The joint forum of officers’ associations of major public sector enterprises (PSEs) including NTPC, Coal India, Steel Authority of India Ltd, PFC and NHPC have demanded the benefits of the merger of 50% DA with basic pay be extended to PSEs in line with central government employees.
The demand was made in reference to recommendation of the Justice Mohan Committee, for pay revision of executives below board level in PSEs on 100% neutralisation of DA.
According to the forum, the government increased the periodicity of pay revision for PSEs from 5 years to 10 years, but it is unnecesarily delaying the benefits of the DA merger.
It demanded the financial autonomy to PSUs in deciding pay, perks and allowances for employees and removal of monetary ceiling on payment of gratuity, a release stated.
The joint forum was of the view that the executives of PSEs were already at a loss from the beginning of pay revision vis-a-vis the central government employees due to tax burden imposed on their perks, alowances and other benefits. At present the gap between central DA and industrial DA is to the extent of 27.1% taking into account DA on dearness pay.
The forum further emphasised that in the present competitive scenario, the profit making and expanding PSUs find it dificult to attract the best talents due to wide disparity in pay structure between PSEs and private companies. u
The long-term improvement would only come when complete autonomy is granted to PSEs’ management. u