iocl compensation

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COMPENSATIONCOMPENSATION

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BENEFITSBENEFITS

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• 3 categories of Employees:

- Board level executives- Below board level executives - Workmen

• Well defined pay structure for each category.

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• Compensation structure consists of :

o Basic Pay & DA

o HRA / Accommodation facilities

o Perquisites & Allowances

o Performance related payments

o Superannuation benefits

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• DPE is the nodal Deptt. for issuing guidelines on pay related matters for all CPSEs.

• DPE issued the guidelines on pay revision of executives in Nov. ’08 and April ’09, effective from 1.1.07.

• Pay scales of Board level executives are as below:

• Below Board level Executives are placed in 9 pay scales.

Chairman Rs.80000-125000/-

Directors Rs.75000-100000/-

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GradeGrade Pre-Revised Pay ScalesPre-Revised Pay Scales Revised Pay ScalesRevised Pay Scales

A 12000 - 17500 24900 – 50500

B 13750 -18700 29100 – 54500

C 16000 – 20800 32900 – 58000

D 17500 – 22300 36600 – 62000

E 18500 – 23900 43200 – 66000

F 19000 - 24750 51300 – 73000

G 19500 - 25600 51300 – 73000

H 20500 – 26500 51300 – 73000

I 23750 – 28550 62000 – 80000

PAY SCALESPAY SCALES

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FOR WORKMEN:

• Policy guidelines on wage negotiations with unionized workmen is conveyed by DPE.

• Based on General guideline, the pay structure is negotiated with unions and a Long Term Settlement (LTS) is signed with the Unions

• No. of LTS : So far, 9 LTSs signed with the Unions.

• Pay Scales For Workmen:

–Marketing / IBP Division- 7 pay scales and

–Other Divisions --9 pay scales

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REFINERIES/PIPELINES/R&DREFINERIES/PIPELINES/R&D MARKETING / IBPMARKETING / IBP

WORKMEN: revisedWORKMEN: revised

Grade Pay scales Grade Pay scales

I 10500 - 24500 I 10500 - 24500

II 10600 - 26500 -  -

III 10800 - 29000 II 10800 - 29000

IV 11900 - 32000 III 11900 - 32000

V 12800 - 35000 IV 12800 - 35000

VI 13800 - 38500 V 13800 - 38500

VII 14800 - 40500 -  -

VIII 16000 - 43700 VI 16000 - 43700

IX 20000 – 49200 (Prospective)

20000 – 49200 (Prospective)

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• Annual increment date- 1st January. • Rates of annual increment :

- Officers - @3% of BP - Non-Officers - @3% of BP

• Promotion increment - On promotion to higher grade- Officers - @3% of BP - Non-officers - @3% of BP

• Stagnation Increment – – Officers: On reaching the maximum of scale, a stagnation

increment can be granted once every two years, subject to maximum of three, if the performance rating is ‘Good’ or above.

– Non-officers: On reaching the maximum of scale, a stagnation increment can be granted once every two years subject to max of 3, if the performance rating is ‘Satisfactory’ or above.

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Dearness Allowance (DA)Dearness Allowance (DA)

o Besides, Basic Pay (BP), employees are also entitled to Dearness Allowance.

o DA is paid as percentage of Basic Pay- linked with all India index ‘AICPI’

o Revised on quarterly basis, i.e. Jan, April, July & October.

o Rate as on 1.04.11– 47.2% of BP

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• House Rent Allowance (HRA)House Rent Allowance (HRA)

q House Rent Allowance is linked to the place of duty.

q Based on population, Cities classified in 03 Category:–

X class - 50 lakhs and above – HRA@30% of BPY class - 5-50 lakhs – HRA@20% of BP Z class - less than 5 lakhs – HRA@10% of BP

q HRA not admissible when Corporation owned/leased accommodation provided to employee

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• Perks & Allowances would be admissible to officers upto the ceiling of 50% of Basic Pay.

• In this regard, a ‘Cafeteria approach’ has been introduced, allowing the officers to choose from set of perks & allowances.

