PROJECT REPORT

ON
“STUDY ON ACCOUNTING OF EMPLOYEE RELATED
TRANSACTIONS (PAYROLL) IN MATHURA REFINERY”

SUBMITTED FOR THE PARTIAL FULFILLMENT OF AWARD

OF

“BACHELOR OF BUSINESS ADMINISTRATION”

SUBMITTED TO,

H.O.D., DEPARTMENT OF BUSINESS MANAGEMENT STUDIES,

SUBMITTED BY,

GAURAV KAUSHIK

INSTITUTE OF BUSINESS MANAGEMENT

 DECLARATION

I hereby declare that the project entitled “STUDY ON ACCOUNTING OF EMPLOYEE RELATED
TRANSACTION IN MATHURA REFINERY” submitted to the GLA UNIVERSITY Institute of
Business and Management, Mathura in partial fulfilment of the requirement for the degree
of BACHELOR OF BUSINESS ADMINISTRATION is my original work and not submitted for the
award of any degree , diploma or other similar title.

GAURAV KAUSHIK

ROLL NO.174100056

BBA (Final Year)

GLA UNIVERSITY

IBM, Mathura

PREFACE
 This project work titled “STUDY ON ACCOUNTING OF EMPLOYEE RELATED
TRANSACTIONS (FINANCE-PAYROLL) IN MATHURA REFINERY” with special reference to
IOCL (MATHURA REFINERY) is prepared by keeping the guidelines given by
university.

The project work consists of five chapters and selected references. First
and second unit include introduction and objectives of the study .Introduction
about the organization in third chapter . The analysis about the workers
satisfaction toward welfare schemes is in fourth chapter and last chapter
consists of the conclusion and suggestion to make the welfare schemes more
effective.

Information was collected with the help of questionnaire ,books and

annual reports.

I hope that the project will achieve its objectives.

GAURAV KAUSHIK

ROLL NO.174100056

BBA (Final Year)

GLA UNIVERSITY

IBM, Mathura

INTRODUCTION TO IOCL MATHURA REFINERY

Oil as a source of energy is of utmost importance for the smooth functioning and
development of a country, keeping it in view, our country felt this task of paramount
importance in terms of self-sufficient in the field of oil and energy. For achieving this
valuable object, our honourable government started functioning by setting up of
refineries in the public sector.

HISTORY AND DEVELOPMENT OF INDIAN OIL CORPORATION LTD.

Indian Refineries Limited was incorporated in the public sector on 22 nd Aug 1958.
This was followed by the setting up of the Indian Oil Company in 1959, tomarket
petroleum products. The first Refinery in the public sector was commissioned by
Indian Refineries Limited in 1962, at Guwahati in Assam. Meanwhile, Indian Oil
company had already established itself in the marketing through based on imported
petroleum products.

Indian Refineries Limited and Indian Oil Company were amalgamated

st
on 1 Sept, 1964 to form Indian Oil Corporation Limited, thus bringing under one roof
the refinery, pipelines and marketing operations in the public sector.

Indian Oil Corporation Limited is the largest commercial undertaking in

India. It is the only Indian company in the fortune ‘Global 500’ ranking of the world’s
largest industrial and service companies. Among the petroleum refining companies, it
is ranked at 30th place by profits.

Among the top Asian countries, Indian Oil Corporation Limited is ranked
nd
62 by sales in the “ Asia week 1000”. In the industry were listing Indian Oil is
ranked 8th by sales in the oil and gas category.

Indian Oil owns and operates six of the country’s 14 refineries with
refining share of about 40%. It’s seventh refinery of six million tones capacity at
panipat in north-west India has been commissioned in 1997-98. Another grassroots
refineryis planned on the east coast in collaboration with Kuwait Petroleum
Corporation.

It has a 5293 km network of pipelines comparable with that of any

standard oil company in the world, for economical, reliable and eco-friendly
transportation of crude oil and petroleum products.

