clarification of expectation

8/12/2019 Clarification of Expectation

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SAIL-ISP

Clarification of Expectations

(with special emphasis onMONEY MATTERS)


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PRESENTED BY:

SURESH SIVARAMANSR. MANAGER (FIN)-PAY

SAIL-ISPBURNPUR

Venue: DIPONI Date: 03-03-2014

9 4 3 4 7 7 6 3 6 4


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AN AGE OLD ADAGE

CONTENMENT

IS

INVERSELY

PROPORTIONATE

TO

OUR

EXPECTATIONS

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Hence,

BE CONTENDEDWITH WHAT YOU HAVE

AND NOTWITH WHAT YOU ARE .


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SALARY

A sign of our having grown up from the

days of pocket money to money in our

pocket.

Perhaps the main reason why we work. Something that we most eagerly look

forward to.


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Till now you were perhaps rich but chances

are that from now onwards you would be

afflicted with PURSITIS.

Pain caused by reaching for the wallet

Rich father/poor father


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WHAT IS SALARY1. Remuneration received by an individual,

periodically, for service rendered, as a resultof a contract.

2. Employer-employee relationship is asine-qua-nonfor taxing purpose.

1. Salary of partner Profits & Gains from Businessand Profession.

2. Salary of MP, MLA- Income from Other Sources.

3. Pension received from former employer- Salary.

4. Pension received by family on death of employee-Income from Other sources.


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SALARY as per I.T.Act 1961

Sec.17(1) of I.T.Act - inclusive definition

Includes

Wages

Perquisites

Gratuity

Profits in lieu of salary (V.R.compensation)


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SALARY COMPONENTS in SAIL

Basic Pay Dearness Allowance

Allowances including cafeteria

Perquisites Leave encashment

Non Practising allowance for doctors

Provident fund Gratuity


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GRADE SCALE (Rs.) ANNUAL

INCREMENT

FOR ALL

GRADES IS

3% in JULY

E-0 12600-32500

E-1 20600-46500E-2 24900-50500

E-3 32900-58000

E-4 36600-62000E-5 43200-66000

E-6 51300-73000 E-6, E-7, E-8

MERGEDw.e.f. 01.01.2007E-7 51300-73000E-8 51300-73000

E-9 62000-80000

G

R

A

DE

S

T

R

U

C

T

U

R

E

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TERMS OF APPOINTMENT

To be designated as Management Trainee

(E1) for 1 year.

Then designated as Jr.Mgr. will be on

probation for another year.

Confirmation in E1 w.e.f. date of joining

only on successful completion of probation

period (i.e. after 2 yrs).

Confirmation will be informed in writing.

Cannot seek transfer to other plants for first

4 years (2 yrs for departmental candidates)


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INCREMENT

Annual increment @ 3% Basic would be rounded to next higher

multiple of rupees ten.

Increments for all executives throughoutSAIL will be on 1st of July each year.

(from 01.07.2011).

FIRST increment after confirmation in E1grade i.e. after 2 yrs.

Service- 6 month on increment date.


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INCREMENT - clarification

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JOINING

DATE

DATE OF COMPLETION OF RELEASE OF 1ST

ANNUALINCREMENTTRAINING PROBATION

MAR

2014

MAR

2015

MAR

2016

JUL

2016OCT

2014

OCT

2015

OCT

2016

OCT

2016

- Paid in Oct16

- w.e.f. Jul16


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DEARNESS ALLOWANCE

A part of the salary and is a percentage of

the basic pay. Reviewed & may be changed every quarter

Apr-Jun, Jul-Sep, Oct-Dec, Jan-Mar

Provided to help against rise in pricesPRICE DOUBLED

OR

QUANTITY HALVED

Change dependant on All India ConsumerPrice Index for Industrial Workers .

DA: Jan-Mar14= 90.50% of Basic


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CAFETERIA- (a) % age of BASIC PAY ONLY

Choose out of 17 heads of payment

No change will be allowed during the year

except for % age change due to postings

As per duty hours at the place of posting

48 hours or more in a week = 46%


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CAFETERIA - (b)

PLEASE REMEMBER TO:

Fill up form ONLINE within the 15.03.14 for

March14 salary.

For next f.y. fill up online within 15.04.2014

(SAIL ISP PORTALPAY SECTION-

CAFETERIA)

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OTHER ALLOWANCES

Fixed quantity given in addition to salary tomeet requirements of employees

Fully taxable unless specifically exempted

Exempt allowances (to specified extent)

House Rent Allowance: [20%=4120/- p.m.]

Conveyance allowance [ 5%=1030/- p.m.]

