Best PSU jobs for engineering students 2016

PSU recruitment & revised Pay scales

After the implementation of 2nd Pay revision committee report for PSU in India, the total salary of executives of Public sector employees got increased tremendously. The Government Jobs in PSUs for engineers are not less attractive than a private multinational company’s job. They are even paying better to fresh engineering graduates as compared to private multinational companies. In this post, I will explain you comparative salary & perks analysis of top central public sector enterprises (CPSEs) like BPCL, ONGC, NTPC, BHEL, SAIL, HAL, MTNL, BEL & BSNL. This will help you to decide that which CPSE is best for fresh engineers.


How to find PSU jobs for engineers

The government of India has revised the pay scales of CPSEs. In revised structure, there are 10 pay scales for executives which also shown in below table.

IDA Pay scales

Name of ScaleRevised IDA pay scale w.e.f. 01.01.2007
E012600-32500
E116400-40500
E220600-46500
E324900-50500
E429100-54500
E532900-58000
E636600-62000
E743200-66000
E851300-73000
E962000-80000

PSU recruitment for fresh engineers

Engineering graduates are mostly recruited on E1, E2 or E3 pay scales in different government companies. These pay scales decide the initial basic to be given to fresh candidates. Generally, new appointees are fixed at minimum limit of the new scale. Suppose graduates appointed on E2 pay scale (20600-46500), here the minimum value is 20600 hence he/she will be fixed at 20600 as a starting basic pay. Other benefits like DA, HRA, EPF, Perks, Allowances, LTC, medical facility, increments & even new pay revision depends on the basic pay of an employee. So higher basic pay means high total gross & in hand salary.

Top PSUs salary structure for engineers

Name of PSUPay scaleStarting Basic PayDA (114.8% of Basic pay as 01.08.2016)Approximate Perks in % of Basic payEPF contribution by EmployerApprox Gross Salary per month in RsCadre of New executivesCPSU cadre Hierarchy
BPCL24900-50500249002858512450(50%)641872353AYes
ONGC24900-50500249002858511703 (47%)641871606AYes
NTPC24900-50500249002858511703(47%)641871606AYes
BHEL20600-4650020600236499476(46%)531059035AYes
SAIL20600-4650020600236499476(46%)531059035AYes
HAL20600-4650020600236499888(48%)531059447AYes
MTNL20600-4650020600236490531049559BNo
BEL16400-4050016400188277872(48%)422743681AYes
BSNL16400-4050016400188270422739454BNo

Above table shows the Gross salary of newly appointed executives in Government companies. This doesn’t include HRA, Travelling allowances, Medical Benefits, LTC, Computer/Laptop, performance related pay etc. These allowances are also varying from company to company as well as the cadre of executives. It means these are more for group A cadre & comparatively less for group B cadre.

House Rent Allowances (HRA)

As per Government rules, HRA depends on the place of posting as well as the basic pay of an employee. It varies from 10% to 30% of basic pay according to the city of the posting. If you take company accommodation, then you are not eligible for HRA.

Cadre of an executive

It’s very important factor which decides your future career, salary, facilities & allowances in any government company. On the recruitment advertisement, CPSEs don’t mention about the cadre of an executive but cadre is used internally in all CPSEs for providing facilities, allowances & promotions. There are four types of classification of employees in central government departments Group A, B, C & D whereas in CPSEs only executive & non-executives are there. As all of these CPSEs are converted from Central Government department to PSU hence there is a strong relationship between Groups A, B, C & D and Executive & non-executive of CPSEs. So the CPSEs which recruits fresh graduates on Group A cadre, they provide best facilities and allowances to their Group A employees. Do remember before applying for PSU job, you must check the cadre of vacancy notified. Here I have mentioned the cadre of newly appointed executives in second last column.

CPSU cadre hierarchy

CPSU cadre hierarchy ensures time bound functional promotion in Government Companies. Many top companies have implemented the same for their engineering graduates. Due to this executives get 1st functional promotion in just completing 3 years of service. In PSUs where it has not been implemented yet, their executive gets delayed functional promotion usually after completion of 5 to 15 years of service.

It also indicates that on which level a graduate engineer may reach. It has a direct relationship with the cadre of executives i.e. A or B. For different cadre CPSU cadre hierarchy rules are different. It also means that there are different rules for Group B cadre executives & separate for Group A cadre employees. Hence Graduate engineer recruited on group A cadre may reach to top posts (higher or Top management posts) of the company, whereas those appointed on group B cadre can go up to lower management level.

I hope that this article would give you the idea to find best PSU job for graduate engineers. In case any doubt please comment below.

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9 Comments

    1. As you know that jobs for Instrumentation Engineering are less as compared to other branches. I would recommend you to select circle where vacancies are more. You can choose Maharashtra as it has highest OBC vacancy and a good state to live.

  1. Thanks for such a great topic. I have read salary structure in PSUs from different website & compared it through government sites. I observed that information in this site is most authentic & accurate. Then I have decided to read some more topics on the site. I found that it is the best website for engineers who are more interested to join government job. The articles shared here have covered all the essentials things which every job seekers must know before joining a government job. Once again thanks for detailed info.

  2. Thank you in advance Sir for your valuable guidance..
    I am. Computer science student and I have completed my M.Tech. in 2016. I am passionate for career in gov sector. Can u list the appropriate exams for computer science student?

    1. Vacancies in Govt sector for Computer Science Graduates are less as compare to other streams like Civil, Mechanical & Electrical. Some companies like BBNL, IOCL, MTNL, Neyveli Lignite Corporation Limited, NTPC, ONGC, Power Grid Corporation etc take Computer Science Graduate through GATE exam. There are other companies like BSNL which also recruit CSE students through separate exam. There are also some state level exams and SBI & IBPS specialist officer exam which are available to CSE students. There are also pure central Govt departments like NIC, DRDO etc which also recruits Computer Science Graduate. I hope this info may help you to get job in Govt sector.

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