We all feel that the highest salary or salaried jobs in the country are held by officers holding posts like IAS, IPS and IFS, which are obtained through UPSC. This is true in many ways, because this is one of the biggest and most powerful positions in the country. However, many people do not know that even more than the salary of bureaucrats like IAS and IPS, the salary of another officer is higher, who works on the post of Chairman and Managing Director (CMD) in Public Sector Undertaking (PSU) companies. The salary of the officer holding this post is very high.

What are PSU companies?

Public Sector Undertaking (PSU) companies are those companies in which the government has about 51 percent or more stake. That means these are government companies only. Their work is related to power generation, exploration, management and production of oil and natural resources. These government companies include companies like ONGC, IOCL, BPCL, NTPC, BHEL, SAIL, SBI, PNB.

Position and responsibilities of CMD

The chief officer of these Public Sector Undertaking (PSU) companies is called CMD i.e. Chairman and Managing Director, who is the senior most officer of the company. The job of the CMD is to plan the future of the company, lead board meetings and take investment decisions. PSU companies are completely answerable to the government. The CMD works closely with the government and reports every important matter to the concerned ministries. It also gives information about government goals to the government and prepares future strategies.

Government facilities and salary received by CMD

• The salary of CMD depends on which category the company falls in, i.e. Maharatna, Navratna or Miniratna.
• The basic salary of a CMD usually ranges from ₹2 lakh to ₹3.70 lakh per month.
• CMD also gets dearness allowance, which is updated every 3 months. Apart from this, they are also given bonus facility.
• Along with salary, CMD level officers also get many facilities from the government. These include facilities like accommodation, government vehicles, medical facilities, travel expenses and security. All these benefits are available to the officer as well as his family.

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The attraction of a government job in India lies not only in its stability but also in the excellent salary structure, which may seem simple but is actually as technical. Often people consider pay scale and in-hand salary to be the same, whereas there is a big difference between the two. The pay scale only gives a range of where the salary will start and what it can reach, but the actual income is much more than this, because the government adds many allowances on top of the basic pay which increases the total income many times.

How is the pay scale decided?

The salary of government employees is not decided directly by the government, rather there is a separate committee for this. Pay commission on the basis of whose recommendations the salary is decided. At present all government employees get salary according to the 7th Pay Commission. This pay scale is based on several factors-

• Employee position
• Job responsibilities
• His qualifications and experience
• In which department is the job

On the basis of all these, the pay level is decided – like Level 1, Level 3, Level 6, Level 10, Level 12. Every level has a fixed salary range.

Salary structure of some major levels

Level 1 (Peon, Helper etc.): Rs 18,000-56,900

Level 3 (Clerk, Assistant etc.): Rs 21,700-69,100

Level 4 (LDC, Steno): Rs 25,500-81,100

This is where people often get confused, because this is just a range, not the actual earning. Then, despite the pay scale being Rs 25 thousand, how come one gets Rs 70-80 thousand in-hand? The key to this secret is hidden in the allowances, which are imposed on top of the basic salary and sometimes they reach more than the basic salary.

Major allowances that increase salary manifold

DA- dearness allowance

This can be 50% or more of the basic salary. At present the DA of most government employees is around 50–60%.

HRA- house rent allowance

It ranges from 9% to 27% depending on the city. This happens most in metro cities.

TA- transport allowance

It is decided according to the post and location of the job.

Medical Facility

Every government employee and family gets medical coverage, the value of salary increases further when added to the separate costs.

Pension / NPS / PF Contribution
Provides financial security during employment and after retirement.

a common example

If the basic pay of an employee is Rs 25,500 then-
• DA (50%) = Rs 12,750
• HRA (18%) = Rs 4,590
• TA + others = around Rs 5,000

Total income is approximately = Rs 47,000- Rs 55,000. And in many departments, including special allowance, it even reaches Rs 70-80 thousand.

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