The 2nd (Second) Pay Revision Committee headed by former Supreme Court Chief Justice, M. Jagannadha Rao submitted its Recommendations on May 31, 2008 to Minister of Heavy Industries and Public Enterprises, Mr. santosh Mohan Dev.

He informed that, "we are giving more authorities to the companies. They can earn more profit and can share their profit with their employees". The Report has been sent to the Prime Minister's Office and the Finance Minister's.  After its examination, a final decision will be put up for Cabinet Approval, which is expected to complete by Dec.2008.

According to Mr. SM Dhewan, Director General, Standing Conference of Publice Enterprise (SCOPE), some of the variable components like Risk Pay and performance related pay, Effective pay hike is expected to work between 25 to 40 percent hike. This is a Paradigm shift with Government's thinking in  running of business enterprise.  It is a good beginning , to put on par with the private companies, he added.

The Revised salary structure is proposed to be effective from january 2007.

The Pay will be split into two components, baisc pay and risk pay with the latter depending on categorisation. profitablity and executives grade. Loss making company will not shelve out its pay.

• Employee stock Options, linked ot Performance Pay.
• Performance related payout amounting to 40-200 percent of basic pay
• Risk pay of Rs.1100 to Rs.25000 per month
• New Pay scale of Rs.65,000 - Rs.75,000 of E-10 in A1 Companies
• CMDs and Directors of Sick companies  to retire at the age of 60
• No Upper limit on Gratuity
• Sick companies to be allowed for Pay Revision (without Risk pay) if they make cash profit
• Central PSUs not making cash profit  to be examined by the Board for Reconstruction of Public Sector Enterprises.
• Separate fund for post-retirement medical treatment and to meet emergency needs of those who have retired .
• Revision of pay for non-unionised supervisory category to be decided by the board of directors.
• Retirement benefit of 30 percent of basic pay which includes CPF, Pension, Gratuity and Pot-retirement Medical benefits.