Cabinet approves pay revision for central public sector enterprises

New Delhi, Nov 20 (IANS) The cabinet Thursday approved the recommendations of the second Pay Revision Committee for central public sector enterprises (CPSEs) but there will be no additional cost to the government as the enterprises will bear the cost, a minister said.

'There will be no additional cost to the government as the enterprises will bear the additional cost from their internal resources,' Minister of State in the Prime Minister's Office (PMO) Prithviraj Chavan said.

'It is for this reason that I cannot tell you what the additional expenditure will be,' he said in reply to a question while briefing reporters after a cabinet meeting chaired by Prime Minister Manmohan Singh.

'The revised pay scales would be implemented by the issue of a separate Presidential Directive in respect of each CPSE by the concerned administrative ministry or department,' Chavan said.

While the revised pay scales will be effective Jan 1, 2007, the payment of house rent allowance, perks and allowances based on the revised scales will be from the date of issue of the Presidential Directives, he added.

The Pay Revision Committee had been established as CPSE employees were not covered by the Sixth Pay Commission that earlier this year recommended increased pay and allowances for government servants.