DPE 3rd PRC order for the Pay Revision in CPSEs from 01.01.2017

Last year Government has approved the pay revision for all central government employees which was applicable from 01.01.2016. However, the PSU pay revision implements after one year of central pay commission. The Executive, Non-Executive and Board level cadre of the Central Public Sector expecting the decent pay hike due to the 3rd PRC implementation from the 01.01.2017.

The Central Government authorized department, the DPE, has issued an official order no.  W-02/0028/2017-DPE(WC)-GL-XIII/17 dated 03-08-2017 for the fitment benefits, revised pay scales for board-level & below board level executives, cafeteria allowance, House rent allowance, superannuation benefits, and performance-related pay etc after receiving the Committee of Secretaries decision on the 3rd PRC recommendations.


Revised Pay Scales From 01.01.2017

As there were 10 pay scales for the executives working in CPSEs. There will be no change in the number of pay bands, however, the revised range will be as follows

3rd PRC Pay Scales for the PSUs Applicable from 01.01.2017
GradeExisting Pay ScaleRecommended Pay ScaleApplicable Schedule of CPSE
E012,600-32,50030,000-1,20,000A, B, C, D
E116,400-40,50040,000-1,40,000
E220,600-46,50050,000-1,60,000
E324,900-50,50060,000-1,80,000
E429,100-54,50070,000-2,00,000
E532,900-58,00080,000-2,20,000
E636,600-62,00090,000-2,40,000
E743,200-66,0001,00,000-2,60,000A, B, C
E851,300-73,0001,20,000-2,80,000A, B,
E962,000-80,0001,50,000-3,00,000A
Director75,000-1,00,0001,80,000-3,40,000A
CMD80,000-1,25,0002,00,000-3,70,000
Director65,000-75,0001,60,000-2,90,000B
CMD75,000-90,0001,80,000-3,20,000
Director51,300-73,0001,20,000-2,80,000C
CMD65,000-75,0001,60,000-2,90,000
Director43,200-66,0001,00,000-2,60,000D
CMD51,300-73,0001,20,000-2,80,000


DPE 3rd PRC order download pdf

Affordability Criteria

As all of the employees were thinking about the relaxation in the affordability criteria recommended by the 3rd Pay Revision Committee but going against the expectation it was decided to go with the Committee report. Means, it will be hard to get the benefit of Pay Revision for the employees of loss-making PSUs. The criteria are shown in the below table:

3rd PRC Affordability Criteria for Pay revision implementation in PSUs
Additional financial impact of the full revised pay package as a % of average PBT of last 3 FYsFitment
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 FYsNill

The Central Public Sector Companies which were formed to execute any special policy of the government of India for the betterment of the people, such CPSEs have been given relaxations in the affordability criteria. The implementation of Pay revision benefit shall be subject to the approval of the respective Administrative Ministry or Department of the Public sector enterprise.

Also, there are many CPSEs which have not started the commercial activity, such CPSEs may get the benefit of 3rd PRC depending on the approval from the concerned ministry.

The Coal India & its subsidiaries will be considered as a single entity for determining the affordability.


Formula to Calculate the revised basic pay

You can use the below formula to get your revised basic pay from 01.01.2017.

ABCD
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
A + B + 15% of
(A+B)
Aggregate
amount C
rounded off
to the next
Rs.10/-.

Say for an example X employee has the basic pay of 30000 as on 31.12.2016. So his revised basic pay from 01.01.2017 will be

Full Fitment (15)

=30000+30000X1.195+(30000+30000X1.195)X0.15

=65850+9877.5

=75727.5 OR 30000X2.52425

=75730

Hence your new basic pay will be 2.52425 times of basic pay on 31.12.2017.

10% Fitment Benefit

=30000+30000X1.195+(30000+30000X1.195)X0.10

=30000X2.4145

=72435

=72440 (On Rounding Off)

Hence in this case multiplication factor will be 2.4145 of pre-revised basic pay.

