BENEFITS & ALLOWANCES

REVIEW & PROPOSALS

Mumbai IOOA Team

September 2010

PREAMBLE

Presentation based on the following basic premises :

1) Way forward for the Corporation from the employee context depends on the following :

i) Increased use of advanced technology by officers.

ii) Brand promotion also at individual level where each officer is a "happy" brand ambassador of the Corporation.

2) Shift in computation of employee payments required from a "remuneration" concept to a "compensation" concept.

3) Paying taxes when it can be legally saved is foolishness & lastly

4) There must be an incentive to grow.

CAFETERIA PERKS

FURNITURE MAINTENANCE :

CBDT GUIDELINES W.E.F 1ST APRIL’2009 : OBLIGATION OF MAINTENANCE OF FURNITURE ON HIRE LIES WITH EMPLOYER & NOT TAXABLE AT HANDS OF EMPLOYEE

FURNITURE MAINTENANCE CAN THUS BE CONSTRUED AS AN OBLIGATION OF EMPLOYER AND NOT A PERK. TO BE REMOVED FROM CAFETERIA PERKS

RATE @ 10 % WITH EFFECT FROM 2007-08. DA INCREASE SINCE APRIL’07 IS 34.3 %. CONSIDERING END OF MINI LTS PERIOD i.e. SEPT’13, DA LIKELY TO BE AROUND 75 %. INFLATIONARY IMPACT TO BE CONSIDERED IN SETTLING OF MAINTENANCE RATES AND THUS ENHANCED TO 17.5 % ( 75 % INCREMENT ON 10 %)

CAFETERIA PERKS

FURNITURE ON HIRE : CBDT GUIDELINES W.E.F 1ST APRIL’2009 : 10 % OF CAPITAL COST TO BE TREATED AS PERK AND TAXED AT HANDS OF EMPLOYEE 10 % TAKEN AS CAFETERIA PERK FOR EVERY RS 100 OF FURNITURE, RS 70 RECOVERED

UNDER CAFETERIA IN 7 YEARS, RS 21 PAID AS TAXES AND RS 5 PAID AS BUYBACK PRICE i.e RS 96 PAID BY EMPLOYEE. SINCE 3 % PAID AS TAXES EVERY YEAR, AMOUNT TO BE CONSIDERED IN CAFETERIA TO BE REDUCED TO 7 % MINUS RENT AMOUNT. ADDITIONALLY AS 7 % AMOUNT WILL BE PAID BACK TO CORPORATION EACH YEAR UNDER CAFETERIA, 5 % BUYBACK AMOUNT TO BE ABOLISHED. PERIODICITY OF BUYBACK TO BE REDUCED TO 4 YEARS

FROM PRESENT 7. MINIMUM GRADE ENTITLEMENT TO BE 1.25 TIMES OF ONGC TO COMPENSATE FOR DELAY OF ABOUT 1.5 YEAR IN IOCL FINALIZATION FROM ONGC DATE OF 17.08.09. CONDITION OF FURNITURE ON HIRE TO ONLY ONE SPOUSE IN CASE BOTH WORKING FOR IOCL TO BE DONE AWAY WITH

CAFETERIA PERKS

FURNITURE ON HIRE :

THE ANNUAL MAINTENANCE CHARGES @ 17.5 % SHALL BE OUTSIDE THE PURVIEW OF CAFETERIA NIL VALUE AT TIME OF RETIREMENT IRRESPECTIVE OF YEAR OF PURCHASE. FOR RESIGNATION, DEPRECIATED VALUE ( FULL IN 4 YEARS) MINUS AMOUNT PAID UNDER CAFETERIA TO BE RECOVERED

GRADE EXISTING ONGC PROPOSED

A 40000 125000 140000

B 50000 125000 160000

C 60000 150000 180000

D 75000 150000 200000

E 100000 175000 220000

F 115000 175000 240000

G 140000 250000 300000

H 150000 250000 325000

I 150000 300000 375000

CAFETERIA PERKS

BRIEFCASE & DIGITAL DIARY : CBDT GUIDELINES W.E.F 1ST APRIL’2009 : REIMBURSED FOR OFFICIAL USE AND HENCE NOT TAXED BENEFIT TO BE THUS TREATED FOR OFFICIAL USE AND NOT AS A PERK. TO BE REMOVED FROM CAFETERIA PERKS CURRENT PERIODICITY : 3 YEARS. TO BE REVISED TO 2 YEARS AS LIFE OF THESE PRODUCTS NOT BEYOND 2 YEARS. CURRENT MARKET RATES FOR BRIEFCASE OF BRANDS SUITABLE FOR USE CONSIDERING FORTUNE STATUS COMPANY ARE IN THE RANGE OF RS 3750 TO RS12000 ( SAMSONITE, DELSEY & HIDESIGN) RATES TO BE REVISED FROM RS 850 / 1250 & 1650 FOR A- B, C-F & G & ABOVE TO RS 4000 / 6000 & 10000 FOR A-B, C-E AND F & ABOVE ( CATEGORY SHIFT FOR GRADE F CONSIDERING MERGING OF THEIR SCALE WITH G & H) DIGITAL DIARY CAN BE DONE AWAY WITH PROVIDED MOBILE PHONE RATES ARE ENHANCED TO PDA / SMART PHONE RATES AS DEALT LATER

