CHAPTER – VII

WAGE AND SALARY ADMINISTRATION

1. Meaning and objectives of wage and salary administration.

2. System of wage and salary payment.

3. Basic pay.

4. Allowances.

5. Respondents’ opinion regarding success of wage and salary administration – from sample
unit.
 One of the most important factor to be taken care of in human resources
management is the amount of remuneration to be paid to an employee for a fairway’s work.
Work is the expenditure of human energy for direct remuneration or pay. Pay in one form or
another is certainly one of the main spring of motivate in our society. Wage and salary
administration is concerned with establishing and implementing sound policies and practices of
employee compensation. It satisfies physical needs of employees and determines social status.
In this chapter we shall discuss meaning and objectives of wage and salary
administration, system of wage and salary payment, basic pay, various allowances and advances
with special reference to PGVCL in following pages.
1 – Meaning and objectives of Wage and Salary Administrative:
A Wage is the remuneration paid for the service of labour in production periodically to an
employee / worker. So payment made to labour is generally referred to as wages. Wages also
refer to the hourly rate paid to such groups as production and maintenance. Salary normally
refers to the periodically rates paid to clerical. administrative and professional employees. So
money paid periodically to person whose output cannot be measured is generally referred as
salary. Wage and salary are paid as per contract of employment. Wages include basic wage /
salary and allowances. Allowances are paid in addition to basic wage to maintain the value of
basic wage over a period of time. In India, different Acts include different item under wages.
Though all the lets includes basic wages and Dearness allowance under the item wages. E.g.
under the Workmen’s Compensation Act, 1923, section 2(m) wages for leave period, holiday,
overtime pay, bonus, attendance bonus and good conduct bonus form part of wages and under
the payment of wages Act, 1936 section 2(vi) any reward of settlement and production bonus, if
paid constitutes wages.
Wage and salary administration is establishment and implementation of sound policies
and practices of employee compensations. Wage policies of different organisations very
somewhat. Some organisations pay minimum necessary to attract the required number and kind
of labour, while some organisations pay well above the going rates in the labour market. Various
factors influence wage and salary structure and administration like govt. legislation and public
policy, organisations ability to pay, labour supply and demand, going wages and salaries, cost of
living, productivity, trade union’s bargaining power, job requirement, management attitude about
wage to be paid etc.
The basic objective of wage and salary administration is to establish and maintain an
equitable wage and salary structure and secondary objective is to establish and maintain an
equitable labour cost structure. Generally sound wage and salary administration tries to achieve
following objectives.
(1) To attract and retain the service of employee.
(2) To pay employees according to the content and difficulty of the job.
(3) To reward employees according to the effort and merit.
(4) To improve employee morale and productivity.
(5) To satisfy employee as to how and why they are paid.
 (6) To facilitate pay roll administration, budgeting and wage and salary control.
(7) To simplify collective bargaining.
(8) To promote employee organizational flexibility promotion and transfer.
Remuneration provides more than a means of satisfying the physical needs-it provides
recognition, a sense of accomplishment and determines social status. Hence formulation and
administration of wage and salary to attract and retain right personnel in right position is the prime
responsibility of the management in any organisation.

[2] System of wage and salary payment:

Wages if dependent generally on the rates of wages which may be an hourly rate or time
rate or based on a piece rate i.e. dependent on worker’s output. The time and piece output rate
wage plans are the two basic systems. All other plans are simply variation of these two.
In this wage system, an employee is paid a define amount of money for a specific period
of work. Production of an employee is not taken into consideration to fix the wages. In piece
wage system, an employee is paid fixed rate per unit produced of job completed.
The PGVCL applies time wage system for payment of wages and salary which includes
basic pay, dearness allowance, C.L.A./H.R.A project allowance tribal allowance, bad climate
allowance, hotline allowance, charge allowance etc.

[3] Basic pay:

The basic pay determines many other payment such as allowances, advances and
certain fringe benefits. The existing scales of pay of PGVCL employees have been revised from
1-1-2006. the existing scales of basic pay are shown in table 7.1.
 Table 7.1
Scales of basic pay

Sr.no. Existing Pay Scales Rs. Revised Pay Scale Rs.

