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Finance ministry rules out separate CPSE pay panel for non-board staff

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The Centre has clarified that there is no proposal to set up a separate Pay Revision Committee (PRC) for non-executive employees and officers below board level in Central Public Sector Enterprises (CPSEs).

The clarification came in response to a question raised in Parliament by Laxmikant Pappu Nishad, who asked whether the government was considering a PRC along the lines of the 8th Central Pay Commission to revise salaries of about 8 lakh non-executive employees from 2027, similar to the pay revision process for PSU officers.

Nishad had also raised concerns about variations in pay, bonuses, performance-related pay, allowances, perks, and profit-sharing patterns across CPSEs, pointing out that these inconsistencies violated the principle of equal pay for equal work.

In a written reply to Lok Sabha on Monday, Pankaj Chaudhary, Minister of State for Finance, said, “There is no proposal under consideration for setting up a separate and institutional Pay Revision Committee (PRC) for non-executive employees and officers below Board level working in Central Public Sector Enterprises (CPSEs).”

Also read: 8th Pay Commission invites stakeholder inputs via official portals till April 30

He added that variations in pay, allowances, and incentives across CPSEs reflect differences in financial capacity and performance. The government, he noted, issues periodic uniform guidelines to ensure transparency, affordability, and broad parity, while preserving the functional autonomy of each CPSE.

The 8th Central Pay Commission (CPC), implemented in January 2026, continues to revise pay and benefits for 50.14 lakh central government employees and around 69 lakh pensioners, maintaining a standardised framework for executive-level staff.

Previously in CPSEs, pay revisions worked differently for different staff. Executives and non-unionised supervisors get pay hikes every 10 years through the Pay Revision Committee (PRC); the 3rd PRC in 2017 (effective 01.01.2017) raised their basic pay 2.57 times, but the overall impact was capped at 40% of average profit before tax, with the next revision due on 01.01.2027.

Non-executives, on the other hand, negotiate pay through bipartite wage settlements between management and unions under DPE guidelines, usually for 5–10 years, linked to productivity and performance; sometimes strikes by CPSE unions have shortened the gap.



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