Understanding Salary Expectations in NTPC, PGCIL, IOCL Post 2017 Pay Revision

With the implementation of the Pay Commission Recommendations (3rd PRC) in 2017, several public sector units in India, including NTPC, PGCIL, and IOCL, experienced significant changes in their pay scales. This article aims to clarify the expected salary hikes and new salary structures for both Grade A officers and newly recruited trainees in these organizations.

Hike in Salaries for Grade A Officers Post 2017 Pay Revision

Before the 3rd Pay Commission Recommendations (3rd PRC), Grade A officers typically received around 60,000 INR in hand, including allowances. Post-3rd PRC, the expected salary hike for Grade A officers can be substantial. Based on reports and industry trends, they can now expect to earn around 72,000-73,000 INR in hand, including allowances like SCOHRA. This notable increase is not unique to NTPC but can be seen in organizations like ONGC and IOCL, as they compensate similar employees at approximately the same rates.

Salary Structure for Newly Recruited Trainees Post 2017 Pay Revision

Gross Salary Before Pay Revision

For newly recruited trainees, the salary structure was as follows prior to the 2017 pay revision:

Total Gross Salary before deduction - 91,800 INR. After accounting for tax and EPF deductions around 10,000 INR, the net salary would be around 81,800 INR.

New Salary Structure Post Pay Revision

The 2017 Pay Commission Recommendations drastically changed the salary structures for newly recruited trainees. Assuming a 14% hike in the basic pay scale after the merger of DA with basic salary, the calculation for an employee's revised salary would look as follows:

If the basic pay of an employee is denoted as 'S', the IDA (Indexed Dearness Allowance) as on 1st January 2017 is approximately 120 INR.

Pre Pay Revision Gross Salary: Basic Pay IDA 47 allowances S 1.2S 0.47S 2.67S

After Pay Revision: Basic Pay IDA 1.14S 1.2S 2.508S

Revised Gross Salary: 1.47 × 2.508S 3.69S

Hike in Gross Salary (3.69S - 2.67S) 1.02S

Percentage Increase: (1.02S / 2.67S) × 100 38.20%

This means that every employee's gross salary would be increased by at least the amount of their last drawn basic pay. This calculation provides an estimate of the minimum possible salary hike for newly recruited trainees in companies like NTPC, IOCL, and PGCIL post the 2017 Pay Commission Recommendations.

Preparation for 7th Pay Commission (2023) for Central Public Sector Enterprises (CPSE)

As of June 2023, the 3rd Pay Commission for CPSEs is in progress, and the recommendations are expected to be submitted by the end of the year or early 2024. Different organizations have different salaries, categorized into categories A, B, C, and D. The hike in salary will vary based on the category an employee falls under. For instance, at the E1 level, the salary can range from 70,000 INR to 145,000 INR, and it is likely to increase to 1.75 times its current level. Detailed information on fitment and hike percentages can be found on the Department of Public Enterprise's official website.

For the best results, it's important to stay patient and wait for the final recommendations. The 3rd Pay Commission reports are expected to be submitted by the end of 2023 or early 2024, and the implementation will follow soon.