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.
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 Scale||Revised IDA pay scale w.e.f. 01.01.2007|
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 PSU||Pay scale||Starting Basic Pay||DA (114.8% of Basic pay as 01.08.2016)||Approximate Perks in % of Basic pay||EPF contribution by Employer||Approx Gross Salary per month in Rs||Cadre of New executives||CPSU cadre Hierarchy|
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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