Topic: Study any two business organizations (one Multinational Company and one Indian

Company) with regard to their Policies of Compensation (Increment policy, Incentive Policy,
Bonus and Reward policy, Retirement Benefits).

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 Table of Content

SR.no: Content Page No:

1. About BPCL 4

2. HR-Compensation Policy of BPCL 5

3. About Chevron 9

4. HR-Compensation Policy of Chevron 10

5. Differences and Similarities of BPCL and Chevron HR- 13

Compensation
6. Bibliography 15

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 About BPCL

Bharat Petroleum is an Indian public sector undertaking under the ownership of the
Ministry of Petroleum and Natural Gas, Government of India. It is India’s second-
largest government-owned downstream oil producer, overseen by the Ministry of
Petroleum and Natural Gas. Founded in 1952, its vision has been to grow
profitable and be trustworthy to its customers. It has 26 subsidiaries namely Bharat
Petroresources Limited (BPRL), Indraprastha Gas Limited, etc.

HR-Compensation Policy of BPCL

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The following is our BPCL HR-Compensation Policy:

INCREMENTS:
In BPCL, there are five types of Increments:

1. Annual Increment: This increment is earned through an employee’s

satisfactory performance during the increment period. Annual increment will
be given @ 3% of the Basic Pay on the 1st of January of each year (rounded
off to the next Rs.10/-). All confirmed Management Staff will be granted
Annual Increment on the 1st of January of each year

2. Promotion Increment: Promotion Increment is the increment given in the

employee's basic pay when he/she is promoted from a lower position to a
higher one. The increment will be given @ 3% of Basic Pay (rounded off to
the next Rs.10/-).

3. Confirmation Increment: This increment is given to the new joiners who

have completed their confirmation period with BPCL. An increment @ 3%
of Basic Pay will be granted to new joiners in the Management
cadre/promoted from the Workmen cadre.

4. Stagnation Increment: When the salary of an employee reaches at last

stage when there is no scope to allow further increments in the usual course,
an employee can compensate for it by effecting Stagnation Increment.
Management Staff will be allowed to draw a maximum of three stagnation
increments upon reaching the maximum of the pay scale, provided the Staff
gets a performance rating of “Good" or above. The rate of Stagnation
Increment will be @ 3% of Basic Pay.

5. General Increments: In all the above types of increments, the increment

amount will be rounded off to the next Rs.10. At no stage, does the sum of
the annual and promotional increment drawn plus the Basic Pay shall exceed
the maximum scale of the applicable Job Group. On promotion, the
Stagnation Increment drawn in the previous Job Group will continue. In case
of Promotion and Annual Increment falling on the same day, the first
Promotion Increment is granted and then Annual Increment will be given in
the new Job Group.

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Incentive Policy:
BPCL provides the following benefits to all its employees:

1. Vehicle loan: Confirmed Management Staff are eligible to obtain a loan

from the Corporation for the purchase of a motor car/motorcycle/ scooter,
provided the Corporation is satisfied that the possession of a motor vehicle
by the Staff member is in the interests of the Corporation. The loan ranges
from Rs. 3.50 Lakhs to Rs. 18 Lakhs depending upon the employee's
position. The rate of interest on the loan is fixed at 5.93% p.a., However, the
rate of interest will be trebled if the formalities are not completed within 3
months.

2. Housing Loan: A staff member who has worked continuously for at least
three years as a permanent employee of the corporation may be eligible for a
housing loan. Their previous service in a government or public sector
organization may be considered towards fulfilling the service requirement.
The loan will be provided for the purchase or construction of a house or flat
in a location where the employee, their spouse, or dependents do not already
own a property. The housing loan amount for purchase or construction will
vary from Rs. 45 lakhs to Rs. 90 lakhs, depending on the employee's
position. Repayment capacity will be determined on a case-by-case basis.
After considering all deductions, including the housing loan EMI, the take-
home salary must be at least 25% of the gross monthly salary. If the loan
balance is less than the amount specified, the employee may be eligible for a
top-up loan.

3. Children Education Support Scheme: Employees who have served in the

Corporation for at least five years are eligible for the Scheme. Under the
Scheme, a maximum of two dependent children per employee are covered,
provided their age is less than 30 years. The child must be admitted to an
eligible course at a recognized educational institute. The outstanding amount
of financial assistance will be charged interest as per the 'Average
Borrowing Rate' of the Corporation, which is currently 5.93% per annum.

4. Medical Benefits: All management staff and their eligible dependents are
entitled to receive benefits under the Medical Scheme. The term 'family' in
this context refers to dependents such as spouse, dependent children below

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 25 years of age, and dependent parents whose combined income is less than
Rs. 25,000/- per month. The expenses will be reimbursed based on actuals,
subject to the Management-approved Schedule of Rates. The scheme covers
spouses, parents, and children under the age of 25. However, exceptions are
made for children who are pursuing full-time studies or those who have
special needs.