5% Fitment Benefit

=30000+30000X1.195+(30000+30000X1.195)X0.05

=30000X2.30475

=69142.5

=69150 (On Rounding Off)

In the case of 5% fitment, the multiplication factor will be 2.30475.

There may be a case when the revised basic pay, after the fitment, is less than the minimum of the revised pay scale, In such cases, the basic pay will be fixed at the minimum of the revised pay scale.

The Rate of Annual Increments

There is no change in the rate of annual & on promotion increments, both are kept at 3% of basic pay.

Dearness Allowances: The whole DA will be merged for the calculation of fitment benefit. The Dearness allowance rate will be set to Zero on 01.01.2017 and same will be revised on the quarterly basis.

House Rent Allowances

3rd PRC HRA Rates from date of Presidential order of respective CPSE
City ClassHouse Rent Allowance Rate
X - Class24% of Basic Pay
Y - Class16% of Basic Pay
Z - Class8% of Basic Pay

As the Committee of secretaries had not taken any final decision on the Location-based hardship allowance, hence same may be notified by the Department of Public Enterprises after approval from the Government of India. In the meantime, same will be paid as per existing rates on pre-revised basic pay.

Perks & Allowances

The allowances will be paid as per the cafeteria approach and the ceiling for the same is 35%. The other infrastructure facilities like Hospital, School, College would be kept outside the ceiling of 35%.

Superannuation Benefits

There is no altercation with the superannuation benefit ceiling and the same will remain 30% of Basic pay & Dearness Allowances of the individual employee. The amount will be deposited in the Provident Fund (PF), Gratuity, Post Retirement Medical Benefit and Pension for Employees. The ceiling for the gratuity has been raised from 10lakhs to 20 lakhs and the same will be funded through superannuation benefits amount.


Performance Related Pay

There is a separate criterion for the individual as well as company performance for the calculation of Performance related pay. I am not going into the details. As the Committee of sectreteries had not taken any final decision on the Location based hardship allowance, hence same may be notified by the Department of Public Enterprises after approval from the Government of India..

Performance Related Pay Criteria
Executive GradeCurrent ceiling (% of Basic Pay)New 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 (A&B)200150

DPE 3rd PRC order download pdf

Final Pay revision order for Individual PSU

The Board of director of Individual CPSE will submit the proposal (based on the affordability criteria) to concerned department/ministry. The proposal will be reviewed by the finance wing of the ministry and thereafter pay revision or presidential directive will be issued for the PSU. Similarly, presidential directives would be issued by administrative department/ministry concerned based on the result of the review which is to be done after every 3 years subsequent to the implementation.

Final Comment

Like 2nd PRC, this time also Department of Public Enterprises has not clarified that if a CPSE provides 5% or 10% fitment to their executives, then the same PSU will go with revised pay scales or continue with the pre-revised scale.

Please share/submit your views in the comment section.

133 thoughts on “DPE 3rd PRC order for the Pay Revision in CPSEs from 01.01.2017

    • It depends on the financial condition of the PSU. The Gross monthly salary without any deductions would be 52,000. The total salary depend on many factors, but it won’t be lower than 52K per month.

  1. Hi,
    I’m working in Noida Metro Rail Corporation Ltd. This company was formed in 2016 and no revenue has been generated since date (so, no profit). This Metro is supposed to be operational in October 2018. Would this organisation be implementing 3rd PRC. If yes, what would be the revised salary structure. My basic is 13500. Post is JE

    • The project organization certainly implement the pay revisions for the employees as they are fulfilling a purpose of the Government. If you go through the PRC guidelines in details, there is a relaxation for the PSUs which are formed to implement the government program.
      The revised basic pay in your case would be 34,000 per month.

    • The most of PSUs wage revisions are not in public domain, hence I can’t provide you the info. If you need for a specific PSU, you can get it via filing Online RTI application.

