3rd PRC Estimated Pay Scales for the CPSEs employees 2017

The government of India had implemented 2nd PRC report on 26 November 2008 which was applicable from 01.01.2007. The term of 2nd PRC is going to end on 31.12.2016. The employees of Central Public sector employees are waiting for their next pay revision which will come into force from 01.01.2017. The government of India already announced the formation of Committee for next pay revision in PSUs. The committee is headed by  Justice Satish Chandra (Retired) & It has to submit the report to Government within a period of six months from the date of constitution of the committee.




Based on the report & views of other departments final order will be issued by Department of Public Enterprises with the approval from Government. Now the question is how much one can expect salary hike after implementation of 3rd PRC report. Please check the Government decision on 3rd PRC report recommendations.

7th CPC benefit vs 3rd PRC

Although Third Pay Revision Committee & 7th CPC are entirely different but the fitment varies a little bit between both. In the 6th CPC fitment was 24 % for Central Government Employees & 2nd PRC, it was 30% for the CPSEs employee. Again in 7th CPC fitment is around 15% Which is applicable to Central Government Employees.

Expected increase in salary of PSU employees

By observing the previous record, we are assuming that employees of Public Sector Undertakings get 20% fitment benefit on their basic pay and D.A. So someone who is working on E1 pay scale (16400-40500) with current basic pay of 16400, after 3rd PRC his/her new basic pay would be like this

New pay = 16400 + 16400X120.3% + (16400 +16400X120.3%)X20%

=  16400 + 19729.2 + 7225.84

=  43355

After Rounding off the amount New, basic pay will be = 43360

On the basis of above facts, new pay scales for the executives of PSUs would be like below table

Pay ScaleExisting Pay ScalesExpected Revised Pay scale
E012600-3250033200 - 80000
E116400-4050043300 - 95000
E220600-4650054000 - 105000
E324900-5050065000 - 115000
E429100-5450076000 - 125000
E532900-5800086000 - 135000
E636600-6200096000 - 145000
E743200-66000115000 - 155000
E851300-73000135000 - 170000
E962000-80000164000 - 185000





Now those who are planning to join Government companies through GATE 2017, they can get the idea about their salary after the implementation of the 3rd Pay revision Committee report. Most of the organizations recruit new engineers at the level of E1, E2 or E3. Here is the table which will provide you expected salary of fresh Graduates in top PSUs

PSU NameName of the PostExpected Initial Basic Pay in RsExpected Gross salary per Month
Oil and Natural Gas Corporation (ONGC)Assistant Executive Engineer65000120k to 140k
National Thermal Power Corporation Limited (NTPC)Executive Trainee65000120k to 140k
Bharat Petroleum Corporation Limited (BPCL)Management Trainees65000120k to 140k
Hindustan Petroleum Corporation Limited (HPCL)Officers65000120k to 140k
Indian Oil Corporation Limited (IOCL)Engineers/Officers65000120k to 140k
Oil India Limited (OIL)Executive Trainees65000120k to 140k
Gas Authority of India Limited (GAIL)Graduate Trainees (GTs)65000120k to 140k
Power Grid Corporation of India Limited (PGCIL)Executive Trainee65000120k to 140k
Neyveli Lignite Corporation Limited (NLC)Graduate Executive Trainee65000110k to 130k
Steel Authority of India Limited (SAIL)Management Trainee65000110k to 130k
Bharat Heavy Electricals Limited (BHEL)Engineer Trainee65000110k to 130k
Coal India Limited (CIL)Management Trainees54000100k to 120k
National Hydroelectric Power Corporation(NHPC)Graduate Engineers54000100k to 120k
Mahanagar Telephone Nigam Limited (MTNL)Junior Telecom Officer (JTO)5400080k to 100k
Mazagon Dock Shipbuilders Limited (MDL)Graduate Trainees4330080k to 100k
Hindustan Aeronautics Limited (HAL)Management Trainee4330080k to 100k
National Buildings Construction Corporation Limited (NBCC)Management Trainee4330080k to 100k
Bharat Sanchar Nigam Limited (BSNL)Junior Telecom Officer (JTO)4330065k to 80k
Bharat Electronics Limited (BEL)Deputy Engineer4330065k to 80k

Now we can conclude that where should a graduate engineer apply for the job.

  1. The CPSEs who are recruiting on existing 24900-50500 pay scales, they may provide starting basic pay of 65000 to fresh graduates. Name of these CPSEs are ONGC, NTPC, BPCL, IOCL, HPCL, BHEL, PGCIL, OIL, HAL
  1. The Companies like NHPC, CIL & MTNL which are appointing on 20600-46500, are going to provide initial basic of Rs 54000 for the engineers.
  2. Remaining PSUs which are recruiting young engineers on 16400-40500, they may provide the starting basic pay of 43300 to graduates.

