13

Compensation Policy
OBJECTIVE:
To provide for a uniform, stable and reasonably competitive compensation structure for all
employees.

GRADES & DESIGNATIONS

To rationalise the compensation policy, positions are classified into grades. The grades and
respective designations are as below:
GRADE

DESIGNATION

Executives

M.D, C.O.O, President, Sr. V.P, V.P

M-10

Sr. General Manager

M-9

General Manager

M-8

Dy. General Manager

M-7

Sr. Manager

M-6

Manager

M-5

Dy. Manager

M-4

Asst. Manager

M-3

Executive

M-2

Sr. Officer

M-1

Officer

GET

Graduate Engineer Trainee

Tr. Officers

Trainee Officers

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BASIC SCALE
The basic scale would be as per the terms of employment and revisions from time to time.
Grade

Designation

Basic Pay Structure

M-1

Officer

2000-125-2125-125-2250-125-2375-125-2500-1252625-125-2750-125-2875- - -

M-2

Sr. Officer

3000-175-3175-175-3350-175-3525-175-3700-1753875-175-4050-175-4225- - -

M-3

Executive

4000-225-4225-225-4450-225-4675-225-4900-2255125-225-5350-225-5575- - -

M-4

Asst. Manager

5000-275-5550-275-5825-275-6100-275-6375-2756650-275-6925-275- - -

M-5

Dy. Manager

6000-325-6325-6650-325-6975-325-7300-325-7625325-7950-325- - -

M-6

Manager

9000-375-9375-375-9750-375-10125-375-10500-37510875-375-11250- - -

M-7

Sr. Manager

11275-425-11700-425-12125-425-12550-425-12975425-13400- - -

M-8

Dy. General Manager

15000-500-15500-500-16000-500-16500-500-17000500-17500- - -

M-9

General Manager

17000-600-17600-600-18200-600-18800-600-19400600-20000-600- - -

M-10

Sr. General Manager

24000-700-24700-700-25400-700-26100-700-26800700-27500- - -

HOUSE RENT ALLOWANCE

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Management Staff not provided with any type of Company Accommodation i.e either company
owned or leased, will be paid House Rent Allowance at 40% of Basic Salary.
CONVEYANCE ALLOWANCE
Management staff not provided with Company Car will be paid conveyance allowance as
follows:
Grades

Allowance (Rs. per month)

M-1 to M-4

500

M-5

800

M-6

1500

M-7

2000

M-8

2500

M-9 to M-10

3000

EDUCATION ALLOWANCE
Management Staff will be entitled to Education Allowance as follows:
Grades

Allowance (Rs. per month)

M-1 to M-10

Rs.200/-

MEDICAL ALLOWANCE
Management staff will be paid Medical allowance @ 8.33% of Basic Salary per month.

LEAVE TRAVEL ASSISTANCE

Eligibility

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Management staff will be entitled to LTA on completion of one year of

service subject to confirmation of services. However, pro-rata LTA will be
paid at the time of F&F even if 1 year is not completed.

LTA will be calculated on a calendar year basis (i.e. January to December

every year.) and on pro-rata basis for the part of the year.

Quantum Of LTA
The LTA will be paid at the rate of one months Basic salary per year.
For claiming LTA with Tax Deduction at Source

No leave will be required for claiming LTA with tax deduction.

An application to be made to HR Department for claiming LTA in the

prescribed format.

For claiming LTA to avail Income Tax Exemption

A minimum of six days Leave should be availed for claiming LTA.

LTA should be claimed in the prescribed form.

Approval of Leave must be attached at the time of claiming LTA.

Any two journeys (LTA) can be claimed for tax exemption in a block of four
years beginning from January 2002. LTA for self and family is admissible for
tax exemption.

Definition Of Block Of Four Years

Under the present Income Tax Rules, a period of four calendar years beginning from
the Year 2002 to 2005 has been defined as a block of four years during which you
may avail LTA twice and avail tax exemption.
Definition Of A Family
Family includes:

The spouse and children of an individual; and

The parents, brothers and sisters of an individual or any of them, wholly or

mainly dependent on the individual

Quantum Of Exemption Under The IT Act

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Quantum of Exemption The amount of LTA for self and family permissible under
the Income Tax Act for exemption is as follows:

For journeys performed by Air: Economy fare of Indian Airlines by the

shortest route to the place of destination.

For journeys performed by Rail: Airconditioned first class rail fare by the
shortest route to the place of destination.

For journeys performed by Road: The amount equivalent to Air

conditioned first class rail fare, for the distance of journey by the shortest
route, as if the journey had been performed by rail.

Documents Required For Claiming Exemption

The following documents must be produced along with the prescribed LTA claim
form:
Mode of travel
Rail
Air
Road

Documents
Photocopies of railway tickets
Original Jacket of used tickets
By own vehicle: Petrol bills
By hired car:

Bill of the Operator

Proof indicating the places visited

Advance For LTA

An advance for LTA can be availed for booking tickets by making an application to
HR Dept together with a copy of the approved leave application. The advance will be
paid up to 70% of entitlement. The balance amount shall be paid on production of
travel tickets within seven days of completion of the journey, failing which the
advance will be recovered from the salary.
Accumulation Of LTA
Accumulation of unavailed LTA is allowed upto two years within the block of four
years specified under the Income Tax Rules. However, the fourth years LTA cannot
be carried forward to the next block for accumulation purposes. The current block is
for the period of calendar year 2002-2005.

TELEPHONE ALLOWANCE
Telephone Allowance will be paid as under:

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Grades

Allowance (Rs. per month)

M-1

200

M-2

300

M-3

400

M-4

500

M-5

600

M-6

800

M-7

1000

M-8

1200

M-9 to M-10

1500

SOFT FURNISHING ALLOWANCE

Soft Furnishing Allowance will be paid as under:
Grades

Allowance (Rs. per month)

M-1 to M-2

200

M-3

400

M-4 to M-5

600

M-6 to M-7

800

M-8 to M-10

1000

BOOKS & PERIODICALS ALLOWANCE

Books & Periodicals Allowance will be paid as under:

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Grades

Allowance (Rs. per month)

M-1 to M-4

nil

M-5

200

M-6

400

M-7

600

M-8

800

M-9 to M-10

1000

DRIVER ALLOWANCE
Driver Allowance will be paid as under:
Grades

Allowance (Rs. per month)

M-1 to M-7

nil

M-8

1500

M-9 to M-10

2000

PETROL ALLOWANCE
Petrol Allowance will be paid as under:
Grades

Allowance (Rs. per month)

M-1 to M-7

nil

M-8

2500

M-9 to M-10

3000

EX-GRATIA
Management staff will be paid Ex-Gratia @ 8.33% of Basic Salary per month.
*****