Meal CouponLTC/LLTC- Twice in block of 4 yrs-

Travelling allowance on tour


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EXEMPT - HOUSE RENT ALLOWANCE

Monthly Rent receipts

LandlordsPAN for rent > Rs.1 lakh per annum

Exemption- least of the following

a. Actual house rent allowance received

b. Excess of rent paid over 10% of salary

c. 40% of salary (Salary= Basic + DA)


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EXEMPT - MEAL COUPON

Option for Meal Coupon must be availed inthe cafeteria form (1 to 10% of basic)

Meal coupon must be purchasedvalue

Rs.1300 per month Maximum exemption limit - Rs.1300/- p.m.

% age option in cafeteria must be over this

limit to get maximum benefit. (Rs.20600 * 7% = Rs.1442)

CAUTION: Verify Scope For Using Meal Coupons


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PERQUISITES

Casual emolument or benefit attached to anoffice or position

Value of accommodation provided at

concessional rent Value of concessional loans

No perquisites on phone including mobile

phonetalk time/handset value limit set by company

rates


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HOUSE PERQUISITE

7.50% of Salary (Basic + DA + Taxable cafeteria

+ Leave Encashment + Reward/Bonus etc- other

than perquisites like concessional loan etc.) will beadded to the total income as house perquisites

Rent recovered from the employee will be

decreased from the above.

Income will exclude perquisites, other income

declared by the employee.


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OTHER PERQUISITES

Vehicle loan at concessional rates perquisites is

the difference between SBI rates and SAIL rates

Others- not applicable for this group of

management trainees Medical Expenses up to Rs.15000/ per year at branch

offices is exempt.

Furnishing allowance (applicable from E4 )

House Building loan (applicable after 7 yrs)


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INFORMATION

Salary will be credited

to bank accounts

Local banks and theircore bank branches

SBIsame day credit

Other bankscredit

may take 3-4 days

HRDwill facilitate

opening of bank A/c

SBI AXIS UBIUnited

Bank of

India

UCO

BOI IDBI Bankof

Baroda

BCCB


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CONGRATULATIONS!

You will draw your FIRST salary in ISP

(may be the first salary in your life)For March 2014 ON 1stof APRIL 2014

(APRIL FOOL not intended)

This will be on notional attendance basis.

Adjustments based on actual attendancewill be made in April salary.

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BLINKING BREAK


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FACILITIES - Accommodation

First yearRent Free hostel accommodation No electricity charges

However, House Perquisites will be levied

****

Thereafter, B.B.Type Flats @ Rs. 96/- p.m.

HRA @ 20% of ONLY BASIC

PROVIDED accommodation as per

eligibility is NOT available

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FACILITIES- Loans

Vehicle Loan

Circulars will be issued by PL-OD Sec.

Loan - 2 wheelerRs.50000;

Loan - 4 wheeler Rs.3 lakhs - ( up to E4)

Interest - 2 wheeler 4% up to Rs.30000/-

6% above Rs. 30000/- Interest 4 wheeler - 6% - up to 3 lakhs

HBL- MIN 7 YRS OF SERVICE


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FACILITIES- MobileMOBILE

GRADE SET VALUE (Rs.) CALL/P.M.(Rs.)E0 3000 150

E1-E2 3000 250

E3-E4 5000 350E5-E6 8000 600

E7 10000 650

E8 15000 1200

E9 20000 ACTUAL

Call charge - within ISP=free, within SAIL 1 paise per 3 sec.


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Mobile-contd

New set3 yrs after purchase of old set

Purchase not allowed during last 3 months ofservice

SIM to be surrendered on separation

Retention value of set to be paid

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PERIOD RETENTION VALUE

UP TO 6 MONTHS 75% of original cost

>6 months & up to 12 months 50% of original cost



> 36 months 5% of original cost

>48 months 2.50% of original cost


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FACILITIES - Medical

Treatment at Co. hospital for self & family

Dependants:

parents (Rs.6000/- p.m. both together)

Children, spouse, brother, sister - (Rs.3000/-p.m. on individual basis)

Occupational Health Unit inside works Refer to outside speciality hospitals

Medical booksfill particulars online


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TRAVELLING ALLOWANCE

Tour Approval (ED)- tour approval- online

Entitlements

TA bills(aprv.E-6)

Bills to be submitted within one month of

completion of tour

Tour advance only through salary

- tour on 10th, adv on next 1stpreplan


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TA/DA ENTITLEMENT: E0E3

HOTEL

SPECIFIED LOCATIONS OTHER LOCATIONS

3 STAR = ACTUAL

NON-STAR=1400 per day

3 STAR=ACTUAL

NON-STAR=1200 per day

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D.A.

