MEMORANDUM ISSUED BY DPE ACCEPTING 3rd P.R.C. Recommendation & Implementation

5 Aug

Now, the DPE has finally issued Office Memorandum vide No: W-02/0028/2017-DPE(WC)-GL-XIII/17, dated 03-08-2017 regarding the implementation of the recommendations of the 3rd PRC for Pay revision of Board level & below Board level Executives and Non-unionised Supervisors of Central Public Sector Enterprises w.e.f. 1.1.2017. It is based on the decision of the Union Cabinet, held on 19.07.2017. From the Memorandum, it emerges that BSNL employees are not eligible for wage revision. There are no major changes in the recommendations, including regarding Affordability and 5%, 10% and 15% fitment for different categories of CPSEs.

Now it is for BSNL Management to push forward its case for pay revision with 15% fitment for its Executives, since BSNL does not fall into any of the three categories and also is not a sick CPSE.

There is no specific mention about BSNL in the OM.

About affordability clause it reads:

  1. The revised pay scales would be implemented subject to the condition that the additional financial impact in the year of implementing the revised pay package for Board level Executives, Below Board level executives and non-unionized Supervisors should not be more than the 20% of the average Profit Before Tax (PBT) of the last three financial years preceding the year of implementation.”


“No fitment or any other benefit of pay revision will be implemented in the CPSEs where the additional financial impact of the revised pay package is more than 40% of the average PBT (Profit Before Tax) of the last 3 financial years.”


OM says that “if the profitability of a CPSE falls in such a way that the earlier revision now entails impact of more than 20% of average PBT of last 3 years, then PRP/Allowances will have to be reduced to bring down impact…”


It does not have a word for Pension Revision for present pensioners.