1 2 3
1 2750-5215 7300-17940
2 3050-5985 8100-19870
3 3200-6905 8800-20940
4 3400-8300 9700-21710
5 3600-9350 10100-22000
6 4000-10025 11300-22470
7 5000-10525 13600-31300
8 6500-11750 17300-38610
9 8000-13000 21200-42000
10 8500-14250 21900-43350
11 10400-15525 27000-44710
12 13000-18600 41200-70270
13 16000-20050 48590-75900
14 18400-22400 54700-77000

Source : General standing order.

Table 7.1 shows that the highest pay scale is Rs.54700-77000 & lowest pay scale is Rs.
7300-17940. various allowances and advances are paid to employees, in line with basic pay. The
basic pay differences reflect differences in qualification, experience, physical and mental ability,
etc. Generally inequalities in emoluments of employees belonging to same basic pay are not
observed-from the survey of respondents belonging to class I and II (From sample unit), 66.05
percent respondents are agree with success of the objective-eliminating inequalities in pay
(please see table no.7.7).
[4] Allowance
Allowance from an important part of the employees compensation structure. The PGVCL
pay following allowance to the employees.
4.1 Dearness allowance
4.2 C.L.A / H.R.A
4.3 Compensatory local allowance
4.4 Other allowance
4.5 Benefits & facilities

[4.1] Dearness allowance:

Dearness allowance is a device to meet the needs of the employees in the light of price
increase. This reduces the purchasing power of the employees. The objective of paying D.A. to
employees is to compensate them for the loss in the real earning caused to them by increase in
the cost of living from time to time.

PGVCL’s employees are paid D.A. as per central govt. rules. Rate of D.A. is revised
from time to time (Six monthly) with rise in the average of living index, the rate of D.A.
applicable from 1-1-2006 existing rate are presented in table 7.2.
 Table 7.2
D.A payable to employees

Date from which Rate of Dearness Allowance on Basic pay + (NPA

applicable wherever applicable)
[4.2]
From 1/1/2006 No Dearness Allowance
From 1/7/2006 2% of Basic pay
From 1/1/2007 6 % of Basic pay
From 1/7/2007 9 % of Basic pay
From 1/1/2008 12 % of Basic pay
From 1/7/2008 16 % of Basic pay
From 1/1/2009 22 % of Basic pay

House Rent Allowance

The house Rent Allowance will be paid on State Government rates with effect from 1.4.2009 and
as may be revised from time to time by GOG.

Table 7.3
House rent Allowance payable to employee
Classification of Cities/Towns Rate of H.R.A. on Basic Pay + (NPA
wherever applicable)

X (earlier classification A-1) 30% of actual basic pay drawn

Y (earlier classification A, B1 and 20% of actual basic pay drawn

B2)
Z (earlier classification C & 10% of actual basic pay drawn
unclassified)

Note : The list of Towns / Cities classified shall be as per State

Government orders.
[4.3] Compensatory Local Allowance

The compensatory Local allowances will be paid on State Government rates with effect from 1st
April, 2009 and as may be revised from time to time.
Table 7.4
Compensatory Local Allowance Payable to employees.
Revised Pay Amount of C.L.A. in class of cities (per month)
Scale
X Y
(earlier A-1) (earlier A, B1, & (B2)
11300-22470 and Rs.300 Rs.240
above
Below 11300- Rs.200 Rs.150
22470

[4.4] Other allowance

[1] Leave/LTC etc.
The existing rules regarding LTC Encashment, Earned Leave Encashment, Maternity Leave,
Paternity Leave, Sick Leave etc. will be as per State Government lines.

[2] NPA and Special Grade to Doctors

The Doctors will be eligible for NPA and Selection Grade as per State Government rates as may
be revised from time to time. Revised N.P.A. will be paid as per GOG.