Leaves:

Leaves are provided to employees, but they are a privilege, not a right. The
authority in charge can refuse or revoke it depending on the work needs of the
organisation. The following leaves are entitled to employees:

EARNED LEAVE (EL): Management Staff are entitled to EL at the rate of 8

days per quarter. Unavailed EL can be carried forward to the next year. The
maximum leave that can be accumulated is 300 days. At the end of each quarter,
EL more than 300 days shall be automatically encashed and paid in next month’s
salary. The maximum EL that can be granted at a time is 120 days.

HALF PAY LEAVE (HPL): HALF PAY LEAVE will accrue for 5 days per
quarter. It can be granted on medical grounds or for other reasons. HPL for more
than 30 days at a time for reasons other than sickness will be sanctioned by one
step higher. HPL salary will be paid at half Basic Pay + SI (if any) + full D.A.

CASUAL LEAVE (CL): Management Staff are entitled to Casual leave, up to a

maximum of 12 working days in a calendar year. Casual Leave cannot be availed
for less than half a day. Casual Leave can be availed of up to a maximum of 8 days
at a time, without any restriction on the total period of absence.

SPECIAL SICK LEAVE FOR SERIOUS ILLNESS (SSL): Special leave is

granted with full pay to the extent of one year if the employee has
serious/chronic/contagious diseases such as Pulmonary Tuberculosis, Cancer, acute
mental disorder, heart/ brain diseases, Leprosy, etc. supported by a certificate to
the effect from a doctor authorized by the Corporation. Special Sick Leave will be
permitted once the HPL balance in the Staff HPL account is exhausted. However,
at the time only 90 days of Special sick leave is granted.

Gratuity:
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Gratuity is a payment that is granted to the employees of the Corporation for their
good, efficient, and faithful service. However, it excludes Government Servants
and others employed on deputation, Apprentices, Trainees, and Re-employed
persons. Gratuity is payable on separation from service due to the abolition of the
post, permanent incapacity due to physical or mental infirmity, superannuation,
resignation, or in case of death-in-service. It is important to note that gratuity is
admissible only after 5 years of qualifying service, except in the case of death or
permanent disability.

The gratuity amount will be calculated at the rate of 15/26 of the monthly
emoluments of the last drawn pay, which includes Basic Pay, SI, and Dearness
Allowance, for every completed year of service or part thereof for six or more
months. However, the maximum amount of gratuity payable is Rs.20 lakhs,
whichever is less. The payment of gratuity will be provided only if the employee
has put in a minimum qualifying period of 5 years of continuous service.

About Chevron

Chevron Corporation is an American multinational company specializing in oil and

gas. The second-largest direct descendant of standard oil and originally known as
the Standard Oil Company of California. Founded in 1879, its vision has been to
be the global energy company most admired for its people, partnership, and
performance. It has more than 30 subsidiaries namely Texaco Inc, Noble Energy
Inc, etc.

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 HR-Compensation Policy of Chevron

INCREMENTS:

Chevron provides its employees with an annual base pay increase based on their performance.
They also receive a one-time annual bonus and promotions if they maintain their performance.

Base Pay: This is the fixed annual salary given to employees. It does not include bonuses and
benefits. Salary and wage rates are reviewed annually to ensure competitiveness. At Chevron,
job titles do not drive pay ranges. It is determined by the employee’s qualifications.

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Variable Pay: This is given to those employees who have contributed to Chevron’s success. It
provides employees with incentive compensation in addition to base pay.

Incentive Policy:

The company offers a range of benefits to its employees, including competitive

base pay, annual incentive awards when the company meets its established goals,
medical, dental, and vision care coverage, retirement and savings plans, disability,
life and accident insurance, and domestic partner benefits for same-sex or
opposite-sex domestic partners. Additionally, the company provides flexible
spending account plans, health savings accounts (HSA), time off (paid vacations
and holidays), access to counseling services and treatment facilities through
Employee Assistance and WorkLife Services and the Mental Health and Substance
Use Disorder Plan, compressed workweek schedules, and flextime options.
Moreover, the company has programs to help you balance your work and personal
life, reimbursement for eligible expenses related to adoption and surrogacy,
dependent care expense reimbursement for business travelers, and health and
wellness resources and programs, including fitness centers at many major
locations. Lastly, the company has recognition and service awards programs to
recognize outstanding performance.
This incentive policy varies across countries as it's tailored to their specific
working conditions. Here's the policy for the US.

Leaves:

Vacations: Chevron's vacation policy is designed to offer employees time to

unwind and recharge, allowing them to be safe and efficient at work. The vacation
service is determined by considering the employee’s health and welfare eligibility
service date or the employee’s time off service date. Experienced employees may
receive credit for vacation service in increments of 5, 10, 20, or 30 years. For new
employees, the vacation amount for the initial calendar year is prorated based on
the number of calendar days from their start date until the last day of the year.