CAFETERIA PERKS

CAR LOAN INTEREST :

LOAN PROVIDED AS AN ASSISTANCE TO ENABLE OFFICERS TO EXECUTE WORK RESPONSIBILITY @ 2.5 % INTEREST

SAME RECOGNIZED BY ORGANIZATION IN CONSIDERING ONLY PART OF PERMISSIBLE REIMBURSEMENT AGAINST R&M AS PERK

LOAN INTEREST BENEFIT TO BE THUS TREATED AS WORK NECESSISITY & NOT AS PERK. TO BE REMOVED FROM CAFETERIA PERK.

AT THE MAX, LOAN COMPONENT SHOULD ALSO BE DIVIDED INTO A CAFETERIA AND NON CAFETERIA COMPONENT SIMILAR TO CAR MAINTENANCE TREATMENT

ABOVE IS ESSENTIAL CONSIDERING THAT AS A RESULT OF FIXING OF BASE RATES BY BANKS, BORROWING RATE OF CORPORATION IS LIKELY TO INCREASE FROM AROUND 5.5 % FOR 2009-10 TO AROUND 7-7.5 % FOR 2010-11

CAFETERIA PERKS

CAR LOAN

LOAN ENTITLEMENT TO BE INCREASED IN LINE WITH ONGC FOR GRADE A-H AND MARGINALLY HIGHER FOR I.

HIGHER ENTITLEMENT FOR GR I CONSIDERED BASED ON THE PRINCIPLE OF PROVIDING INCENTIVE TO GROW.

RECOVERY PERIOD CAN BE REDUCED FROM THE CURRENT 160 INSTALLMENTS PROVIDED MAINTENANCE CHARGES REVIEWED IN LINE WITH ONGC.

GRADE ONGC AMOUNT

A-B 500000 500000

C-D 600000 600000

E-F 700000 700000

G- H 800000 800000

I 800000 900000

CAFETERIA PERKS

HBA LOAN : INCOME TAX REBATE BENEFITS AGAINST HBA LOAN PERKS NOT BEING PASSED TO EMPLOYEES HBA LOAN RATE TO BE MADE AT PAR WITH CORPORATION BORROWING RATE AND COMPONENT TO BE DELETED FROM CAFETERIA PERK ENHANCEMENT OF HBA ENTITLEMENT REQUIRED AS PER FOLLOWING WITH GRATUITY ADJUSTMENT OF RS 10 LACS:GR A TO C RS 25 LACS 100 BP OF GR A

GR D TO E RS 35 LACS CONSIDERING TAKE HOME PAY OF RS 60000, MINIMUM BALANCE SERVICE OF 20 – 15 YEARS, EMI OF 50 % OF TAKE HOME & 7 % INTEREST, AFFORDABILITY IS 38.5 LACS FOR 20 YEARS & 33.5 LACS FOR 15 YEARS

GR F AND ABOVE

RS 40 LACS CONSIDERING TAKE HOME PAY OF RS 80000, MINIMUM BALANCE SERVICE OF 15 – 10 YEARS, EMI OF 50 % OF TAKE HOME & 7 % INTEREST, AFFORDABILITY IS 45 LACS FOR 15 YEARS & 35 LACS FOR 10 YEARS

CAFETERIA PERKS

HBA LOAN :

HOUSE RENOVATION LOAN UNDER THE OVERALL CEILING OF HBA, TO BE REVISED TO RS 10.0 LAKH, TO EXTEND THE BENEFIT FOR THOSE OFFICERS WHO HAVE ALREADY AVAILED HBA.

OFFICER MAY BE ALLOWED TO AVAIL THE HOUSE RENOVATION LOAN, WHENEVER THE  CEILING

FOR THE SAME GET REVISED.

