Iocl compensation

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COMPENSATIONCOMPENSATION
& &
BENEFITSBENEFITS

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

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•Compensation structure consists of :
oBasic Pay & DA
oHRA / Accommodation facilities
oPerquisites & Allowances
oPerformance related payments
oSuperannuation benefits

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•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:
•Below Board level Executives are placed in 9 pay scales.
Chairman Rs.80000-125000/-
Directors Rs.75000-100000/-

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GradeGradePre-Revised Pay ScalesPre-Revised Pay Scales Revised Pay ScalesRevised 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
PAY SCALESPAY SCALES

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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

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REFINERIES/PIPELINES/R&DREFINERIES/PIPELINES/R&D MARKETING / IBPMARKETING / IBP
WORKMEN: revisedWORKMEN: revised
GradePay 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
(Prospective)
20000 – 49200
(Prospective)

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•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.

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

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•House Rent Allowance (HRA)House Rent Allowance (HRA)
qHouse Rent Allowance is linked to the place of duty.
qBased 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
qHRA not admissible when Corporation owned/leased
accommodation provided to employee

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•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.
PERKS & ALLOWANCESPERKS & ALLOWANCES

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•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
PERKS & ALLOWANCESPERKS & ALLOWANCES

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•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
PERKS & ALLOWANCESPERKS & ALLOWANCES

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

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•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

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

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•Shift allowance for employees in rotating shiftShift allowance for employees in rotating shift
oRates per shift for actually performing shift duty:
–OfficersOfficers – 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)
–WorkmenWorkmen – all grades - Rs.65 per shift (mor/eve)
– Rs.105 per shift (night)

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

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•Special Compensatory Off (SCO) for 48 Special Compensatory Off (SCO) for 48
hrs. (officers)hrs. (officers)
o9 SCOs per quarter automatically encashed in
the first month after the quarter.
oSCO encashment includes BP, DA, Stagnation
Increments.

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•Compensation for performing duty beyond normal hrs. of Compensation for performing duty beyond normal hrs. of
workwork
–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
oCompensation- For 48 hrs. vary from Rs.250/- to
Rs.1400/-, For 36.25 hrs.-Rs.250-Rs.900/-
oCompensatory off in certain situations.
¾Workmen: OvertimeWorkmen: Overtime for performing duty beyond 48 hr.per
week duty:
oCompensated by hourly overtime wages double the
normal rate

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Conveyance advance: For Gr. ‘A’ officersConveyance advance: For Gr. ‘A’ officers
oCAR – Rs. 2.65 Lac( recoverable in 144 inst.)
o2–Wheeler: – Actual Cost –recoverable in 96 inst.
•Interest rate – 2.5% p.a. (Simple Interest on
diminishing Principal amount)
House building Advance(HBA)House building Advance(HBA)
oEligibility: After completion of 5 yrs.service.
oCeilings–Gr. A,B&C--Rs.12Lac, D-F-14, G &
above-16Lac----recoverable in 25yrs. Or balance service
period
oInterest rateInterest rate– 5% p.a. (Simple Interest on diminishing
Principal amount)

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•Reimbursement of Conveyance Running & Maintenance Reimbursement of Conveyance Running & Maintenance
expenses:expenses: to those officers who own cars/scooter /Motor- to those officers who own cars/scooter /Motor-
Cycles & utilize same for official duties/purpose:Cycles & utilize same for official duties/purpose:
oRates 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
oRates for Scooter/ Motor-Cycles: Rs.1506 p.m., Moped
Rs.807 pm

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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.

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•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/-
Furniture Scheme on HireFurniture Scheme on Hire

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

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•Home – Desk Top PC Scheme / LAPTOPHome – Desk Top PC Scheme / LAPTOP
oCost ceiling - Rs.35,000/-
oHardware /Software up-gradations-
reimbursement up to Rs.5,000/- p.a. supported
by vouchers.
oMaintenance and internet connectivity-
reimbursement up to Rs.12,200/- p.a. on self-
certification.
oReplenishment after 4 yrs. on buy back at
depreciated value, calculated @25% p.a.

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•Long Service Award Long Service Award to Employees:
oAwarded 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

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•Traveling entitlement:
•Officers in Gd.A to C – By 2
ND
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

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oEligibility: Self, spouse, dependent eligible children and
wholly dependent parents (residing under same roof &
income not exceeding Rs.3000/- p.m.)
oFrequency: Once in a block of 2 calendar years.

oPresent block yr.- 2009-2010.
oPlace :Home town/any place in India by shortest route.
oForeign 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.
LEAVE TRAVEL CONCESSION

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

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

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

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•Holiday HomesHoliday Homes – –
Nainital,Puri, Darjelling,Goa, Mahabaleshwar, Ooty,
Simla & Manali.
•Nominated Hotels for oNominated Hotels for o fficers & Family
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

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•Medical Benefits
oEligibility: Employees & family members, viz. Spouse, wholly dependent
children and parents to be declared dependent by employees.
oParents’ eligibility–Combined monthly income not to exceed Rs.9000/-
&should permanently reside with the employee under the same roof.

§At Refinery locations:
oHospitals are maintained in Ref. townships having indoor, outdoor &
investigative facilities and equipped to meet all emergencies requirement.
oFor specialized treatment which cannot be treated in hospital, the patient may
be referred to an outside nominated hospital/specialist.

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

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oNominated 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.
oCeiling of charges: Ceilings on bed charges, consultation
charges, dental treatment, physiotherapy treatment etc. have
been laid down.

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

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§MOBILE PHONE TO OFFICERSMOBILE PHONE TO OFFICERS
oGr. A Officers -reimbursement of cost of Mobile
Handset @ 7000.
oCall 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.

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o Performance Related Pay Performance Related Pay
(PRP)(PRP)
oMOU rating / performance of the Co.
oProfit Before Tax of the Co.
oIncremental 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.
oPerformance of the individual officer
oGrade of the individual officer
o‘Bell curve approach’ in grading the officers

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PRP %age linked to:PRP %age linked to:
oMOU rating – (40% to 100%). No PRP for
Poor rating
oPerformance of the individual officer -
(40% to 100%). No PRP for Poor rating
oGrade of the individual officer – (40% to
200%)

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

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•Superannuation Benefit Fund Scheme Superannuation Benefit Fund Scheme
(SABF(SABF))
oIt is a Employees’ Fund
oBenefits: Accrue to members on following
conditions:
oOn attaining age of superannuation
oDeath / permanent total disablement

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

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•
§Rehabilitation scheme under SABFRehabilitation scheme under SABF – in case of
death or permanent total disablement-
oOption-1 – Monthly payment of @ 40% of last drawn
salary to nominee -assuming notional superannuation
of Empl. (PF etc. dues can be withdrawn by
nominee)
oOption-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.
oThereafter, benefit would be based on the actual years
of service put in by the deceased employee.

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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.

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

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

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

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GratuityGratuity
oGratuity rules - as per Payment of Gratuity Act, 1972
oRate: 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.)
oMaximum ceiling: Rs.10 lacs
oCeiling Revision: by Govt. Of India from time to time.
oPayable at the time of separation: Provided service
rendered in the Corporation is 5 years or more.

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•BENEFITS TO NEW OFFICERS AFTER COMPLETION BENEFITS TO NEW OFFICERS AFTER COMPLETION
OF INDUCTION TRAINING AND POSTING :OF INDUCTION TRAINING AND POSTING :
oCONVEYANCE ADVANCE
oFURNITURE ITEMS
oHOME DESK-TOP PC / LAPTOP
oMOBILE PHONE
oBRIEFCASE

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