The decision will benefit about 98,000 employees and officers of public sector enterprises and corporations except energy sector undertakings, a government spokesman said here.
It will entail an additional burden of Rs 305 crore annually which will be borne by the enterprises and corporations.
However, the benefits of revised pay scale and other benefits will be subject to the economic capability of corporations and certain conditions, he said.
"No government assistance will be provided," the spokesman said.
The government also decided to relax rules regarding payment of dearness allowance to the staff of enterprises and corporations and merge 50 per cent of the DA with the salary.
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