1. COMPENSATION
&
BENEFITS
1

2. • 3 categories of Employees:
- Board level executives
- Below board level executives
- Workmen
• Well defined pay structure for each
categor y.
2

3. • Compensation structure consists of :
o Basic Pay & DA
o HRA / Accommodation facilities
o Perquisites & Allowances
o Performance related payments
o Superannuation benefits
3

4. • DPE is the nodal Deptt. for issuing guidelines on pay
related matters for all CPSEs.
• DPE issued the guidelines on pay revision of executives
in Nov. ’08 and April ’09, effective from 1.1.07.
• Pay scales of Board level executives are as below:
Chairman Rs.80000-125000/-
Directors Rs.75000-100000/-
• Below Board level Executives are placed in 9 pay scales. 4

5. PAY SCALES
Grade Pre-Revised Pay Scales Revised Pay Scales
A 12000 - 17500 24900 – 50500
B 13750 -18700 29100 – 54500
C 16000 – 20800 32900 – 58000
D 17500 – 22300 36600 – 62000
E 18500 – 23900 43200 – 66000
F 19000 - 24750 51300 – 73000
G 19500 - 25600 51300 – 73000
H 20500 – 26500 51300 – 73000
I 23750 – 28550 62000 – 80000
5

6. FOR WORKMEN:
• Policy guidelines on wage negotiations with unionized
workmen is conveyed by DPE.
• Based on General guideline, the pay structure is
negotiated with unions and a Long Term Settlement
(LTS) is signed with the Unions
• No. of LTS : So far, 9 LTSs signed with the Unions.
• Pay Scales For Workmen:
–Marketing / IBP Division- 7 pay scales and
–Other Divisions --9 pay scales
6

7. WORKMEN: revised
REFINERIES/PIPELINES/R&D MARKETING / IBP
Grade Pay scales Grade Pay scales
I 10500 - 24500 I 10500 - 24500
II 10600 - 26500 - -
III 10800 - 29000 II 10800 - 29000
IV 11900 - 32000 III 11900 - 32000
V 12800 - 35000 IV 12800 - 35000
VI 13800 - 38500 V 13800 - 38500
VII 14800 - 40500 - -
VIII 16000 - 43700 VI 16000 - 43700
IX 20000 – 49200 20000 – 49200
(Prospective) (Prospective)
7

8. • Annual increment date- 1st January.
• Rates of annual increment :
- Officers - @3% of BP
- Non-Officers - @3% of BP
• Promotion increment - On promotion to higher grade
- Officers - @3% of BP
- Non-officers - @3% of BP
• Stagnation Increment –
– Officers: On reaching the maximum of scale, a stagnation increment
can be granted once every two years, subject to maximum of three, if
the performance rating is ‘Good’ or above.
– Non-officers: On reaching the maximum of scale, a stagnation
increment can be granted once every two years subject to max of 3, if
the performance rating is ‘Satisfactory’ or above.
8

9. Dearness Allowance (DA)
o Besides, Basic Pay (BP), employees are also entitled to
Dearness Allowance.
o DA is paid as percentage of Basic Pay- linked with all
India index ‘AICPI’
o Revised on quarterly basis, i.e. Jan, April, July & October.
o Rate as on 1.04.11– 47.2% of BP
9

10. • House Rent Allowance (HRA)
q House Rent Allowance is linked to the place of duty.
q Based on population, Cities classified in 03 Category:–
X class - 50 lakhs and above – HRA@30% of BP
Y class - 5-50 lakhs – HRA@20% of BP
Z class - less than 5 lakhs – HRA@10% of BP
q HRA not admissible when Corporation owned/leased
accommodation provided to employee
10

