Highest paying PSU jobs for Engineers & freshers to join in 2018

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. And 3rd PRC is also going to implement very soon, which may further increase the salary of PSU employees by around 15%.

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 w.e.f. 01.01.2017

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
E743,200-66,0001,00,000-2,60,000A, B, C
E851,300-73,0001,20,000-2,80,000A, B,

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 E3 pay scale (60000-180000), here the minimum value is 60000 hence he/she will be fixed at 60000 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

PSU NamePost NamePay ScaleInitial Basic Pay in RsApprox Gross salary per Month
Oil and Natural Gas Corporation (ONGC)Assistant Executive Engineer60,000 – 1,80,00060,000120k to 150k (The CTC per annum would be higher than 15 Lakh)
National Thermal Power Corporation Limited (NTPC)Executive Trainee
Bharat Petroleum Corporation Limited (BPCL)Management Trainees
Hindustan Petroleum Corporation Limited (HPCL)Officers
Indian Oil Corporation Limited (IOCL)Engineers/Officers
Oil India Limited (OIL)Executive Trainees
Gas Authority of India Limited (GAIL)Graduate Trainees (GTs)
Power Grid Corporation of India Limited (PGCIL)Executive Trainee
Bharat Heavy Electricals Limited (BHEL)Engineer Trainee
Engineers India Limited (EIL)Engineer/Officer
National Aluminium Company Limited (NALCO)Graduate Engineer
Power System Operation Corporation Limited (POSOCO)Excutive Trainee
Neyveli Lignite Corporation Limited (NLC)Graduate Executive Trainee50,000 -160,00050,000100k to 120k ( Here to Cost to Company would be more than 12 Lakh)
Coal India Limited (CIL)Management Trainees
National Hydroelectric Power Corporation(NHPC)Graduate Engineers
Hindustan Aeronautics Limited (HAL)Management Trainee40,000 – 1,40,00040,00080k – 100k (The Package for these CPSEs would be greater than 10 Lakh per year.)
Mazagon Dock Shipbuilders Limited (MDL)Graduate Trainees
National Buildings Construction Corporation Limited (NBCC)Management Trainee
Bharat Electronics Limited (BEL)Deputy Engineer
Telecommunication Consultants of India Limited (TCIL)Engineer
Bharat Broadband Network Limited (BBNL)Executive Trainee
Bharat Earth Movers Limited (BEML)Management Trainee
Airport Authority of India (AAI)Junior Executive
Dredging Corporation of India (DCI)Assistant Manager
Railtel Corporation of IndiaDeputy Manager

Above table shows the Gross salary (Do not include the HRA & Performance related pay) of newly appointed executives in Government companies after implementation of 3rd PRC with a condiation that the PSU should meet the affordability criteria. This doesn’t include HRA, Travelling allowances, Medical Benefits, LTC, Computer/Laptop, performance related pay etc. So most of PSUs which are offering  60000 basic pay from appointment, their total gross salary will be higher than 1 Lakh per month. 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 8% to 24% 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.

Read it also:

27 thoughts on “Highest paying PSU jobs for Engineers & freshers to join in 2018”

  1. Thank you for the good information but in the advertisement PDF released by the psu, the salary is mentioned in the basic pay 20600 and 24900 and they didnt mentioned about the gross salary etc

    • Yes, they don’t mention the allowances and facility for the employees because they get revised time to time but the pay scales of a post are fixed for the 10 years of the period.

  2. Very helpful information .BUT CIL ,NHPC starting basic pay is 60000-180000 after training . 50000-160000 is only during training period like BHEL . Kindly correct it .

  3. What is the procedure for selection? Is it solely based on GATE score? And what is the best PSU job for an ECE fresher?

    • On the basis of GATE score card candidates are called for Group Discussion and Personel interview. The final selection is based on the combined score of GATE & GD/PI.
      Most of these PSUs recruit ECE, but seats are less.

  4. Sir I am from civil branch. And I am preparing for gate and the reason behind that is PSU jobs. and I want to join a psu in which highest salaries are offered and promotions are faster. which psu is the best for that purpose?

  5. Is there a particular time for PSU recruitment process (group discussions etc.) for GATE qualified (above PSU cut off) candidates? Is there any chance that it starts before June?

  6. Sir, I’m a b tech, 3rd year, electrical student, and I wish to ask a question that, Sir, my life ambition is civil services(IAS), and I’m from poor background, So I want to crack GATE EXAM and choose any small job to support my family Economically, and then I want to crack UPSC exam, if Fortunately I get selected into any PSU’s then Is it possible to take leave for one or two years for studying/civils preparation????

    • Don’t think that you get time during office hours in any company. There are two types of work in BSNL Indoor (Office job) and Outdoor. In Indoor jobs you may get time after office hours for preparation of any exam.

    • 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.

  7. 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.

  8. 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?

    • 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.

Leave a Comment