Pay protection on joining a psu from central government

kapil sinsinwar (Querist) 21 July 2026 This query is : Resolved
I have joined a PSU in 2010 from a central government department, i have applied through proper channel and submitted an NOC and technical resignation as well. However, after my joining in a PSU the HR refused to protect my last pay in the central government. From 2010 to 2018 i keep on writing various letters to the authorities but to no avail, finally for the very first time in 2018 HR communicated that pay protection will not be given.

Kindly enlighten me on this with orders/circulars please

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An individual who joined a Public Sector Undertaking (PSU) from a central government department in 2010 is seeking clarification on why their previous pay was not protected. Despite numerous attempts to resolve the issue, the PSU HR only confirmed in 2018 that pay protection would not be granted. The discussion highlights that while the Department of Personnel and Training (DoPT) does not mandate pay protection for central government employees joining PSUs, some PSUs may offer it through internal provisions or negotiation. The user questions the perceived discrimination, noting that PSU employees transferring to central government roles typically have their pay protected.

kavksatyanarayana (Expert) 22 July 2026
Unlike inter-departmental government transfers, DoPT mandates that PSUs are not required to protect the basic pay of incoming Central Government employees. However, some CPSEs have internal provisions where they may match your previous emoluments during negotiation

kapil sinsinwar (Querist) 23 July 2026
what if someone has not negotiated the pay at the time of appointment?
why there's a discrimination in the rules for pay protection- when a PSU employee is coming to central government his pay is protected but its not vice-versa

T. Kalaiselvan, Advocate (Expert) 02 August 2026
The asymmetry in pay protection policies between the two sectors arises from specific administrative frameworks, regulatory jurisdictions, and structural differences in pay scales.
The Department of Personnel and Training (DoPT) formulates pay, service, and recruitment rules exclusively for Central Government civil servants. Its Office Memorandums (OMs) do not automatically bind PSUs.
CPSEs (Central Public Sector Enterprises) are autonomous corporate entities governed under the Department of Public Enterprises (DPE) guidelines and their respective Board-approved Service and Pay Fixation Rules. A PSU is legally required to follow only those provisions that have been explicitly ratified by its own Board of Directors.
If an employee joined a PSU in 2010 and received formal rejection in 2018, any further administrative appeal or legal scrutiny generally depends on the following:
Did the recruitment notification or appointment letter state that pay would be fixed as per company rules, or did it contain any explicit clause regarding pay protection?
What were the official Pay Fixation Rules of that specific PSU at the time of joining in 2010? Subsequent rule changes made years later typically do not apply retroactively unless specified.
Was the movement framed as a technical resignation with absorption, or direct recruitment via open advertisement? While technical resignation protects past service for pensionary benefits within government cadres, pay protection in PSUs still requires explicit PSU rule backing.

P. Venu (Expert) 05 August 2026
Yes, you are not entitled for pay protection, unless so specifically provided.

"why there's a discrimination in the rules for pay protection- when a PSU employee is coming to central government his pay is protected but its not vice-versa"! What is the basis of this assumption?

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