Personal Choice Holiday: Chevron recognizes certain holidays that align with
general business practices in each operating area. The Personal Choice Holiday
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(PCH), if part of an employee’s local holiday schedule, can be taken on a day of
significance. It should be scheduled with the employee’s supervisor and taken
every year. During the initial year of hire, an employee will be eligible for the PCH
if his/her employment begins before July 1. If the employee is hired after June 30,
he/she will not be eligible for the PCH during the employee’s year of hire.

Short-Term Disability (STD) Plan: The Short-Term Disability (STD) Plan is

designed to help protect an employee’s income if he/she is unable to work due to a
qualifying illness, injury, or medical condition (disability). Currently, this coverage
is provided at no additional cost to eligible employees.

Personal Leave with Pay: refers to the paid time off that employees are entitled to
if they need to take time away from work for certain personal reasons. Examples of
such reasons include but are not limited to, bereavement, volunteering at non-profit
organizations or groups for causes, attending his/her child's wedding or civil union,
or being present on the date of your child's birth or placement of a child with you
for adoption or foster care.

Retirement Benefits:
There are two types of retirement benefits provided to employees:

My Pension Benefit Summary: The Pension Benefit Summary provides an

estimate of an employee's pension benefit information to date. This applies only to
vested retirement plan participants. If there are any changes in the employee's
salary in 2024, they will be taken into account in the Pension Benefit Summary
from the month following the change. For instance, if the employee's salary
changes in March, the updated information will be reflected in the Pension Benefit
Summary from early April.

Model my Pension: This is a tool that allows employees to model and compare
their benefits for up to three different dates. Future benefits can be projected using
the tool, including salary changes that will occur in 2024. These changes will be
available for modeling two months after they take effect. For example, if a salary
change takes effect in March, it will be reflected in future benefit projections on
the Model My Pension tool starting in early May.

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 Differences and Similarities of BPCL and Chevron HR-
Compensation

Differences between Chevron and BPCL:

Leaves:
Both BPCL and Chevron have some differences in their Leave Policies, some of
which are listed below in the table:

Chevron
1.Chevron provides 4 types of leaves:
Vacations, Personal Choice Holidays,
Short-term Disability and Personal
leave with pay leaves
2. In Vacations, employees are given
time to take a break from work so as
to be effiencent in the future
considering the employee’s health
and welfare eligibility service date or
the employee’s time off service date.
Vacations are given on basis of
Increments to experienced employees
3. Short-term Disability is provided to
those employees who are unable to
work due to health realted issues.
They are given full income with no
additional costs
4. Personal Choice leave is provided to
BPCL
1. BPCL provides 4 types of leaves:
Earned leaves, Half-pay leaves,
Special Sickness leaves and Causal
leaves
2. In Earned Leave, employee earns his
leave of basis of 8 working days off
per quarter of a year.
3.Half-pay leave is granted on medical
grounds. It will accrue for 5 days per
quarter
4.Casual leave entiteled to an employee is

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 employees on days of special
siginificance (Public holiday etc) and
can be scheduled with the supervisor.
5. Personal Leave with pay is given to
employees who take time off from
work due to some personal reasons
(Marriage of child etc).
Increments:
Both BPCL and Chevron have some differences in their Increment Policies, some
of which are listed below in the table:
Chevron
Chevron provides its employees with an
annual base pay increase based on their
performance. They also receive a one-time
annual bonus and promotions if they maintain
their performance.
Every employee is provided with a Base Pay
which is determined by employees
qualification. It is reviewed anually.
Variable Pay is given to those employees who
have contributed to Chevron’s success. It
provides employees with incentive
compensation in addition to base pay.
Similarities between Chevron and BPCL:
Incentive Policy:
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12 days in an year and can take upto
maximum 8 days off in a stretch.
5. Special Sickness leave is granted to
those employees who are diagonsed with
serious illness. It can be granted upto an
year.
BPCL
In BPCL there are five types of Increments,
namely General Increment, Stagnation
Increment, Annual Increment, Promotional
Increment and Confirmational Increment.
Employees are provided with a Base pay
which remains constant throughtout the year.
It gets incremented if there is inflation of cost.
The wages of employee vary with their
performance in the job. If they maintain a
standard of “Good” and above, they will get
an incremnet in their salary.
BPCL and Chevron have similar incentive policies as they provide the required
necessities and benefits to an employee working under their organisation (Eg,
Vehicle loans, Medical Benefits, etc).

Bibliography

 https://hr2.chevron.com/-/media/hr2/document-library/REG/
REG_WealthGuide_FINAL.pdf
 https://hr2.chevron.com/REG#
 https://en.wikipedia.org/wiki/Chevron_Corporation
 https://www.chevron.com
 https://www.bharatpetroleum.in
 https://en.wikipedia.org/wiki/Bharat_Petroleum

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