Ahead of polls, PSU officers get bonanza

NEW DELHI: Ahead of elections, the government on Monday cleared a bonanza for more than four lakh officers of public sector undertakings, raising their emoluments by 20%, by merging 78% of dearness allowance (DA) with basic pay.

The increase, taking into account only allowances, will be Rs 18.37 on basic pay of Rs 100 and Rs 19.37 after house rent allowance is factored in.

The revised allowances will be effective from November 26, 2008, provided a Presidential directive is issued within a month, sources said.

As per the recommendation of the Sixth Pay Commission, the government had in November fixed 68% DA merger with basic pay. PSU executives, particularly in the oil and power sectors, had opposed this vehemently and the oil company officers went on strike.

After Monday's decision, the total emoluments on basic pay of Rs 100 would become Rs 231.66 after considering 30% fitment on basic pay plus DA and differential pay. In the previous decision, this came to Rs 219.4. After considering allowances of 50% and 10% house rent allowance, it would swell to Rs 370.49.

And if superannuation benefits of 30% and the performance-related pay of 40% are considered, this would rise to Rs 532.65 as against Rs 504.70 previously.

In January this year, PM Manmohan Singh had constituted a committee of ministers headed by home minister P Chidambaram after disgruntled oil PSU executives threatened to go on indefinite strike.

Though the committee promised to submit a report on the anomalies in the wage hike approved, the oil sector officers went on strike from January 7, crippling fuel supplies.

However, the government succeeded in breaking the strike on the evening of January 9 but not before the striking executives precipitated a fuel crisis.