• The cost of infrastructure facilities such as hospitals, holiday homes & clubs, and the medical expenses, attributed to officers have been loaded on pool basis. The current compulsory loading is 6% of BP.

• The perks & allowances admissible upto the balance of 44% of BP would be on individual basis.

• Perks & Allowances is under review from 1.4.10.

PERKS & ALLOWANCESPERKS & ALLOWANCES

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• List of perks & allowances within 44% of BP would be as under:

– Tea Allowance– Reimbursement of lunch/ refreshment

expenses – Subsidized Canteen facilities, wherever

existing – Washing Allowance – for those who have not

been provided with protective clothing – Rationalization Adjustment Allowance (RAA) – Professional Updation Allowance – Children Education Assistance

PERKS & ALLOWANCESPERKS & ALLOWANCES

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• List of perks & allowances within 44% of BP would be as under:

– Furniture items & maintenance reimbursement under Furniture hire Scheme

– Interest subsidy on HBA and Conveyance Advance

– LFA / LTC– Conveyance Facility– Nominated Hotel Facility – Brief Case/ Electronic Organizer/ Digital

Diary

PERKS & ALLOWANCESPERKS & ALLOWANCES

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• Optional / new allowances :

– House Maintenance / Upkeep Allowance– Fitness Allowance– Professional Attire Allowance– Sundry Allowance

PERKS & ALLOWANCESPERKS & ALLOWANCES

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• List of perks & allowances outside the purview of perks ceiling of 50% of BP

– North East Allowance – 12.5% of BP

– Special Allowance upto 10% of BP for serving in the difficult and far flung areas, subject to approval of Ministry.

– NPA

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• Not uniformly admissible to all the employees.

• Depends on grade /nature of assignments & some other condition etc.

• Revision Cycle: 04 years

WORK RELATED ALLOWANCES

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• Shift allowance for employees in rotating shiftShift allowance for employees in rotating shift

o Rates per shift for actually performing shift duty:

– OfficersOfficers – Gd. A&B - Rs.80 per shift (mor/eve)

- Rs.130 per shift (night)

– Gd. C & above - Rs.100 per shift (mor/eve)

- Rs.150 per shift (night)

– WorkmenWorkmen – all grades - Rs.65 per shift (mor/eve) – Rs.105 per shift (night)

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• Washing allowance:Washing allowance: Payable rates:- & amount diverted towards SABF.

Category Payable rates

Officers

Payable rates

Work –men

Where uniform provided(eg.statu./medical etc.)

105 p.m.

25 p.m.

85 p.m.

14 p.m.

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• Special Compensatory Off (SCO) for Special Compensatory Off (SCO) for 48 hrs. (officers)48 hrs. (officers)

o 9 SCOs per quarter automatically encashed in the first month after the quarter.

o SCO encashment includes BP, DA, Stagnation Increments.

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• Compensation for performing duty beyond normal hrs. of workCompensation for performing duty beyond normal hrs. of work– Officers: Transport / out-of-pocket expenses for performing duty on:– On holidays / closed days or weekly rest days– Extended duty on regular working day– Emergency duty after office hrs. when called from homeo Compensation- For 48 hrs. vary from Rs.250/- to Rs.1400/-, For 36.25 hrs.-Rs.250-Rs.900/-o Compensatory off in certain situations.

¾ Workmen: OvertimeWorkmen: Overtime for performing duty beyond 48 hr.per week duty:

o Compensated by hourly overtime wages double the normal rate

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Conveyance advance: For Gr. ‘A’ officersConveyance advance: For Gr. ‘A’ officers

o CAR – Rs. 2.65 Lac( recoverable in 144 inst.)

o 2–Wheeler: – Actual Cost –recoverable in 96 inst.

