Chhattisgarh Vidyut Mandal Abhiyanta Sangh 1- MEMORANDUM From Chhattisgarh Vidyut Mandal Abhiyanta...
Transcript of Chhattisgarh Vidyut Mandal Abhiyanta Sangh 1- MEMORANDUM From Chhattisgarh Vidyut Mandal Abhiyanta...
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MEMORANDUM
From
Chhattisgarh Vidyut Mandal Abhiyanta Sangh
to
Wage Advisory Committee
Chhattisgarh State Power Companies,
RAIPUR
for
REVISION OF PAY SCALES
FRINGE BENEFITS & OTHER ALLOWANCES
OF CLASS I & II OFFICERS
(In response to CSPHCL Notice vide No. 01-01/GM (HR) / 646 Dtd. 02/03/14
read with subsequent correspondences)
Due From 01.04.2014
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Table of Contents
1. Preface - 5
2. CSEB : A Historical Perspective - 7
3. Principles of Wage Revision - 11
4. Proposed Wage Structure - 19
5. Allowances & Fringe Benefits - 25
6. Terminal Benefits - 47
Our only limitations are those which we set in
our minds.
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PREFACE Like many other things in life, ―Status‖ is also relative. The Society and the
economy both are live and dynamic. Periodic wage revision is required to address
the relative ―Status‖ in the society.
The Indian economy is all set to enter into a phase of vibrant growth. As the
economic growth has a direct co-relation with the energy demand, power sector is
also expected to witness a very vibrant shakeup. The complicated network of
electrical power rests on huge Hardware structures and intricate control Software
yet the soul of the network lies in the intangible Peopleware. With crucial
amendments in the electricity act on anvil and the increasing chorus of PPP
models, the sector is set to enter into a new era where public utilities will have to
compete with the private enterprises. The war for recruitment and retention of
competent and efficient executives is all set to intensify. Though profitability cannot
be the prime motive of any public utility, yet as spelled out by the management
guru Peter F Drucker, profit will remain the ultimate test of survival of any utility.
It is in this backdrop that recruitment and retention of competent and efficient
executives will become crucial. It seems impossible that recruits of right stamp can
be obtained and retained without paying them packages at par with competition.
Excellence is extract of sufferings and it does not come without a premium.
At this point it may be interesting to review two valuable quotes:-
The Royal Pay Commission (Islington Commission) on Public Services in India
(1912-1913) has enunciated:-
“….The only safe criterion is that Government should pay so much to their
employee as is necessary to obtain recruits of the right stamp, and to maintain them
in such a degree of comfort and dignity as will shield from temptation and keep them
efficient for the term of their service…….”
Commenting on the report of V CPC, the expert panel commented:-
“The real question which should be asked with regard to the wage revision
recommendations is not that whether the Government can afford to pay the wage
revision, rather the real question is whether the Government can afford not to pay
the wage revision.”
The instant memorandum draws heavily on this basic philosophy and we
have moved to the mainstream compensation package so that fairness is
maintained in the compensation package for officers of Chhattisgarh State Power
Companies i.e. erstwhile CSEB.
Equity is the soul of all civilization, without equity all ills flow as natural consequence.
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CHAPTER -I
Chhattisgarh State Power Companies
(Successor of CSEB)
A Historical Perspective
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CSEB: A Historical Perspective
CSEB
The Electricity (Supply) Act, 1948 came into force on 10th Sept. 1948 and with the
reorganization of States from 1.1.1956, the State Govt. vide Electricity Department
Notification No.103/XIII dated 30-03-57 had constituted the Madhya Pradesh
Electricity Board from 1.4.1957 under provision of section 5(1) read with section 1
of the Electricity (Supply) act 1948. Subsequent to bifurcation of state of MP into
MP and Chhattisgarh, Chhattisgarh State Electricity Board (CSEB) came into
existence as successor of erstwhile M.P. Electricity Board w.e.f. 1st Dec 2000 vide
GoI Notification No. 28 of 2000 Dt. 25th August 2000. With 1st January 2009, CSEB
has been unbundled in five companies, collectively called Chhattisgarh state
Power Companies.
The above brief intends to submit that irrespective of the reorganization of
SEB, autonomous character of the employer remains undisputed.
ROLE OF ENGINEERS:
The working in Electricity Board is strenuous & expertise oriented and are
defined as Essential Services. In Power Houses as well as in
400/220/132/33/11kV Sub-stations, even Class I and Class II engineers are
required to be on duty round the clock. If there is any break-down either in the
Plant or in the Line or in Sub-stations, the same is required to be immediately
attended. Moreover, working conditions are categorized as hazardous. The
generation wing officers suffer from pollution in the thermal stations, the load
dispatchers / transmission wing officers bear the challenge of maintaining the
demand / supply balance and distribution engineers have to every day pass the
litmus test of dealing with the tension of political tinge and public expectations.
Traditionally, the Engineers of the Board are well known for their
quality work in the Power Sector. Few citations about MPEB (predecessor of
CSEB) will suffice to describe their devotion, hard work, sense of duty and
responsibility.
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Dr. N.Tata Rao, Padmshri, former Chairman APSEB, stated that :-
“Madhya Pradesh is lucky-very lucky indeed to have in MPEB, Engineers
and staff of whom anyone in the entire world can be proud of associating himself
with, for doing almost impossible things.”. He further states, “MPEB can still claim
to have officers of this type who could devote themselves more to work of the
Board in every sphere without ever thinking of their own notional comfort”.
MPEB‘s Ex-Chairman Shri G.Jagathpati (IAS) stated—
“May I conclude by saying that MPEB’s Engineers, Officers, and workers are
among the finest and most devoted this country has. In spite of crippling, capacity
shortage, I believe we have not fared badly. ……... Given the devotion and the
efficiency of its employees, I should be pardoned for my immodesty in saying that
it is impossible for the Board not to be efficient”.
Since the formation of new state, role of engineers working in the
CSEB has been more demanding and challenging. Taking into account the
resource constraints, the engineers outperformed the expectations.
EARLIER REVISIONS:
The Scale of Pay of the employees of MPEB was first revised through
collective bargaining w.e.f. 1st April 1969 and thereafter, followed subsequent
revisions w.e.f. 1st April 1974, 1st April 1980, 1st April 1984, 1st April 1989 & 1st April
1994. The Pay Revision of the erstwhile MPEB became due w.e.f. 1st April 1999.
The need and right of the pay revision was accepted by all the parties..
For wage revisions due w.e.f 01.04.1999 and 01.04.2004, CSEB, successor
of the erstwhile MPEB, had set up a wage advisory committee under Hon‘ble Retd.
