Professional Documents
Culture Documents
Compensation Policy
OBJECTIVE:
To provide for a uniform, stable and reasonably competitive compensation structure for all
employees.
To rationalise the compensation policy, positions are classified into grades. The grades and
respective designations are as below:
GRADE DESIGNATION
M-6 Manager
M-3 Executive
M-1 Officer
BASIC SCALE
The basic scale would be as per the terms of employment and revisions from time to time.
Management Staff not provided with any type of Company Accommodation i.e either company
owned or leased, will be paid House Rent Allowance at 40% of Basic Salary.
CONVEYANCE ALLOWANCE
Management staff not provided with Company Car will be paid conveyance allowance as
follows:
M-5 800
M-6 1500
M-7 2000
M-8 2500
EDUCATION ALLOWANCE
MEDICAL ALLOWANCE
Management staff will be paid Medical allowance @ 8.33% of Basic Salary per month.
Eligibility
16
Quantum Of LTA
The LTA will be paid at the rate of one month’s Basic salary per year.
Definition Of A Family
Family includes:
• The spouse and children of an individual; and
• The parents, brothers and sisters of an individual or any of them,
wholly or mainly dependent on the individual
Quantum of Exemption – The amount of LTA for self and family permissible under
the Income Tax Act for exemption is as follows:
• For journeys performed by Air: Economy fare of Indian Airlines by
the shortest route to the place of destination.
• For journeys performed by Rail: Air–conditioned first class rail fare
by the shortest route to the place of destination.
• For journeys performed by Road: The amount equivalent to Air–
conditioned first class rail fare, for the distance of journey by the shortest
route, as if the journey had been performed by rail.
Accumulation Of LTA
Accumulation of unavailed LTA is allowed upto two years within the block of four
years specified under the Income Tax Rules. However, the fourth year’s LTA cannot
be carried forward to the next block for accumulation purposes. The current block is
for the period of calendar year 2002-2005.
TELEPHONE ALLOWANCE
M-1 200
M-2 300
M-3 400
M-4 500
M-5 600
M-6 800
M-7 1000
M-8 1200
M-3 400
M-5 200
M-6 400
M-7 600
M-8 800
DRIVER ALLOWANCE
M-8 1500
PETROL ALLOWANCE
M-8 2500
EX-GRATIA
Management staff will be paid Ex-Gratia @ 8.33% of Basic Salary per month.
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