11. PERKS & ALLOWANCES
• Perks & Allowances would be admissible to officers upto
the ceiling of 50% of Basic Pay.
• In this regard, a ‘Cafeteria approach’ has been introduced,
allowing the officers to choose from set of perks &
allowances.
• The cost of infrastructure facilities such as hospitals,
holiday homes & clubs, and the medical expenses,
attributed to officers have been loaded on pool basis. The
current compulsory loading is 6% of BP.
• The perks & allowances admissible upto the balance of
44% of BP would be on individual basis.
• Perks & Allowances is under review from 1.4.10.
11

12. PERKS & ALLOWANCES
• List of perks & allowances within 44% of BP would be
as under:
– Tea Allowance
– Reimbursement of lunch/ refreshment
expenses
– Subsidized Canteen facilities, wherever
existing
– Washing Allowance – for those who have
not been provided with protective clothing
– Rationalization Adjustment Allowance (RAA)
– Professional Updation Allowance
– Children Education Assistance
12

13. PERKS & ALLOWANCES
• List of perks & allowances within 44% of BP would be
as under:
– Furniture items & maintenance
reimbursement under Furniture hire
Scheme
– Interest subsidy on HBA and Conveyance
Advance
– LFA / LTC
– Conveyance Facility
– Nominated Hotel Facility
– Brief Case/ Electronic Organizer/ Digital
Diary
13

14. PERKS & ALLOWANCES
• Optional / new allowances :
– House Maintenance / Upkeep Allowance
– Fitness Allowance
– Professional Attire Allowance
– Sundry Allowance
14

15. • List of perks & allowances outside the purview of
perks ceiling of 50% of BP
– North East Allowance – 12.5% of BP
– Special Allowance upto 10% of BP for
serving in the difficult and far flung areas,
subject to approval of Ministry.
– NPA
15

16. WORK RELATED ALLOWANCES
• Not uniformly admissible to all the
employees.
• Depends on grade /nature of assignments &
some other condition etc.
• Revision Cycle: 04 years
16

17. • Shift allowance for employees in rotating shift
o Rates per shift for actually performing shift duty:
– Officers – Gd. A&B - Rs.80 per shift (mor/eve)
- Rs.130 per shift (night)
– Gd. C & above - Rs.100 per shift (mor/eve)
- Rs.150 per shift (night)
– Workmen – all grades - Rs.65 per shift (mor/eve)
– Rs.105 per shift (night)
17

18. • Washing allowance: Payable rates:- & amount
diverted towards SABF.
Category Payable Payable
rates rates
Officers Work –
men
Where uniform 105 p.m. 25 85 p.m. 14
provided(eg.statu p.m. p.m.
./medical etc.)
18

19. • Special Compensatory Off (SCO) for 48
hrs. (officers)
o 9 SCOs per quarter automatically encashed in
the first month after the quarter.
o SCO encashment includes BP, DA, Stagnation
Increments.
19

20. • Compensation for performing duty beyond normal hrs. of
work
– Officers: Transport / out-of-pocket expenses for
performing duty on:
– On holidays / closed days or weekly rest days
– Extended duty on regular working day
– Emergency duty after office hrs. when called from home
o Compensation- For 48 hrs. vary from Rs.250/- to
Rs.1400/-, For 36.25 hrs.-Rs.250-Rs.900/-
o Compensatory off in certain situations.
¾ Workmen: Overtime for performing duty beyond 48 hr.per
week duty:
o Compensated by hourly overtime wages double the
normal rate
20

21. Conveyance advance: For Gr. ‘A’ officers
o CAR – Rs. 2.65 Lac( recoverable in 144 inst.)
o 2–Wheeler: – Actual Cost –recoverable in 96 inst.
• Interest rate – 2.5% p.a. (Simple Interest on
diminishing Principal amount)
House building Advance(HBA)
o Eligibility: After completion of 5 yrs.service.
o Ceilings–Gr. A,B&C--Rs.12Lac, D-F-14, G &
above-16Lac----recoverable in 25yrs. Or balance service
period
o Interest rate– 5% p.a. (Simple Interest on diminishing
21

