Friday, February 3, 2023
HomeDaily NewsRetirement age in State PSUs enhanced to 60, ranking system introduced

Retirement age in State PSUs enhanced to 60, ranking system introduced

The State government has issued orders implementing a common framework on pay/wages structure in State-run public sector units, a decision which will also see retirement age in PSUs enhanced uniformly to 60 and the performance-based classification of the units into ‘diamond,’ ‘gold,’ ‘silver’ and ‘bronze.’

The decisions, based on recommendations made by an expert committee headed by the Chairman, Restructuring and Internal Audit Board (RIAB), will apply to PSUs other than the Kerala State Electricity Board (KSEB), Kerala Water Authority (KWA), and the Kerala State Road Transport Corporation (KSRTC).

The PSUs will be classified into ‘diamond’ (highest), ‘gold,’ ‘silver’ and ‘bronze’ based on net worth, turnover, number of employees, revenue per employee, sales/capital employed, profit before tax, and investment (financial). The classification will undergo a review every three years.

In streamlining the pay systems in the PSUs, the government has accepted the expert panel’s recommendation that it should be broadly based on the second Central Public Sector Enterprises (CPSE) pay revision approach for board-level and below-board level executives and staff categories.

There are nine standard scales and two intermediary scales for the below-board level executives and four scales (based on the four PSU categories) for managing directors/CEOs.

Accordingly, the lowest pay scale for placement of CEOs/MDs has been set at ₹43,200-₹ 66,000 (bronze PSUs) and the highest at ₹65,000-₹75,000 (diamond). Annual increment will be allowed to employees in all PSUs at the rate of 3% of the basic pay.

One condition for future pay revisions is that a PSU should be making profit for three years running before revision proposals are submitted. ‘‘If the affordability criteria are satisfied, the expenditure on account of pay revision should entirely be borne by the PSUs out of their earnings and no budgetary support will be provided by the government,’‘ the Finance department says.

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