COMPENSATION & BENEFITS

 3 categories of Employees: - Board level executives - Below board level executives - Workmen Well defined pay structure for each category.

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

 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.75000-100000/4

PAY SCALES
Grade
A B C D E F G H I

Pre-Revised Pay Scales

12000 - 17500 13750 -18700 16000 20800 17500 22300 18500 23900 19000 - 24750 19500 - 25600 20500 26500 23750 28550

Revised Pay Scales

24900 50500 29100 54500 32900 58000 36600 62000 43200 66000 51300 73000 51300 73000 51300 73000 62000 80000
5

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

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

MARKETING / IBP
Grade Pay scales
10500 - 24500 10800 - 29000 11900 - 32000 12800 - 35000 13800 - 38500 16000 - 43700 20000 49200 (Prospective)

 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.

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

 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 Y class - 5-50 lakhs Z class - less than 5 lakhs HRA@30% of BP HRA@20% of BP HRA@10% of BP owned/leased

q HRA not admissible when Corporation accommodation provided to employee

10

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. 11

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

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

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

14

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

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

 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 (mor/eve) shift (night)
17

- Rs.100 per shift - Rs.150 per

 Washing allowance: Payable rates:- &

amount diverted towards SABF.
Payable rates

Category

Payable rates

Officers

Work men

Where uniform 105 p.m. 25 provided(eg.sta p.m. tu./medical etc.)

85 p.m.

14 p.m.

18

 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

 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. Workmen: Overtime for performing duty beyond 48 hr.per week duty: o Compensated by hourly overtime wages double the normal rate

20

Conveyance advance: For Gr. A officers o CAR Rs. 2.65 Lac( recoverable in 144 inst.) o 2Wheeler: 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 CeilingsGr. A,B&C--Rs.12Lac, D-F-14, G & above-16Lac----recoverable in 25yrs. Or balance service period

21

 Reimbursement of Conveyance Running & Maintenance expenses: to those officers who own cars/scooter /MotorCycles & 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.,
22

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

Furniture Scheme on Hire

Officers are entitled to procure furniture items as G under: rade Ceiling (in Rs.) Hire charges
(p.m.)

A B C D E F G H/I

40,000/50,000/60,000/75,000/1,00,000/1,15,000/1,40,000/1,50,000/-

55/60/65/70/80/85/90/100/110/-

Repair & Maintenance (R&M) - @ 10% p.a. Replenishment after 7 yrs.

24

 Home Desk Top PC Scheme / LAPTOP o Cost ceiling - Rs.35,000/o Hardware /Software reimbursement up to supported by vouchers. up-gradationsRs.5,000/- p.a.

o Maintenance and internet connectivityreimbursement up to Rs.12,200/- p.a. on self-certification.

25

 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

 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

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

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

 Additional LTC facilities East(NE) locations

at

North-

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

Lump sum LFA in Lieu of LTC

o Employees can opt for lump-sum LFA in lieu of LTC entitlement. Lump-sum Sl. amount is admissible as under: Category/Grade Lump-sum
entitlement

1. Workmen with BP less than Rs.15440/2 Workmen with BP of Rs.15440/-& 3. Officers in Gd. A, B & C above 4. Officers in Gd. D, E & F

1.00 time of actual BP+DA of one month 1.25 times of 1.50 time of actual actual BP+DA of BP+DA of one one month month 2.00 times of actual BP+DA of one month 2.50 times of actual BP+DA of
31

5. Officers in Gd. G, H & I

 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

 Medical Benefits o Eligibility: Employees & family members, viz. Spouse, wholly dependent children and parents to be declared dependent by employees. o Parents eligibilityCombined 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

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

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

 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

 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

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

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

 Superannuation Benefits (under review)

o Co.s contribution - 30% of BP & DA o Superannuation Benefits: Will be under defined contribution scheme.

40

 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

o Monthly direct contribution: Based on agegroup 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.

42

Rehabilitation scheme under SABF in

case of death or permanent total disablemento 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-2Monthly 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

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

 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

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

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 47 beyond retirement for 8 years.

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
48

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

49

50