SUB REQUIREMENT UNDER ADDITIONAL HBA RULES FOR HOUSE TO BE A FLAT AND NOT AN INDEPENDENT APARTMENT TO BE ELIGIBLE FOR ADDITIONAL HBA AGAINST RENOVATION TO BE DONE AWAY WITH

CAFETERIA PERKS

MEDICAL PERKS : AMOUNT FIXED AT 6 % FOR IOCL WHILE LIMITED TO MAXIMUM 3 % FOR OTHER ORGANIZATIONS. COST WORK OUT TO BE SHARED 6 % RATE VALID TILL MARCH’2010 ( REF CO IOM NO DP/1/12/76 DATED 09.12.09 UNIFORM DEDUCTION FOR ALL EMPLOYEES. BUT BASED ON OLD RULES, EXPENSES AGAINST PARENTS WITH INCOME OVER RS 9000 PM & NOT STAYING WITHIN SAME ROOF NOT PERMITTED DISCRIMINATORY ELEMENTS TO BE ADDRESSED CONDITION OF REFERRAL BY MBBS DOCTOR FOR VISITING SPECIALIST TO BE DONE AWAY WITH AS IT INVOLVES BOTH TIME & MONEY RATES OF DENTAL TREATMENT TO BE REVISED IN LINE WITH MARKET RATES. EARLIER SYSTEM OF JOINT REVIEW OF MEDICAL FACILITY WITH COLLECTIVES TO BE RESTARTED

CAFETERIA PERKS

LTC / LFA : DEDUCTION & CARRY FORWARD OF DEDUCTION HAS BEEN PROVIDED IN CASE LTC AMOUNT IS HIGHER THAN LFA ENTITLEMENT ( IOM NO DP/1/12/79 DATED 29.12.09). CIRCULAR SILENT ON WHETHER DIFFERENTIAL CAN BE CLAIMED OR CARRIED FORWARD TO NEXT BLOCK IF LTC LESS THAN LFA DEDUCTION TO BE MADE BASED ON BP+DA AS ON 1ST APRIL OF EVERY YEAR FOR PEOPLE WHO MOVE FROM C TO D AND F TO G AND JOINING IN HIGHER GRADE IS AFTER 1ST APRIL, DEDUCTION IN LINE WITH CIRCULAR SHOULD BE ON 1.5 AND 2 TIME OF BP + DA. HOWEVER DEDUCTION BEING MADE AS PROPORTIONATED TO 2 AND 2.5 TIME RESPECTIVELY PRESENTLY LTC BENEFIT NOT INCLUDED IN DIRECT TAX CODE. HOWEVER LIKELY TO BE INCLUDED SUBSEQUENTLY AND HENCE PROPORTIONATE AMOUNT AGAINST THIS BENEFIT SHOULD BE INCREASED

CAFETERIA PERKS

LTC / LFA : PRESENT CALCULATION IS AS BELOW

LFA TO BE INCREASED TO 2 / 2.5 / 3 TIMES FROM THE PRESENT 1.5 / 2 / 2.5 TO ENHANCE INCENTIVE FOR TAKING HOLIDAYS (WORK LIFE BALANCE) & POSSIBILITY OF INCREASED TAX SAVINGS.

MODALITY OF CLAIM TILL END OF NEXT BLOCK AS PER PRESENT NORM TO BE CONTINUED.

LFA Min BP (approx

)

DA @ 35.1 %

LFA % of BP per Month ( LFA/24/BP X

100)

GR – A 24900 8740 50460 8.44

GR – C 40000 14040 81060 8.44

GR – D 50000 17550 135100 11.26

GR – E 60000 21060 162120 11.26

GR - F 70000 24570 189140 11.26

CAFETERIA PERKS

LTC / LFA (PAST YEARS): AS PER LTC / LFA RULES, NO RESTRICTION ON AMOUNT. TAX BENEFIT TO ONE PERSON PER FAMILY PERMITTED. HAS BEEN CONSTRUED AS LFA PERMISSIBLE TO ONE MEMBER IN FAMILY WHEREAS ONLY TAX BENEFIT TO THE OTHER MEMBER IS TO BE RESTRICTED CONSIDERING SAME, BENEFIT TO BE PASSED TO MEMBERS AFFECTED FOR 2007-08 BLOCK ( READ BOTH HUSBAND AND WIFE WORKING IN IOCL OR SPOUSE WORKING AND CLAIMING IN OTHER ORGANIZATION). THIS ANAMOLY ALREADY TAKEN CARE OF FOR SUBSEQUENT BLOCKS IN CAFETERIA APPROACH

NOMINATED HOTEL FACILITY : NO RECOVERIES MADE AGAINST PRP PAYOUT FOR 2007-08 UNDER REVISED FORMULA – WELCOME STEP PROTECTION FOR CAR FACILITY TO EXISTING GM’S PROVIDED – WELCOME STEP WAIVER PROVIDED FOR USE OF FACILITY AFTER 26.11.08 FOR 2007- 08 BLOCK – WELCOME STEP RECOVERY MADE AGAINST USE OF NOMINATED HOTEL FOR 2009-10 BLOCK PRIOR TO DATE OF ISSUE OF CIRCULAR – NEEDS REVIEW

CAFETERIA PERKS

CHILDREN EDUCATION ASSISTANCE :

CURRENTLY PROVIDED @ RS 1000 PM (UPTO CLASS

X) & @ RS 1100 PM BEYOND CLASS X).

