Graduate Engineers salary structure in top Govt PSUs

The Government Public sector enterprises are the best choice to work due to security, pay package and amenities for the young energetic & talented graduate engineers in India. The top Central Public sector enterprises are paying more than 10 Lakh per annum package to engineering graduates just after the appointment with the company.

The pay revision for Central Public Sector Enterprises is prepared by Government appointed the committee which is commonly known as PRC (Pay revision Committee). On the basis of the committee report, Govt of India takes the decision on pay revision of employees of PSUs.

As all the Central Public-sector Enterprises are Companies registered under the Company Act. Hence the government usually doesn’t provide monetary support to these PSUs. Hence their pay revision totally depends on the affordability of the Company. It also means that financially weak company may not afford the pay revision burden and hence they are free to not to implement the same due to financial constraints. Whereas the companies with sound financial status may provide the best compensation to its employees in the market, sometimes it may be better than private MNCs.

Read also: 3rd PRC Estimated Salary

Pay scales of TOP PSUs 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

Components of salary in PSUs

Pay scale

Every executive is working on a pay scale. It is a range of basic pay in which employee is fixed. This is also an indication of employees rank, gross salary, facilities etc. Same is shown in the 3rd column of the above table.

Pay scales are revised after every 10 years. The Government of India already given its nod for the 3rd Pay Revision Committee report implementation in the Public Sector Enterprises. The top PSU employees may get the hike of 15% in the basic pay from the 01 January 2017.

Basic Pay

It is the actual current basic pay of an employee. On the basis of basic pay, other benefits like Dearness allowances, perks, performance related pay, House rent allowances, medical facilities, travel allowances are calculated.

If you see and compare the pay package pattern of a Private MNC and a Government Company, one would find that a Govt firm provides higher basic pay as compare to Private Company. Higher Basic pay means the good CTC and a decent yearly hike in the emoluments.

Dearness allowances

Current Industrial dearness allowance rate is 114.8. It is calculated on the basis of All India Consumer Price Index (AICPI). The Industrial Dearness allowance gets revise four times in the year by the Government of India on the basis of All India Consumer Price Index.


The House rent allowance rates for the Public Sector Undertakings employees are 8%, 16% & 24% based on the Class of the City.


Perks are generally provided by profit-making Government PSUs to their employees. It varies from a company to company.

Provident Fund

It is a type of retirement benefit scheme in which contribution from the employee as well as the same amount from the employer is deposited to employees EPF account on monthly basis. The current rate is 12% of Basic Pay plus IDA. It means every month total 24% of basic pay plus DA is deposited in employee’s account.

Apart from these benefits Public sector employees get Leave Travel Concessions, the Medical facility for employee & his /her dependents, Superannuation benefit (Retirement benefit), Gratuity etc.

I have tried to include the main benefits available to public sector employees; they could be more from company to company. In the case of any doubt please feel free to comment.

22 thoughts on “Graduate Engineers salary structure in top Govt PSUs”

    • The gross pay would be more than 100k per month, the salary may vary due to the place of posting, the nature of duty, the profitability of Company and Employees individual performance.

    • Your revised basic pay will be 40,000 per month. If you add DA, HRA, EPF, the total gross salary would be 57,000 per month. If perk and other allowances are also applicable to your company. The salary may be more than 57K per month.

    • Salary in hand for newly appointed specialist medical officer in E4 grade in coal india posted in asansol,West Bengal (24900-50500).what will be the salary in hand after implementing 7th pay commission? What are the other facilities provided ??

      • On pre-revised scale salary will be around 75,000 per month.
        After the revision, it may cross Rs 1,00,000/- per month after adding all the components like HRA, EPF, Perks, PRP etc.

  1. What will the minimum grade given to the Diploma engineers in these top psu And there wage And what will be the Diploma engineers consider to executive or non executive.

    • You need to have a valid degree certificate in engineering from a recognised university or college. There aren’t any minimum percentage criteria for BSNL JTO Exam.

  2. 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.

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