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ASSOCIATION
PRESENTATION
BEFORE
THE 3RD PAY
REVISION
OUR
MISSION
TO EMERGE AS A GLOBAL
MINING ORGANISATION
WITH INTERNATIONAL
STANDARDS OF
EXCELLENCE RENDERING
OPTIMUM SATISFACTION TO
ALL ITS STAKE HOLDERS
Composition of Pay
Package
The existing composition
consisting of
Basic Pay,
Dearness Allowance,
Perks & Allowances,
Performance Related
Payments,
HRA,
BASIC PAY
BASIC PAY
5% RATE OF INCREMENT
During Pay Revision w.e.f. 01.01.1997, the
rate of annual increment was 4% but
during last pay revision it was reduced to
3%. Taking into consideration the trend of
rising inflation in last five years
particularly the increase in DA on
quarterly basis is not sufficient
TWO INCREMENTS @ 5% ON
PROMOTION.
At least two increments on promotion to
be introduced to motivate the Executives
PROPOSED SCALE
GRADE
SCALE AT PRESENT
E0
16400
3%
40500
42968
5%
106110
E1
20600
3%
46500
53972
5%
121830
E2
24900
3%
50500
65238
5%
132310
E3
32900
3%
58000
86198
5%
151960
E4
36600
3%
62000
95892
5%
162440
E5
43200
3%
66000
113184
5%
172920
51300
3%
73000
134406
5%
191260
E9
62000
3%
80000
162440
5%
209600
CALCULATION SHEET
Justification for Multiplication
Factor
As proposed by VIIth pay commission the scale
of entry level executives is 2.62 x in pay matrix.
Considering 2.25 x (Basic +DA) + 14.3% hike,
which comes to 2.62 x as proposed.
50% fitment factor should be considered for
executives. As the revision for non-executives
implemented on 01-01-2012 @ 23% in NMDC ltd
and if the same hike is expected during their next
revision due on 01-01-2017, the total hike given
to non-executives over a period of 10 years
become 46%.
DEARNESS ALLOWANCE
100% NEUTRALIZATION
100% neutralization of rise in consumer price
index
for DA calculation should continue and the
reference
date / Index (WPI) for calculating IDA should be
same as applicable to Central DA.
MERGER OF DA AT 50%
Merger of DA equal to 50% of B.P. with Basic Pay
should be done for the executives of CPSEs as
this will help in taking care of pay disparity wrt
CPSEs where wage revision for non-executive is
taken after every 5 years(Due on 01.01.2022).
A
10% in locations less than
locations more than
400kms from
from
B
15% in
400kms
PRODUCTIVITY LINKED
INCENTIVE
Should be reintroduced
Should be kept outside PRP
As it acts a motivating factor for employees
in field / project areas
Should be linked to be production only and
no other factor such as sales or profit as
these are beyond the control of employees
BELL CURVE
ABOLISH OF BELL CURVE APPROACH
Adoption of Bell Curve Approach for PRP is grossly
unfair as this is a forced ranking system of
employees which inter alia creates a situation
where a genuine performer is categorized as a
mediocre in order to normalize the distribution
curve. There should be strict distinction between
the performance of an executive for PRP payment
and for promotion.
Rather a two way evaluation system or a balance
score card system with an ultimate aim to motivate
performer and retain the talent should be
introduced.
GRATUITY
Currently paid from provision of
4.16% of 30% (Basic + DA)
guaranteed superannuation benefit.
It should be paid as per gratuity act
without any ceiling and with income
tax exemption
Current scheme of 30% (Basic + DA)
as superannuation benefit to be
increased to 40% of basic + DA with
CPF, pension & PRMB as component
of it.
ENCASHMENT OF
LEAVE
VOLUNTARY RETIREMENT
SCHEME
CPSEs executives should be allowed
to take VRS without any restriction
particularly during last 5 years before
superannuation. As such, there should
be a provision of standing VRS in
CPSEs with attractive compensation
package. This would also help in
addressing the issue of
career stagnation particularly at
higher levels.