In an attempt to prevent the exodus of talent from Public Sector Undertakings (PSU) to private competition, the Indian Government approved the salary hike for the employees of PSUs. This decision will create a bonanza for 2.5 lakh employees across 200 companies in India.
The new compensation package will be w.e.f 01-Jan-2007. As per the new package, the basic pay of chiefs of central PSUs will go up to Rs 55,000 to Rs one lakh.
The Cabinet meeting chaired by Prime Minister Manmohan Singh on Thursday decided on the pay hike, based on the recommendations given by the Second Pay Revision Committee.
The package includes dearness allowance (DA), performance related-incentives and other perks
Considering the elections scheduled for various states and the center, these steps are aimed at pleasing the voters. The central government had already approved implementation of the Sixth Pay Commission for central government staff from September 1, this year