Indian Oil meets over 55% of the petroleum products consumption of India
and is als the canalizing agency for import of crude oil and major petroleum
products. It’s extensive network of over 17000 retail sales points cover the
entirecountry and is backed for supplies by 178 terminals and depots, 35 LPG
bottling plants, 94 aviation fuel stations, 44 divisional officers and 32 Indian area
offices.
 Indian oil is the only oil company in the country with over 30 units having
earned ISO 9001-9002 accreditations. These include refineries, pipelines, major
aviation fuel station , quality control laboratories and LPG botteling plant. In this
constant endeavour for technology upgradation and better products and services for
its customers, the corporation has joined hands with several companies from India
and abroad. It is developing tankage infrastructure in association with oil tanking,
Germany and IBP co. Two other joint venture companies, Indo-mobile and Avi oil
India offer premium and specially lubricants.

Indian oil is the only oil refining and marketing company in India with a
comprehensive R &D centre which has earned the ISO 9001 certification and done
pioneering work in lubricants , refinery processes and pipeline transportation. A
wholly owned subsidiary, Indian Oil blending Ltd. Manufactures over 400 grades of
the country’s leading servo brand lubricants and greases.

Indian oil has initiated plans for vertical integration and is pursuing ventures
in oil exploration & production, petrochemicals and power generation. It is also
globalizing its consultancy and R&D activities as well as marketing of lubricants.
Over a dozen countries have already availed of Indian Oil’s consultancy services.

MISSION OF INDIAN OIL CORPORATION LTD.

- To become an integrated and diversified global energy corporation.

- To achieve International standards of excellence in petroleum refining,

marketing and transportation with concern for customer satisfaction.

- To create a modern technology base for self reliance, growth and the
development of the business.

- To contribute to the national economy by providing adequate return on 1

investment and by setting high standards of leadership in productivity and
total quality.

- To foster a culture of participation and innovation for employee growth and

the contribution.
- To help enrich quality of life of the community and preserve ecological balance
and National Heritage.

- To provide technology and service through sustained research and

development.

ENVIRONMENTAL POLICY
 - To achieve excellence in petroleum refining with equal commitment to
preserve ecological balance and national heritage by total compliance of all
statutory requirements while striving for continuous improvement in
minimizing impact on environment due to refinery operation.

- To control plant operation in order to minimize impact, local and global

environment while reducing the use of water and energy resources.

- To incorporate technological advancement toward environmental upkeep.

- To propagate the policy and objectives among all employees and distributing it
to contractors, suppliers, transporters and neighbouring villages and
customers.

OBJECTIVES OF INDIAN OIL CORPORATION LIMITED

The objectives of Indian Oil Corporation may be divided into two categories:

(A) General objectives

(B) Financial objectives

(A) GENERAL OBJECTIVES

 To serve to the national interests in the oil and related sector in

accordance and consistent with government policies.

 To ensure and maintain continuous and smooth supplies of petroleum

products by way of crude refining, transportation and marketing
activities and to provide appropriate assistance to the consumer to
conserve and use petroleum products most efficiently.

 To earn a reasonable rate of return on investment.

 To work toward the achievement of self sufficiency in the field of oil

refining by setting up adequate domestic capacity and to build up
expertise for pipe laying for crude/ petroleum products .

 To create a strong research and development base in the field of oil

refining and stimulate the development of new products formulating
with a view to minimize/ eliminate their imports, if any.

 Lastly, to maximize utilization of the existing facilities in order to

improve efficiency and increase productivity.
 (B) FINANCIAL OBJECTIVES

 To ensure adequate return on the capital employed and maintain a

reasonable annual dividend on its equity capital.

 To ensure maximum economy in expenditure.

 To generate sufficient internal resources for financing partly wholly

expenditure on new capital projects.

 To develop long term corporate plan to provide adequate growth of

activities of the corporations.
 To continue to make an effort in bringing a reductions in the cost of
production of petroleum products manufactured by means of
systematic cost control measure.
 To endeavour to complete all planned projects within thw stipulated
period and cost estimates.

