KRISHAK BHARATI COOPERATIVE LIMITED

CORPORATE HR DIVISION
NOIDA

HO/19 /IR/PD-35(W) 24th August, 2009

C I R C U LA R N 0- 541

Subject: REVISION OF WAGES AND OTHER ALLOWANCES/BENEFITS

OF WORKMEN CATEGORY OF EMPLOYEES (GRADE 'HI' TO
'R') WORKING IN HO jMKTG.

KRIBHCO Management has decided to revise the Wages and other

Allowances/benefits of the employees belonging to Workmen category
(Grade 'H l' to 'R') working in Head Office and Marketing Offices in the
manner indicated below :

1.0 APPLICABILITY

1.1 The revised pay structure will be applicable to all Workmen in

Grade 'H l' to Grade 'R' including probationers who were on the
rolls of the Society as on 01.01.2007 and to those who joined
subsequently. Workmen who cease to be in service during the
period from 01.01.2007 to the date preceding the issuance of pay
revision Circular/order, will be entitled to payment of arrears upto
the date of cessation of employment unless otherwise specifically
debarred.
1.2 The benefits of pay revision will not be allowed to those Workmen
whose services have been terminated on account of dismissal or
abandonment.

2.0 DURATION

The above pay revision will be valid for a period of ten years w.e.f.
01.01.2007 to 31.12.2016 and shall continue to be in operation
until otherwise replaced by a fresh revision/order. Various
allowances/benefits as a result of the above revision will be
effective from the date (s) specifically mentioned under respective

headings. ~
 3.0 PAY SCALES

The existing scales of pay shall be revised with effect from

01/01/2007 as indicated below:

K
S.No. H1
L1 aIR8200
6JL
Grade
MN
Q p3
5650
4100
5300
1800
400
300-----70
7600-210-11590
7100
J1 6600
4900
2500
050
Existing -175
130
220
50
30
100
90
150--Pay
80
40
110 --1238017500
-4100
2280
5570
719011300
887013700
775012100
8800
16200----- 6700
1042515200
94507100
14100
658010500
3140 5400
836012900
3900
(Rs.)
Revised
Scale 19200
15300
25500
12100
20600
32500
26250
28000
9300
17600
22200
29750
Pay Scale
(Rs.)

4.0 FITMENT METHOD

4.1 A uniform fitment benefit @ 30% on the basic pay as on

31.12.2006 + DA @ 78.2% would be provided to all employees. The
aggregate amount so arrived would be rounded off to the next ten
rupees and this rounded off amount shall be new basic pay as on
1.1.2007.

The employees/workmen whose date of increment falls on 1st

January will get benefit of increment in the revised pay scale on
01.01.2007.

4.2 If any extra ordinary increment(s) and / or increase in the pay in

respect of Workmen has been granted with retrospective effect,
which affects the revision of pay as on 01.01.2007, such increment
and/ or increase in pay will be ignored for the purpose of fitment/

pay revision. ~

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4.3 Where Workmen drawing pay at two or more consecutive stages in
an existing scale get bunched, then for every two stages so
bunched, benefit of one increment shall be given.

4.4 Workmen appointed on or after 01.01.2007 shall be deemed to

have been appointed at the minimum of the revised Scale of Pay.
They shall not be entitled for fitment benefit.
5.0 ANNUAL INCREMENT

5.1 Annual increment will be at the rate of 3% of the progressive basic

pay and will be rounded off to the next multipIe of Rs. 10/ -.
5.2 While switching over to the revised scales of pay, the dates of
Annual Increment of the individual Workmen will not be changed.

5.3 In cases where employees drawing pay at different stages in the pre
revised scales are fixed at the same stage in the corresponding
revised scales, and if the normal date of increment of a junior
employee falls earlier then the senior employee, in such cases the
pay will be protected as per the provisions of Fundamental Rules
for Central Govt. employees.
5.4 Stae:nation Increment:

In case a workman reaches at the maximum stage of the revised

scale of pay on or after 01.01.2007, he will be allowed to draw
maximum three stagnation increments, one after every two years,
provided such a workman gets a performance rating of 'Good' or
above.
6.0 PAY FIXATION ON PROMOTION:

While fixing pay on promotion, one notional increment equal to the

increment being drawn by the Workmen in the pay scale before
such promotion would be granted and pay fixed in the promoted
pay scale and rounded off to the next multiple of Rs.10 /-.
7.0 DEARNESS ALLOWANCE

100% D.A neutralization will be adopted for all the workmen, who
are on IDA pattern of scale of pay w.e.f 01.01.2007. Consequently
D.A as on 01.01.2007 will become zero with link point of All India
Consumer Price Index (AICPI)2001 = 100, which is 126.33 as on
01.01.2007. The periodicity of adjustment will be once in 3 months

