Bringing much cheer to officers of central public sector undertakings (CPSUs), the government today approved increased pay with effect from January 1, 2007.

The decision, taken by the Cabinet at a meeting chaired by Prime Minister Manmohan Singh today, was based on recommendations given by the Second Pay Revision Committee. The package would include revision in dearness allowance and other allowances, besides performance related incentives, minister of state in Prime Minister’s Office Prithviraj Chavan told reporters here.

Extra outgo on account of the new pay structure would be borne by individual CPSUs and no budgetary support is involved. “The revised pay scales would be implemented by issue of Presidential directive in respect of each CPSU separately by the administrative ministry concerned,” he said. While the new pay structure would be implementable from January 1, 2007, the new allowances would accrue to employees only after the decision is notified by individual units. Earlier, the government had approved implementation of the Sixth Pay Commission and it was implemented from September 1, this year.