Top 12 updates on 3rd PRC for CPSE Employees
Report of 3rd Pay Revision Committee for Central Public Sector Enterprises Effective from 1st January 2017.
The Third Pay Revision Committee recommended revised pay structure for the Board-level and Below Board level executives for each of the schedule of the Central Public Sector Enterprises (CPSE).
For reference purpose we have updated the detailed report of Third Pay Revision Committee as important topic wise.
1. REVISED PAY SCALES EFFECTIVE FROM JAN 2017
The 3rd Pay Revision Committee recommends the revised pay-scales for the Board-level and Below Board level executives for each of the schedule of the CPSE i.e. Schedule-A, Schedule-B, Schedule-C & Schedule-D, effective from 1.1.2017
2. FITMENT BENEFIT AND METHODOLOGY
The Committee recommends a uniform fitment benefit of 15% on sum of Basic Pay & Stagnation increment(s) and Industrial Dearness Allowance (IDA). Accordingly, the fitment methodology to arrive at the revised Basic Pay as on 1.1.2017
3. CALCULATION OF ANNUAL INCREMENT
The pay-structure for CPSEs executives effective from 1.1.2007 provides for annual increment of 3% of Basic Pay.
4. DEARNESS ALLOWANCE CALCULATION
The Committee recommends no change in the IDA pattern and the 100% DA neutralization shall continue to be applicable.
5. RATES OF HOUSE RENT ALLOWANCE (HRA)
HRA is payable to the CPSE executives in line with the classification of cities and the rate as applicable for Central Government employees
6. PERKS AND ALLOWANCES
The Committee, after examining the perks & allowances under the revised compensation structure in a holistic manner and based on the deliberations held with the CPSEs
7. RETIREMENT AGE RECOMMENDATIONS
Government had taken the decision to increase the age of retirement from 58 to 60 yearsof Board level and below Board level employees of CPSEs in 1998
8. BUNCHING OF PAY
There will no instances of bunching at the starting point of revised pay-scale in the CPSEs granting full fitment benefit of 15%
9. RETIREMENT BENEFITS
CPSEs are currently allowed 30% of Basic Pay & Dearness Allowance as superannuation benefits, which includes Provident Fund, Gratuity, Pension and Post-superannuation medical benefits
10. VOLUNTARY SEPARATION SCHEME (VRS)
VRS policy by allowing compensation/ex-gratia on the revised pay scales effective from 1.1.2017.
11. LEAVE REGULATIONS
Leave policies applicable for Government employees are not comparable with the leave management polices applicable under an Industrial set-up for CPSEs employees
12. LEASED ACCOMMODATION
The Board of Directors shall be empowered to decide the lease rental ceilings applicable for the different level of executive