Chief Justice (High-Court) G.G. Sohani. On the basis of the recommendations of
the committee CSEB provided the respective wage revisions. The last revision was
done vide Notification No. 01-03/WAC/1229, Dtd 07.04.2010 and now the revision
has become due w.e.f. 01/04/2014.
***
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CHAPTER -II
PRINCIPLES OF
WAGE REVISION
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PRINCIPLES OF WAGE REVISION
Since the dawn of civilization, the payment of wages has been a very crucial
subject. According to David A. Hume, it dates back at least to the time of Christ.
Reference to payment for labour is made in the Holy Bible, the Gospel according
to Matthew 20:1-2:
"For the Kingdom of heaven is like a landowner who went out in early
morning to hire men to work in his vineyard. He agreed to pay them a
denarius for the day and sent them into his vineyard."
In ‗Arthshastra’ Kautilya advised the King:
“….in the happiness of his subjects lies his happiness, in their welfare
his welfare; whatever pleases himself he shall not consider as good, but
whatever pleases his subjects, he shall consider as good.”
Before we proceed for submission of our proposal for pay revision, it seems
essential to narrate a brief of principles laid down by various pay commissions, on
which we have rested our case.
GENERAL PRINCIPLES LAID BY VARIOUS PAY COMMISSIONS:-
The Royal Pay Commission (Islington Commission) on Public Services in
India (1912-1913) has enunciated the following principle:-
“….The only safe criterion is that Government should pay so much to
their employee as is necessary to obtain recruits of the right stamp, and
to maintain them in such a degree of comfort and dignity as will shield
from temptation and keep them efficient for the term of their service…….
Where we have advised change of salary it has been to meet inequalities
of remuneration prejudicial to efficiency, to fulfill expectations reasonably
and to improve recruitment, where the existing terms have been shown to
be in-sufficient to obtain satisfactory personnel…‖
Thus even in the days of British rule, the Islington Commission moderated
the operation of law of supply and demand and recommended the necessity of
placing the officers above the reach of temptation. The principle was accepted
even by the Royal (Lee) Commission constituted in 1923 for Superior Services in
India.
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The Vardachariar Commission (1946-47),
The pre-independence commission in view of Indian conditions had laid down
the following principle:-
“In its practical application principles enunciated by the Islington
Commission have to be amplified or supplemented by other ways of
stating the test even more important is the nature of duty and
responsibility of office. Great stress is laid on the necessity of enabling
the holder of the office to maintain its status and dignity.”
Principles Propagated By First Central Pay Commission:
The First CPC innovated the principle of "living wage" to Government
employees. It observed that "the test formulated by the Islington Commission is
only to be liberally interpreted to suit the conditions of the present day and to be
qualified by the condition that in no case should be a man‘s pay be less than a
living wage." While considering the question of maximum salary, the Commission
agreed with the view that the State should compete with private enterprise in
respect of prize posts; but expressed their inability to agree that the salaries of
public servants could be reduced below the standard remuneration available to
similarly situated employees in the private sector.
Principles Propagated By Second Central Pay Commission:
The Second Central Pay Commission reiterated the principle that the pay
structure and the conditions of service of Government employees should be so
designed as to ensure recruitment of persons with requisite qualifications and
ability at all levels and to maintain their efficiency. It went on to state that, after
determining the minimum and the maximum salaries on a combination of both
economic and social considerations, the intermediate salaries should be fixed on
sound and equitable relativities.
Principles Propagated By Third Central Pay Commission:
Third Central Pay Commission proceeded on the premise, inter alia, that the
pay structure, if it is to be sound, should satisfy the tests of "inclusiveness",
"comprehensibility" and "adequacy" and should, at the same time, be fairly simple
and rational. It considered Skill, Strain, Experience, Training, Fatigue, Technical
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qualification, Promotion avenues as key factors in evolving the pay scales after
taking into account the recommendations of Fare Wages Committee.
It also remarked that true test to be adopted should be whether the Government service is
attracting & retaining persons it needs and whether such persons are reasonably satisfied
with the pay and other benefits taken together.
Principles Propagated By Fourth Central Pay Commission:
The Fourth Central Pay Commission was, however, guided by a number of
factors for determining the pay structure, viz., social status regard to which the
public employment carries in society, the authority of the post, security of tenure
and the welfare measures adopted by the Government for the benefit of its
employees. Motivation for employees, efficient performance and comparability
were also considered by the Commission.
Principles Propagated By Fifth Central Pay Commission:
The Fifth Central Pay Commission was specifically asked to evolve the
principles which should govern the structure of emoluments and other conditions of
service. So, the Commission had to survey the principles adopted by the
antecedent Commissions and accepted some of the general principles including
the three characteristics of a sound pay structure, namely, inclusiveness,
comprehensibility and adequacy as has been elaborated by III CPC.
The Fifth pay commission addressed the factor of erosion squarely. The
recommendations of 100% neutralization of inflation in DA and provision in the pay
structure for compensation of previous losses incurred to higher cadres and
merger of DA every time it crosses the 50% mark were the steps in this direction.
The Commission also recommended an Assured Carrier Progression (ACP)
scheme to ensure that if an employee after completion of certain number of years
does not get promotion, he should at least get pay up-gradation as higher post.
The Commission also laid emphasis on the principle of intrinsic value of a job, "fair
compensation", "productivity" and "model employer". However finally the
commission has stated that:-
―We would like to adopt a modified version of the constant relative income
criteria as possibly the most equitable norms, both from the point of view of the
employee as well as the Government”1
1 Para 41.37 (iv) of chapter 41 Vol.I of fifth CPC report
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Besides, the Commission has considered certain other criteria like the, de-
linking pay from position in the hierarchy, justice to lowest and highest paid
functionaries, liberal reimbursement of actual expenses and full compensation for
entering into the public service.
Principles Propagated By Sixth Central Pay Commission:
The Terms of Reference (ToR) for Sixth Central Pay Commission provided:-
1. “Transforming the Central Government organizations into modern,
professional and citizen friendly entities that are dedicated to the
service of the people; and
2. Harmonizing functioning of the Central Government Organizations with
the demands of the emerging global economic scenario. ―
The commission on its part has made some dynamic recommendations
regarding 1+X model of Performance Related Incentive (PRI). The report states:-
“A system that primarily lays emphasis on delivery and end results
and which continuously rewards performance has been put in place
by incorporating features like Performance Related Incentive (PRI)
and variable increments in the basic scheme of pay scales.