3
 as per the existing practice for these categories of employees. The
quarterly D.A payable from 01.01.2007 as per new D.A scheme will
be as follows:
18.5
12.9
0.8
1.3
Effective date of Dearness 16.61
16.90
4.2
5.8
6.3
9.2
0 of D A (in % )
Rate
Allowance (DA)
10.2007
01.2008
04.2008
07.2008
10.2008
07.2007
01.2009
.04.2009
.07.2009
4.2007 01.01.2007

8.0 HOUSE RENT ALLOWANCE (HRA)

8.1 Payment of HRA on the revised basic pay will be at the following
rates w.e.f. 26.11.2008:-
5 towith
50
Cities 50 lakh
lakh and above
Population 30% Rates
20% 10% ofofBasic
of Basic HRAPay.
Pay
assified as '2')
ssified as 'Y')
'X') III)
II) Less than 5 lakh

8.2 In case the amount of HRA payable as per said prescribed rate is
less than the actual amount of HRA drawn on 25.11.2008 in the
case of particular workman, then the difference would be allowed
to be drawn by the workman as "personal allowance" until the
difference is eliminated in course of time. The classification of
Cities is mentioned at Annexure-'A'.

4
 9.0 LICENCE FEE FOR TOWNSHIP ACCOMMODATION

In case of workmen staying in KRIBHCOTownship(s), the License

Fee recovery will continue at the existing rates until further orders.
From financial year 2009-10, KRIBHCOwill bear the tax impact
on the employees who are opting for Township accommodation.

10.0 CITY COMPENSATORY ALLOWANCE (CCA)

The CCA stands dispensed with from 26.11.2008.

11.0 OTHER ALLOWANCES AND PERQUISITES

11.1 Under the head (a) below, the allowances/ perquisites like Washing
Allowance, Education Allowance, Reimbursement of Expenses for
Newspapers and Periodicals, Canteen Allowance, Transport
Allowance, Conveyance Allowance or any other allowance, limited
to 30% of the Basic Pay will be paid to the workmen on monthly
basis w.e.f. 26.11.2008 and regulated as per the . rates given
below:-

a) Perquisites / Allowances 30% of Basic Pay

Education
Canteen
S.No. Allowance
4%Allowance
Reimbursement
Conveyance
Transport
Washing I Allowances
Allowance
Allowance
Allowance
Perquisites 12%
4%
4%
for Rate(Monthly)
2%
papers / periodicals 6.

b) LTC/LTE

i) W.e.f. 01.01.2009 to 31.12.2011 10% of Basic Pay

- Additional LTE/LTC @ 10% for the period 01.01.2009 to

31.12.2011 will be paid in the year 2012( i.e by 31 st March

5
 2012). However in case Society's overall operational
profitability improves due to change in Government Policy, it
can consider to pay the amount towards LTC/LTE earlier
also.

ii) W.e.f. 01.01.2012 20% of Basic Pay

Other terms and conditions governing grant of LTC/LTE

shall remain unchanged. In case of a workman who has
already availed LTC/LTE @ 20% of Basic Pay for calendar
year 2009, necessary adjustment will be made from the
arrears.

12.0 CASH HANDLING ALLOWANCE

Cash Handling Allowance will be as under :-

Particulars AboveAmount
Upto 50,0001-
50,000
5,00,000 Slab
(Rs.) & &
upto
upto5,00,0001-
7501-
1501-
7,50,0001-
3001-
5001-
01- (Rs.)

Cash Handling Allowance will not be treated as part of wages. It

will be payable so long an employee handles cash.

13.0 EARNED LEAVE tEL)

EL being credited to the employees account shall be divided into

two accounts namely Encashment and Availing w.e.f. 01.01.2009
Therefore for the year 2009, out of total 33 leaves accrued 16 EL
will be credited to availing account and 17 EL to Encashment
Account ,at the end of the year. However, all EL standing to the
credit of workmen as on 31.12.2008 will remain in the
Encashment Account only. The employees can encash the EL
twice a year subject to a minimum balance of 10 EL in the
Encashment Account. Other terms and conditions governing grant
of EL and its encashment shall remain unchanged.

6
 4,
>

14.0 MEDICAL FACILITY TO DEPENDENT PARENTS

Existing Medi-c1aim Insurance Policy for dependent parents of the

employees sha}l continue till further orders. However, the workmen
joining the services of KRIBHCO on or after 24.4.2009 shall not be
extended the above facility.

15.0 PERFORMANCE RELATED PAYMENT (PRP)

As per the DPE guidelines, the concept of Performance related

payment has been linked to the profits of KRIBHCO and
performance of the workmen. Since a scheme on the subject is
already in vogue in KRIBHCO and is also linked to the profits of
KRIBHCO, the scheme proposed/envisaged by the DPE vis-a-vis
existing incentive scheme of KRIBHCO will be examined separately.
Any change in the existing scheme will be done after discussion
with Union. Till the time a final view is taken on subject, the
existing Productivity Linked Incentive scheme will continue.