ADDITIONALLY HOSTEL SUBSIDY PAID @ RS 1500

PM .

ENTIRE FACILITY TO BE CLUBBED UNDER SINGLE

HEAD WITH LIMIT OF RS 50000 IN LINE WITH

PROVISION OF DTC AGAINST TAX RELIEF.

PROVISION OF LIMITS PER CHILD AND

REQUIREMENT OF HOSTEL STAY TO BE REMOVED i.e.

FULL BENEFIT UPTO RS 50000 TO BE MADE AVAILABLE

EVEN AGAINST SINGLE CHILD OR SINGLE CHILD

UNDERGOING EDUCATION

CAFETERIA PERKS

PROFESSIONAL UPDATION :

AS THE NAME SUGGESTS, ALLOWANCE IS MEANT TO BE AN AID TO PRODUCTIVITY i.e. ALLOWANCE IS A WORK RELATED PERK. TO BE EXCLUDED FROM CAFETERIA.

BASIC COST FOR GRADE A CONSIDERED AS RS 2500 PM BASED ON FOLLOWING :

Description USD INR

Oil & Gas Journal 108 5400

Harvard Business review 6500

2 News paper ( 1 General + 1 Business) 1800

Work specific journals / membership like PMI membership or equivalent like SCM, ICFAI, IMA subscriptions

129 6450

Enrollment fees against symposiums / seminars etc

10000

Total (per Annum charges) 30150

CAFETERIA PERKS

PROFESSIONAL UPDATION :

REVISED RATES PROPOSED AS PER FOLLOWING

GRADE EXISTING (PM)

% OVER GR A PROPOSED (PM)

A 1000 - 2500

B 1100 10 2750

C 1200 20 3000

D 1600 60 4000

E 1800 80 4500

F 2000 100 5000

G 2200 120 5500

H 2400 140 6000

I 2500 150 6250

CAFETERIA PERKS

ENTERTAINMENT EXPENSES

AS PER CBDT GUIDELINES, NOT TAXABLE IF USED FOR OFFICIAL PURPOSE AND REQUIRES DECLARATION FROM EMPLOYEE

EACH EMPLOYEE IS A BRAND AMBASSADOR OF THE CORPORATION. TO ENABLE THE COMPANY TO MAKE ITS NEXT PUSH INTO THE FORTUNE 100 AND EVEN BEYOND, IT IS ESSENTIAL FOR EACH ONE TO REACH OUT TO MORE THAN ONE.

ENTERTAINMENT REIMBURSEMENT AGAINST SUCH PROMOTION EXPENSES EVEN AT INDIVIDUAL LEVEL IS TO BE PROMOTED BY INTRODUCTION OF THIS ALLOWANCE OUTSIDE CAFETERIA IN LIEU OF ERP EXTENDED TO WORKMEN

PROPOSED RATES OF ENTERTAINMENT EXPENSES :

GR A-C : 10 % ; GR D-E : 15 % ; GR F-G : 20 % OR UNIFORM FOR ALL OFFICERS @ 15 % OF BP

CAFETERIA PERKS

ENTERTAINMENT EXPENSES

ALTERNATELY INCLUSION WITHIN CAFETERIA

( AS A LAST RESORT) WITH A LIMIT OF 10 % TO 15

% OF BP ON SELF CERTIFICATION BASIS TO SAVE

TAXES FOR EMPLOYEES BY ABOUT RS 9600 FOR

GR A TO ABOUT RS 25000 FOR GRADE G

( CONSIDERING 10 %)

LUNCH REIMBURSEMENT

TAX FREE UPTO RS 50 PER MEAL OR RS 1500 PER

MONTH

ENTITLEMENT TO BE ENHANCED FROM RS 600 TO

RS 1500

MOBILE PHONES

CURRENTLY PROVIDED @ RS 7000 ONCE EVERY 4 YEARS & ELECTRONIC ORGANIZER @ RS 2500 ONCE EVERY 4 YEARS COMMUNICATION TOOLS AN AID TO CORPORATION GROWTH. ACCEPTED BY MANAGEMENT BY PROVIDING UPTO 10 % ERP TO WORKMEN. UTILISATION OF BLACKBERRY & 3GS SERVICES FELT ESSENTIAL TO TAKE THE CORPORATION FORWARD. SMARTPHONES HAVE ALL FEATURES OF ELECTRONIC ORGANIZER AS WELL. PRICES OF SUITABLE MODELS BEFITTING FORTUNE STATUS OF CORPORATION ENUMERATED BELOW :