So the difference in the salary of fresh engineers in companies mentioned in point 1 & 3, would be 50% after the implementation of 3rd PRC report. Hence every engineering student should try to get the job in the PSUs mentioned in point 1. Apart from the best initial basic pay, they provide around 50% perks allowances plus performance related pay.


Direct Formula for calculating revised basic pay

If some X is having the basic pay of Rs 15000. His/Her expected basic pay after 3rd PRC would be calculated by multiplying 2.64 on current basic pay.

His new basic from 01.01.2017 would be  in Rs = 15000X2.65

= 39600

Now you can easily calculate your expected basic pay after the implementation of 3rd PRC in BSNL.

46 Comments

    1. Revised basic pay will be 60000 per month & HRA rate will be 24%. DA will be set to Zero on 01.01.2017. Now to calculate gross salary, you please add EPF & perks & allowances available in BHEL.

  1. I have joined at Gail on 01.06.2017 as senior engineer in e2 grade (24900-50500) and my basic pay is 25650.
    what will be my basic pay after pay revision?

    1. As you have joined after 01.01.2017, so you won’t get the fitment benefit. However, your new basic pay will be at least 60000 per month.

  2. As heard, the Cabinet committee is still working on the proposal of VRS to be offerred to the BSNL & MTNL employees. But, till date, no firm decision has been taken by the cabinet, at least in the interest of Govt. of India, is really worrisome. Is there any hope of the offer for VRS for the employee of MTNL & BSNL, from the Govt. ?

  3. Sir, what is the expected salary of assistant manager in Hindustan copper? Currently working in a psb with gross around 50 k. Will it be a good idea to join Hindustan copper leaving psb. please suggest.

  4. I’m from miniratna cpse. My basic on 31/12/2016 is Rs.40130/- and increment @3% on 01/01/2017 and present basic is Rs. 41340/-. what will be my Revised basic pay w.e.f. 01/01/2017 .

      1. Why you unnecessarly propagating wrong info, still BSNL employees are fighting with GOI, how you are saying directly it won’t be implement ??

        Let’s wait and see bro,

        Expect positively

  5. sir i am currently posted in FCI and my date of joining is 2 march 2017 and advertisment of this recruitment had issued in 2015 and some of boys of my batch joined in 2016. so i want to know that whether i am eligible or not for pay fixation on behalf of my old basic

    1. As some of your batchmates will get the fitment, hence company may extend the same to you also. If they don’t allow the same to you, then you should be ready to represent the matter at the highest authority of FCI.

          1. Your revised basic pay will be 24000. And revised gross salary will be sum of basic pay 24000 plus HRA, Perks, Allowances, Superannuation benefits etc.

  6. Does this committee have any idea about the pay band and National Coal Wage Agreement IX of Coal India Ltd ?? The pay band of E1 E2 E3 grade Executives are already lower than A1 grade Non Executive employees before Wage revision. Revision of Non Executives are also due and they are expecting 20℅ MGB.

  7. Whether new basic includes DA ? If Mr X gets the basic Rs 51ooo and DA Rs61000/ at present , then as per recommendation , his new basic will be 51000 *2.65=135150. Whether he will get DA of 61000/ also ?

    1. No, there will be zero DA rate as on 01.01.2017. Because the DA get merged with old basic pay while calculating the new basic pay of CPSE employee.

    2. DA is merged with BP on due date of pay revsn.i.e. 1.1.17,So once BP is finalised based on fitment on 1.1.17,you will get DA somewhere in the range of 5-10%.

  8. dr ramaraju sitarama anjaneyulu

    the clerk joined in psu cannot become even supervisor, engineer/execute by 30 years, but in central govt. state govt. employees clerk become a registor, asst director level can become.
    the workers/clerk promotion policy in psu is very worst compare to others as well as pay is also same not that much more

  9. The expected gross salary say for E1 as of now with basic pay 16400 comes to be aound 45k per month.
    With 3 revision, that pay would be around 55-60 k.
    The mentioned figures in expected range after revision is much fancy for PSU employee.
    Can anyone share expected can be even more than double of current for PSU

  10. It is learnt that Committee for CPSE pay revision was to submit its report by 31.12.2016, but nothing to listen on the subject till 26th Jan 2017

    1. It will take some time to considering the committee report. The Government may circulate the report to key departments for their views on the recommendations.

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