3rd PRC Pay Scales and proposed fitment benefit for Executives of PSUs

The Government of India Constituted the 3rd Pay Revision Committee for the revision of pay scales, perks, allowances and other benefits available to Public Sector Undertaking Employees. The committee has to submit the report to Government within a period of six months from the date of formation.

Read Latest: 3rd PRC Recommendation accepted by the Government

Here are the details of Chairman & Members

Chairman: Justice Satish Chandra (Retd).




Members:

  • Shri Jugal Mohapatra, Ex–‐IAS Officer,
  • Prof. Manoj Panda, Director, Institute for Economic Growth, Delhi
  • Shri Shailendra Pal Singh, Ex–‐Director (HR), NTPC Ltd.
  • Ex–‐Officio Member: Secretary, DPE, Government of India
  • Member Secretary: Jt. Secretary/Additional Secretary, DPE, Government of India

The government has already implemented the 7th pay commission recommendation for the central Govt Employees. The Central Public sector Employees are covered under pay commission. Hence a separate pay commission The 3rd PRC report has already been submitted to Government of India. As last PRC term has ended on 01.01.2016. The recommendation of 3rd PRC will be applicable from 01.01.2017.

Final Recommendation of 3rd PRC Committee

Pay revision will be applicable for those PSUs which can afford to pay the fitment & revised scales to their Employees. Here are the affordability criteria for the CPSEs

Additional financial impact of the full revised pay
package as a % of average PBT of last 3 FYs
Fitment
benefit
(% of BP+DA)
Financial impact will be within 20% of average PBT of last 3 years15%
More than 20% but upto 30% of average PBT of last 3 FYs10%
More than 30% but upto 40% of average PBT of last 3 FYs5%
More than 40% of average PBT of last 3 FYsNil

The Fitment Benefit 15% of Basic pay plus DA is proposed by 3rd PRC.The Committee has recommended the refollowing formula for the benefit of fitment to the executives of the Government Companies.

A B C D (Revised Basic Pay w.e.f. 01.01.2017)
Basic Pay +
Stagnation
increment(s) as
on 31.12.2016
(Personal Pay /
Special Pay not
to be included)
+Industrial Dearness
Allowance (IDA) as
applicable on 1.1.2017
[under the IDA pattern
computation methodology
linked to All India
Cumulative Price Index
(AICPI) 2001=100 series]
+15% of
(A+B)
+Aggregate
amount
rounded off
to the next
Rs.10/-.

It means if someone has a basic of 30k as on 01.01.2017 then his or her new basic would be 30k X 2.195 X 1.15 = 75730. Hence the multiplication factor for calculating new basic is 2.524.

Download the 3rd PRC Report




3rd PRC recommended Pay Scales for Schedule A, B, C & D type PSUs

GradeExisting Pay ScaleRecommended Pay ScaleApplicable Schedule of CPSE
E012600-3250030000-120000A, B, C, D
E116400-4050040000-140000A, B, C, D
E220600-4650050000-160000A, B, C, D
E324900-5050060000-180000A, B, C, D
E429100-5450070000-200000A, B, C, D
E532900-5800080000-220000A, B, C, D
E636600-6200090000-240000A, B, C, D
E743200-66000100000-260000A, B, C
E851300-73000120000-280000A, B,
E962000-80000150000-300000A
Director75000-100000180000-340000A
CMD80000-125000200000-370000A
Director65000-75000160000-290000B
CMD75000-90000180000-320000B
Director51300-73000120000-280000C
CMD65000-75000160000-290000C
Director43200-66000100000-260000D
CMD51300-73000120000-280000D



The new proposed cap for perks & allowances is 35%.

As per committee, the CPSEs can provide to their executives / non-unionized supervisors the perks & allowances, preferably to choose from the set of the perks & allowances under the concept of ‘cafeteria approach’, the value of which can be up to the ceiling of 35% of Basic Pay. The ceiling is further recommended to be partially linked to the Industrial Dearness Allowance (IDA) in future, and thereby the CPSEs will be allowed to enhance the ceiling by 25% [of 35% of BP (i.e. by 8.75% of BP)] whenever IDA rises by 50%.

Superannuation benefits remain same as 30% of basic pay plus DA and the recommended Gratuity ceiling is 20Lakhs.

The Committee recommended that funding/payment towards the additional amount beyond the gratuity of Rs.10 lakhs shall be allowed to be outside the limit of 30% of BP+DA. In other words, the funding of Gratuity (up to Rs.10 lakhs), alongside Provident Fund, Pension and Post superannuation medical benefits, shall be allowed within the limit of 30% of BP + DA; and the funding of additional / balance Gratuity amount beyond Rs.10 lakhs shall be allowed to be borne by the CPSEs outside the limit of 30% of BP + DA. The said funding should be based on the principle of actuarial valuation by certified Actuaries as per the accounting standards.