ENTITLEMENT TO BE INCREASED AS PER FOLLOWING :

GRADE A-C : RS 20000, GRADE D-E : RS 30000, GRADE F & ABOVE : RS 40000 PERIODICITY TO BE BROUGHT DOWN FROM 4 TO 3 YEARS

Blackberry Storm2 9520

Blackberry Pearl 3G

Blackberry Bold 9000

Blackberry Bold 9700

Apple 3GS 16 GB

Apple 3GS 32

GB

35000 20800 34990 33000 35500 41500

MOBILE / RESIDENTIAL PHONES

CURRENT MONTHLY EXPENSES REIMBURSED @ RS 2500 PM FOR THOSE WITH OFFICIAL CONNECTION & RS 700 PM FOR OTHERS.

FULL RANGE OF BLACKBERRY SERVICES COST RS 900 TO RS 1100 ON AIRTEL AND VODAFONE RESPECTIVELY.

MONTHLY ENTITLEMENTS TO BE INCREASED TO 3500 AND RS 1600 PM RESPECTIVELY FOR THE TWO CATEGORIES

OUT OF POCKET EXPENSES / MEAL ALLOWANCE

BASIS OF CALCULATION IS AS FOLLOWS :

SALARY / MONTH AGAINST WORKING 7.25 HRS / DAY FOR 22 DAYS IN A MONTH i.e. 159.5 HRS/MONTH

DA ON 01.10.2009 – 25.3 %. PRESENT DA @ 35.1 % i.e. AVG INCREASE OF 10 % PER YEAR. SETTLEMENT LIKELY TO BE IN VOGUE FOR 4 YEARS FROM NOW. MEAN DA CONSIDERED AS 55 % ( PRESENT + 10 % EACH FOR NEXT 2 YEARS).

AVG SALARY PER HR FOR EACH GRADE COMPUTED CONSIDERING MEAN OF SCALE & 55 % DA. AVG SALARY PER HR FOR ALL OFFICERS COMPUTED BY TAKING AVG OF AVG SALARY PER GRADE. WORKS OUT TO ABOUT RS 475/ HR. TWICE OF THE SAME CONSIDERED AS BASE RATE i.e RS 950 / HR ( OVER TIME RATES @ TWICE RATES)

SLAB RATES WORKED OUT CONSIDERING RS 950 PER HR DISCOUNTED BY 30 % AS AMOUNT IS NON TAXABLE. FURTHER FOR 48 HR LOCATIONS, AMOUNT DISCOUNTED BY PER DAY SALARY OF GR A AS THE ENCASHABLE COMPONENT AGAINST C/OFF. LOWEST SALARY OF GR A CONSIDERED AS ENCASHABLE C/OFF ARE TAXABLE

OUT OF POCKET EXPENSES / MEAL ALLOWANCE

Extended Hrs on working day Extended Hrs on HolidayDescriptio

nRATE FOR 2 -4 HRS (consider 4 hrs)

RATE FOR 4 -8 HRS (MEAN 6 HRS)

8 hrs double shift

12 Hrs planned rota

RATE FOR 2 -4 HRS (consider 4 hrs)

RATE FOR 4 -8 HRS (MEAN 6 HRS)

8 - 16 Hrs hrs (MEAN 12 HRS)

16 Hrs

Hour Rate 3800 5700 7600 3800 3800 5700 11400 15200C-OFF 2650 1325 2650 2650 2650 2650

48 Hour loc 2660 3990 3465 1733 805 2135 6125 8785

36.25 Hr loc 2660 3990 5320 NA 2660 3990 7980 10640

Grade

Min Max Mean DA @ 55 %

BP + DA

NO OF

HRS PM

Per Day

Salary (BP+DA)/22

Least salary

per day / Avg

salary

RATE PER

HOUR

2 X RATE PER

HOUR

Avg Rate

A2490

0 505003770

020735 58435159.5 2656 2650 366 733 943

B2910

0 545004180

022990 64790159.5 2945 3417 406 812 SAY

C3290

0 580004545

024998 70448159.5 3202 442 883 950

D3660

0 620004930

027115 76415159.5 3473 479 958

E4320

0 660005460

030030 84630159.5 3847 531 1061

F5130

0 730006215

034183 96333159.5 4379 604 1208

TRANSPORT ASSISTANCE SHALL BE @ RS 600 PER DAY ( COST OF AC TAXI FOR – ABOUT RS 300 EACH WAY)

OUT OF POCKET EXPENSES / MEAL ALLOWANCE

CURRENTY ALLOWANCE PAID AGAINST EXPENSES INCURRED WHILE ON DUTY AT OFFICE PREMISES AND NOT AS OVERTIME.