Flexibility is also inherent in the proposed scheme of running
pay bands.‖
The commission also deviated from the fixed stages to percentage
based increments as already adopted by many CPSUs. With wide ranging
running pay bands {in comparison to earlier 32 scales in GoI, (4+1) pay
bands have been prescribed}, the problem of stagnation was resolved for
once and all. The commission was very categorical in allowing neutralization
of impact of price rise on allowances. Contrary to earlier approach and
attitude, it has recommended for making early retirement from service
attractive, by providing full pension benefit after 20 years of service, with
enhanced value of gratuity.
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OBSERVATIONS OF PAY COMMISSIONS FOR ELECTRICITY UTILITIES:-
Pay Committee for MPEB Officers observed: -
―For the efficient functioning of any organization the manner in which the
human resources are built up and utilized is more important than other
aspects. The optimum exploitation of available natural and financial
resources depends on the quality of human resources. Quality of human
resources in a public sector corporation like the State Electricity Board is
primarily dependent on the top executives, middle managers and the
lower rungs at the plant and office levels. The State Electricity Board is
today experiencing several difficulties in recruiting and retaining
personnel of good quality………
……. In fact, the officers of the Board have always been getting higher
emoluments than their counterparts in the State Government. The
success of the Board is considerably conditioned by the quality of its
officers, which in turn greatly depends amongst other things, upon the
emoluments. If the difference in the emoluments of similar public sector
undertakings and the Board continue to be as large as at present the
Board will have to satisfy itself with average quality of personnel”.
Justice Sankaran, Retd. Chief Justice of Kerala High Court while
adjudicating as an arbitrator in the matter of dispute between Kerala State
Electricity Board Engineers Association and K.S.E.B. has observed that:-
“The technical qualification required for these engineers (State Electricity
Board) is of higher order. It is well known fact that the best talent in the
country is given preference in Selection to Engineering and Medical
courses which are tough and difficult”.
Further Shri G. G. Sohani, Retd. Chief Justice (Patna High Court) acting as
Chairman of the Wage Advisory Committee for C.S.E.B., observed–
―The working in any Electricity Board is quite different from that of the
State Govt. The State Electricity Boards are engaged in Generation,
Transmission and Distribution of power, which requires constant and
continuous attendance, observation and monitoring……..the basic job in
electrical industry is to maintain dynamic stability which obviously call for
online monitoring of various technical parameters in the entire network”
After all, the bottom line goes to state a simple principle that the pay revision
should be such as to attract and retain the competent and efficient engineers
in the power companies.
***
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CHAPTER -III
PROPOSED WAGE STRUCTURE
“……the ‘fairness’ in pay structure is the most
commonly used and most commonly abused term in this area
….Fairness, like beauty, is only too often in the eye of
the beholder; but it would be too cynical to maintain
that, its use in this context is really a disguised form
of envy.“
A.P. Williams
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WAGE STRUCTURE - PROPOSAL & RATIONAL
The wage revision is done in order to maintain the relative ‘Status’ in the
society. While payment of DA is a mechanism, which maintains the purchasing
power of an employee at the level defined during the wage revision, the revision is
done to maintain the relative status in a dynamic and progressive society. In simple
terms if a person owned a scooter in 1980, he held a relatively high status in the
society. The payment of DA ensures that he remains capable of maintaining the
scooter in spite of the rising fuel and maintenance costs, but at the same time if all
others in the society switch from cycles to bikes and then cars, then even by
maintaining the scooter that person‘s relative status in the society deteriorates. The
wage revision is the mechanism by which he is allowed to move along with his
fellow-man in the society. Interestingly the concept of wage revision is older than the
concept of regular DA. Wage revision history as narrated in the earlier chapter date
backs to centuries while the system of DA is in force since Second World War and
has been updated during different pay revisions.
As surmised above, the purpose of revision is to maintain the relative status
(measured by per capita income) of an employee in the society. It is prudent to
refer to the report of the V CPC in this regard. It states:-
“We are of the view that inadequate salaries in the public service are an
expense and not an economy…….. “2
IAS officers association pointed out before Pay Commission very categorically :-
“Earlier the comparison of civil services pay scales with those in the private
sector was generally avoided on various considerations like the higher social
status, the insecurity in the private sector etc. …. However now the scenario has
changed totally due to demand supply gap. . Things have deteriorated in the public
sector. Capacious transfers and constant fear of political victimization have
undermined the moral and self esteem of the public servant. …Therefore a
comparison with the financial package available to the private sector has become
unavoidable. ….”
At this juncture, it may not be out of place to recall that after opening up of
the power sector a private major attempted hijacking of a complete batch of
leading CPSU (NTPC). Even from our own organization, officers have been picked
up by private companies at attractive packages.
2 Vth CPC report – Volume I, para 42.32
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It is also relevant to mention that the packages in the private sector have moved at
a rate more than double the growth in per capita net national income. In the span
2009-1204, packages of private sector executives have already gone up by about
60%.
For deciding the relativity, another approach may be to judge that what others are
looking for. In May 2014, in draft response to 7th CPC, the present pay scales of
group A services have been recommended to be revised to 3 to 4 folds. Similarly,
National Council of Joint Consultative Machinery (NCJCM) for Central Government
Employees has proposed a multiplying factor of about four times.
National income at factor cost at 2004-05 prices may be the perfect basis for
determination of wage fixation benefit as it gives the growth after diluting the effect
of inflation.
Table 3.2-NATIONAL INCOME AT FACTOR COST
(AT 2004-05 PRICES) Index Number(2004-05=100)
Item Gross
National Income(GNI)
Net National Income(NNI)
Estimated Population
(Million)
Per Capita Net National
Income (`) GNI NNI
Per Capita NNI
2004-05 2949089 2629198 1089 24143 100.0 100.0 100.0
2005-06 3228177 2877284 1106 26015 109.5 109.4 107.8
2006-07 3534849 3149149 1122 28067 119.9 119.8 116.3
2007-08 3879457 3451829 1138 30332 131.5 131.3 125.6
2008-09 4133292 3664388 1154 31754 140.2 139.4 131.5
2009-10 4488314 3966408 1170 33901 152.2 150.9 140.4
2010-11 4882249 4310195 1186 36342 165.6 163.9 150.5
2011-12 5196848 4572075 1202 38037 176.2 173.9 157.5
2012-13 5449104 4766754 1217 39168 184.8 181.3 162.2
2013-14 awaited from GOI 174*
source - http://mospi.nic.in/Mospi_New/upload/SYB2014/ch3.html Website of the Ministry of Statistics and Programme Implementation * - expected, calculated by considering the trend of last 10 years through scatter plot
From the above table one can easily see that after adjustment to the 2004-05
prices the actual growth during FY09-FY14 is as under
The growth in Per Capita Income --- 32.6%%
In view of the above, fixation benefit of 33% is rational and justified
The instant revision is proposed for the period 2014-2019.