  2. Hello Sir,
    I am working in NTC Limited ,A Categary CPSU.
    NTC was in loss uptu 2015-2016 but in 2016-17 it was in Huge profit nearly 932 crores and 2018-19 financial report has not be submitted yet but in 2018-19 also having some crores of profit .So 3rd PRC will implement on not in NTC .and also we will be eligible for cafeteria allowance or not. pls Give Reply.
    Thanks.

    • After reading this, I think the NTC, is eligible for the 3rd PRC benefits. To check the eligibility for the pay revision, last three-years performance taken for the consideration.

    • The 3rd PRC implementation is directly linked to the profitability of the Company. So check whether your company is in profit. If it is, then you will get it.

  3. Sir
    This is Banker MP Rtd. CTS (Marketing) from Guntur SSA of Andhra Circle. I have discharged from service in the year 2014. My existing Allowances including D.A is Rs. 21000/, please inform what quantum of advantage I may get ?

    My contact No = 8074093713

  4. श्रोमानजी मै नेपा लिमिटेड Cpsu d grade मे कार्यरत हु हमारे यहा 1997 का payscale लागु है हमारी कंपनी 1-2 दिन मे pmo office से बन्द हो संकटी हे हमारा 2007 का payscale आज notional लागू करने कि चर्चा है मे E0 से नीचे के payscale मे हु मेरा 2007 के payscale मे कितना वेतन होगा

    • I need the pay revision order of your PSU to tell the new basic pay. Or just tell the fitment benefit allowed for your Company.

  5. Hello , I’m working in SPMCIL as non-unionised supervisor S-1 12300 IDA basic and recently 3rd PRC was implemented where new basic for S-1(as decided by SPMCIL board) is 26000, which is even less than 12300 + 119.5% DA (as on 01.01.2017). Moreover it is stated in 3rd PRC that those who joined after 01.01.2017 will not be eligible for fitment benefit, if this is the case than how can the basic of executive cadres be fixed with adjustments after adding Basic + DA which is as good as fitment benefit given. For example new basic of E1 is 40000, E2 is 50000 and so on. As per this 3rd PRC order , if a person is joining on 31.12.2016 in S-1 cadre his basic would be 31000 because he is getting fitment benefit whereas a person who is joining on 01.01.2017 will get 26000 because he is placed in the minimum fixed pay which doesn’t even include 100% neutralization of DA , how much is this justified. Can something be done on this? Kindly someone suggest if they understood the matter

    • You may need to write to the management of SPMCIL regarding the injustice done with non-executives employees specially joined after 01.01.2017. If they don’t consider your point of view. You can go for a legal opinion.

      • Does SPMCIL board hold so much power in setting up the basic for non unionised Supervisors that they can set the new minimum fixed basic for S1 at mere 26000 which is even less than old basic (12300/-) + 119.5% DA (as on 01.01.2017)?

        • This is Company’s Management decision you can’t change. You can raise the issue at Union level. During the wage negotiations, representatives of Unions are there to discuss these things. But I don’t think they are aware of it.

          • Sir ,
            I’d like to repeat the fact that we are non unionised Supervisors,so union won’t have anything to do in our matter, neither we had any sought of representation while deciding the minimum fixed pay in 3rd PRC because we are non unionised. So I wanna ask , can we challenge their decision on court Or they have full power to decide on our basic? Kindly clarify this matter so that we can act accordingly.

  6. Hello sir,
    I am working as a non-executive in SPMCIL. I joined in march 2017 with a grade pay of 12300. SPMCIL has decided not to give fitment of 15% to the new joinees of 2017. So is there any rule that states that 2017 joinees are not entitled for fitment?
    Kindly help
    Thanks

    • Post 01.01.2017 recruits are not eligible for fitment benefit. But their pay scale gets revised or they are placed/appointed in the new scale from the date of appointment.

  7. Sir mai dfccil me MTS (operating) post pe hoo..Meri basic salary 6000 to 12000 hai ..3rd prc me basic salary kitni hogi sir….Or kab implement hoga 3rd prc

    • The non-executives pay scales will be decided after the negotiations between the individual PSUs management & recognized employee unions representatives.