• Interest rate – 2.5% p.a. (Simple Interest on diminishing Principal amount)

House building Advance(HBA)House building Advance(HBA)

o Eligibility: After completion of 5 yrs.service.

o Ceilings–Gr. A,B&C--Rs.12Lac, D-F-14, G & above-16Lac----recoverable in 25yrs. Or balance service period

o Interest rateInterest rate– 5% p.a. (Simple Interest on diminishing Principal amount)

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• Reimbursement of Conveyance Running & Maintenance expenses:Reimbursement of Conveyance Running & Maintenance expenses: to those officers who own cars/scooter /Motor-Cycles & utilize same for official duties/purpose: to those officers who own cars/scooter /Motor-Cycles & utilize same for official duties/purpose:

o Rates for cars: Annual ceiling for each grade have been fixed based on prescribed mileage rate for distance: • Grade A - Rs.37800 p.a. Rs.3150 pm• Grade B - Rs.58800 p.a. Rs.4900 pm• Grade C - Rs.59640 p.a. Rs.4970 pm• Grade D - Rs.72240 p.a. Rs.6020 pm• Grade E - Rs.73920 p.a. Rs.6160 pm• Grade F - Rs.88200 p.a. Rs.7350 pm• Grade G - Rs.92400 p.a. Rs.7700 pm• H& above - Rs.201600 pa Rs.16800 pm

o Rates for Scooter/ Motor-Cycles: Rs.1506 p.m., Moped Rs.807 pm

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Conveyance facility for Sr. Executives:

– Those heading the key functions considered as equivalent to projects, would be entitled to Company car with driver :

§ Grade-H- Any Indian make/model Car up to Rs.6.5 lacs.§ Grade I - Any Indian make/mode Car up to Rs.7.5 lacs .

- Other Sr. Executives would be using their own car : § for which reimbursement towards conveyance R&M of Rs.16800 pm, Driver charges of Rs.8000 pm and Misc. charges of Rs.3000 pm is allowed.

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• Officers are entitled to procure furniture items as under:

Grade Ceiling (in Rs.)

Hire charges (p.m.)

A 40,000/- 55/-

B 50,000/- 60/-

C 60,000/- 65/-

D 75,000/- 70/-

E 1,00,000/- 80/-

F 1,15,000/- 85/-

G 1,40,000/- 90/-

H/I 1,50,000/- 100/110/-

Furniture Scheme on HireFurniture Scheme on Hire

• Repair & Maintenance (R&M) - @ 10% p.a. • Replenishment – after 7 yrs.

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• Home – Desk Top PC Scheme / LAPTOPHome – Desk Top PC Scheme / LAPTOP

o Cost ceiling - Rs.35,000/-

o Hardware /Software up-gradations- reimbursement up to Rs.5,000/- p.a. supported by vouchers.

o Maintenance and internet connectivity- reimbursement up to Rs.12,200/- p.a. on self-certification.

o Replenishment after 4 yrs. on buy back at depreciated value, calculated @25% p.a.

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• Long Service Award Long Service Award to Employees:

o Awarded with 24 carat gold coin For rendering good and satisfactory service :

15 yrs. - 5 gm. Gold coin25 yrs. - 10 gm. Gold coin30 yrs. - 20 gm. Gold coin35 yrs. - 20 gm. Gold coinSuperannuation - 25 gm. Gold coin

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• Traveling entitlement:

• Officers in Gd.A to C – By 2ND AC-Mail/Exp.Train• By air in certain specified sectors. Other than certain specified sectors in work-exigencies. • Officers in GD. ‘D’ & Above – By Air

• Daily allow. – Varies from Rs.800 to Rs.1100 per day

• Local Conveyance –Varies from Rs.200 to Rs.300 per Day

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o Eligibility: Self, spouse, dependent eligible children and wholly dependent parents (residing under same roof &

income not exceeding Rs.3000/- p.m.)

o Frequency: Once in a block of 2 calendar years. o Present block yr.- 2009-2010.

o Place :Home town/any place in India by shortest route.

o Foreign visit on LTC: Gd. D & above can also visit abroad once in alternate block. Fare is restricted to farthest point mainland in India from the place of posting.

LEAVE TRAVEL CONCESSION

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oExp. on hiring accommodation Exp. on hiring accommodation – Can – Can draw 100% DA amt. for self/family members for maxi. 10 nights.

oLTC EncashmentLTC Encashment Rate: o Gd. A/B/C – Rs.4532/- per ticket,o Gd.‘D & above’ -Rs.7700/- per ticket.

