New Delhi: During the months of June and July, discussions about salary increments are usually underway. Many companies have already implemented salary increments. While others are in the process. Concurrently, discussions are ongoing regarding a significant proposal to increase the salaries of senior government company employees. There is speculation that these salaries could potentially double. This development is particularly pertinent to senior executives of Central Public Sector Enterprises (CPSEs) with turnovers exceeding Rs. 100 crore.
According to a report in the Economic Times, officials have indicated that if the proposal is enacted. All the senior executives’ salaries in these government entities could rise by up to 100 percent. This move aims to address the disparity where government company executives earn less than their counterparts in private sectors. This poses challenges in retaining talented individuals. Government enterprises view doubling the salary package as a strategy to retain skilled professionals.
The Department of Public Enterprises has proposed linking any salary increase to performance metrics. These could be asset monetization, project completion timelines, and profitability.
Additionally, the Public Enterprises Selection Board has recommended increasing compensation packages. Basically aiming to attract suitable candidates for leadership roles in government companies. The board consistently emphasizes that competitive packages are essential to draw top talent.
The proposal to hike salaries for top government company executives may be forwarded to the Cabinet Committee on Economic Affairs. This will happen ahead of the budget session. Subsequently, the committee will deliberate on the proposal.
In light of the upcoming election year, Finance Minister Nirmala Sitharaman presented an interim budget on February 1, 2024. They are scheduled to present the union budget for the financial year 2024-25 on July 23, 2024. There is anticipation that the government may introduce various reliefs following the Lok Sabha election results. The extent to which these expectations of the general public will be met will be revealed alongside the budget announcement on July 23.