A 30 % DISCOUNT HAS BEEN CONSIDERED ON THE AMOUNT ARRIVED AT CONSIDERING HOURLY RATES AS EMPLOYEES WILL NOT BE REQUIRED TO PAY TAXES ON THIS AMOUNT – WIN WIN FOR CORPORATION AS WELL AS EMPLOYEE

COMPUTATION OF AMOUNT TO BE JUSTIFIED AS EXPENSES INCURRED FOR BUYING PEACE AT HOME AS A RESULT OF EXTENDED WORKING HOURS ( 2-4 HRS – COST OF FLOWERS, PIZZA FOR THE FAMILY ; 4- 8 HRS – SUBSEQUENT FAMILY DINNER AT A RESTURANT ; WORKING ON A HOLIDAY – SHORT VACATION WITH FAMILY TO NEARBY WEEKEND GETAWAY).

SHIFT REQUIRED FROM THE CONCEPT OF REMUNERATION FOR EXTRA WORK AT OFFICE TO COMPENSATION AGAINST EXTENDED STAY AWAY FROM FAMILY / FRIENDS ( WORK LIFE BALANCE CONCEPT TO BE PUT IN PRACTISE)

DAILY ALLOWANCE ON TOUR

CURRENTY ALLOWANCE PAID AGAINST EXPENSES INCURRED WHILE ON TOUR. ELEMENT OF COMPENSATION AGAINST STAY AWAY FROM FAMILY / HOME NOT ACCOUNTED FOR AS DONE BY PROGRESSIVE CORPORATES LIKE HSBC ETC. DA IN OCT’07 ( MID OF LAST MINI LTS) – 4.2 %. LIKELY DA IN MID OF THIS MINI LTS i.e. OCT’11 – 45 % OR 40 % INCREASE. COMPENSATION ELEMENT PROVIDED BY CONSIDERING AVG SALARY PER DAY CONSIDERING MEAN OF SCALE AND 45 % DA AS

ON OCT’11, i.e. MIDDLE OF MINI LTS. AVG OF PER DAY SALARY OF GRADES IN EACH CLUBBED BLOCK CONSIDERED FURTHER TO ARRIVE

AT PER DAY COMPENSATION ALLOWANCE. ROUNDING OFF DONE TO ENSURE RATE DIVISIBLE BY 4 TO ENABLE PAYMENT OF WHOLE NO

AMOUNT AS QUARTER DA LOCAL CONVEYANCE CONSIDERED AS THE COST OF HIRING AC VEHICLE FOR 8 HOURS IRRESPECTIVE OF GRADE

DAILY ALLOWANCE ON TOUR

Grade Min Max Mean DA @ 45 %

BP + DA Per Day Salary

(BP+DA)/22

A 24900 50500 37700 16965 54665 2485B 29100 54500 41800 18810 60610 2755C 32900 58000 45450 20453 65903 2996D 36600 62000 49300 22185 71485 3249E 43200 66000 54600 24570 79170 3599

F, G,H 51300 73000 62150 27968 90118 4096I 62000 80000 71000 31950 102950 4680

COMPENSATION COMPONENT WORKOUT

BASED ON ABOVE, AVG PER DAY SALARY FOR GR A & B WORKS OUT TO ABOUT RS 2600, FOR C&D – RS 3100, FOR E & F – RS 3800 & FOR GRADE G,H,I – RS 4300

DAILY ALLOWANCE ON TOUR

DESCRIPTION A & B C & D E & F G,H & I

EXISTING – A CLASS 840 900 940 1100

EXISTING - OTHERS 800 840 900 1000

REVISED – A CLASS (EXPENSE) 140 % OF OLD

1176 1260 1316 1540

REVISED – OTHERS ( EXPENSE) 140 % OF OLD

1120 1176 1260 1400

COMPENSATION – STAY AWAY FROM HOME

2600 3100 3800 4300

PROPOSED – A CLASS 3800 4360 5100 5800

PROPOSED - OTHERS 3700 4300 5060 5700

PROPOSED RATES FOR DA :

PROPOSED RATES FOR CONVEYANCE ALLOWANCE :