[3] HBA, Vehicle Advance and other Advance

The existing limit and guidelines shall continue. However for enhancing the existing limits of
these advances a committee would be formed wherein one representative of recognized Union /
Association would be include.
[4] Food/Festival Advance
The existing amount of advance granted shall be continued for employees having revised Basic
Pay of less than Rs.20000/-.

[5] CONVEYANCE ALLOWANCE TO BLIND & ORTHOPEDICALLY

HANDICAPPED EMPLOYEES:
The existing allowances being paid to blind and orthopedically handicap employees at the rate of
Rs. 100/- pm shall stand revised to Rs. 500/- pm. w.e.f. 1.4.2009.

[6] FAMILY PLANNING INCENTIVE:

The existing Family Planning incentive shall be paid at the rates and terms as decided by the
State Govt. from time to time.

The Tribal Allowance and bad climate allowance will be paid on State Government rates as
revised from time to time.

Following allowances paid over and above the State Govt. norms shall stand revised w.e.f.
1.1.2006 as mentioned in col.no.5.
Table 7.5
Family Planning Allowances Payable to employees.
Sr. Type of Allowance Payable to Existing Revised
no. Rate(basic+ Percentage
DP) on Basic
(1) (2) (3) (4) (5)
1. Fringe Benefit All employees 10% 8.00(*)
2. Special Allowance All Non-Tech. employees 5% 3.75
and engineers working in
other than Power Stn. &
Sub-Station.
Sr. Type of Allowance Payable to Existing Revised
no. Rate(basic+ Percentage
DP) on Basic
(1) (2) (3) (4) (5)
3. Medical- cum- All employees Rs.100/- Rs.100/- p.m.
Misc. Allowance p.m.
4. Generation/ Sub- Engineers and Medical 8% 5.50
Stn. Allowance Doctors
Working in PS/SS
5. Field / SS/ Gen. Class III/IV Technical 11% 7.75
Allowance employees and Sr. Security
Officer /P.O. /IRO / LWO
in Power Station &
Doctors Working at other
than Power Station.
6. Field Allowance JE/DE working in S/Dn. 19% 13.00

JE/DE working in Dn. 16% 11.00

/C.O.
JE/DE working in Corp. 6% 4.00
office/Z.O.
EE working in Dn. /C.O. 14% 9.50

EE working in Corp. 5% 3.50

Office /Z.O.
7. Special Comp. JE/DE working in PS 19% 13.00
Allowance (power EE and Safety Officer in 16% 11.00
Station) PS
SE/ACE/CE in PS 12% 8.00

8. Special Comp. JE/DE working in S/S 19% 13.00

Sr. Type of Allowance Payable to Existing Revised
no. Rate(basic+ Percentage
DP) on Basic
(1) (2) (3) (4) (5)
Allowance (Power EE working in S/S 16% 11.00
Station)
9. Shift Charge EE working in Shift in P.S. 5% 3.50
Allowance
10. Transport To handicapped children of Rs.40/-p.m. Rs.100/-
Allowance employees per child P.M. per
child

Note : (i) Fringe Benefit Allowance shall hence forth be drawn in the name of General Facility
Allowance.
(ii) Existing rules, applicability and guidelines for drawl of above allowances remains
unchanged except altered by the settlement entered.
(i) The categories of officers i.e. Sr. Security Officer, IRO, Personnel Officer and
Labour Welfare Officer working in Power Station including Medical Officer & Asst.
Medical Officer working at Vadodara / Rajkot Dispensaries shall only be eligible for
Generation Allowance / Field Allowance at the rate of 7.75% of Basic Pay and entitle
for 8 Public Holidays in a year.

Above officer working at locations other than power station and dispensaries shall
be entitled to only special allowance at the rate of 3.75% of Basic pay and holidays at par
with other administrative staff with effect from the date of issue of this GSO. However, there
shall be neither recovery not payment of appears on this account.