16.0 PAYMENT OF ARREARS

16.1 Arrears on account of revision of pay, dearness allowance, house

rent allowance, leave encashment, other perks and allowances etc.
shall be worked out for the past period as per the effective dates
mentioned in this circular against each item, and, subject to other
terms and conditions.

16.2 Arrears of revision to eligible ex-employees on account of pay and

other allowances, PF, Gratuity etc. shall be suitably worked out
and disbursed after ensuring that no dues are recoverable from
them.

16.3 In respect of Workmen who have been transferred from one unit to
another during the past period of revision, arrears shall be worked
out for the relevant year by the respective unit/division and
payment advice shall be sent to the unit/division where the
employee is presently posted. It may, however, be ensured by
unit/division eventually making the payment that no double
payment is made.

7
'

17.0 GENERAL

17. 1 Ded uction towards CPF, Income Tax, etc. shall be made as per the
rules in force from time to time.
17.2 There will be no enhancement for class of official travel, allotment
of house, etc, on account of pay revision.
17.3 The amount already paid on account of 50% DA merger (except the
amount paid on perks/allowances) will be adjusted/recovered
against the arrears of pay revision. Thus perks/allowances paid
prior to 26.11.08 on account of D.A merger will neither be
recovered nor adjusted.
17.4 The excess payment, wrong payments, arithmetical and system
errors, in calculation of the arrears shall be subject to corrections,
adjustments and recoveries.
17.5 In the event of any change in the policy of Govt. for the PSUs with
regard to any matter relating to the pay, allowances and allied
matters, the same will be reviewed and settled.
17.6 All issues pertaining to the pay revision requiring interpretation/
clarifications shall be referred to Corporate HR Department.
This issues with the approval of Competent Authority.

~~
(C.L. Verma)
Dy. General Manager (HR)
DISTRIBUTION

-ED(T)
-CGM/GMs -GMs - CGMs/GMs
-Adl.GMs/DGMs -DGMs - AGMs/DGMs
-CMs/SMs -CMs/Chief SM/ CEO-
-M(HR)/M(A/CS) GVT
-Mgrs/SMs
Notice Board -AREA MANAGERS

CC - Offices of : MD Mktg.Dir. - OD
FD/ CVO

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 Assam
Delhi
Bihar
Jharkhand
Orissa
Chandigarh
IGujarat
Rajasthan
IKerala
IMadhya
Ahmedabad(UA), IUA
Maharashtra
Uttrakhand
Tamil
Uttar Bengal
KashmirPradesh
Nadu
STATES
IKarnataka
Chhattisgarh
IAndhra
Punjab
West Pradesh
Pondicherry Greater
Pradesh
CITIES .
Kolha
ITiruchiraur(UA
IHyderabad(UA)
Chennai(UA)
IKolkata
Delhi(UA), Mumbai
IBengaluru(UA)
Asansol
(UA) UA
alii(UA)
Gurgaon,
IThiruvaanthapu
CLASSIFIED
Mysore(UA)
Rajkot(UA), Jamnagar I UA),
CITIESGuwahati
Pondicherr
Patna(UA)
Amritsar
Cuttack
Bikaner, UA
Durg-Bhilai
Chandigarh
Allahabad (UA)
UA
Srinagar(UA),
Jai
Madurai(UAI
ram(UA) ar , ,UA,
Jalandhar(UA),
Bhubaneswar
Jammu(UA)
ur, Jodh
Nagar(UA),
UA),
Jamshedpur(UA),
Bhavna
Vijayawada(UA),
Dehradun (UA)
CLASSIFIED
lJabalpur(UA)
(UA), AS "Y" ur UA
UA, Ludhiana
Kota
RaiDur(UA)
GorakhDur. Varanasi
Dhanbad(UA),
Vadodara(UA),
Warangal(UA), UA
(UA)
Ranchi ANNEXURE-A
(UA)
Surat(UA)
X" 9 Faridabad,
Moradabad,
Ghaziabad,
Salem(UA),
Amravati,
Belgaum(UA),
Kozhikoda
Gwalior
N FOR PAYMENT OF HOUSE
(UA),
Bareilly RENT Meerut
Noida
Tiruppur
Nagpur(UA),
(UA),
(UA),
Bhiwandi
(UA),
Visakhapatnam(UA), (UA),
(UA),
Hubli-Dharwad,
Kochi
Indore(UA), Aligarh,
CoimbatoreAgra
Aurangabad(UA),
(UA),
(UA),Pune(UA),
Lucknow (UA),
Guntur Mangalore
Bhopal(UA),
Solapur,
Kanpur ALLOWANCE
(UA),
(UA),
(UA),Nashik
(UA),

NOTE
* The remaining cities/towns in various states/Uts which are not covered by classification
as "X" or "Y" are classified as "Z" for the purpose of HRA.
* "X" = Cities above 50 lakhs population.
* "Y" = Cities having population between 5 lakhs & 50 lakhs
* "Z" = Cities/towns having polulation of less than 5 lakhs
* "UA" = Urban Areas.