TO, Date: -11-20.

The Chairman and Managing Director,

NLCIL, Neyveli.

Sub: Regarding payment of PRP for FY 2018-19 – Non – Unionized Supervisors and Lower
level Executives up to E3 grade.

Ref: Proc.No.CORP/HR/WR/833/2020, Dated 30-10-2020.

Through: The CGM (HR)/IR

Respected sir,

We, the Lower Level Executives working in different units of NLCIL along with
Non-Executives and Senior Executives for the progress of our company. For the Financial year
2018-19, the MOU rating of NLCIL is Fair and hence the PRP for 2018-19 is less compared to
2017-18. Kindly, we would like to inform you that, we are paid with less amount of PRP for FY
2018-19 as compared to Non-Executives. A Non-Executive with “Good” individual
performance is paid with more PRP than a Lower Level Executive with “Outstanding”
individual performance. A non-executive with basic of Rs 60,000 is paid more than a lower
level executive with the same basic pay of 60,000 working in a same location.
Non-executice with 60,000 basic pay
P1 Annual basic pay 60000x12 60000x12
P2 Company rating-60% Fair 0.6x0.25
P3 Unit Performance-30% Very good 0.3x0.8
P4 Individual performance-10% Good 0.1x0.6
P5 Category rating Direct 1
P6 Grade Incentive Band-3 0.4
P7 Ratio arrived for distribution 0.27 0.27
Variable component P1x(P2+P3+P4)xP5xP6xP7 34992
Fixed component 75000 75000
Total payment (UIS-2018-19) 109992

Lower level executive with 60,000 basic pay

Annual basic pay 60000x12 60000x12
Grade incentive ceiling E-3 40% 40%
Company rating-50% Fair 25%
Unit Performance-30% Very good 80%
Individual performance-20% Out standing 100%
Kitty factor 14.56%
Factor-X (company rating) 0.5x0.25x0.1456 X=0.0182
Factor-Y (Unit rating) 0.3x0.8x0.1456 Y=0.034944
Factor-Z (Individual rating) 0.2x1x0.1456 Z=0.02912
Total PRP 2018-19 (X+Y+Z)x Annual basic pay 59230
 We are demotivated with this payment of PRP for FY 2018-19. This shows that,
really there is no space for performance in Performance Related Pay. One of the famous quotes
“Hard work always pays off” is not being realised here.

We were paid with an advance amount of Rs 35000/- on 04-11-20 and the same
amount will be recovered in five instalments from the month of November-2020, which even
more confused us. We would have felt happy, if you had given a permanent solution for this
instead of a recoverable advance. So, we request you to consider for an even PRP policy and a
Minimum Protection pay where Lower Level Executives will be paid equally along with others
without any discrimination. We even more demotivated after comparing our PRP with other
companies under Ministry of Coal.

We look forward to hearing from you positively.

Thanking you,

Yours faithfully,

SL NAME CPF NO. DESIG UNIT SIGNATURE

SL NAME CPF NO. DESIG UNIT SIGNATURE
PRP for an E3 grade executive working in NCL-CIL is Rs 2,60,946 and for a non-executive
cadre employee is Rs 68,500 only. But in our NLCIL, PRP for an E3 grade executive is Rs
59,230 and for a non-executive is Rs 1,09,992.