New Delhi, May 30 (UNI) The Second Pay Revision Committee has recommended for the 250,000 executives of Central Public Sector Employees (CPSEs) the introduction of productivity-linked Risk Pay, five sets of pay scales, variable annual increment and other sops such as North East allowance, difficult area allowance and underground mines allowance.
The Committee, set up under the chairmanship of retired Supreme Court judge M Jagannadha Rao in November 2006, submitted its report to Public Enterprises Minister Santosh Mohan Dev here today.
In line with the recommendations of the Sixth Pay Commission, the Committee suggests that the basic pay of CMDs should range from 55,000 to Rs 100,000 and of directors from Rs 50,000 to Rs 80,000, depending upon the category.
It also suggests that the city compensatory allowance be dispensed with alongwith the upper ceiling on gratuity.
House rent allowance should be at the rates of 30 per cent, 20 per cent and 10 per cent of the basic pay, depending upon the classification of the cities or towns based on population, Mr Dev said, while reading out the recommendations.
Retiral benefit should be 30 per cent of basic pay, which include CPF, pension, gratuity and post-retirement medical benefits.
Variable pay or performance-related payment should range from 40 per cent to 200 per cent of basic pay.
Companies should be allowed to formulate employees' stock option plans, the Committee suggests.
It, however, does not recommend any change in retirement age.
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