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CGVAMS demands 33% fixation benefit on basic in pre-revised scale
as following –
The pre-revised initial basic pay of AE is = 20425 + Add pay @ 8% (1634)=22059
The fixation benefit should be 30% of pre-revised basic
Basic pay in revised pay scale should be – 22059*1.33 = 28677 say 28700
Further CGVMAS demands the increment at each stage should be 5% of running
basic. Needless to iterate that as and when the Central DA scheme may change
the same shall be adopted in an appropriate and rational manner.
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PERIODICITY OF WAGE REVISION
As detailed in the chapter ‗CSEB: Historical Perspective‘, it is clear that the
periodicity of wage revision of MPEB / CSEB has been 5 years & looking to the
settled customary position, the periodicity for wage revision in future also shall
remain five years. It is also pertinent to mention that Section 133 of the Electricity
Act 2003 specifically assures against any adverse change in the service
conditions. As the periodicity of wage revision form part and parcel of service
conditions, the same needs to be protected.
Abhiyanta Sangh also wish to state categorically that the proposals made in this
document are holistic and has to be treated as an organic whole since all the
major demands are inextricably inter-twined. Accordingly, any modification in the
scheme of proposal can severely affect the outcome. Therefore it is requested to
consider the proposals contained in the memorandum as a package.
Higher Pay Scale AND CAREER PROGRESSION
In any organization, promotion resulting in a better future in terms of the
status as well as the financial compensation is the main incentive which drives a
person to put his best. Unfortunately there has been lack of opportunities of
promotions because of which an alternative in the form of scheme for grant of
higher pay scale (Like Assured Career Progression- ACP) was formulated.
After continuous persuasion the third HPS facility was allowed, however the
periodicity of the higher pay scale fails to pass the test of fair expectations. It may
be interesting to note that in 1994 a committee under chairmanship of Shri R.G.
Shahane was set up to suggest remedial measures. The committee recommended
grant of HPS options for higher pay scale on completion of 7/14/21/28 years of
service. With the present level & intensity of stagnation, it appears fair that the
fourth option shall be allowed and the periodicity and number of options may be
revised to allow 4 HPS options after completion of 7/14/21/28 years of service.
However, Sangh submits that the time has come when one needs to
rethink over the whole scheme of career progression. Higher pay scale
undoubtedly provides financial consolation against the pain of stagnation; however
it does not nullify the sufferings. It is proposed that cadres AE to ED may be re-
defined as E2 to E9 with one single running master pay scale. The gain to
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organization may be much higher if a time bound career progression scheme is
considered. On one hand it will give the engineers social recognition and
motivation and at the same time it will benefit the organization with better
productivity at a much lesser cost (the need for HPS will evaporate and moreover
the pay scales will automatically rationalized). The promotion up to E7 may be
time-bound at interval of 5 years and E 8 and E 9 should be vacancy based. It
is submitted Sangh is willing to make a detail presentation on the issue at the time
of discussion with Commission.
***
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CHAPTER -V
ALLOWANCES
& FRINGE BENEFITS
Icing alone is of no value, but icing on the cake is
of great value addition.
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The Broad Principle
Generally, rate of allowances is fixed on the basis of costs incurred to accomplish
such activity (facility) on the day of finalization, whereas it is fixed for a time period
of 5 year so either the expected cost should be considered for mid- point (i.e.
1/10/2018 in case of pay revision period 2014-2019) of wage revision period or
should be linked with dearness allowances as it has been adopted by Central
Govt. as per sixth pay commission recommendations. Therefore CGVAMS also
demands for adoption of same methodology incase of conveyance allowance,
children education allowance etc. whereas the compensatory allowance may be
linked with rate declared by collector for unskilled labour six monthly. The detailed
submissions are as under- in 2 part –
Part A – Reimbursement of the expenses incurred as currently admissible
Part B – The allowances /facilities which are currently available
Part C - The allowances /facilities to be started
Part D – Concept of cafeteria allowances
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Part A : Reimbursement of the expenses as currently admissible There are certain provisions and facilities which are not regular allowances,
rather are in the form of reimbursement against actual expenses, as and when the
situation arises.
Accordingly the provisions need review so as to ensure that actual expenses are
reimbursed and employees don‘t feel like cheated or neglected.
1. Traveling Allowance
The present entitlement may be continued with corresponding revised Basic pay.
However, looking to the softening of the air travel rates & time saving
associated with saving in accommodation & DA charges, Air travel should be
allowed to all the designated class-I & class –II officers.
For CE/ ED scale - Business/ Club class by Air/ AC – I – Train
For SE/ACE scale - Economy class by Air/ AC – I – Train
For AE/ EE scale - Economy class by Air/ AC – II – Train
Further, travel by own car should be allowed @ Rs. 20/- per Km, subject to
maximum ceiling of the train fare of the class to which a person is entitled. For
international /sea journey GoI rules as amended from time to time any be adopted.
2. Daily Allowance
This is granted to an officer to cover daily expenses incurred by him during
the journey undertaken in the interest of official work. In view of the high
inflationary trends, the allowance should be raised to 1.6 (25% on every 50% rise
of DA) times from the prevailing rates. In future the rates shall be increased by
25% every time the DA payable on revised pay scales goes up by additional 50%.
3. Accommodation Charges
Following the logic as explained above, the accommodation charges
presently also need to enhance to 1.6 times of the prevailing rates. In future the
rates shall be increased by 25% every time the DA payable on revised pay scales
goes up by additional 50%.
4. Transfer Grant & Luggage charges
It is not an allowance; rather it is a reimbursement, that too against
expenditure incurred by an employee in compliance of Board orders. There cannot
be any debate that such expenses should be fully reimbursed.
Therefore, it is proposed that:-
1. Rate of transfer grant should be revised to one month pay.
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2. Luggage charges (per KM basis) should be 28/- per Km.
3. Travel by own car to be allowed @ RS. 20/- per Km.
The rates shall be increased by 25% every time the DA payable on revised pay
scales goes up by additional 50%.
5. Medical Facilities
At present at major centers dispensaries have been provided while at power
stations and at headquarter to meet out contingencies hospitals are operational.
However the condition of such facilities is far from satisfactory. The system needs
to be thoroughly improved. Today there is a need that patients should be treated by
specialist doctors which is generally not available in such dispensaries operated by
CG power companies. Even in case of reimbursements as per rule, the
reimbursement is meager in comparison to actual expenses.