22. • Reimbursement of Conveyance Running & Maintenance
expenses: to those officers who own cars/scooter /Motor-
Cycles & utilize same for official duties/purpose:
o Rates for cars: Annual ceiling for each grade have been fixed
based on prescribed mileage rate for distance:
• Grade A - Rs.37800 p.a. Rs.3150 pm
• Grade B - Rs.58800 p.a. Rs.4900 pm
• Grade C - Rs.59640 p.a. Rs.4970 pm
• Grade D - Rs.72240 p.a. Rs.6020 pm
• Grade E - Rs.73920 p.a. Rs.6160 pm
• Grade F - Rs.88200 p.a. Rs.7350 pm
• Grade G - Rs.92400 p.a. Rs.7700 pm
• H& above - Rs.201600 pa Rs.16800 pm
o Rates for Scooter/ Motor-Cycles: Rs.1506 p.m., Moped
Rs.807 pm 22

23. Conveyance facility for Sr. Executives:
– Those heading the key functions considered as
equivalent to projects, would be entitled to Company car
with driver :
§ Grade-H- Any Indian make/model Car up to Rs.6.5 lacs.
§ Grade I - Any Indian make/mode Car up to Rs.7.5 lacs .
- Other Sr. Executives would be using their own car :
§ for which reimbursement towards conveyance R&M of
Rs.16800 pm, Driver charges of Rs.8000 pm and Misc.
charges of Rs.3000 pm is allowed.
23

24. Furniture Scheme on Hire
• Officers are entitled to procure furniture items as under:
Grade Ceiling (in Rs.) Hire charges
(p.m.)
A 40,000/- 55/-
B 50,000/- 60/-
C 60,000/- 65/-
D 75,000/- 70/-
E 1,00,000/- 80/-
F 1,15,000/- 85/-
G 1,40,000/- 90/-
H/I 1,50,000/- 100/110/-
• Repair & Maintenance (R&M) - @ 10% p.a.
• Replenishment – after 7 yrs. 24

25. • Home – Desk Top PC Scheme / LAPTOP
o Cost ceiling - Rs.35,000/-
o Hardware /Software up-gradations-
reimbursement up to Rs.5,000/- p.a. supported
by vouchers.
o Maintenance and internet connectivity-
reimbursement up to Rs.12,200/- p.a. on self-
certification.
25

26. • Long Service Award to Employees:
o Awarded with 24 carat gold coin For
rendering good and satisfactory service :
15 yrs. - 5 gm. Gold coin
25 yrs. - 10 gm. Gold coin
30 yrs. - 20 gm. Gold coin
35 yrs. - 20 gm. Gold coin
Superannuation - 25 gm. Gold
coin
26

27. • Traveling entitlement:
• Officers in Gd.A to C – By 2ND AC-Mail/Exp.Train
• By air in certain specified sectors. Other than
certain specified sectors in work-exigencies.
• Officers in GD. ‘D’ & Above – By Air
• Daily allow. – Varies from Rs.800 to Rs.1100 per
day
• Local Conveyance –Varies from Rs.200 to Rs.300
per Day
27

28. LEAVE TRAVEL CONCESSION
o Eligibility: Self, spouse, dependent eligible children and
wholly dependent parents (residing under same roof &
income not exceeding Rs.3000/- p.m.)
o Frequency: Once in a block of 2 calendar years.
o Present block yr.- 2009-2010.
o Place :Home town/any place in India by shortest route.
o Foreign visit on LTC: Gd. D & above can also visit abroad
once in alternate block. Fare is restricted to farthest point
mainland in India from the place of posting.
28

29. oExp. on hiring accommodation – Can draw 100% DA
amt. for self/family members for maxi. 10 nights.
oLTC Encashment Rate:
o Gd. A/B/C – Rs.4532/- per ticket,
o Gd.‘D & above’ -Rs.7700/- per ticket.
29

