily mean the work place where industry’s manufacturing process is carried out and in case of a CPSE not having any manufacturing process, it shall mean the work place where the main business is carried out. The individual department/section within a work place shall not be recognized as a Plant/Unit].

Part-3 : Individual’s performance component:-
(a) Weightage = 20% of PRP payout

(b) Based on Individual performance rating (i.e. as per the CPSE’s Performance Management System):

(c) The forced rating of 10% as below par / Poor performer shall not be made mandatory. Consequently, there shall be discontinuation of Bell-curve. The CPSEs are empowered to decide on the ratings to be given to the executives; however, capping of giving Excellent rating to not more than 15% of the total executive’s in the grade (at below Board level) should be adhered to.

(II) Percentage ceiling of PRP (%age of BP):
(a) The grade-wise percentage ceiling for drawal of PRP within the allocable profits has been rationalized as under:-

Note:
1.For Non- Unionized supervisors, the PRP as percentage of BP will be decided by the respective Board of Directors of the CPSE.

(III) Kitty factor: After considering the relevant year’s profit, incremental profit and the full PRP payout requirement (computed for all executives based on Grade-wise ceilings, CPSE’s MOU rating, Team rating & Individual performance rating), there will be two cut-off factors worked out based on the PRP distribution of 65:35. The first cut-off shall be in respect of PRP amount required out of year’s profit, and the second cut- off shall be in respect of PRP amount required out of incremental profit, which shall be computable based on the break-up of allocable profit (i.e. year’s 5% of profit bifurcated into the ratio of 65:35 towards year’s profit and incremental profit).

The sum of first cut-off factor applied on 65% of Grade PRP ceiling and the second cut-off factor applied on 35% of Grade PRP ceiling will result in Kitty factor. The Kitty factor shall not exceed 100%.

(IV) Based on the PRP components specified above, the PRP pay-out to the executives should be computed upon addition of the following three elements:-
(a) Factor-X (% of BP):
Weightage of 50% Multiplied with Part-1 (CPSE’s MOU rating) Multiplied with Kitty factor

(b) Factor-Y (% of BP):
Weightage of 30% Multiplied with Part-2 (Team’s performance) Multiplied with Kitty factor.

(c) Factor-Z (% of BP):
Weightage of 20% Multiplied with Part-3 (Individual’s performance) Multiplied with Kitty factor.

(d) Net PRP= Factor X + Factor Y + Factor Z =Net %age of Annual BP

EXAMPLES
Performance Related Pay (PRP): Examples for calculating Kitty factor/Allocable profit
Example – 1

PRP Payout to Individual Executives
Example — 1 : For Grade E-1

Performance Related Pay (PRP): Examples for calculating Kitty factor/Allocable profit
Example – 2:

PRP Payout to Individual Executives
Example – 2 : For Grade E-1

3rd Pay Revision for CPSE : FITMENT BENEFIT

3rd Pay Revision for CPSE : METHODOLOGY FOR PAY FIXATION

3rd Pay Revision for CPSE : INCREMENT

3rd Pay Revision for CPSE : DEARNESS ALLOWANCE

3rd Pay Revision for CPSE : HRA and HRR

3rd Pay Revision for CPSE : PERFORMANCE RELATED PAY (PRP)

3rd Pay Revision for CPSE : SUPERANNUATION BENEFITS

3rd Pay Revision for CPSE : LEAVE REGULATIONS/MANAGEMENT

3rd Pay Revision for CPSE : DATE OF IMPLEMENTATION AND PAYMENT OF ALLOWANCES


Also Check: Central Government Pay Matrix Table 2022 PDF
Related updates:

    Performance Related Pay (PRP): Examples for calculating Kitty factor
    3rd Pay Revision for CPSE : Implementation order issued by DPE on 3.8.2017
    3rd Pay Revision for CPSE : Superannuation Benefits and Medical Benefits
    3rd Pay Revision for CPSE : Leave regulations/management
    3rd Pay Revision for CPSE : Date of Implementation and Payment of Allowances
    3rd Pay Revision Committee for CPSE Employees – Gazette Notification
    A Reader’s Opinion about Performance Related Incentive Scheme (PRIS) – CGEN.in

Filed Under: CPSE Pay Revision 2017

New Option for Higher Pension by EPF Pensioners 2023

New Option for Higher Pension by EPF Pensioners

March 27, 2023 By Ekanathan Leave a Comment

EPF Pensioners now have a new option for a higher pension, as per the directions of the Hon’ble Supreme Court judgment dated … [Read More...]

Maternity Leave for Civilian Female Industrial Employees in the Defence

Maternity Leave for Civilian Female Industrial Employees in the Defence: Latest Clarification

March 27, 2023 By Ekanathan Leave a Comment

The Ministry of Law and Justice has amended the Maternity Benefit Act, 2017 through a Gazette Notification issued on 28.03.2017, … [Read More...]

Double, Additional Transport Allowance out of the 50%, 35% ceiling relating to Divyangjan

Double, Additional Transport Allowance out of the 50%/35% ceiling relating to Divyangjan – Date of effect of Implementation

March 27, 2023 By Ekanathan Leave a Comment

The implementation date for doubling or adding to the transport allowance, subject to a 50/35 percent ceiling, for Divyangjan … [Read More...]

DA Arrears to Central Govt Employees and Pensioners - Latest Update

DA Arrears Release to Central Govt Employees and Pensioners – Latest Update

March 27, 2023 By Ekanathan 3 Comments

Are you eagerly awaiting the release of 18 months' worth of DA arrears for Central Government employees and pensioners that were … [Read More...]

Linking with PAN with Aadhaar Last Date 31.3.2023

Linking with PAN with Aadhaar Last Date 31.3.2023

March 27, 2023 By Ekanathan Leave a Comment

Attention All NPS Subscribers: Link Your PAN with your Aadhaar by March 31, 2023 The PFRDA has released a notice advising … [Read More...]

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

7th Pay Commission Latest News

  • New Option for Higher Pension by EPF Pensioners March 27, 2023
  • Maternity Leave for Civilian Female Industrial Employees in the Defence: Latest Clarification March 27, 2023
  • Kendriya Vidyalaya Class 1 Online Admission Kick-off Today at 10 AM March 26, 2023
  • 42% Dearness Allowance for Central Govt Employees from 1st Jan 2023 March 26, 2023
  • Latest Amendments on Civil Dress Code for RPF in Railways March 24, 2023
  • Old Pension Scheme for Central Govt Employees Recruited on or before 22.12.2003 March 24, 2023
  • KVS OMR Sheet and Answer Key 2023 Released: Check Direct Download Link Here March 24, 2023
  • Sharing of Family Pension to Eligible Widows or Children March 24, 2023
  • Railway Board LDCE Quota: Medical De-classified Personnel Selection March 24, 2023
  • Check IRCTC E-Tickets Against E-Passes/PTOs | HRMS App March 24, 2023
  • Implementing 5-day work week in banks soon! March 24, 2023
  • Clarification on Compassionate Appointment in Level-7 to Railway Employees March 24, 2023
  • NPS to OPS for Recruited Against Post or Vacancy Advertised, Notified for Recruitment March 23, 2023
  • 7th UGC Pay Commission | Revision of Pay Scale of Teachers in Universities and Colleges March 23, 2023
  • Latest Details on Demands for Old Pension Scheme March 21, 2023