Now a day, number of utilities, are entering in cash less medical treatment
contracts for their employees & wards. It may be in the form of direct contract with
major hospitals or in the form of medical insurance.
Abhiyanta Sangh demands that:-
1. 100% reimbursement in all cases (whether referred or not) for treatment
taken in identified hospitals.
2. Now health insurance scheme are available at comparatively cheaper cost
than what-ever cost is incurred by the employee and CG power companies,
together. Therefore CGVAMS demands that employee should be given an
option to be covered under present scheme of medical facilities or to be
covered under Cashless Health Insurance scheme of Rs. 5 lac per family
option, and if the sufficient numbers ( > 25%) of employee opts the cashless
treatment insurance scheme, then CG power companies should go for Group
health insurance scheme for such employees.
3. Further, in accordance to the pith and substance of the Hon‘ble Supreme
court decision in civil appeal no 1368 of 1990, the definition of family shall be
extended to cover the parents of serving employees and the restriction
related to ―wholly dependence‖ should be withdrawn.
4. The same facility should be extended to retired engineers (and dependent
family members) also. It may be noted that all leading PSUs have adopted
such humanitarian approach.
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Part –B – The allowances /facilities which are currently available
1.1 Dearness allowance and House Rent Allowance
Presently the DA & HRA are being paid at par with the rates declared by
Govt. of India for civil services. CGVAMS demands for continuation of same
procedure and the rates of these allowances should be immediately revised
whenever same are being revised by the GoI.
1.2. Conveyance Allowance
The Conveyance Allowance is paid to employees to cover expenses on running and
maintenance of vehicle for their local movement. Considering abnormal increase in
cost of petroleum products, vehicle maintenance cost, every utility has given
substantial relief on this count.
Central Govt. employees of civil services are being paid conveyance allowance at
following rates
Gr. Pay 5400 & above ( Pay scale 15600 and above)
4200, 4600, 4800 ( Pay scale 7440 and up to 15600)
below 4200 (Pay scale below 7440 )
1600/+DA 800/+DA 400/+DA
Since cost of conveyance is directly linked with dearness so the allowance has been
linked with dearness allowance by GOI, therefore the CGVAMS demands for
applicability of the same pattern for conveyance allowance, as applicable to central
Govt. Civil services, as following –
Class I officer – Rs.1600 pm + DA (thereon) as applicable from time to time
Class II officer - Rs.1200 pm + DA (thereon) as applicable from time to time
1.3. Conveyance Allowance for physically challenged
The present rate of Conveyance Allowance for handicapped officers is paid @
5% of basic pay subject to min. of Rs. 400/- pm. We demand to keep continue the
same provision.
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1.4. Compensatory Allowance
The Board was providing orderlies to its officers at the rate of one orderly for
class-II officers and two orderlies to class-I officers and 3 for senior class-I officers
CE /ED. In view of the problems associated with labor and increase in wages, Board
had changed the system of providing orderlies and instead started cash payment in
lieu of orderlies. For all the existing officers of the Board, the facility of orderly /
allowance stands as an established term of service package. When the facility was
introduced it was linked with the minimum daily wages for an unskilled worker.
Later on, in 1987 the rate was revised to 250/-pm per orderly, at that time the
minimum rate was about 10/- per day and calculation was done for 26 working
days/month. These rates were revised lastly in 1/4/2010 and the rates admissible
are Rs. 1800 for Class II officers and Rs. 3600 for class I officers. These rates were
fixed on the basis of change in CPI index.
It is pertinent to mention here that the monthly wage of unskilled labour in
Govt offices as per (list K) is fixed as Rs.5468 vide circular no 1571 dtd 25/4/2014,
for the period April14 to Sept 14, by Assistant labour commissioner Raipur.
Accordingly, based on above principle, Abhiyanta Sangh demands a rate of
compensatory allowances to be increased to Rs. 5500 and Rs. 11000 per month
for class II officers and class I officers respectively. This allowance should be linked
with the rate of wages declared time to time by Assistant labour commissioner
Raipur.
1.5 .NIGHT SHIFT ALLOWANCE
After a long pending demand during pay revision of 1989, Board agreed to
grant night shift allowance, which is at present Rs. 125.00 per night for A.E. and
Rs.166.67 per night for EE. The meager amount being paid presently on following
pre- conditions:
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1. The allowance is being paid only when one performed at-least 4 night shifts.
2. Maximum limit for this allowance is restricted to 6 night shifts only per month.
In view of the hardship being faced it is proposed that the rates of this allowance
should be revised as below;
For Assistant Engineer -- Rs. 300.00 per night shift
For Executive Engineer --- Rs. 500.00 per night shift.
The above rates are based on the rates presently being applicable in NTPC
Engineers. Further the conditions mentioned above needs to be withdrawn.
1.6. Boiler Proficiency Allowance
Boiler Proficiency Allowance is presently payable @ Rs. 500/- pm on
acquiring Boiler Proficiency certificate. At present this allowance is only admissible
for those who are engaged in operation of Power plant. However it is an additional
specialized qualification which helps in improving the technical knowledge and
working of an engineer. Hence it is proposed that this allowance should be
extended to all engineers on acquiring Boiler Proficiency certificate irrespective of
their place of posting. Present BOE allowance is far less as compared with other
utilities. It helps to encourage the employees to take interest and pass the BOE
examination and benefits the CSPGCL. The rate should be revised to 5% of pay.
1.7. Baster (Risky area) allowance
Since CG is badly affected with Naxal problems and its boundaries are spreading
from Baster to other area of CG . Working in these are becoming difficult and risk to
life in increasing day by day so there is an urgent need to compensate suitably the
risk through monetary benefits to keep the employee motivated who are working
in that area. Therefore CGVAMS demands that the name of allowance should be
changed to “Risk area allowance” and shall be applicable to all employees working
in the district, which has been declared by state Govt as Naxal affected area. The
present rate of allowance is as 20% of basic pay and it should be allowed in all the
naxal affected area (declared by GoCG), on uniform basis.
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1.8. C-OFF ENCASHMENT
The facility of C-off encashment in lieu of work done on gazette holidays is
presently available to engineers working in operation and maintenance of power
station, Load Dispatch Centre and 400KV substations (Operation). The present rates
for C-Off encashment are @ Rs 2230.00/- and @ Rs 2750.00/- per day for AE and EE
respectively, with maximum 30 days encashment per annum. The present rules
provide that the rate of C-Off encashment shall be revised with every DA increased
and Board shall issue Orders for such revisions.