The Committee has recommended reducing the HRA ceilings for all class of cities. Proposed HRA for the CPSEs employees

Class of CityHRA % 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

No change in annual & promotion increment percentage, it will remain 3% of basic pay.

Dearness Allowances

The Committee recommends no change in the IDA pattern and the 100% DA neutralization shall continue to be applicable. Revised IDA from 1.1.2017 shall be linked to All India Consumer Price Index (AICPI) 2001=100 series with the base of AICPI as on 1.1.2017 as per the quarterly average of AICPI of September, October and November 2016.

Location based Compensatory Allowances

Location% of Basic Pay
Areas around capital towns (Port Blair in A&N islands,
Kavaratti and Agatti in Lakshadweep)
10
Difficult Areas (North and Middle Adaman, South
Andaman excluding Port Blair, entire Lakshadweep except
Kavaratti, Agatti and Minicoy)
16
More Difficult Areas (Little Andaman, Nicobar group of
Islands, Narcondum Islands, East Islands and Minicoy)
20
North East
states (viz. Assam, Meghalaya, Manipur, Nagaland, Tripura,
Arunachal Pradesh and Mizoram), Sikkim and Ladakh Region shall
be allowed
10

Performance Related Pay

The 3rd PRC has devised the new criteria for the calculation of PRP in the CPSEs. The weightage components are shown in below table

Weightage Component% of PRP Payout
Company Performance50
Team Performance30
Individual Performance20

On the basis of above components, the new recommended ceiling for the extending the PRP benefit is shown here

Executive GradeCurrent ceiling (% of Basic Pay)Proposed ceiling (% of Basic Pay)
E0 to E34040
E4 to E55050
E66060
E76070
E87080
E97090
Director (C&D)100100
Director (A&B)150125
CMD / MD (C&D)150125
CMD / MD (C&D)200150

223 Comments

  1. My basic on 31.12.2016 was 26420/- , again after getting promotion in E4 level my new basic is 29100/-from 01.07.2017. What would be new basic after 3rd pay revision.

  2. if 3rd prc is not implemented in bsnl, are we not getting Rs.20 lacs gratuity; will our salry be on 2nd prc; any psu not got 2nd prc and still running on 1st prc because it is making loss;

  3. My basic pay is 7400-16000 on IDA pattern, working in NSIC … how much gross salary i will get after 3rd pay revision.

    Thanks in Advance

  4. I was in E2 grade with 20600/- basic till April 2017.Then I was promoted to E3 grade with 24900/-Basic…Now which pay scale applicable n what will be the gross salary after revision???

        1. It depends on the affordability criteria. However, a PSU performance can be reviewed by administrative ministry or department after every 3 years. So if it is not possible now, then after 3 years same may be implemented.

  5. Dear Sir.
    I’m about to join Bharath Electronics Ltd next month..
    The current basic pay scale for my grade is 20600 to 46500
    Kindly help me understand how much will be my basic and total gross in the new scheme?
    Thank you very much Sir.

    1. If you joined after 01.01.2017, you won’t get fitment but your new basic pay will be 60000 per month from the effective date of pay revision i.e. 01.01.2017.

  6. What about the new petrochemical industries who are operational like BCPL, dibrugarh.
    Will pay revision be applicable for this company?

    1. As most of these companies running of funding from Govt, so most probably their employees will get the benefit of pay revision.

    1. As most of these companies running of funding from Govt, so most probably their employees will get the benefit of pay revision.

  7. I am BSNL Executive currently gettting 50250 as my basic pay. If affordability condition applied for BSNL will i get 3rd PRC new basic pay with 0% fitment or will not be eligible for 3 PRC ?

  8. how much profit is required for applicability of 3prc in CPSU.
    what r the other criterion for applicability of 3prc in CPSU.

  9. If a company falls under part stage III i.e. NIL fitment benefit, then if a person with basic 24900 would get a new basic Rs. 54660 (Rs.24900*2.195*1) or would it be Rs.60000 i.e. minimum of reccomanded pay scale of E3?

  10. On 31 dec my basic was Rs 17940/-. On promotion from 01.01.2017 My basic became 20600/-.
    Will my basic after revison be Rs 53000/- or only Rs 50000/-.?

  11. I am an employee in Engineering Projects india Ltd. my parents basic salary Rs 17410 . What is the gross salary after 3rd PRC ?

    1. Please check the profits of CEL for applicability. If it is applicable, then your basic pay will be 90000 w.e.f. 01.01.2017.

  12. I am posted in Food Corporation of India can i get the benefit of 3rd wage revision. As i have heard that only 100 PSU fulfill the eligibility criteria.

