The recommendations are likely to affect 2.5 lakh executives of 217 CPSEs, including loss-making enterprises. For the remaining 13.5 lakh non-executive CPSE employees, the seventh round of negotiations between trade unions and management is underway, said a ministry official.

The basic pay of CPSE chiefs will range between Rs 55,000 and Rs 1 lakh a month depending on the CPSE category. At present, it varies between Rs 27,750 and Rs 31,500 a month. The most attractive component, however, remains Employee Stock Options (ESOPs), which the committee has left to the individual management of the CPSEs to decide. “We have also given the guidelines for the same and the decision of the management will be final in this regard,” said Department of Public Enterprises secretary R Bandhopadhayay, who is also ex-offcio member of the Second Pay Committee.

The Performance-linked Payment has been pegged between 40- 200 per cent of basic pay for profit making A+, A, B, C and D category CPSE executives. In addition, allowances and perks of up to 50 per cent of revised basic pay, excluding House Rent Allowance (HRA) and retrial benefits, find recommendation. As a first, it has mooted a variable annual increment of 2-4 per cent of basic pay, depending on the profitability of a company. Having done away with the City Compensatory Allowance (CCA), it has introduced a 12.5 per cent North-East allowance, 15 per cent Difficult Area allowance, 10 per cent Under Ground Mines allowance and 25 per cent Non-Practicing allowance. These allowances are in addition to the already mooted 50 per cent of basic pay allowances.