It is interesting to note that originally C-off rates were derived by working out one
day salary for average of minimum and maximum of salary (pay + DA).. The average
pay scale philosophy was adopted for the purpose of administrative convenience as
at that time pay bills were prepared manually and working out one day pay in each
individual would have created administrative difficulties, however now-a-days with
computerized pay administration there is no such problem. Hence, in accordance
to the fundamental approach and philosophy adopted for deciding the C-off rates,
the C-off encashment may be provided @ average rate of one day salary (Pay +
DA) to the individual engineers. Further the limit of maximum encashment per
annum be increased to 45 days per annum and it should be allowed to all field
officers.
1.9.Electricity Concession
Electricity concession has been hold as part and parcel of the service
condition of the existing employees. NTPC gives free electricity to its employees;
Coal India provides free energy (in the form of LPG Cylinders & Electricity). On the
same line free electricity should be provided to the officers (serving as well as
retired) of CS Power Companies.
1.10. Mobile / Phone allowance
The communication has gained significance only second to Electricity. For the
class I & II officers who have to perform functions of planning, monitoring,
execution and reporting on various fronts simultaneously, the use of mobile phones
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and where mobile phone are not available the use of nearby landline phones is
such prerequisite which cannot be avoided by them. It helps the top management
in faster decision making and saves considerable time and cost too. At present
phone or mobile facility is being given to select officers on discretionary basis which
either causes discrepancy and undue loading on the deprived ones. As the need for
better communication to an executive is something which carries a self propelling
logic, hence it is proposed that a reimbursement to the class II officers @ 2000/-
and to class I officers @ 3000/- per quarter may be allowed.
1.11. Stagnation Allowance
Stagnation allowance is needed to redress the problem of stagnation in the
utility. If a person reaches the maximum of his scale and he is constrained to serve
at that post because of the pyramid-cal structure of the organization and lack of
vacancies at higher levels he gets stagnated at that level for no fault of his own. The
problem is more often gets severe turn with the persons having higher education.
It is proposed that stagnation allowance @ one increment (last increment drawn)
per year may be allowed without any restriction of number of years and it should
be accounted for all purposes such as pension, gratuity and other terminal benefits.
1.13. Grant of Additional increments on acquiring Higher Education
As has been illustrated elsewhere, the wage structure is determined on the
basis of various factors and along with other things it is commensurate with the
requisite educational and professional qualification for a given post. If a person
acquires higher education during the service, he not only puts up extra effort but it
also reflects his commitment and zeal to upgrade him. Such commitment and zeal
have a definite impact on the work pattern of an individual. Coupled with the
know-how acquired through the higher education the ultimate contribution to the
utility gets bettered. As there are no free lunches, the quality is also not without
premium. To promote higher education and quality workers, traditionally some
benefits are allowed in the wage structure. Earlier, two increments were given to
the engineers who acquired ME/ M Tech. degree before or after joining the Board.
However, in rapidly changing world, the importance of modern management in the
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industrial organization cannot be ignored. Hence it is proposed that two advance
increments may be allowed to the professionals acquiring higher education of
management as MBA and equivalent like PGDM from IIM like institute and three
advance increment for executives pursing doctoral program as FPM and one
advance increment may be provided against acquisition of PG Diploma in
Management.
It is also useful to mention here that looking to the growing energy crisis,
shortage of fossil fuel and all out stress on energy conservation, the parliament has
passed the Energy Conservation Bill 2001. The provisions of the act will become
mandatory for scheduled industries from 2006 and power utilities fall in the ambit
of scheduled industries. As per the provisions of the act, a Bureau of Energy
Efficiency has been set up and it conducts rigorous written & oral examination on
national level. The qualified persons are accredited with the certification of “Energy
Auditor / Energy Manager” as the case may be. It is proposed that one advance
increments may be allowed for such “Energy Auditors” and one increment may
be allowed to such “Energy Managers”.
It is also submitted that the condition of acquiring higher education on the
instruction of the Board is a primitive one and has no relevance in the liberalized
world. Prior intimation may be treated sufficient.
***
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Part C– The allowances /facilities to be started
2.1 CHILDREN EDUCATION ALLOWANCE
Education of the children is one of the biggest problems faced by the
Engineers due to their frequent transfers all over the state. The problem of
education has been compounded by the steep raise in the cost of higher education
particularly after the introduction “commercial fee structure”. The Board is
presently granting reimbursement of tuition fee to class III & IV employees only. It
is therefore, became essential to provide children education allowance to all the
Engineers so as to enable them to meet the rising cost of education. In support to
the above, we wish to reproduce the observations made by honorable Justice G.G.
Sohani, Retd Chief Justice, on his report of Wage Advisory Committee for CSEB,
“The GoI as well as state Govt. were earlier providing basic education
at very nominal fees. But recently education of children has become costly requisite
because the Govt. has withdrawn various subsidies/ Grants in aid to educational
institutions/ colleges. Further reasonably good education is not available at cheaper
rates and in view of keen competitions which our young generation will required to
face, all classes of employees are anxious and rightly so that their children are
educated at good schools but in such schools tuition fees are higher than those in
Govt. school/ college. Moreover, the Govt. has also enhanced the structure of fees
in their schools/ colleges/ Universities.”
Earlier the need for neutralization of the cost of education was acknowledged for
class III & IV employees only with the understanding that the fee at the then
prevailing levels (1994) could very well be absorbed by the class I & II officers on
their own. But with the extraordinary rise in the cost of higher education, the need
for reimbursement for officers also has become too evident. It may be further
useful to note here that the implicit burden on the Board will be meager, but for
the individual it will be a big relief. In view of the above, it is proposed that the
cost of higher education may be reimbursed at the rate of 100% of tuition fee and
50% of Hostel subsidy per child. For single girl child, the hostel subsidy shall be
100%.
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2.2 SHIFT ALLOWANCES
This has been a long pending demand of Abhiyanta Sangh. Some of the arguments
are listed below for perusal of the pay commission. Given a choice no one likes to
work in shifts. It is therefore essential that shift duties are made more attractive.
Considering the arduous nature of duties and extra hour of work Abhiyanta Sangh
requests that engineers/ equivalents working in shifts be compensated at the rate
of 10% of their basic pay. The arguments in brief are as under:-
1. Electricity generation precedes its transmission & distribution. It is a 24X365
job. They have to put in extra hours of work (8 hrs in comparison to 6.5 hrs). The
shift operation is the most important and critical job in any power utility.
