In a move that could bring down the wage bill for the country's top public sector units (PSUs) like ONGC, NTPC and BHEL, the government is set to overhaul the performance-related pay (PRP) for its employees, reports CNBC-TV18’s Ronojoy Banerjee.
The new system, if approved, could impact over 200 PSUs. Earlier, the financial parameter of PRP gave little weightage to the company’s profitability. However, sources say, that the new system will give 30 percent weightage to gross margins of the companies and additional 20 percent to the ratio of gross margins. Also read: Cap infusion in PSU banks to push consumer sentiment: Takru A high-powered committee headed by Cabinet secretary Ajit Seth, which was going to meet on Wednesday to decide on the system’s modalities, will now meet on October 30. Government officers say that this is the first time reforming the PSUs and remuneration of senior officers is being looked at. The quantum and level of gross margins along with other categories will be decided on October 30. The system is likely to be implemented in FY15.Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