A. The existing amount & rules of Kutch allowance, Hotline allowance shall remain unchanged.
Charge allowance shall be paid as per rules and regulations of Government of Gujarat in this
regard as applicable from time to time.
B. (*) An incentive scheme shall be introduced with effect from 01/04/2009 covering 50%
amount of the General Facility Allowance and shall be paid in the form of Performance
incentive at the end of the Financial Year. Management to give matching contribution of the
above amount towards the corpus. Further depending upon company’s performance,
Management may consider giving higher contribution to corpus to incentive and motivate
employees to achieve higher productivity consequently, the rate of General Facility
Allowance shall stand revised to 4% from 01/04/2009.
C. Within period of one year a performance – based Variable pay on individual basis for all
Employees/Officers covering pay and allowance will be introduced after working out
modalities with the recognized Unions / Associations and appropriate contribution will be
provided by the management of the companies.

[4.5] Benefits & Facilities:

[1] Medical Facilities
The existing medical facilities and medical reimbursement scheme will be continued. The
levy of Rs.2/- per case for availing facilities in GUVNL’s Dispensaries shall be stopped. Matter
regarding extending the facility in GUVNL Dispensaries to retired employee/officer or spouse
and dependents of compassionate appointee would be examined separately.

[2] Workman compensation

The employees covered by workman compensation Act,1923 and who meet with an accident
arising out if an during course of employment, shall be given 100% reimbursement of medical
expenditure and granted special leave for the period of medical treatment.

However, in case of employees who are incapacitated due to accident while on duty and sustain
60% & above permanent partial disablement shall have the option of either seeking employment
for their dependent as per compassionate appointment norms or a lump sum amount equivalent
to the amount of workman compensation, provided the concerned employee resigns.

[3] Over Time

All eligible employees/workmen defined under the Bombay Shops & Establishment Act and
Rules, Factories Act and Gujarat Factories Rules as the case may be, shall be paid the overtime
as per applicable rules. Since Engineers are not covered for the purpose of overtime under these
Acts and rules, they shall be given Compensatory off when they perform extra hours of work to
be utilized within two months. This shall be effective prospectively from the date of issue of
GSO. Over time based on revised pay shall be payable w.e.f 01/06/2009.

[4] Holidays
The officers mentioned in note (iii) of clause no.23.0 and Engineers working in general and
rotating shifts in power stations and sub-stations shall be eligible for 8 public holidays in a year.
If a public holiday falls on the day of a weekly off / leave, then compensatory off towards the
said public holiday shall not be granted. The above arrangement shall come into force w.e.f July,
2009.

[5] Gratuity
The maximum financial ceiling on the amount of gratuity payable will see as per the payment of
Gratuity Act, 1972 as amended from time to time.

[6] Bonus
The Bonus will be paid in accordance with payment of Bonus Act, 1965

[7] Facilities to Union

The existing facility of considering union leaders on duty for attending conciliation and court
cases shall be continued for general demands and general disputes only and not for individual
employees cases.

[8] Shoes/Sandals & Socks

Employees/officers working in administrative offices for more than two years shall be paid
Rs.1000/- at the end of second financial year for purchase of shoes and sandals. Those of the
employees working in field, substation and power plants shall be given industrial safety shoes of
ISI mark every two years. They shall also the eligible for reimbursement towards purchase of
two pair of socks of not more than Rs.150/- per pair every two years.

[9] Higher Grade

The existing scheme of grant of higher grade as per GSO 334 and its amendments shall continue.
Similarly, the benefit of GSO-247, GSO-235 & GSO-43 as available at present shall continue.

Any wrongful payment made to employee/ officer pursuant to these orders or any other justified
action of the company, being public money, the same shall be recovered in suitable equal
installment. Further those of the employees/officers who have been charge sheeted for loss the
companies, misappropriation etc. the amount of loss/misappropriation shall be recovered from
arrears payment and / or other sources. Such disciplinary action cases shall be finalized
preferably within one year from the date of GSO.

Respondents’ opinion regarding encouraging for the best effort to be achieved and to
continue with the PGVCL by existing wage and salary policy .