STAY IN HOTEL STAY AT M.T.I. OWN ARRANGEMENT

Rs.380/- per day Rs.190/- per day Rs.670/- per day

TRAVEL

RAIL AIR ROAD MILEAGE

2 AC/CC NO Rs.7.00 per k.m.


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IN A LIGHTER VEIN

Aft th L k W H b itt d hi TA Bill f hi t t i k th


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After the Lanka War, Hanuman submitted his TA Bill for his tour to pick up theSanjevani booti.

The Dealing Assistant in the TA Section raised 3 objections as under: -

a) Hanuman did not take permission of King Bharat for undertaking the tour;

b) Hanuman being a Group 'D' official was not entitled to Air Travel; and,

c) Hanuman was asked to carry a plant, but instead carried the wholemountain. Hence claim for excess baggage not acceptable.

When Hanuman invited Ram's attention to the above, he stated that hecould do nothing since the queries raised were as per rule. However, seeingthe plight of Hanuman, Lakshman offered to speak to the dealing assistant.Lakshman spoke to the dealing assistant and offered him 10% of the TABill.

Now the dealing assistant wrote on file: -Re-examined. Since Bharat was ruling as a representative of Ram, and,since Hanuman had gone on official work under directions of Ram, thesedirections would not only suffice, but would also constitute permission toutilize non - entitled class of travel. The excess baggage is justified as

Hanuman being a Group 'D' official might not have been able to properlyidentify the proper plant, and, bringing the wrong plant would haveentailed multiple journeys, thereby increasing expenditure from theexchequer.

Accordingly, the claim, as submitted, may be passed."


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PROVIDENT FUND

Compulsory

Recovery @ 12% of Basic + DA

Employers matching contribution

Interest payable @ declared rate each year -(below 9% is tax free)

Share of Contribution to Pension (RPFC)

from employerscontribution (max Rs.541/-p.m.)


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V.P.F.

Voluntary

Fixed amount-MAXIMUM Rs.25000/- p.m.

No Employers matching contribution

Interest payable @ P.F. Rates New Membership only in Apr & Oct

No change allowed during the year

However, may stop recovery anytime

Contact Pay section


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S.E.S.B.F.

Compulsory

Recovery @ 2% of Basic + DA

No matching contribution

Interest payable @ declared rate each year


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CLUBS & CO-OPERATIVESCLUBS ORGANISATIONS CO-OPT

SOCIAL SPORTS RELIGIOUS

- B.C.

- B.B.

- F.S.

- RSTS(with

Library

facility)

- BUC

- BCC

- TOWN PUJA

- SHIVASTHAN

- UTKAL PARISHADA

- STEEL

- WORKS

-EMPLOYEES

(with loan facility)

In addition, you can become member of theOFFICERSASSOCIATION(with GSLI membership in addition)

IOA office bearers would contact you for GSLI scheme

Membership only in March every year.

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E.F.B.S.

Minimum 1 yr. service must be completed.

On death or termination of service on

medical grounds Deposit PF (excluding VPF) + Gratuity

Last drawn Basic + DA till original

scheduled retirement date Refund of deposit money on scheduled

retirement date


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EFBS(V) Employees Mutual Family Benefit Scheme (Voluntary)

Contribute Rs.25/- per death, per month

Contribution shall be paid to the nominee

Around two lakhs for each nominee

A valuable support to the bereaved family at

the most crucial juncture in their life.

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GRATUITY

Minimum 5 yrs of service to be rendered

except in death cases

Pay means last drawn Basic + DA

Gratuity amount is[PAY*15/26*service yrs]

More than 6 months of service=1 year

Max. ceiling for executives=Rs.10 lakhs

Keep this in mind before doing job hopping.

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TAXING TIMES


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TAXES

STATUTORY TAXES

INCOME TAX ACT 1961

WEST BENGAL STATE TAX ON

PROFESSIONS, TRADES, CALLINGS &

EMPLOYMENTS ACT 1979


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PROFESSION TAX

GROSS SALARY PROFESSION TAX

>Rs.40,000/- p.m. Rs.200/- p.m.

Handicapped employeesexempt from P.Tax


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INCOME TAX

Re.1 Rs.2,00,000 NIL

Rs.2,00,001 Rs.5,00,000 10%

Rs.5,00,001 Rs.10,00,000 20%

Above Rs. 10,00,000 30%

Ed.Cess @ 3% on tax amount

Income 5 lakhs or below tax relief of Rs.2000(Sec.87A- from f.y.13-14)

eFiling of I.T returns for income >5 lakhs(fy.13-14)


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Confused?

Dont worry simply follow the actionpoints in the next slide and relax.

Dont think much thinking is bad for

health.


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W l k f d t l & l t i ti


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We look forward to a long & pleasant association

clarification of expectation

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