Perquisites of working in a PSU

Posted by under General on August 27, 2019

Should you be considering working right after your BE, then working in a PSU should top your list of options. Here’s why:

  1. A lucrative pay-package: As compared to Private Sector companies, the pay-packages offered in a PSU are much higher. The starting packages in PSUs are approximately 45K/month.

For example: Maharatna PSU, IOCL, offers a starting salary of 11 lpa.

  1. Free medical insurance: A 100% medical cover is provided for the employee as well as the family, not only during the tenure, but also after retirement.

For example: MECON’s ISPAT Hospital provides free medical care to employees and their families.

  1. Retirement benefits: The government has a National Pension Scheme in place to ensure employees a continuous source of income even after their retirement. The employees can choose among three types of schemes available to manage their pension wealth.
  2. Easy-to-get loans and processes: While a Private sector employee might struggle to get loans, a PSU employee might get easy loans at interest rates as low as 3-4%.

For example: NTPC (National Thermal Power Corporation Limited) and PFC (Power Finance Corporation) provide home loan up to ₹20 lakh and car loans between ₹3-6 lakh at nominal rates.

  1. Accommodation: PSU employees are accommodated wherever they’re posted and get other benefits too.

For example: NTPC Townships have Hospitals, Recreation centres and Schools within the campus.

In MECON’s Shyamali Colony in Ranchi, the Engineering Consultancy has homes for employees, a stadium, a library, playgrounds, a club and a Kala Kendra for cultural events.

  1. Growth Opportunities: Growth opportunities, in a PSU are abundant and the path to an increment or promotion is more transparent and reliable.

For example: The PFC employees selected under the ‘Executive education and Competence building’ programme are considered for appraisals and no disciplinary action is taken against them for absenteeism.

  1. Extra Allowances: A lot of ‘other monetary benefits’ are a part of your pay-package if you’re working in a PSU.

For example: ONGC employees get a generous allowance equivalent to a specified amount of petrol, apart from car maintenance and insurance. It adds up to about 20% of their basic salary and rises in step with petrol prices even if they use public transport. To make their pay tax friendly, employees can take 47% of their salary in reimbursements for expenditure like buying computers or a family trip abroad.

  1. Higher Education: Some PSUs fund or support for employees’ higher education.

For example: PFC has initiated a scheme to pay for Employees’ higher education abroad. Company bears all expenses including travel, stay, accommodation and course fees.

  1. Job security: This should be the biggest advantage of working in a PSU. As opposed to the high attrition in Private sector companies, thanks to all the above-mentioned perquisites and tough hiring processes, a PSU job is highly secure and is independent of mass job-cuts or economic slow-downs.

News: In June’19, the Personnel Ministry of India has written to secretaries of all central government departments asking them to carry out the review of all categories of employees in “letter and spirit” and to ensure that decision to retire a public servant is not “arbitrary”. This includes PSUs too.

  1. A respectable profile: Socially, working at a PSU is considered to be very reputable as you are working for the Government and serving the nation and still enjoying all the perks of a Government Job.

 

And the only way to get in there is through the GATE!


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