An attempt to study respondents’ view, belonging to class III and IV regarding encouraging
for the best effort to be achieved and to continue with the PGVCL by existing wage and salary
policy was made by the researcher. The details are presented in table 7.6
 Table – 7.6
Respondents’ opinion regarding encouraging for the best effort to be achieved and to
continue with the PGVCL by existing wage and salary policy
(class III and IV)

Sr. Respondents’
No. opinion Number of respondents / percentage
regarding
encouraging Head Rajkot Jam- Juna- Porb Amreli Total
for the best office nager gadh Andar
effort to be
achieved and
to continue
with the
PGVCL by
existing wage
and salary
policy
1. Strongly 6 12 4 8 20 8 58
agree (100.00) (22.22) (8.70) (13.33) (41.67) (12.90) (21.02)
2. Agree 0 40 24 38 22 42 166
(0.00) (74.08) (52.17) (63.34) (45.83) (67.74) (60.14)
3. Neither agree 0 0 6 2 0 6 14
nor disagree (0.00) (0.00) (13.14) (3.33) (0.00) (9.68) (5.07)
4. Disagree 0 2 12 10 6 6 36
(0.00) (3.70) (26.09) (16.67) (12.50) (9.68) (13.04)
5. Strongly 0 0 0 2 0 0 2
disagree (0.00) (0.00) (0.00) (3.33) (0.00) (0.00) (0.73)
6. Total 6 54 46 60 48 62 276
(100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00)
Note: Figure in brackets is percentage to total.
Source: Questionnaire – B, Qu.no. 17.
Table 7.6 shows:
(1) 81.16 per cent respondents agree with the existing wage and salary policy encourages them
for the best efforts to be achieved and to continue with the PGVCL. (21.02 per cent
respondents strongly agree and 60.14 per cent respondents agree).
(2) 13.37 per cent respondents disagree with the existing wage and salary policy encourages
them for the best effort to be achieved and continue with PGVCL. (13.04 per cent
respondents disagree and 0.73 per cent respondents strongly disagree.)
It can be said that the existing wage and salary policy encourages the employees for the
best efforts to be achieved and to continue with the PGVCL.

[5] - Respondents Opinion Regarding Success of Wage and Salary

Administration:

An attempt to study respondents’ view, belonging to class I and II, regarding success of
wage and salary administration was made by the researcher. The details are presented in table 7.7
Table 7.7 shows that:
(1) Maximum respondents (85.80 per cent of the respondents) agree with success of the
objective-satisfying employees to reduce the incidence of quitting and grievances. (37.65 per
cent of the respondents strongly agree and 48.15 per cent respondents agree).
(2) Minimum respondents (53.09 per cent of the respondents) agree with success of the
objective-motivating employees to performance better (16.67 per cent of the respondents
strongly agree and 36.42 per cent of the respondents agree).
(3) 82.10 per cent respondents agree with success of the objective-attracting and retaining the
services of employees and 11.73 per cent respondents disagree with success of this objective.
(4) 77.77 per cent respondents agree with success of the objective-facilitating pay-rate
administration, budgeting and wage and salary control and 8.03 per cent respondents disagree
with success of these objective.

Table – 7.7
 Respondents’ opinion regarding success of wage and salary administration
(class I and II)
Sr. Objectives of Number of respondents / percentage
No. wage and salary Strongly Agree Neither Dis- Strongly Total
administration agree agree agree disagree
nor
disagree
1. Attracting and 80 186 20 36 2 324
retaining the (24.69) (57.41) (6.17) (11.11) (0.62) (100.00)
services of
employees
2. Facilitating pay- 42 210 46 26 0 324
roll (12.96) (64.81) (14.20) (8.03) (0.00) (100.00)
administration,
budgeting and
wage and salary
control
3. Satisfying 122 156 16 24 6 324
employees to (37.65) (48.15) (4.94) (7.41) (1.85) (100.00)
reduce the
incidence of
quitting and
grievances
4. Motivating 54 118 0 132 20 324
employees to (16.67) (36.42) (0.00) (40.74) (6.17) (100.00)
perform better
5. Eliminating 40 174 40 66 4 324
inequalities in pay (12.35) (53.70) (12.35) (20.37) (1.23) (100.00)
Note: Figures in brackets are percentage to total.
Source: Questionnaire – A, Qu.no. – 26.
(5) 66.05 per cent respondents agree with success of the objective-eliminating inequalities in pay
and 21.60 per cent respondents disagree with success of this objective.
Thus it can be said that the existing wage and salary policy reduces the incidence of
quitting and grievances attracts and retains the services of employees, eliminates inequalities in
pay and acts as an incentive to exploit potentialities of employees.