2. Operation needs continuous monitoring and quick reflexes for continuous 8
hours causes’ lot of stress. The shift duty in a power utility is considered one of the
top ten strenuous jobs. Hence compensation is justified.
3. Due to lack of fresh recruitments the problem has compounded significantly
because replacements are not available.
4. Working in different shifts disturbs “Biological Clock” causing adverse effect on
health and leads to premature deterioration. Due to above majority of engineers
are suffering from numerous diseases viz. High Blood Pressure, Acidity, Gas, Low
bone density etc, such irreparable loss needs to be compensated at least partially
as is being done in other utilities.
2.3 SLDC Allowance
In August 2008 Ministry of Power, Government of India has
constituted a Committee on Manpower, Certification and Incentive for system
operation and ring fencing of the Load Despatch Centers. The committee has
submitted its report along with recommendations in the year 2009. In one of the
recommendations, i.e. no.3, the committee has recommended that “all LDCs must
ensure that all the personnel of LDCs undergo basic level training and certification
and only certified personnel, staff the LDCs within 2 years from the release of the
report”.
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The above committee recommended a suitable compensation
structure to attract and retain talent at SLDC and also recommended monetary
incentive after achieving the certification to attract and retain talent in SLDC.
In March 2009, another report by the task force constituted by
Ministry of Power, Government of India in March 2009 on capital expenditure,
issues related to emoluments for personnel in Load Despatch Centers was
submitted. In the clause 15.3 of the report, the committee has recommended a
lump sum monthly amount to the LDC personnel during the validity period of
appropriate certificate i.e. Basic, Specialist and Management level. This committee
has recommended 10% of ceiling basic pay subject to monthly incentive amount of
Rs. 5000/- for Basic Level and 7500/-or 15% of basic pay.
Maharashtra State Transmission Company Limited vide their order
dated 01.01.2013 have already granted additional incentive of 5% of basic salary
(circular enclosed ) as special allowance for staff working in LD operations including
maintenance staff and staff of finance and accounts w.e.f. 01.01.2013,till the staff is
posted in LDC.
It is requested to grant 10% of basic salary, maximum 5000/- and
15% or 7500/- maximum payable monthly, for basic level and specialist level
achieving officer and staff respectively in the State Load Despatch Centre, Raipur,
from the date of their achieving certification to till their posting in SLDC or validity
of certification whichever is earlier.
2.4 Earned Leave Encashment
Every employee on a regular establishment is entitled for earned leave @ 15 days
for every six month block served by him. The basic purpose of the leave was to
allow an employee to take a long break from work and get refreshed periodically.
Earlier, with sufficient number of employees there was sufficient scope for availing
the leave and even at that time also, encashment of leave @ 15 days in an interval
of 1 year or 30 days in an interval of 2 years was allowed. The encashment facility
was restricted to half the entitlement so that one cannot utilize the whole of the
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leave for monitory purposes and simultaneously if one is not allowed to avail the
full leave, he may en-cash a part of it and can enjoy the life with more colors during
whatever leave he is able to get.
However, with the downsizing drive becoming a frenzy, and targets
becoming a buzz word in the daily life, not only the strain has shot through the roof
but chances of getting long breaks have also become far and few. An engineer who
is of higher value to the organization is allowed fewer leave by the superiors than
his counterpart who is just able to fill the gap only. In such pressure cooker
situations it has become far more important that the gems are preserved with
more care and for that, it is essential that encashment of a part of the leave is
allowed so that those who do not get opportunity to avail the full leave available to
their credit, can get part encashment and utilize whatever leave they get in a
quality manner so that they get refreshed in lesser time. Therefore, it is proposed
that the facility of periodic EL encashment (15 days in a year or 30 days in a block
of two years) may be restored urgently. Further, there shall be no limit at the
time of retirement. It will not only increase the motivational levels of the
individuals but the efficiency of the system too.
2.5 Encashment of Half Pay Leave (Medical leave)
Every employee on a regular establishment is entitled for Half Pay Leave @ 20 days
for every year served by him. The leave can be commuted to full pay leave on
medical grounds and gets accumulated throughout the service. It has often been
seen that once a person reaches to the far end of his career he intends to take such
leave on even flimsy grounds. It is proposed that encashment of Half Pay Leave at
the time of retirement to without restriction may be allowed to arrest such
tendency and to ensure that the Board work do not get suffered because one has
no motivation for not utilizing the leave available to his credit. It has become all the
more significant in view of the staff shortage prevailing in the Board. At present
approximately 31% shortage of staff exists and the average age has reached 49
years. Every year about 5% of the workforce is getting retired and in case of non
redressal of problem, the same may become too costly to be affordable.
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2.6 GENERATION ALLOWANCE
All the Power stations are located in remote areas where basic
facilities are not available and the social life is almost nil. The cost of living at
generating power stations is very much higher due to non availability of
Competitive & good Markets/ Hospitals/ Schools/ Entertainment means. At most of
power stations the education facilities are available up to 12th standard only that
to, the schools are not comparable with those available to the employees posted in
cities & towns. And for the Higher Education employees have to send their children
in nearby cities and keep them in hostels for which they have to spend about Rs.
3000.00 per month per child towards hostel charges and other expenditures.
Therefore the engineers posted at power stations are forced to bear extra
expenditure because of higher cost of living. This problem was perhaps faced by
other Electricity Boards also and that is why they have been compelled to give
compensation in the form of Special Pay/ Allowances under one or other name and
some extra facilities to engineers working in Generation Wing so as to boost up the
moral of the employees.
It is, therefore, proposed that Generation allowance should be paid to
engineers posted at power stations at the rate of 8% of basic pay. It is pertinent to
mention that the Generation Allowance @ 8% is being paid in GEB.
2.7 FIELD ALLOWANCE
The engineers engaged in distribution of power have to maintain
uninterrupted power supply to the consumers. The duty of the same becomes
more vital during rainy season, festival and other important occasions. The
engineers working in O&M. EHT, ST/RE, Load Dispatch & Power System, Testing
and communication, Electronic Data Processing, STM, Survey and Investigation,
Civil construction etc. have to play a vital role in maintaining the system. Nature of
work in these fields is of continues type & they have to be vigilant round the clock.
Keeping in view, the responsibility and nature of job, Field Allowance
should be paid at the rate 8% of basic pay to the field engineers posted in field
duty of T&D wing of CSPDCL and CSPTCL.
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2.8 CONSTRUCTION/ PROJECT ALLOWANCE
The earlier rates of the Project Allowances were Rs. 75/- to Rs. 375/-
based on the range of pay. The rates were at par with the rates adopted by the
Govt. of India in Fourth Pay Revision. Since then the consumer prices index has
risen multifold. In the Fifth pay commission report the rates of project allowance
recommended from Rs.150/- to Rs. 750/- with the following observation “The more
than double the existing project allowance recommended .”