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• Additional LTC facilities at North-Additional LTC facilities at North-East(NE) locationsEast(NE) locations

o Employees posted at NE locations having home-town outside NE states - can avail liberalized LTC facility.

o In addition to normal LTC - Employee & family members may visit home town once in two yrs.

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Lump sum LFA in Lieu of LTCLump sum LFA in Lieu of LTC

o Employees can opt for lump-sum LFA in lieu of LTC entitlement. Lump-sum amount is admissible as under:

Sl.

Category/Grade Lump-sum entitlement

1. Workmen with BP less than Rs.15440/-

1.00 time of actual BP+DA of one month

2 Workmen with BP of Rs.15440/-& above

1.25 times of actual BP+DA of one month

3. Officers in Gd. A, B & C 1.50 time of actual BP+DA of one month

4. Officers in Gd. D, E & F 2.00 times of actual BP+DA of one month

5. Officers in Gd. G, H & I 2.50 times of actual BP+DA of one month

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• Holiday HomesHoliday Homes – – Nainital,Puri, Darjelling,Goa, Mahabaleshwar, Ooty, Simla

& Manali.

• Nominated Hotels for oNominated Hotels for officers & Family members: Once in two yrs. Maxi. for 04 days, @Rs.50/- per day.

• Nominated Hotels: Mumbai. Kovalam, Udaipur, Port- Blair. Mussoorie,

Lonavala, Kodaikanal, Jodhpur & Gangtok

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• Medical Benefits

o Eligibility: Employees & family members, viz. Spouse, wholly dependent children and parents to be declared dependent by employees.

o Parents’ eligibility–Combined monthly income not to exceed Rs.9000/-&should permanently reside with the employee under the same roof.

§ At Refinery locations: o Hospitals are maintained in Ref. townships having indoor, outdoor &

investigative facilities and equipped to meet all emergencies requirement.

o For specialized treatment which cannot be treated in hospital, the patient may be referred to an outside nominated hospital/specialist.

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Medical Facility other than Refinery locations:

o AMA: May take treatment from an Authorized Medical Attendant (AMA) either under Allopathic or Homeopathic system only.

o Domiciliary & hospitalization treatment: may be obtained in any nursing home/ hospital or from specialist of choice.

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o Nominated Hospitals: Almost all Super

Specialty/reputed Hospitals are nominated at various locations, where treatment may be obtained directly or on reference from office.

o Reimbursement of expend. : As per actuals subject to rules.

o Ceiling of charges: Ceilings on bed charges, consultation charges, dental treatment, physiotherapy treatment etc. have been laid down.

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§ MEMBERSHIP OF PROFESSIONAL BODIESMEMBERSHIP OF PROFESSIONAL BODIES

o Reimbursement of Annual fees @ Rs.2000: For obtaining membership of any professional body/society relevant to profession.

o Reimbursement of Annual fees @ $ 150 0R Rs.7000: For obtaining membership of any international professional body/society relevant to profession.

o Life memberships / One time – RS.6000/-

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§ MOBILE PHONE TO OFFICERSMOBILE PHONE TO OFFICERS

o Gr. A Officers -reimbursement of cost of Mobile Handset @ 7000.

o Call charges for Gr. A : Reimbursed up to Rs.1400/- for cycle of 02 months.

o Buy back: Old handset can be bought back after 04 yrs. at depreciated value @ 5% and new handset can be bought.

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o Performance Related Performance Related Pay (PRP)Pay (PRP)

o MOU rating / performance of the Co.o Profit Before Tax of the Co.o Incremental profit of the Co.

– 60% of PRP will be given with a ceiling of 3% of PBT.– 40% of PRP will come from 10% of incremental

profit.– Total PRP, however, will be limited to 5 % of the

years PBT.

o Performance of the individual officero Grade of the individual officero ‘Bell curve approach’ in grading the officers

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PRP %age linked to:PRP %age linked to:

o MOU rating – (40% to 100%). No PRP for Poor rating

o Performance of the individual officer - (40% to 100%). No PRP for Poor rating

o Grade of the individual officer – (40% to 200%)

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• Superannuation BenefitsSuperannuation Benefits (under review)

o Co.’s contribution - 30% of BP & DA

o Superannuation Benefits: Will be under ‘defined contribution scheme’.