30. • Additional LTC facilities at North-East(NE)
locations
o Employees posted at NE locations having
home-town outside NE states - can avail
liberalized LTC facility.
o In addition to normal LTC - Employee &
family members may visit home town once
in two yrs.
30

31. Lump sum LFA in Lieu of LTC
o Employees can opt for lump-sum LFA in lieu of
LTC entitlement. Lump-sum amount is
Sl admissible as under:
Category/Grade Lump-sum entitlement
.
1. Workmen with BP less than 1.00 time of actual
Rs.15440/- BP+DA of one
2 Workmen with BP of Rs.15440/-& month
1.25 times of actual
above BP+DA of one
3. Officers in Gd. A, B & C month
1.50 time of actual
BP+DA of one
4. Officers in Gd. D, E & F month
2.00 times of actual
BP+DA of one
5. Officers in Gd. G, H & I month
2.50 times of actual
BP+DA of one
month
31

32. • Holiday Homes –
Nainital,Puri, Darjelling,Goa, Mahabaleshwar, Ooty,
Simla & Manali.
• Nominated Hotels for officers & Family
o
members:
Once in two yrs. Maxi. for 04 days, @Rs.50/- per day.
• Nominated Hotels:
Mumbai. Kovalam, Udaipur, Port- Blair. Mussoorie,
Lonavala, Kodaikanal, Jodhpur & Gangtok
32

33. • Medical Benefits
o Eligibility: Employees & family members, viz. Spouse, wholly dependent
children and parents to be declared dependent by employees.
o Parents’ eligibility–Combined monthly income not to exceed Rs.9000/-
&should permanently reside with the employee under the same roof.
§ At Refinery locations:
o Hospitals are maintained in Ref. townships having indoor, outdoor &
investigative facilities and equipped to meet all emergencies requirement.
o For specialized treatment which cannot be treated in hospital, the patient may
be referred to an outside nominated hospital/specialist.
33

34. Medical Facility other than Refinery locations:
o AMA: May take treatment from an Authorized Medical
Attendant (AMA) either under Allopathic or Homeopathic
system only.
o Domiciliary & hospitalization treatment: may be obtained in
any nursing home/ hospital or from specialist of choice.
34

35. o Nominated Hospitals: Almost all Super Specialty/reputed
Hospitals are nominated at various locations, where treatment
may be obtained directly or on reference from office.
o Reimbursement of expend. : As per actuals subject to rules.
o Ceiling of charges: Ceilings on bed charges, consultation
charges, dental treatment, physiotherapy treatment etc. have
been laid down.
35

36. § MEMBERSHIP OF PROFESSIONAL BODIES
o Reimbursement of Annual fees @ Rs.2000: For
obtaining membership of any professional body/society
relevant to profession.
o Reimbursement of Annual fees @ $ 150 0R
Rs.7000: For obtaining membership of any international
professional body/society relevant to profession.
o Life memberships / One time – RS.6000/-
36

37. § MOBILE PHONE TO OFFICERS
o Gr. A Officers -reimbursement of cost of Mobile
Handset @ 7000.
o Call charges for Gr. A : Reimbursed up to
Rs.1400/- for cycle of 02 months.
o Buy back: Old handset can be bought back after 04
yrs. at depreciated value @ 5% and new handset can be
bought.
37

38. o Performance Related Pay
(PRP)
o MOU rating / performance of the Co.
o Profit Before Tax of the Co.
o Incremental profit of the Co.
– 60% of PRP will be given with a ceiling of 3% of PBT.
– 40% of PRP will come from 10% of incremental
profit.
– Total PRP, however, will be limited to 5 % of the
years PBT.
o Performance of the individual officer
o Grade of the individual officer
o ‘Bell curve approach’ in grading the officers 38

39. PRP %age linked to:
o MOU rating – (40% to 100%). No PRP for
Poor rating
o Performance of the individual officer -
(40% to 100%). No PRP for Poor rating
o Grade of the individual officer – (40% to
200%)
39