The researcher made an attempt to gather suggestions from the respondents for making
wage and salary administration more effective-from sample unit. The details are presented in
table 7.7.1 to table 7.7.3 as under.
Table 7.7.1 shows suggestion made by respondents to make wage and salary administration more
effective- class I and II.
Table 7.7.2 shows suggestion made by respondents to make wage and salary administration more
effective- class III and IV.
Table 7.7.3 shows suggestion made by respondents to make wage and salary administration more
effective- class I, II, III and IV.

Table 7.7.1 shows:

(1) Maximum respondents (63.59 per cent of the respondents) have suggested-revising existing
pay scales in order to make wage and salary administration more effective.
(2) Minimum respondents (22.22 per cent of the respondents) have suggested –ensuring prompt
payment of dues of the employees and not accumulating arrears of payment with a view to
make wage and salary administration more effective.
(3) According to 56.80 per cent respondents, the PGVCL should provide job environment, wage-
salary and perquisites as of the private sectors and according to 52.47 per cent respondents,
the PGVCL should appoint representatives of employees on the administration of wage and
salary plan committees in order to make wage and salary administration more effective.
All these observations show that the existing pay scale should be revised in order to
improve wage and salary administration. Though presently govt. is progressively taking steps in
this regard. Moreover so far as possible, job environment, wage-salary and perquisites should be
provided as of the private sectors.
Table 7.7.1
 Suggestion made by respondents (class I and II) to make wage and salary
administration more effective

Sr. Suggestion made Number of respondents / percentage

No. to make wage
and salary Total
administration Head Rajkot Jam- Juna- Porb Amreli No
more effective office nager gadh Andar opinio
n
1. Appointing 10 34 38 30 24 34 154 324
representatives of (3.09) (10.49) (11.73) (9.26) (7.41) (10.49) (47.53) (100.00)
employees on the
administration of
wage and salary
plan committees
2. Revising existing 24 32 60 32 22 36 118 324
pay-scale (7.41) (9.88) (18.52) (9.88) (6.79) (11.11) (36.41) (100.00)

3. Ensuring prompt 6 22 20 2 12 10 252 324

payment of dues (1.85) (6.79) (6.17) (0.62) (3.70) (3.09) (77.78) (100.00)
of the employees
and not
accumulating
arrears of
payment
4. Providing job 22 18 54 30 18 42 140 324
environment, (6.79) (5.56) (16.67) (9.26) (5.56) (12.96) (43.20) (100.00)
wage-salary and
perquisites as of
the private sector
Note: Figures in brackets are percentage to total.
Source: Questionnaire – A, Qu.no. – 27.
 Table 7.7.2
Suggestion made by respondents (class III and IV) to make wage and salary
administration more effective
Sr. Suggestion Number of respondents / percentage
No. made to make
wage and salary Total
administration Head Rajkot Jam- Juna- Porb Amreli No
more effective office nager gadh Andar opinion