A CLASS - RS 1200 PER DAY

OTHER CITIES – RS 1000 PER DAY

HOME DESKTOP / LAPTOP & PC MAINTENANCE

CHARGES HOME DESKTOP / LAPTOP ENTITLEMENT TO BE INCREASED TO RS 75000 PLUS RS 5000 PER YEAR FOR GRADE A – C ( APPLE MACBOOK PRO / SONY VAIO S SERIES etc) AND RS 100000 FOR GRADE D – G ( APPLE MAC AIR, SONY VAIO Z SERIES ETC) PERIODICITY TO BE REDUCED TO 3 YEARS FROM PRESENT 4 YEARS CONSIDERING MANUFACTURER OFFERS A MAXIMUM WARRANTY OF 3 YEARS. PRESENT ENTITLEMENT OF RS 12200 IN VOGUE FROM 2002 DA IN APRIL’02 – ABOUT 35 %. DA ON 31.12.06 – 78 %. DA IN SEPT’10 – 35 % ON REVISED BASE. AT 10 % PER ANNUM, DA IN 4 YEARS SHALL BE ABOUT 75 %. CONSIDERING ORIGINAL BASE, 75 % DA WORKS OUT TO 133.5 % ( 75 X 178 / 100) OR A TOTAL INCREASE OF 176.5 % OR SAY 175 % REVISED ENTITLEMNET TO BE INCREASED TO 2.75 X 12200 i.e. Rs 33550.00 REVISED ENTITLEMENT BREAKUP CAN BE CONSIDERED AS 20 % MAINTENANCE CHARGES PER YEAR ON REVISED CAPITAL COST ( RS 15000 ) AND RS 1500 PM AS INTERNET CHARGES ( HIGH SPEED DATA CARD – UNLIMITED), PRINTER CARTRIDGE, PAPER ETC

HOME DESKTOP / LAPTOP & PC MAINTENANCE

CHARGES ADDITIONALLY ONE TIME HIGH SPEED DATA CARD PURCHASE PRICE TO BE REIMBURSED ON ACTUALS ( ABOUT RS 2500) ADDITIONALLY FOLLOWING FEATURES IN HOME DESKTOP / LAPTOP TO BE PROVIDED BY CORPORATION : LICENSED COPY OF MS OFFICE

LICENSED COPY OF ANTIVIRUS

HOME DESKTOP / LAPTOP IS A PROPERTY OF THE CORPORATION AND CAPITALIZED IN THE BOOKS OF THE CORPORATION DATA FROM HOME DESKTOP / LAPTOP GETS FREQUENTLY

TRANSFERRED TO OFFICE NETWORK. ABSENCE OF UPDATED ANTIVIRUS IN HOME DESKTOP / LAPTOP CAUSES A NO OF MALWARE ATTACKS ON OFFICE NETWORK. UNDERSTOOD THAT FEATURE AVAILABLE IN MS OFFICE LICENSE WHICH ALLOWS USE ON HOME COMPUTERS. COST OF CORPORATE LICENSE OF ANTIVIRUS ONLY ABOUT RS 230 PER YEAR – PEANUTS COMPARED TO ISSUES WRT MALWARE ATTACKS. OFFICIAL NOTEBOOKS TO UPDATE VIRUS DEFINITIONS WHENEVER CONNECTED TO OFFICE NETWORK. UNAUTHORIZED NOTEBOOKS WITHOUT UPDATED VIRUS DEFINITIONS TO BE DENIED ACCESS OF OFFICE NETWORK.

MISCELLANEOUS

UNIFORM ALLOWANCE : PRESENTLY UNIFORM ALLOWANCE DIVERTED TO SABF. AS PER DPE GUIDELINES 30 % OF BP + DA TO BE PROVIDED AS POST RETIRAL BENEFITS. UNIFORM ALLOWANCE TO BE REINTRODUCED OUTSIDE CAFETERIA AS WORK PERK

HONORARIUM TO DEFENDING OFFICERS – AT PAR WITH EO REIMBURSEMENT OF SPECTACLES : @ RS 10000 PER ANNUM LIMITED TO 2 DEPENDANTS. EXPENSES ON SCHOOL ADMISSION ON TRANSFERDESCRIPTION X CLASS OTHER CLASS

EXISTING PER CHILD 7000 5000

PROPOSED PER CHILD 50000 30000

MISCELLANEOUS

PACKING/ LOADING CHARGES ON TRANSFER : MARKET RATES BEING COLLECTED. TO REVERT SUBSEQUENTLY

FLIGHT ENTITLEMENT TO A,B,C – PRESENT ENTITLEMENT AT PAR WITH WORKMEN IN GR I. DETAILED CALCULATION ON COST SAVINGS TO CORPORATION TO BE SUBMITTED SUBSEQUENTLY.