40. • Superannuation Benefits (under review)
o Co.’s contribution - 30% of BP & DA
o Superannuation Benefits: Will be under ‘defined
contribution scheme’.
40

41. • Superannuation Benefit Fund Scheme
(SABF )
o It is a Employees’ Fund
o Benefits: Accrue to members on following
conditions:
o On attaining age of superannuation
o Death / permanent total disablement
41

42. o Monthly direct contribution: Based on age-group of
employee at the time of joining the scheme.
o Rate: For age group up to 38 years-- 2% of BP+DA.
o Indirect contribution: Diversion of money equivalent of
Uniform facility and some allowances / benefits like Tea
Allowance, Washing Allowance, etc.
§ Benefits: Monthly cash payments: After
superannuation -40% of BP, DA & Non-Pract. Allow.
wherever applicable, linked to 32 years of service.
42

43. •
§ Rehabilitation scheme under SABF – in case of
death or permanent total disablement-
o Option-1 – Monthly payment of @ 40% of last drawn
salary to nominee -assuming notional superannuation
of Empl. (PF etc. dues can be withdrawn by
nominee)
o Option-2–Monthly payment of full last drawn salary of
employee to spouse till notional date of superannuation,
subject to deposit of PF, Gratuity, Leave
Encashment & Group Insurance amount.
o Thereafter, benefit would be based on the actual years
of service put in by the deceased employee.
43

44. Option-3 – Employment to one of the suitable and
dependent wards who possess the prescribed
qualifications, fulfills the job specifications and meets
other eligibility criteria of recruitment including medical
fitness.
44

45. • Post Retirement Medical Scheme(PRMS)
o Enrolment & contribution: Enroll. done at
retirement time by paying one time contribution
(Rs.5250-9000 / 2600) for self, spouse, dependent
parents & spastic child.
o Annual Domiciliary ceilings– Ranges from
Rs.12000 to Rs.28000 pa.
o Annual Hospitalization ceilings : Ranges from
Rs.25500 to Rs.63000 pa. Availed in 2 yearly block – if
not utilized, carried forward to next.
o Hospitalization ceiling: Can be utilized for chronic
OPD ailments, costly investigations, health check-up,
etc. against vouchers.
45

46. o In case of hospitalization in non nominated
hospitals- Expenses shall be reimbursed limited
to prescribed Hospitalization ceiling.
o For treatment specified ailments : 100%
reimbursement, subject to conditions.
o For other ailments- 85% reimbursement, subject
to conditions.
46

47. Provident Fund (PF)
o Own PF Trustee : IOC has its own Provident Fund run by PF Trusts
o Employees’ Contribution : @ 12% of B. Pay & DA.
o Company contribution : Equal amount is paid.
o Interest Rate : @ 8.5% p.a. on the accumulation.
o Refundable / non-refundable loans: Can be drawn for specified needs
subject to specified conditions.
o Refund of contribution: Employees' and corporation's contribution,
together with interest, is refunded at the time of retirement.
o Retention of fund: The retiree at his option, may retain the Fund beyond
retirement for 8 years.
47

48. Gratuity
o Gratuity rules - as per Payment of Gratuity Act, 1972
o Rate: Payable @15/26 of monthly emoluments for each
completed year of service or part thereof in excess of six
months(15/26XComted. yr. ser. X monthly emolu.)
o Maximum ceiling: Rs.10 lacs
o Ceiling Revision: by Govt. Of India from time to time.
o Payable at the time of separation: Provided service
rendered in the Corporation is 5 years or more.
48

49. • BENEFITS TO NEW OFFICERS AFTER COMPLETION
OF INDUCTION TRAINING AND POSTING :
o CONVEYANCE ADVANCE
o FURNITURE ITEMS
o HOME DESK-TOP PC / LAPTOP
o MOBILE PHONE
o BRIEFCASE
49

50. 50