BHEL 3rd PRC Implementation order issued for 10% fitment benefit from 01.01.2017

The Department of Public Enterprises has issued office memorandum for the pay revision of Board Level & Below board level executives in the central public sector enterprises on 3 Aug 2017. Thereafter PSUs can implement the 3rd PRC benefit to their executives & non-executives with the approval of the ministry or department. BHEL Board of Directors has recommended the 3rd PRC for their employees and send to the Department of Heavy industries for further approval. Finally, the Department of Heavy Industry has released the pay revision order on 27 Dec 2017.

BHEL Fitment benefit

The order dated 27Dec2017 is for partial fitment of 10%. Which may be reviewed after 3 years financial performance of BHEL. To calculate the revised salary of executives following formula will be used

Revised basic Pay = Basic Pay + IDA +(Basic Pay + IDA)X10%

Suppose someone has basic pay of 24900

IDA rates are 119.5%

Revised basic pay             =24900+29755.5 +(24900+29755.5)X10%


                                               = 60130 (After rounded of next Rs 10/-)

One can directly calculate the revised basic pay by multiplying factor of 2.4145 on to the present basic.

Revised basic pay             =24900X2.4145


Revised Pay Scale

As per Pay revision order, the following new set of pay scales (As mentioned in the DPE Order dated 03Aug2017) will be effective from 01.01.2017.

GradeExisting Pay ScaleRecommended Pay Scale

IDA Rates

The IDA rates will be applicable to as per Government notification issued from time to time. The current IDA rate is 2.2%.

Payments of Perks

The 3rd Pay revision committee has set the ceiling of perk to 35% of basic pay. However, the BHEL ministry has approved the same 31% of Basic Pay for the BHEL employees.

Hence the salary of a new Executive trainee or an Employee can be calculated be like shown herein below table

Salary ComponentDuring Training Period Amount in RsAfter Training Amount in Rs
Basic pay5000060000
DA ( 2.2% of Basic pay as on 01.10.2017)11001320
Perks (31% of Basic pay)1550018600
HRA (24% for Metro Cities)1200014400
EPF (12% of Basic pay plus DA)61327358
Total Gross Salary in Rs84732101678

One can calculate his gross salary just by replacing the basic pay in above table. I hope this will help you to know the revised salary structure in BHEL. You can share the views in the comment section below.

15 thoughts on “BHEL 3rd PRC Implementation order issued for 10% fitment benefit from 01.01.2017

  1. When april 1.2017 revised 117.1 to 119 % it means 1.9 increase therefore d a current is .8 april + 2.2 October+.7 January so 3.8 current d a 3.8

    • BHEL management will issue a separate order for supervisors shortly after negotiations with unions representatives. But 10% fitment is sure for them too.

    • This pay revision order is for Executives only. The Workers order will be issued by BHEL management separately. It may take 6 more months for the same.

    • Please tell me, what is your HRA % on the pre-revised scale.
      As order already been issued, so it may take one or two months to implement. The effective date of implementation will be 01.01.2017 so don’t worry about implementation as you will get arrears.

    • Like the executives in BHEL, same fitment benefit will be extended to workmen & unionized supervisors. The scale will be different. Hence if someone wants to calculate revised basic pay just multiply 2.4145 with basic pay as on 01.01.2016. You will get revised basic pay on 01.01.2017.

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