    1. Your revised basic pay after pay revision will be 53000 & DA rate 0% w.e.f. 01.01.2017. The perks & allowances depend on the profit of the company.

  13. Hello I am working in FCI with current basic of Rs. 12960. What will be my new basic and what is the current approval status of 3rd PRC.

    1. Your revised basic pay will be 32000. The final order of 3rd PRC is expected very, may be available before the end of this month.

  14. 1 jan 2017 my basic was 22520/- and after promotion in june 2017 my current basic is 24900/-. What will be current basic after 3rd prc?

  15. Is BEL optronic devices lmt eligible for 3rd PRC?
    in this company basic for E2 grade is 13210 and DA is 38.5% of basic and pay revised in 2012 and hopefully again revised in 2017 so how much become my basic after revision? please help me!!!!

      1. Dear srinu
        Thank you for your response.
        can you tell me how you calculate new basic (in detail) Please!!!!
        (and BEL Optronic Devices LMT is subsidiary company of BEL so this can be make a difference in pay revision).

        1. The Govt is considering the Coal India Subsidiaries and Coal India as a single unit for the pay revision purpose. Hence all subsidiaries of CIL will get the benefit of pay revision. Same may happen with your company.

  16. Sir,im working in central warehousing corporation.my basic is 16400.what will be my basic after 3rd prc.when can I expect implementation.

    1. 3rd PRC pay revision order is expected to release in July or August. After that FCI may take 5 to 6 to issue the order for pay revision for their employees. Your revised basic pay will be 29000 after implementation of pay revision.

  17. I am an employee of Engineering Projects India Limited,is there any chance for 3rd PRC and if yes then what is the expected date ? If 3rd PRC is effective then plz. Say my basic salary….? Presently my basic salary is Rs.17410.

  18. Can you please tell what is current gross salary for 20600-45400 pay scale in coal india.

    Also expected gross salary after 3rd prc

    1. 20600*2.7= 55620 it is gross salary now a days 2.7 includes 117.1 % DA 45.5 perks nd 7% coalfield allowance
      This structure at the tym of joining after one year basic goes to 24900 so you easy calculate 24900*… DA variables okey thanxx

  19. Sir, BEML eligible for fitment, since our profit margin is very low in last three year. PBT 2016-17 -98 crores, 2015-16 – 65 crores, 2014-15-9 crores…what is expected fitment for BEML.

  20. What is the present status of the 3rd PRC report and whether DPE has issued any guidelines in respect of wage revision to CPSU non-executives

    1. Still, 3rd PRC report is under consideration. After issuance of the order from DPE, the individual company will release separate orders for Executives and Non-executives. You need to wait for some more months.

    1. Untill unless 7th cpc allowances (HRA & Other) are cleared by cent.govt… No movement in psu pay revision…… There are two stages pending for approval:
      1. Empowered committee of secretaries will discuss & decide the final draft.
      2.Cabinet approval.
      Then Individual PSUs make the notifications considering the approved 3rd PRC guidelines.

  21. Whether bsnl will adopt 3prc??bcz now itself is not giving fully 6 pay.

    Whether bsnl will adopt 3prc??bcz now itself is not giving fully 6 pay.

  22. Does any one have any idea when is DPE planning to get the Approval for 3rd PRC report from cabinet. As 7th CPC benefits have not been given ( Partial benefit awarded to Employees) even after 16 months from the Actual date i.e 01.01.2016, I am really doubtful that Modi Govt may delay our 3rd PRC benefit by another 6 months. I hope PSU HRA will be revised to 30% once the GOI gives 30% HRA to Central Govt Employees correct ?

  23. Yes this information is correct. The report has been made available with all PSU for their internal consideration. The report is available at department of public enterprises website. http://dpe.gov.in/
    Go to Publication tab, it’s there. PDF 9 MB

  24. In BSNL, standard IDA pay scales is not implemented. They have inserted E1A and E2A instead of E2 and E3. This continues even after orders by GoI / DPE that no PSU can have non-standard IDA pay scales. Fight by Unions / Association is not fruitful.
    Due to this, person currently in E4 / E5 / E6 (in non-standard one), their pay will get transformed past recommended end scales to stagnate. What is the fun in 3rd PRC then? Further, loss making rural operations is not compensated by DoT / GoI despite assurance in this regard at PSU formation instance i.e., in 1-10-2000. Even now, this PSU bleed and now only is on the vicinity of making operating profit. Great injustice is that Pvt Telecom Operators and BSNL have same license condition; BSNL adheres to rural operations and other simply do not care. So to say, BSNL only serves rural areas in land line and others simply escape by churning profit making urban operation. They do business for profit and BSNL is made to bleed by social obligation which it does with faithfullness but staff suffer with lost financial benefits including 3rd PRC benefits it seems. God to save BSNL personnel. Opted faithfully from DoT to BSNL PSU, ;BSNL optees ultimately stand duped and dumped.

