The 2nd Pay revision Committee constituted in November 2006 with Supreme Court Retired Chief Justice M. Jagannatha Rao as the Chairman and Dr. Nitesh Sen Gupta, Dr. Parakh and Shri Bhaskarudu as members. the Committee submitted its report on 30th May 2008.

Salient Features of the decisions of teh Government which have been taken on 20.11.2008 for Pay revision of CPSE executives are as follows:

• There would be a single set of pay scales for below Board level executives with an elongated span, which includes the Risk pay at the minimum and maximum level instead of 5 sets of scales of pay. The Revised pay scales are being circulated separately.
• The Government has decided to give uniform fitment @ 30% of Basic Pay + DA as on 01.01.2007 to all executives, instead of graded fitment of 4% to 42%.
• Government has decided to give running pay scales for Directors and CMDs depending upon the schedule of the CPSE, by including Risk Pay at the maximum instead of Fixed pay, which was suggested by the committee.
• The existing categorization of CPSEs into 4 schedules will continue.
• The Government has accepted the recommendations of the 2nd Pay Revision Committee with regard to Dearness Allowance, House Rent Allowance, Leased Accomodation, City Compensatory allowance, other allowances/perks, Variable Pay/Performance Related Pay, Performance management System, Remuneration Committee, Long Term Incentives, Cost to the company, retirement age and Superannuation Benefits.
• The Benefit of one additional increment for every two increments would be provided to mitigate the problem of junior and senior executive getting the same pay.
• A Uniform rate of annual increment as well as stagnation increment @ 3% of Basic Pay in all CPSEs will be adopted.
• The Government has been provided pay increase tp the marginally profit making CPSEs at the fitment of 10% to 20% of their existing pay + DA, depending upon the affordability of concerned CPSE.
• A big demand by CPSEs employees regarding raising the limit of gratuity has been accepted by the Government and the ceiling of gratuity for the executives would now stand increased to Rs.10 lakhs, so far the said ceiling was Rs.3.50 lakhs.
• Appropriate compendation package in respect of non unionized supervisors would be decided by the respective Board of Directors of CPSEs.
• Expenditure on account of pay revision would be borne by the CPSEs, out of their earnings.
• Even if there in any speciifc issue/problem of CPSEs employees, governemnt has also constituted Anomalies Committee to look into such issues.
• The effective date of pay revision will be from 01.01.2007.