AIR INDIA LIMITED

General Category staff : Draft Revised Basic Pay & Allowances as

on 1.1.12- Methodology adopted

Draft of the Revised Basic Pay(RBP) and Allowances of General Category staff as on
1.1.12 have been reworked as under for the purpose of inviting suggestions etc before it is
finalised:

1. Cost to Company for calculation of draft RBP

CTC is the sum of:

i)

Old Basic Pay

ii)

VDA as on 1.1.2012

iii)

Notional HRA @30%

iv)

All allowances applicable to the grade

v)

Employers contribution to PF

vi)

Considering the wide ranging PLI in the two erstwhile airlines within the
same grade across cadres/place of posting, it was considered necessary
to rationalise the amount of PLI for inclusion in the CTC. For this
purpose weighted average PLI has been taken. Weighted average has
been calculated for both WB and NB where more than one level of PLI
existed in a single Grade. Weighted average is arrived at by multiplying
each PLI value by the number of employees applicable and arriving at a
total for a Grade. The said Total is then divided further by the total
number of employees in the grade. The amount thus arrived at is
considered the weighted average PLI for that grade.

Illustration:
In WB Unskilled Category for S1 grade : Total Avg PLI
Total Avg PLI
Total Avg PLI
Total Avg PLI
Total Avg PLI

@ 2622 for 60 employees

@ 6992 for 38 employees
@ 3466 for 14 employees
@ 4370 for 309 employees
@ 8741 for 391 employees

TOTAL NO OF EMPS IN S1 GRADE

= 2622 X 60 = 157320
= 6992 X 38 = 265696
= 3466 X 14 =
48524
= 4370 X 309 = 1350330
= 8741 X 391 = 3417731
TOTAL
5239601
812

WEIGHTED AVERAGE PLI OF S1 GRADE WB = 5239601/812 = 6452.7 or

6453
Average PLI is the Average of PLI across Apr 11 to Mar 12.
The following values of weighted average PLI have been taken for computing
CTC.

Old Grade

1
2
3
7
8

Min
Old
New
Aver
Grade Grade
PLI
Unskilled
Clerical and allied
Operators
AI-WB/NB - grade waseMin aver PLI added to CTC for RBP
S-1
4515
4
S-2
5969
7
S-3
S-1
4515
9
S-5
9442
8
S-4
S-2
5726
11
S-6
10740
11
S-5
S-3
7118
14
S-7
13087
14
S-7
S-4
8366
25
E-0

1-2 Sr
1-2 Hd.
1-2 Sr Hd
1-2 Chief
1-2 Sr
Chief

New
Grade

AI-NB
S1
S2
S3
S4
S5

Min
Aver
PLI

Old
Grade

New
Grade

- grade waseMin aver PLI added to CTC for RBP

4515
3-6
S2
5969
1-2
S2
5726
3-6 Sr
S5
9442
1-2
S3
7118
7-8
S6
10740
1-2
S4
8366
9
S7
13087
3-6
S5
9442
7-8
S6
9
9-A

S7
E0

Min
Aver
PLI

7118
8366
9442
13087
13087

5726
7118
8366
9442
10740
13087
13087

The payments which are of the nature of temporary payments to the employees
have been excluded from the calculation of CTC.

vii) All Reimbursements which were of non taxable nature and based on
actual use have not been included in the CTC. These elements would
not form part of the other allowances which is restricted to 50% of the
RBP as per DPE guidelines.

However, reimbursements which were

taxable in nature have been included for calculation of CTC and would
form part of other allowances which were limited to 50% of RBP.

2. Computation of Revised Basic Pay

The formula for computation of Revised Basic Pay is as under:

RBP =

CTC
2.5226

Where RBP works out less than the minimum of the scale, the same was
enhanced to the minimum of the scale and where it was more than the scale the
difference between the maximum of the scale and the RBP amount was
considered as Personal Pay of the officer.

3. Personal Pay

Initially when the revised basic pay and CTC of all employees was
computed in terms of the recommendations of JDC, several anomalies which
were not envisaged by the JDC were thrown up leading to a large number of
representations.

The Implementation & Anomaly Rectification Committee

therefore reviewed the methodology of fixing the RBP as recommended by the

JDC in order to address the anomalies. The Committee came to the conclusion
that the large scale anomalies were as a result of varying nature of PLI which
varied from grade to grade, month to month and between the two erstwhile
entities. In order to mitigate this issue, it was decided that the PLI needed to be
rationalised. With this in view, it was decided that the element of PLI to be

added to the total emoluments should be minimum and common across the two
airlines in a grade so as to ensure that there was no variation in RBP within the
airline and minimal inter se variation in the two airlines. This ensured that the
anomalies

get reduced considerably. At the same time so as not to reduce

the total emoluments on account of taking minimum average PLI it was decided
to include Personal Pay separately with the total emoluments worked out on the
basis of RBP so as to ensure that there was no loss in total emoluments for the
present.
The Personal Pay is the difference between the Average of the actual PLI
drawn by the employee during the period 1.4.2011 to 31.3.2012 and the lowest
average PLI in the grade for the period 1.4.2011 to 31.3.2012. This pay is
personal to the employee and shall not be considered for computing Revised
Basic Pay and will be shown distinctly. Any increase in the Basic Pay and VDA
and other allowances on the increased Basic Pay either due to promotion or
by way of annual increment, will be met from the amount of Personal Pay
wherever available.

