PSU Salary Structure 2025: Structure, Benefits, and Allowances in India

Summary: As a job aspirant in PSU, check the comprehensive salary structure in PSUs, additional perks, and allowances that you will get along with the career growth opportunities.

PSU Salary Structure: For many aspirants preparing for the GATE 2025 exam, Public Sector Undertakings (PSUs) open a wide array of job opportunities. PSU jobs are highly sought after as they play a pivotal role in the Indian economy and offer appealing opportunities. Working with a PSU will get you job security and financial stability with competitive pay, along with perks and allowances. 

Keep reading to learn more about the PSU salary structure and the other benefits it offers.

Read More: GATE Result 2025

PSU Salary Structure 2025

The salary structure at PSUs varies according to the job role, the type of PSU (Maharatna, Navratna, Miniratna), and the industry. It also depends on GATE cutoff scores, geographical location, and the guidelines applicable in any particular year. Typically, the initial pay in PSUs fall between 5 and 14 lakhs per annum.

Read More: PSU Recruitment Through GATE 2025

Basic Components of PSU Salary Structure 2025:

Besides the basic salary, the PSU salary structure has several other components, such as benefits, perks, insurance coverage, and reimbursements. Refer to the details below to understand the PSU salary structure components thoroughly. 

• Basic Salary: This is the fixed amount that an employee earns regularly as basic pay. It forms the base for calculating other components of a PSU salary package. 
• Perks and Benefits: PSUs also offer various perks and benefits to their employees. Allowances like travel allowance (TA), house rent allowance (HRA), and dearness allowance (DA) are included in the salary package apart from the free medical check-ups at designated government facilities. Officer-level employees in PSUs receive the Children’s Education Allowance.
• Reimbursements: PSUs cover certain expenses that employees might incur. This can include medical bills, newspaper subscriptions, travel costs for work-related trips, and educational expenses for themselves or their dependents.
• Insurance: Employees in PSU roles usually get medical and life insurance coverage as part of their benefits package.

Other Allowances and Perks at PSU

There are additional perks and allowances available to the PSU employees. Some common allowances generally provided by PSUs are:

• House Rent Allowance (HRA): Employees receive HRA to pay for their accommodation. The amount of HRA varies based on factors such as the employee’s basic income and the location of work.
• Dearness Allowance (DA): It’s provided to PSU employees to adjust for the inflation impact on their expenses and is calculated on the basic pay. It’s revised regularly per the cost-of-living index.
• Transport Allowance (TA): This allowance helps employees by reimbursing their commuting expenses between their place of residence and their job.
• Medical Allowance: PSU employees are eligible to receive a medical allowance to cover their own and their family members’ medical expenses.
• Children’s Education Allowance: Some PSUs provide their employees a financial allowance for their children’s education.
• Leave Travel Allowance (LTA): LTA helps employees to travel to their hometown or another designated location during time off from their work.

Note: It is crucial to keep in mind that the PSU salary structure, including basic pay, perks, and benefits, may vary depending on the position and location of the job.

Salary Structure of Top PSUs in 2025

Refer to the tables below to see the average salary packages of some of the popular PSUs after GATE.

PSU Salaries at Maharatna PSUs After GATE
PSU Names	Type of PSU	Salary Package Offered (per annum)
Indian Oil Corporation Limited (IOCL)	Maharatna	Rs. 16.3 LPA
National Thermal Power Corporation (NTPC)	Maharatna	Rs. 15 LPA
Oil and Natural Gas Corporation (ONGC)	Maharatna	Rs. 18 LPA
Coal India Limited (CIL)	Maharatna	Rs. 15 LPA
Bharat Heavy Electricals Limited (BHEL)	Maharatna	Rs. 15 LPA
Bharat Petroleum Corporation Limited (BPCL)	Maharatna	Rs. 14.1 LPA
Hindustan Petroleum Corporation Limited (HPCL)	Maharatna	Rs. 16.7 LPA
Power Grid Corporation of India (PGCIL)	Maharatna	Rs. 13 LPA
Steel Authority of India Limited (SAIL)	Maharatna	Rs. 16 LPA

Read More: List of PSUs In India: Importance of PSUs

Read More: GATE Cutoffs For PSU

Read More: Public Sector Undertakings (PSUs) Interview Tips

Conclusion:

PSUs are known for providing job security to their employees. The government partially or entirely owns and controls PSUs. This ensures that employees have a stable source of income and do not have a risk of losing their jobs due to market fluctuations. In addition to appealing initial salaries and perks, PSUs also offer annual raises that reflect performance and experience.

FAQs

What is the salary scale of a PSU?

The salary scale depends on the job role and designation offered by a particular PSU. For example, a junior engineer will be initially appointed on a pay scale of Rs 16,400-3%-40500. In addition to the basic pay, there will be dearness allowance, HRA, and other benefits, like CPF, Gratuity, Social Security Schemes, Pension, Medical benefits, etc. On the other hand, if the candidate gets selected as Officers or Engineers, he/she will receive a starting basic pay of Rs. 24,900/ per month in addition to the Dearness Allowance (DA) and other allowances, according to the rules of the Corporation in force.

What are the various benefits paid in PSU jobs?

The PSU salary structure includes numerous allowances such as House Rent Allowance (HRA), Travel Allowance (TA), Dearness Allowance (DA), Gratuity, Provident Fund, ESI, and other retirement benefits, among others.

How to join PSU jobs in India?

You can join PSU jobs through the GATE exam and scoring the required minimum score. You can also give written examinations as required by the specific PSU recruitment selection process. You can check the PSU recruitment through the GATE exam and know more about the selection process and eligibility criteria.