For compensating for lack of basic civil amenities at the project site and
compensation for separation with family and maintaining two establishment
project allowance is needed. Hence the rates of Construction/ Project Allowance
should be revised to 25% of pay should be allowed. The same is already applicable
for Madwa TPP.
2.9 Additional Charge allowance
Due to extra ordinary shortage of field officers it is becoming common that
the competent and better performing officers are being loaded with Additional
charge of another post frequently and for long spans. There are examples where
one officer has been loaded with four additional charges simultaneously and that
too for months together. Such additional charges make the life just miserable.
Sangh requests that the practice of Additional charges must be put to rest by
recruiting Engineers down the level and filling up the higher posts through regular
promotions. However, for time being till such arrangements take shape,
Here pertinent to mention that AP state power companies are giving Additional
Charge Allowance @ 20% of pay ( Basic +DA) per charge for first 3 month, and
then 10% of pay (Basic +DA) thereafter to partially compensate the associated
strain CGVMAS requests for same provision for officers of CG state power
companies.
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2.10 Performance Related Incentive
The VI CPC has recommended for PRI based (1+X) compensation. Long term
performance related incentive policy is call of the day. The Sangh acknowledges the
fact that the present committee is for wage revision and not for formulation of an
incentive policy which is a tool of performance improvisation through the
application of modern HR techniques. However, looking to the importance and
criticality of an appropriate scientific incentive policy, the Sangh requests liberty of
the honorable committee to submit that a strong recommendation may be made
to prepare and implement a long term (say 5 year) incentive policy for different
functions, after due deliberation with the Sangh/ unions, so that the officers and
employees may get additional motivation for performance improvement and whole
state may get benefited. The Sangh is more than willing to forward its suggestions
as and when opportunity is given.
2.11 Non Practice allowance for engineers
NPA @25% of pay (for all purposes) should be provided to Engineers (as allowed to
medical officers).
2.12 Home Town/Leave Travel Concession
Home Town / Leave travel concession is provided to the employees as more
and more employees are constrained to live outside their home town. The twin
facilities are a means to facilitate to get a change from the routine and such
changes provide the booster dose to the work engines of the organization. GoI has
liberalized the provisions considerably.
Abhiyanta Sangh demands that:-
1. Home town travel concession should be allowed once in a year.
2. LTC should be allowed in block of 2 years. There should not be distance
limitation (within India).
3. Dependent parents are to be included in definition of family.
4. Encashment shall be allowed for the class of entitlement.
***
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Part D – Cafeteria Approach
Sangh alternatively suggests that CG power companies should adopt the cafeteria
approach for perk and allowances like NPTC, as following - The Cafeteria Approach
for perks and allowances was adopted in NTPC as part of the salary & wage revision
with effect from 26.11.2008 allowing employees choose from a given basket of
perquisite allowances subject to the conditions that cafeteria shall be limited to
47% of revised basic pay. Keeping the overall ceiling limit of 47% of basic pay on the
cafeteria the following shall form part of the cafeteria:
For Executives:
S. N Perks and Allowances Cafeteria (Up to) (% of basic pay)
1 Child Education and Hostel Subsidy Allowance
( up to 2 children) Tuition Fee - 5% Hostel Subsidy - 5%
2 Professional Updation Allowance 10%
3 Conveyance/Transport Allowance 5%
4 Reimbursement of expenditure on vehicle repair & maintenance
5%
5 Domestic Help Allowance 10%
6 Electricity Reimbursement 10%
7 Newspaper / Professional Literature Reimbursement
5%
8 Driver Allowance 10%
9 House Upkeep Allowance 5%
10 Self Development and Personality 15%
11 Enhancement Allowance
12 Club Membership 10%
Gardener Allowance 10%
13 LTC 20%
14 Other Allowances 10%
CGVAMS demands that the same should be adopted by CG power companies.
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CHAPTER -VI
TERMINAL BENEFITS
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TERMINAL BENEFITS
Genesis of civil servant pension in India:
The concept of old age security in India dates back to the 3rd century B.C.5
According to Sukraneeti, a king had to pay half of the wages for people who had
completed forty years of service.
Terminal Benefits of the Civil Servants in Modern India:
Making government career attractive was largely the concern of the government in
the early years of planning. Pension payment is one among the many strategies
pursued by the government in attracting talented workers in to the public sector
from the private sector.
The honourable Supreme Court of India in the landmark judgment of D.S. Nakara and
others vs. Union of India (AIR 1983, SC 130) The Supreme Court of India, held:
―A pension scheme consistent with available resources must provide that the
pensioner would be able to live:
Free from want, with decency, independence and self-respect; and
At a standard equivalent at the pre-retirement level.”
Further, it ruled:
“Pension is neither a bounty nor a matter of grace depending upon the sweet will
of the employer. It is not an ex gratia payment, but a payment for past services
rendered. It is a social welfare measure, rendering socio-economic justice to
those who in the heyday of their life ceaselessly toiled for the employer on an
assurance that in their old age, they would not be left in the lurch”.
Larry Wilmore observes
“Actually, civil service pensions, because they are not based on contributions, are
best described as deferred wages. Civil servants accept a lower current wage in
exchange for the promise of a pension in their old age. If this pension were
contributory, they would insist on a higher wage and government would have to
either increase taxes or borrow (issue debt) to pay it. The real cost of civil servants
is thus much higher than recorded under the current system of cash accounting.
A good reform would be to move to a system of accrual accounting setting up
at least a notional fund to pay these deferred wages” (Larry Wilmore, 2004)
The retirement benefits currently available to Board employees can be categorized
as follows:
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1. NEW PENSION SCHEME :-
It is seen that new pension scheme is being implemented in haste without proper
transparency and taking in confidence all the stakeholders. Sangh requests that the
Committee should recommend that the NPS provisions should be made transparent
and wide ranging deliberations should be made by the power companies with the
actual stakeholders. The apprehensions are causing very high level of anxiety,
financial loss and de-motivation causing negative impact on efficiency of
administration. Further, the employees who are interested to contribute sum
investment in EPF should be allowed for the same.
Further, the pension commutation should be at par with prevailing rules and rates
as applicable for all India civil services.
2. GRATUITY:
The provision should continue should be at par with prevailing rules and rates
as applicable for all India civil service.
3. MEDICAL FACILITIES As mentioned in the pre-paras medical facility for retired
engineers should continue at par with serving employees. .
***