Salary of Engineers & Officers | PSU | 3rd PRC

Salary of Engineers & Officers at PSU Companies after 3rd Pay Revision Committee :

Public Sector Undertakings (PSUs) in India are the entities which have the status of being Government-owned companies. Central Public Sector Enterprises (CPSEs) are those companies in which the direct holding of the Central Government or other CPSEs is 51% or
more. Most of the top executive jobs i.e Engineers and Management Trainee Officers are hired through GATE scores and Interview. Every year PSUs come up with vacancies of Engineers/Officers. You must be wondering what would be the salary and benefits offered for these jobs? This article will tell you the answer along with an example of Entry Level Officers salary at IOCL.

About 3rd PRC : It is third Pay Revision Committee for Central Public Sector Enterprises CPSE headed by Justice Satish Chandra (Retd). The recommendation of the reports were accepted by the Govt. of India and the updated Pay Scale is effective from 1 Jan 2017. Click Here To Read 3rd PRC Report

New Pay as per 3rd PRC = A (Basic Pay + Stagnation increment(s) as on 31.12.2016) + B (Industrial Dearness Allowance (IDA) as applicable on 1.1.2017) + C {15% of (A+B)} + D (Aggregate amount rounded off to the next Rs.10/-.)

As an Example : It means if someone has a basic of 20000 as on 01.01.2017 then his or her new basic would be 20000 X 2.195 X 1.15 = 50480. Hence the multiplication factor for calculating new basic is 2.524.

Comparison of Old Pay Scale with New Pay Scale of 3rd PRC :

We all know in PSU job notifications we see old pay scales or Grade Level (E-1,E-2 etc). So now understand how to find out latest salary offered by the PSUs.

There is various type of PSU and similarly, the Gross Salary Differs for a different
type of PSU. There is 3 basic type of PSU like Maharatna, Navratna and Miniratna.

• Maharatna include various companies like ONGC, CIL, IOCL, NTPC and SAIL etc.
• Navratna includes BHEL, BPCL,GAIL, NALCO, NLC etc.
• Miniratna includes companies like AAI, NHPC, NFL, MECL and RITES etc.

According to above table, BSNL JTO is in E-1 Level, so for an Entry Level JTO trainee basic salary is Rs 40000 Plus there are allowances too which we discuss next.

Allowances Offered By PSU Companies : 

1. IDA (Industrial Dearness Allowance) : 3.4% from 1 Jan 2018. Updated in every 3 months based on increase of average AICPI (All India Consumer Price Index) over Link Point.
2. HRA (House Renting Allowance) :
   

   Class of City	HRA % of Basic pay
   X-class (50 lakh & above population)	24
   Y-class (5 to 50 Lakh population)	16
   Z-class (Less than 5 Lakh population)	8

3. Increment Yearly – 3% of basic pay

Example of Salary of an Entry Level Engineer/Officer at IOCL through GATE or Direct Recruitment :

Entry Level Engineer/Executive Trainee/Officer is hired at E-3 grade. So Let’s count the gross and in-hand Salary of the E-3 grade Officer at IOCL residing in Mumbai City :

1. Basic Pay = Rs 60000
2. IDA (3.4% as on 1 Jan 2018) => 60000*3.4*0.01 = 2040
3. HRA (24% for X-class city) => 60000*24*0.01 = 14400
4. Other Benefits : Performance Related Pay, Perks & Allowances (not more than 35% of basic pay), Compensatory Allowances, Medical for Self & Family
5. Gross Salary => Rs 60000 + 14400 + 2040 + Other Benefits = 76440 + Other Benefits
6. Deductions : PF (around 8000) and Income Tax (around 5000)
7. In-Hand Salary : Gross Salary – Deductions = Around 70000