1. Appointing 4 30 32 50 24 42 94 276
representatives (1.45) (10.87) (11.59) (18.12) (8.70) (15.22) (34.05) (100.00)
of employees on
the
administration
of wage and
salary plan
committees
2. Revising 4 42 38 50 40 46 56 276
existing pay- (1.45) (15.22) (13.77) (18.12) (14.49) (16.67) (20.28) (100.00)
scale
3. Ensuring 0 12 4 16 12 24 208 276
prompt (0.00) (4.35) (1.45) (5.80) (4.35) (8.70) (74.35) (100.00)
payment of dues
of the
employees and
not
accumulating
arrears of
payment
4. Providing job 4 36 26 42 18 50 100 276
environment, (1.45) (13.04) (9.42) (15.22) (6.52) (18.12) (36.23) (100.00)
wage-salary and
perquisites as of
the private
sector
Note: Figures in brackets are percentage to total.
Source: Questionnaire-B, Qu.No-18.
 Table 7.7.3
Suggestion made by respondents (class I, II, III and IV) to make wage and
salary administration more effective
Sr. Suggestion Numbers of Respondents / Percentage
No made to Total
make wage Head Rajkot Jam- Juna- Porb Amreli No
and salary office nager gadh Andar opinion
administra-
tion more
effective
1. Appointing 14 64 70 80 48 76 248 600
representative (2.33) (10.67) (11.67) (13.33) (8.00) (12.67) (41.33) (100.00)
s of employees
on the
administratio
n of wage and
salary plan
committees
2. Revising 28 74 98 82 62 82 174 600
existing pay- (4.67) (12.33) (16.33) (13.67) (10.33) (13.67) (29.00) (100.00)
scale
3. Ensuring 6 34 24 18 24 34 460 600
prompt (1.00) (5.67) (4.00) (3.00) (4.00) (5.67) (76.66) (100.00)
payment of
dues of the
employees
and not
accumulating
arrears of
payment
4. Providing job 26 54 80 72 36 92 240 600
environment, (4.33) (9.00) (13.33) (12.00) (6.00) (15.34) (40.00) (100.00)
wage-salary
and
perquisites as
of the private
Sr. Suggestion Numbers of Respondents / Percentage
No made to Total
make wage Head Rajkot Jam- Juna- Porb Amreli No
and salary office nager gadh Andar opinion
administra-
tion more
effective
sector
Note : Figures in brackets are percentage to total.
Source : Table 7.7.1 and 7.7.2

Table 7.7.2 shows:

(1) Maximum respondents (79.71 per cent of the respondents) have suggested-revising
existing pay scales in order to make wage and salary administration more effective.

(2) Minimum respondents (24.64 per cent of the respondents) have suggested –ensuring
prompt payment of dues of the employees and not accumulating arrears of payment with
a view to make wage and salary administration more effective.

(3) According to 65.94 per cent respondents, the PGVCL should appoint representatives of
employees on the administration of wage and salary plan committees and according to
63.77 per cent respondents, the PGVCL should provide job environment, wage-salary
and perquisites as of the private sectors in order to make wage and salary administration
more effective.

All these observations suggests that the existing pay scales should be revised so far as
possible job environment, wage-salary and perquisites should be provided as of the private sector
and representative of employees should be appointed in wage-salary plan committee in order to
improve wage and salary administration. Thus any remarkable change in the suggestion
suggested by class I and II respondents and class III and IV respondents to make wage and salary
administration more effective have not been found.
Table 7.7.3 shows:
(1) Maximum respondents (71.00 per cent of the respondents) have suggested-revising
existing pay scales in order to make wage and salary administration more effective.

(2) Minimum respondents (23.33 per cent of the respondents) have suggested –ensuring
prompt payment of dues of the employees and not accumulating arrears of payment with
a view to make wage and salary administration more effective.

(3) According to 60.00 per cent respondents, the PGVCL should provide job environment,
wage-salary and perquisites as of the private sector and according to 58.66 per cent
respondents, the PGVCL should appoint representative of employees on administration
of wage and salary plan committees in order to make wage and salary administration
more effective.

All these observations show that the PGVCL should revise existing pay scale in order to
improve wage and salary administration. Though presently govt. is progressively taking steps in
this regard. Moreover the PGVCL should provide job environment, wage-salary and perquisites
as of the private sectors for improving wage and salary administration.PGVCL applies time wage
system for payment of wage and salary which includes basic pay, D.A. and other allowances and
monetary benefits as per govt. rules. The findings indicate that the PGVCL’s existing wage and
salary policy is attracting and retaining efficient personnel, acting as an incentive to exploit their
potentialities and encouraging employees to continue with the PGVCL.

All these findings clearly indicate that the PGVCL’s existing wage and salary policy is
quite fair, equitable and sound in line with cost of living index.