4. Personal Pay qualifying for PF

While working out the Revised Basic Pay, it was noticed that there is a
reduction in PF contribution of the employer over the existing PF contribution.
The IARC considered the issues and decided to introduce an element of
Personal Pay qualifying for Provident Fund with a view to protect the existing
PF contribution of the employer. This pay is personal to the employee and shall
not be considered for computing Revised Basic Pay or any other allowances.

5. Rate of Increment

JDC report in that the Management may resort to granting annual

increment at the rate of 1% on the Revised Basic Pay till the company gets
EBIDTA(Earnings before Interest, Taxes, Depreciation and Amortization)

Positive; Grant of increment at 2% after it gets cash positive and grant of

increment at 3% after it reaches operational profit.

This is being implemented

and annual increment rate will be dynamic and will be given each year according
to the above recommendations. Since the company turned EBIDTA positive in
the FY 2012-13, it has been decided to grant annual increment at 2% of the RBP
in 2013-14 and for FY 2012-13, increment shall be granted at 1%..
In the matter of promotion, the DPE guidelines dt.26.11.2008, lay down
that one notional increment equal to the increment drawn by the Executive in the
Pay Scale would be granted and pay fixed in the promoted pay scale and
rounded of to the net multiple of Rs.10. For fixing pay on promotion, it has been
decided to adopt rate of increment of 1% for the present. This will be reviewed in
the light of improvement in the financial health of the Company in due course.

On account of rationalization of PLI and to protect the total emoluments it

has been decided to include Personal Pay separately with the total emoluments
worked out on the basis of RBP so as to ensure that there was no loss in total
emoluments for the present.
6. Stepping Up Of Basic Pay
An exercise for stepping up of Basic Pay with respect to a junior within the same
Deptt./Cadre but in the erstwhile other company region-wise

has been

undertaken after the proforma promotions have taken place. No stepping up is

admissible within the same airline. While undertaking stepping up of basic pay, it
has been observed that :
a) Employees who were on leave without pay for a long period or were absent for
long periods, which affect the date of annual increment would not be eligible for
stepping up pay on this account.
b) The benefit of stepping up shall not be extended to other employees with
reference to employees drawing higher basic due to grant of special or additional
increment for their excellence/outstanding work or for any other special reason.

7. Dearness Allowance
DA will be payable as per orders issued by DPE from time to time. The
rate of DA on the 2007 DPE payscale is 91.3% with effect from 1.7.2014.

8 House Rent Allowance

The House rent allowance shall be payable at the following rates as per
the classification and rates prescribed:

9 Provident Fund

With the revision of the Basic Pay w.e.f.1.7.12, the cases of employees who
have opted for percentage Voluntary contribution to the PF needs to be freezed.
This is recommended to avoid huge recoveries from the employees. A Circular
will be issued in due course seeking options from the employees for voluntary
reduction of PF consequent to the implementation of the RBP. Till such time the
existing amount will be deducted as PF contribution of the employee.

10. Pension

With the revision of the Basic Pay w.e.f.1.7.12, the pension of employees needs
to be freezed. This is recommended to avoid huge recoveries from the
employees.

A Circular will be issued in due course seeking options from the

employees for voluntary reduction of pension consequent to the implementation

of the RBP. Till such time

the existing amount will be deducted as pension

contribution of the employee.

BASED ON THE ABOVE, DRAFT SALARY STRUCTURE OF THE GENERAL

CATEGORY STAFF HAS BEEN WORKED OUT IN THE FOLLOWING
WORKSHEETS.
REPRESENTATIONS/SUGGESTIONS, IF ANY, ON THE
DRAFT REVISED BASIC PAY MAY BE SENT TO THE EXECUTIVE
DIRECTOR(INTEGRATION), AIRLINES HOUSE, NEW DELHI WITHIN 21 DAYS
OF DISPLAY ON THE INTRANET.
*************

Annexure: Grade

AI WB

AI NB

Grade

No of Staff

Ave PLI WB

Weighted
Average

Grade

No of
Staff

Ave PLI NB

Weighted
Average

Min Wh
Aver PLI

60

2622

6453

1-2 Sr

573

4515

4515

4515

38

6992

14

3466

309

4370

391

8741

60

4160

9687

1-2 Hd.

620

5726

5726

5726

97

5681

11890

1-2 Sr Hd

362

7118

7118

7118

10577

1-2 Chief

1049

8366

8366

8366

24

9442

B: Unskilled
S-1
S-1

S-2

S-3

S-4

8741

908

10489

12

5026

10

7430

10489

171

12674

151

5026

116

7430

10489

574

12674

S-5

1-2 Sr Chief

2926
C: Clerical and Allied Cat
S-2
4

3319

12

6118

S-5

S-6

S-7

9442

2628

7867

26

12674

3639

10

5026

32

7430

20

7867

58

9178

137

12674

19

14422

11

4678

11

25

9615

11

52

11800

11

90

16170

11

21

17481

14

20

5892

14

275

11363

14

152

14589

14

391

17481

10534

3-6

1287

5969

5969

5969

10749

3-6 Sr

246

9442

9442

9442

14037

7-8

651

10740

10740

10740

14672

1938

13087

13087

13087

1348

D:Operators
S-2

4122

1-2

5726

5726

5726

S-3

12674

14422

1-2

36

7118

7118

7118

S-4

32

12674

14449

1-2

223

8366

8366

8366

33

16170

S-5

11

12674

17481

3-6

91

9442

9442

9442

11

104

17481

14

25

14422

14

131

17481

25

14422

25

155

17481

S-6
S-7

E-0

7-8

150

10740

10740

10740

16991

68

13087

13087

13087

17481

9-A

20

13087

13087

13087

566

594

4840

7344

12184