  8. Sir, Is 3 Rd prc going to be implemented in Dedicated Freight Corridor Corporation of India LTD though it hasn’t been implemented till date?

  9. Srinu
    March 1, 2018 at 8:03 am | Reply
    Just add the 3.8% DA, 35% perks and HRA (applicable to your location) in basic pay. You will get the gross salary. In addition to that company will also provide 30% superannuation benefits (will deposit in EPF, PRMB & Pension fund) and performance related pay. So total salary will cross 1 lakh per month.
    Sir what about NPA for medical officer? Is it included in 35%perks or given separately ? Then what will be in hand salary for the same?

    • NPA is provided for central govt employees. But in PSUs, I haven’t checked in the pay revision order. It might be there in your own Companies order. Or you need to ask it through RTI to your company.

    • Just add the 3.8% DA, 35% perks and HRA (applicable to your location) in basic pay. You will get the gross salary. In addition to that company will also provide 30% superannuation benefits (will deposit in EPF, PRMB & Pension fund) and performance related pay. So total salary will cross 1 lakh per month.

  10. Sir, As per 6th pay commission(CDA Scale pattern) my salary for the month of January 2016 was Basic Pay-14,170, DA-21,860, Grade Pay-4,200. After that I switch over my salary in to IDA pattern from July 2017 and my pay was fixed as such Basic pay-20,820, DA-24,776 and fixed allowance-8,328. Please let me know how much basic pay will be fixed.
    With regards,

    • Your revised basic pay after 3rd PRC will be 52000 w.e.f. 01.01.2017. Apart from this, you will also be eligible for DA, HRA, Perks, PRP etc.

  11. Hello sir,
    I am a family pensioner.
    My husband worked as SDE BSNL, Coimbatore
    I getting my husband pension.
    I want to know that 3rd pay revision when it will be implemented.
    Please reply me
    Regards
    Bakiarani

    • BSNL 3rd PRC file is pending with parent Department of Telecommunication (DoT). After the positive response from the DoT, the same may be implemented in BSNL.

  12. Sir I am working with hind labs( division of hll lifecare limited) on contract basis (fixed tenure contract) and my basic salary is 9117 RS, what I am able to 3rd pay revision benificary and what is basic salary after if it applied.

    • It depends on the management of your company. If they revise the salary of permanent employees, they should also do the same for contract appointments.

  13. Respected Sir now presently I am working in NMDC LTD as a workman my basic was Rs 20,530. 00 on Dec 2016 after 7th pay commission how much I get Basic.

  14. sir dmrc me meri 3rd pay revision kab lgega and meri salry kitni ho jayegi meri maine abhi CRA ki post par join kia hai grade pay abhi CRA ka 4200 hai . and meri joing abhi jan me hui hai to kya mujhe 3rd pay revision ka fayda milega . plzz reply and gross salry after 3rd pay revision k bad kitni milegi.

  15. Sir
    will you let me know whether LTC(Leave Travel concession) form part of the perks for which the ceiling of 35percent has been prescribed

  16. Good Evening sir I’m presently working in SBI. Recently I got job in FCI as assistant grade 3 (Depot).pls help me to join in FCI or to continue in SBI. pls help me sir

  17. What will be new revise pay for ioc employee grade A with basic pay 11900 does fitment factor of 15% is suitable as it is highest profit making PSU. Total per month

    • Yes, post-2017 people won’t get the fitment benefit but they will be fixed in the revised pay scales from 01.01.2017. Like those who recruited on 24900-50500 pay scale, their minimum basic pay will be 60000 w.e.f. 01.01.2017.

  18. Sir, i am working in rinl, Visakhapatnam steel plant in the grade of E3 With basic of 29600.
    Wht will be my basic after PRC implementation..?
    Why do the prc report is taking last 3 years for the affordability clause…. In my opinion it should take last 10years as last PRC was in 2017..