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• Superannuation Benefit Fund Superannuation Benefit Fund Scheme (SABFScheme (SABF))

o It is a Employees’ Fundo Benefits: Accrue to members on

following conditions: oOn attaining age of superannuationoDeath / permanent total disablement

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o Monthly direct contribution: Based on age-

group of employee at the time of joining the scheme.

o Rate: For age group up to 38 years-- 2% of BP+DA.

o Indirect contribution: Diversion of money equivalent of Uniform facility and some allowances / benefits like Tea Allowance, Washing Allowance, etc.

§ Benefits: Benefits: Monthly cash payments: After superannuation -40% of BP, DA & Non-Pract. Allow. wherever applicable, linked to 32 years of service.

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§ Rehabilitation scheme under SABFRehabilitation scheme under SABF – in case of death or permanent total disablement- o Option-1 – Monthly payment of @ 40% of last

drawn salary to nominee -assuming notional superannuation

of Empl. (PF etc. dues can be withdrawn by nominee)

o Option-2–Monthly payment of full last drawn salary of employee to spouse till notional date of superannuation, subject to deposit of PF, Gratuity, Leave Encashment & Group Insurance amount.

o Thereafter, benefit would be based on the actual years of service put in by the deceased employee.

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Option-3 – Employment to one of the suitable and dependent wards who possess the prescribed qualifications, fulfills the job specifications and meets other eligibility criteria of recruitment including medical fitness.

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• Post Retirement Medical Scheme(PRMS)

o Enrolment & contribution: Enroll. done at retirement time by paying one time contribution (Rs.5250-9000 / 2600) for self, spouse, dependent parents & spastic child.

o Annual Domiciliary ceilings– Ranges from Rs.12000 to Rs.28000 pa.

o Annual Hospitalization ceilings : Ranges from Rs.25500 to Rs.63000 pa. Availed in 2 yearly block – if not utilized, carried forward to next.

o Hospitalization ceiling: Can be utilized for chronic OPD ailments, costly investigations, health check-up, etc. against vouchers.

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o In case of hospitalization in non nominated hospitals- Expenses shall be reimbursed limited to prescribed Hospitalization ceiling.

o For treatment specified ailments : 100% reimbursement, subject to conditions.

o For other ailments- 85% reimbursement, subject to conditions.

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Provident Fund (PF)Provident Fund (PF)

o Own PF Trustee : IOC has its own Provident Fund run by PF Trusts

o Employees’ Contribution : @ 12% of B. Pay & DA.

o Company contribution : Equal amount is paid.o Interest Rate : @ 8.5% p.a. on the accumulation.

o Refundable / non-refundable loans: Can be drawn for specified needs subject to specified conditions.

o Refund of contribution: Employees' and corporation's contribution, together with interest, is refunded at the time of retirement.

o Retention of fund: The retiree at his option, may retain the Fund beyond retirement for 8 years.

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GratuityGratuity

o Gratuity rules - as per Payment of Gratuity Act, 1972

o Rate: Payable @15/26 of monthly emoluments for each completed year of service or part thereof in excess of six months(15/26XComted. yr. ser. X monthly emolu.)

o Maximum ceiling: Rs.10 lacs

o Ceiling Revision: by Govt. Of India from time to time.

o Payable at the time of separation: Provided service rendered in the Corporation is 5 years or more.

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• BENEFITS TO NEW OFFICERS AFTER BENEFITS TO NEW OFFICERS AFTER

COMPLETION OF INDUCTION TRAINING AND COMPLETION OF INDUCTION TRAINING AND POSTING :POSTING :

o CONVEYANCE ADVANCEo FURNITURE ITEMS o HOME DESK-TOP PC / LAPTOPo MOBILE PHONE o BRIEFCASE

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