  25. This 15% Fitment for the Executives & Non-Unionised category employees of CPSEs will not be enough. The ratio in which the prices of essential commodities goes up day by day will not definitely be compensated by this meagre pay increase. Moreover this recommendation would also be construed as for 10 years. Normally any wage/pay revision must be for the shorter period like for 3 years or for 5 years
    -Water Transport Workers Federation of India

  26. What is this meager increase after waiting for a long decade… 15% least fitment and 35% ceiling on perks & allowances is unscientific and irrational… we are striving round the clock throught the year for nation’s industrial growth… our community shall strongly protest…

  27. In report two important points are:
    a. Loss making PSU may not be able to implement the recommendations.
    b. Fitment is linked with the profit before tax of last 3 financial year.if considering effect of wage hike is more than 20% of last 3 PBT, fitment shall be 10%.if effect is more than 30%, fitment will be mere 5%.if effect is more than 40%., No fitment.

    1. 15 percent fitment is nothing.
      Effectively no change in salary.
      That too for next 10 years.
      Choosing this govt. Was our mistake.

      1. Modi Govt is doing everything to earn popularity among poor (farm Loan waiver in UP, Jan Dhan Yojana) also feeding the Millionaire ( JIO business, Vijay Mallya etc). But PSU does not make much profit. That is the reason he is trying his best to pay less to PSU employees ( In future it will be even lesser than Central Govt Employees). He is investing a lot for Giving Lottery prize, Demonitization, Loan Waiver. But when We ask him Pay revision, he denies us. But we only voted him to Delhi Chair. It is our mistake.

          1. For basic pay 24900, the revised basic pay will be 63000.
            & for basic pay 11225, the revised basic pay will be 28000.

    1. The Committee had already submitted the report to GoI. The Government has circulated the report to various departments for their views. The GoI will take the final decision after analyzing the feedback of various ministries. So the whole process may take 3 to 4 months.

  28. Perks reduce to 33%???is it? Already hra is reduced to 24% for central government, so that will b followed here also.. Fitment is 15% or 20%…?

  29. how can the fitment factor be different for 2 employees in the same grade? Suppose you consider E4 grade, then at the beginning the overall increment is 10% while at the end of the slab it is more than 76%? Is it possible??

    1. Fitment factor can’t be different for two employees. I agree. The fitment is extended to the serving employees of the company who were on roll at the crucial date (cut off date 01.01.2017). Now those who joins a company after 01.01.2017 they will not be benefitted by fitment. They will be placed at the minimum of the revised pay scales. Read the 2nd PRC implementation report for more details.

      1. Suppose there is an existing employee in a PSU whose basic pay is 29100 as on 01.01.2017. What should be his basic pay after 3rd pay revision??….

          1. Dear sir
            Iam an employee of Powergrid corporation of India Limited,is there any chance for 3rd PRC and if yes then what is the expected date ? If 3rd PRC is effective then plz. Say my basic salary….? Presently my basic salary is Rs.16500.
            Plz give me replay..

          2. PowerGrid employees are eligible for 3rd PRC benefits. Your revised basic pay will be 42000 w.e.f. 1st January 2017.

        1. Very easy- 29100 X 2.52 = 73332 r o to next ten = 73340/- is the new basic

          Very easy- 29100 X 2.52 = 73332 r o to next ten = 73340/- is the new basic

    1. This article is just about the new set of pay scales. Fitment may be anything. In last PRC fitment was 30% but if you compare scale to scale conversion, it was merely 12%.

  30. Again PSU’s got very less scales compared central govt officers.The starting basic pay of central govt officer is 56100 whereas even our E2 scale officer gets starting basic pay 50000.Again Revenue generating psu officers are denied of their rightful share.

    1. Yes, you got it right. The trend started from 2nd PRC and continue to go like this only. What I think that Government is concentrating on providing more perks & allowances as per profitability criteria. Means the company which earns more profit, their employee would get higher perks. Pay scales will remains same for all.

    2. Hi Ravi you mentioned lately that perks are reduced to 33 % . Did you see the actual thing related to perks ?
      I am asking because i saw the page regarding pay scales but I did not see anything regarding perks and allowances . So just wanted to know .

        1. Just search on Google schedule a psu list, you will get the answer. This is just 3rd PRC recommendation for Schedule A type CPSEs. The government decision yet to come in this regard. The Last time (2nd PRC) some schedule-A PSUs hadn’t implemented the pay revision. Financial viability is one of the main criteria to extend the pay revision benefit.

          1. The above pay scales are correct. But PRC recommended to reduce the perks to 33%….. So overall salary increase not much effective.

          1. my(ONGC) basic is 62000(including stagnation) at present. what will be the new basic and gross after revision?

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