Monday, June 29, 2009

Pay relief for govt officers on deputation in PSUs

Government officers on deputation as executives in public sector undertakings (PSUs) can heave a sigh of relief. After a series of representations from administrative ministries, the department of public enterprises (DPE) has tweaked pay commission recommendations for government officers serving as executives on deputation in PSUs.

The Pay Revision guidelines issued in November 2008 barred such officers on deputation from taking PSU grade salaries and perks. However, a new order issued recently, reverses the guideline to the extent that it will not apply with retrospective effect. This means that government officers appointed on deputation to PSUs before the Pay Commission Recommendations notification came into force on November 26, 2008 will continue to draw their existing salaries and perks till the end of their tenure. However, officers appointed on deputation to PSUs after 26.11.2008 will not be eligible for the salaries and perks of the PSU they are with.

“A number of administrative ministries including the Railways had representations to the department of public enterprises over this issue. Ministries had said that there were difficulties in implementing these with retrospective effect as not all perks can be exactly valued,” a senior DPE official told The Indian Express. The DPE had set up an anomalies committee to address the issues. The new memorandum has been issued after taking their views.

In addition to this, board level officers appointed by the PSUs on recommendations of the Public Enterprises Selection Board (PESB), will also be allowed to continue with the Industrial Dearness Allowance (IDA) pay scale. IDA is linked to the performance of the PSU and is enhanced if the company does well.

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