PERSONNEL PROTECTIVE CLOTHING ENTITLEMENT TO BE EXTENDED TO ALL EXECUTIVES REQUIRED TO VISIT OPERATING AREA OF LOCATIONS ( POSTING / TOUR)

CAR MAINTENANCE ALLOWANCE : SEPARATE PAPER TO BE SUBMITTED SUBSEQUENTLY. FACILITY REQUIRED AT PAR WITH ONGC

A GIFT ALLOWANCE @ RS 4999 PER YEAR TO BE INTRODUCED WITHIN CAFETERIA AND TO BE DISTRIBUTED TO EMPLOYEES WITH AUGUST SALARY AGAINST INDIAN OIL DAY GIFT( AMOUNT UPTO RS 5000 RECEIVED AS GIFT EXEMPT FROM TAXES )

MISCELLANEOUS

LEASE FACILITY INLINE WITH GAIL / ONGC / NTPC AS 45 % OF END OF BASIC, LOWER HRR AND PERQS TAX TO BE PAID BY CORPORATION

ENHANCEMENT OF MATERNITY LEAVE TO 180 DAYS IN LINE WITH CENTRAL GOVERNMENT AND INTRODUCTION OF PATERNITY LEAVE

CONSTRUCTION OF ADDITIONAL HOLIDAY HOMES. COST INCURRED AGAINST USE BY RETIRED EMPLOYEES / CORPORATION GUESTS IF ANY TO BE EXCLUDED FOR COST CALCULATION UNDER CAFETERIA.

PERFORMANCE RELATED PAY

PAYMENT OF PRP TO B, D, F & G GRADES TO BE ENHANCED IN LINE WITH DPE GUIDELINES. ORDERS TO BE ISSUED IMMEDIATELY TO PROVIDE BENEFIT IN THIS ROUND OF PRP DISTRIBUTION

Grade Basic as per revised pay

fixation

DPE Scale

Permitted PRP %

Present PRP %

A 24900 – 50500 E-3 40 40

B 29100 – 54500 E-4 50 40

C 32900 – 58000 E-5 50 50

D 36600 – 62000 E-6 60 50

E 43200 – 66000 E-7 60 60

F 51300 – 73000 E-8 70 60

G 51300 – 73000 E-8 70 60

H 51300 – 73000 E-8 70 70

I 62000 - 80000 E-9 70 70

MERGER OF DA WITH BASIC

PRESENT RATE OF DA IS 35.1 %

IN LAST PAY REVISION, MERGER OF 50 % DA WITH BASIC PROVIDED ONLY FOR CALCULATION OF REVISED RATES

BENEFITS AGAINST HRA / PIS NOT PASSED FOR 2005 & 2006 UNLIKE CENTRAL GOVT

NEED TO KEEP A WATCH AS CENTRAL GOVT DA HAS REACHED 45 %. WHILE THERE IS NO PROVISION UNDER 6TH PAY COMMISSION FOR MERGER OF DA WITH BP, BASED ON THE OUTCOME OF CENTRAL GOVERNMENT, OR CONSIDERING MAHARATNA STATUS, DISPENSATION TO BE TAKEN FOR MERGER OF 50 % DA IN BP BY SUCH TIME THAT IT REACHES 50 %

ISSUE TO IMPACT HRA( 10 -30 %), PRP ( 40 -70 %), CAFETERIA PERKS (50 %) & POST RETIRAL BENEFITS ( 30 %)

ALLOWANCE – DIFFICULT LOCATION

AS PER DPE GUIDELINES

ALLOWANCE FOR UG MINES LIMITED TO 15 % OF BP

SPECIAL ALLOWANCE UP TO 10 % OF BP FOR SERVING IN DIFFICULT & FAR FLUNG AREAS

ALL IOCL LOCATIONS HANDLE HAZARDOUS PRODUCTS AND ARE REQUIRED TO TAKE APPROVAL UNDER MSIHC RULES

MATTER TO BE TAKEN WITH MINISTRY FOR CLASSIFYING ALL LOCATIONS AS DIFFICULT LOCATIONS ON ACCOUNT OF THE RISK INVOLVED IN DAY TO DAY OPERATIONS

IN SUBSEQUENT REVISIONS, SAME SHOULD BE AT PAR WITH UG MINE ALLOWANCE

CONCERN AREAS

DTC :

TREATMENT OF TAXES PAID BY CORPORATION

AGAINST NON MONETARY PERKS : UNDERSTAND

EXEMPTION NOT PROVIDED. MAJOR IMPACT FOR

EMPLOYEES LIVING IN CORPORATION PROVIDED

FLATS. ISSUE MIGHT NEED TO BE TAKEN UP

JOINTLY WITH OTHER PSU ASSOCIATIONS AND

LOBBYING IF POSSIBLE MIGHT ALSO BE REQUIRED

BEFORE PASSAGE OF BILL

THANK YOU