    • The initial basic for BHEL Dy Engg will be 40000 per month. In addition to that, they will be eligible for DA, HRA, perks & allowances applicable in BEL.

    • At present, there is no order for pay revision of BSNL/MTNL working employees. So the whole process will take time. For pensioner separate order will be issued from BSNL.

  19. Sir,
    I am working in Jaipur Vidyut Vitran Nigam limited on the Grade Pay of Rs.4200/- in which 7th pay commission is going to applicable soon and my basic salary would be 40,000/- per month. I am going to appear in BSNL JAO Exam. Would it beneficial to switch off to BSNL in point of view of Financial implication.

    • First, check your total salary after the implementation of 7th pay revision. Then compare it with BSNL JAO salary. Meanwhile, you can appear for the BSNL JAO exam too.

  20. I am working in Airports authority as a E1 and my basic pay is 16900. What will be the my new salary and when it will be implemented.

  21. Sir
    Iam working in SAIL in E6 grade .even being a mahatma company it seems the PRC will not be implemented becaz of affordability clause is it true?

  22. I am working as Manager in FCI, Now there is a news that the Minimum salary for central government employees is likely to be increased from 18000 to 21000 , the fitment formula will be 3 times . If that is the case, will our Basic salary will also be increased concurrently

  23. Sir I have recently joined as a supervisor at S1 level with a basic pay of 12300 in IDA pattern, what would be my take home salary after applying 3rd CPC?. Thanks in advance

    • Your revised basic pay will be 60000 per month. The gross pay will depend on the EPF, HRA, Perks, Cafeteria allowances etc. You need to calculate these allowances individually and add them into basic pay.

  24. Sir i am currently working in dmrc at non executive post and there are going to apply 3rd Prc . Is it wise to go with bsnl jto which is executive post

  25. Sir, I came to know form a BSNL union website that HRA has been decreased from 30 to 24, 20 to 18 and 10 to 8 percentages. Is it even applicable for PSUs that can not implement 3rd PRC?

  26. I am working in BHEL as a Manager and my basic pay is 45800. What will be the my new salary and when it will be implemented.

  27. Sir,i am working in fci,when implemented wage revision? if implemented how much fitment will come? My basic is 11130/- ,how much new basic will come after wage revision? It is eligible or not cafeteria benefits for non unionzed supervisor. Kindly do the needful above questions

    Thank u

    • Cafeteria allowances depend on the profitability of Company. So check the profit of FCI. Your revised basic pay will be 28000 from 01.01.2017.

  28. What will be new revise pay for ioc employee grade A with basic pay 24900 does fitment factor of 15% is suitable as it is highest profit making psu…

  29. Sir what will be cafeteria allowance under 3rd prc..
    In committee report it is said that it will be maximum ceiling of 35% but revise when ida crosses 50% but there is nothing said about this increment

  30. Sir, what shall be the revised net salary of an employee in the existing pay scale of 24900-50500 considering he will be joining the company in September 2017.

    • The revised pay band will be 60000-180000. So you will get minimum 60k plus DA, perks, performance related pay, HRA etc which may vary from a company to company.

  31. Sir for affordability which three year will be considered? .Impact due to workers salary will also be accumulated?…how will calculate current year impact due to revise pay?

    • As BSNL is in heavy financial losses, hence 3rd PRC isn’t applicable to BSNL Employees. The basic pay will remain same.

      • Sir
        Currently there is news regarding bsnl that it dont have money to pay salary of employees, and it will be closed in 3 months if 3rd prc is not applied.
        So is it wise to join bsnl for newly selected jto throgh GATE-2017 or should we find some another option for future.

        • It won’t be closed this is all rumors. However, the 3rd PRC is not possible for at least next 3 years. So it would be better to get the job in a profit making PSU through GATE exam.

          • Sir i am currently working in dmrc at non executive post and there are going to apply 3rd Prc . Is it wise to go with bsnl jto which is executive post.

Leave a Comment