NTPC Officers’s Analysis On 2nd PRC

Sl. VI pay Implemented for Justice RAO DPE guidelines Our demands
No. commission employees of GOI committee for
PSU executives
1. Pay scales Open ended pay Open ended pay scales Narrow span of Only cosmetic Pay scales should be made
scales pay scales changes done in the open ended
pay scales
2. Dearness Not considered DP considered Not considered Not considered DP should be considered for
pay fitment benefit in line with
GOI employees
3. Fitment Grade Pay as • Grade Pay 30% of (BP +DA) at • Fitment benefit should
benefit 40% of top of pre- implemented with E1-E3 = 30% of all levels be 42% of (BP+DP+DA)
revised Pay Scale further (BP +DA) at all levels.
improvements E4-E5= 37% of • Special Pay, stagnation
• Stagnation (BP +DA) increments, Personal
increment and DP E6-E9= 42% of Pay & Special Personal
considered for (BP +DA) Pay should be treated
fitment benefit as part of B.P.
4. Risk pay Concept of grade Concept of grade pay As CPSEs have Risk pay not accepted Risk pay should be restored
pay to work in as a separate component
business and should be enhanced to
environment, uniform level of 25% of
element of risk basic pay
pay should be
paid to CPSEs
employees
depending upon
financial
positions of
CPSEs
5. Annual Variable annual Variable annual Variable annual 3% Should be restored to the
increment increment from increment from 3 to increment from existing level of 4% as done
2.5 to 3.5% 4% 2-4% during last pay revision and
promotional benefit to 6%
6. CCA 4 times of CCA Same as scrapped scrapped Should be suitably
Merged in recommended by Sixth compensated as done for
conveyance Pay Commission GOI employees
reimbursement
7. Perks and Most of the perks Same as Limited to 50% of Same as • Decision on perks and
 allowances are tax free and recommended by Sixth basic with new recommended by 2nd allowances should be
additional DA is Pay Commission restrictions which PRC left to individual CPSE
payable on were earlier not board.
conveyance existing. No • Replacement cost of
reimbursement. linkage with rise infrastructure created at
The rates of all in DA sites should not be
other allowances included in perks &
would increase by allowances.
25% whenever DA
goes up by 50% • DA should also be paid
on perks & allowances
as done for GOI
employees
8. HRA Based on Same as Criterion Based on population Should be in line with
classification of recommended by Sixth changed from of cities classification of cities
cities by GOI Pay Commission GOI notified by GOI for its
classification to employees.
population of Otherwise employees
cities residing at urban
conglomerate (like Noida,
Ghaziabad, Gurgaon etc)
will be at a disadvantage
9. gratuity • Revised w.e.f. Same as • No limit on • Revised w.e.f. • Should be revised w.e.f.
1.1.2006 recommended by Sixth gratuity 1.12007 1.1.2006 (coterminous
Pay Commission with GOI employees) as
• max ceiling of • Amount • Capped at 10
10 lacs subject to Lakhs subject to always done in the past.
market return market return of • Cap should be removed
on the trust the trust in line with 2nd PRC
fund to be recommendations
created for • The concept of linkage
this purpose
to market return is not
acceptable
1 Retirement No change from No change from Retirement Capped at 30% of It should be 30% of basic
0. benefits existing benefits existing benefits benefits capped basic plus DA otherwise there will
at 30% of basic be gradual erosion in the
pay existing retirement benefits
on a/c of rise in DA
11 Performan Suitable scheme Kept pending for future • Recommend • Graded Ceilings • Complete autonomy to
. ce related to be formulated date ed a ceiling as % of basic pay PSU boards in this
payments by the GOI of 5% of PBT linking it to the regard.
for PRP individual and
 exclusively company • 5% of PBT as PRP
for performance should be exclusively for
executives • Supervisors also executives.
• Suggested included in the
the ceiling of 5% of
methodology PBT for PRP
and provided
complete
autonomy to
CPSU
boards in this
regard.
1 Linkage of Govt. and CPSEs Accepted Govt. and The pay scales If the pay scales for CPSEs
2. GOI and employees work CPSEs recommended by 2nd executives are to be linked
PSU in different employees work PRC have been to the pay scales for Govt.
employees environments in different downgraded so as to Employees then what was
hence their pay environments make them inferior to the use of constituting a pay
package should hence their pay that of pay scales for committee for CPSEs
not be interlinked package should Govt. Employees executives. Moreover, 2nd
not be interlinked ( this is despite of the PRC had recommended for
fact that historically paradigm shift while
pay scales in CPSEs deciding compensation
are more than the package for CPSEs
govt. pay scales) executives. But, the end
result is just opposite.

Also check the excel sheet for reduction in total emoluments as on 01.10.2008 for different levels.