Top Stories 2023

7th Pay Matrix Table
DA Latest News 2023
KV Fee Structure 2023-2024
7th CPC Salary Calculator January 2023
Bakrid Date in India 2023
7th CPC DA Calculation 2023
Amavasya Date Calendar 2023
Expected DA Calculator January 2023
7th Pay Matrix Level 6
First Month Salary Calculator 2023
Pay Matrix Full Size Image
Post Office Holidays 2023
HRA New Rates 2023
New TA Rates 2023
SBI Bank Holidays 2023
Pay Matrix Level 7 Salary
Pay Level 4 Salary
Pay Matrix Level 8 Salary
7th Transport Allowance New Rates
7th CPC Increment Calculation
KVS Class 1 Admission 2023-2024
Expected Bank DA Calculator 2023

7th Pay Commission Latest News Today 2023

Fitment Factor Table PDF
7th CPC Pay Fixation
7th CPC Pension Calculation
7th CPC Pension Fixation Examples
7th CPC Voluntary Retirement Scheme
DA Calculation as per 7th CPC
7th CPC MACP Scheme
7th CPC Children Education Allowance
7th CPC Transport Allowance
7th CPC Increment
7th CPC HRA
7th CPC Classification of Posts
7th CPC Armed Forces Personnel
7th CPC House Building Advance
7th CPC Leave Rules
7th CPC Travelling Allowance
7th CPC LTC Rules
7th CPC Reservation Policy
7th CPC Risk and Hardship Matrix
7th CPC New Pension Scheme
7th Pay Commission Fitment Table
7th CPC Allowances
7th CPC Advances
7th CPC AICPIN
7th CPC Briefcase Allowance
7th Pay Commission CGEGIS
7th CPC Dress Allowance
7th CPC Child Care Leave
List of Sainik Schools
Latest Dopt Orders
CSD AFD Login
CGHS Subscription Ward Entitlement
CGHS Hospital List
CGHS Package Rates
CGHS Online Booking

7th Pay Commission News Discussions

  • Bangkim Chandra Swargiary on 8th Pay Commission News Date, Salary Slab, Pay Scale Calculator
  • shem shpunii koh on NPS to OPS Option for Certain Central Government Employees Last Date 31.8.2023
  • Hav. Jeevaratnam on OROP Table No.7 – Havildar and Hony Naib Sub and Equivalent
  • K N Sati on 7th Pay Commission Basic Salary Calculator India
  • M.K.KUMAR on 7th Pay Commission Latest News for Pensioners 2021
  • Raviprasad Golla on CGHS Pune – Fresh list of HCOs under CGHS
  • Nilesh Patel on 7th Pay Commission Latest News for Pensioners 2021

Latest News

  • 7th Central Pay Commission
  • 7th CPC Concordance Table
  • 7th CPC Defence
  • 7th CPC Dopt Orders
  • 11th Bipartite
  • 7th CPC HRA
  • 7th CPC Increment
  • 7th CPC Pay Matrix
  • 7th CPC Pay Scale
  • 7th CPC Pay Scale Calculator
  • 7th CPC Pension Calculation
  • 7th CPC Projected Pay Scale
  • 7th CPC Report
  • 7th CPC Transport Allowance
  • 7th Pay Commission Latest News
  • AICPIN
  • Armed Forces
  • Bank Employees News
  • Bonus
  • Central Government Employees News
  • CGEGIS
  • CGHS
  • Children Education Allowance
  • Compassionate Appointment
  • DA Merger
  • Dearness Allowance
  • Dearness Relief
  • Dopt Orders
  • Employment News
  • Expected DA
  • Finmin Orders
  • Freezing of DA and DR
  • Gramin Dak Sevaks
  • Google News
  • Holidays
  • HRA
  • INCOME TAX
  • IPL Cricket
  • IRCTC News
  • JCM Meeting
  • KV Schools
  • LDC UDC Issues
  • MACP
  • LTC
  • National Council Meeting
  • NPS to OPS
  • New Pension Scheme
  • OROP
  • Pay Fixation
  • PCDA Circulars
  • Retirement age
  • Voluntary Retirement Service

Copyright © 2023 - Central Government Employees News - 7th Pay Commission News - Site maintained by TEUT Digital Concepts