BOARD OF DIRECTORS
Indian oil corporation Ltd. Is a wholly government owned company registered under
the Indian Companies Act, 1956, headed by a chairman. Besides the chairman, the
board has the following whole time directors:

1. Director (Refineries)
2. Director (Pipelines)
3. Director (Marketing)
4. Director (Human Resource)
5. Director (Finance)
6. Director (Research &Development)

DIVISIONS
Indian oil corporation limited has five divisions:
 1. Refineries Division
2. Pipelines Division
3. Marketing Division
4. Assam oil Division
5. Research &Development Centre\

REFINERIES
1. Guwahati Refinery (ASSAM)
2. Barauni Refinery (BIHAR)
3. Gujrat Refinery (GUJRAT)
4. Haldia Refinery (WEST BENGAL)
5. Mathura Refinery (UTTAR PRADESH)
6. Digboi Refinery (ASSAM)
7. Panipat Refinery (HARYANA)
8. Paradip Refinery (orrisa)

PIPELINES
1. Guwahati-Siliguri
2. Koyali-Ahmedabad
3. Barauni-Kanpur
4. Haldia-Maurigram-Rajbandh-Barauni
5. Salaya-Viramgram-Koyali-Mathura
6. Mathura-Jalandhar

MATHURA REFINERY-A PROFILE

INTRODUCTION
Mathura refinery, the sixth of IOCL was commissioned in january 1982, to meet the
ever growing demand for petroleum products in north- west region of the country.
The 7.5 million metric tonnes refinery meets major portion of demand in this region.
Mathura refinery, a pace setter among the Indian Refineries has become a model for
synthesizing refining technology with environment.

HISTORY & DEVELOPMENT

First lady prime minister of India Mrs. Indira Gandhi laid foundation of Mathura
Refinery. It was commissioned in Jan 1982 and its inauguration was done by Mr. P.
Shivshankar in July 1982, who was petroleum Minister at that time.

Refinery started with the project of 190 crore but it completed on 300 crore. At
that time it had capacity of refining 6 million metric tones of crude oil but later it
raised to 7.5 million metric tones. The first distillation process was started in 19 th Jan
1982 and its inauguration was done by Russian experts & Mr. P. Shivshankar om 14 th
May 1983.

Power is supplied for the whole processing through Thermal Power Station
(TPS) in which two of the three turbines are used at a time, which have the capacity
of 12.5 MW per turbine & total capacity of three turbines is 37.5MW (mega watt).

The raw material for the refinery is basically crude oil. It has wide adaptability of
processing over 30 types of crude oil ranges- from indigenous Bombay off shore
crude to imported crude of Australian origin in the East and Nigeria & Venezuela in
the far West. Crude oils are transported to the refinery tanks through a cross country
1078 Km pipelines starting from Salaya in the Gujrat coast, where crude oils are
unloaded from oil bankers.

Products are dispatched from this refinery through rail (Railway wagons), road
(tankers) & Mathura- Delhi-Ambala- Jalandhar pipeline having three pumping
stations bijwasan, Ambala & Jalandhar. The contribution of Mathura Refinery is
meeting the petroleum product demand of north- west India about 68%. The LPG
bottling plant situated within Mathura Refinery premises bottles nearly 7 million
cylinders per annum for catering to domestic market. Major fertilizer industries at
Kanpur, Nangal, Bhatinda and Kota are supplied with Neptha or furnace oil, heavy
petroleum stock as fertilizer feed stocks from Mathura Refinery. Also, Thermal Power
plants of Nangal, Obra and Badarpur get fuel oil supply from this Refinery. The other
important products, Bitumen has pushed the transportation sector in this region on to
road worthiness. To keep the environment clean and green, Mathura Refinery
recovers nearly 10,000 Kgs, of Sulphur everyday as by product from crude oil.
Mathura Refinery also show the following facilities –

 Refinery Township
 Water supply works at Yamuna river (Koyla Road)
 Keetham lake
  Effluent point
 Ash Disposal area

MATHURA REFINERY - AN OVERVIEW

Attribute : Description

Location : Mathura is located 150 Kms away from Delhi- Agra National highway
(NH-2)

At Mathura

Area : The Refinery site has an approximate area of 1054 acres.

Nature : It is one of the seven Refineries of IOCL, a Govt. Of India

undertaking.

Business : Refining of crude oil & supply of petroleum products.

Capacity : It has a capacity of refining of 7.5 million metric tones of crude oil per
year

Adaptability : It has capability of refining of over 30 types of crude oil as well as

Imported indigenous.

SALIENT FEATURES
Mathura Refinery has assimilated wide spectrum of Russian, American, European
and Japanese technologies. It has already started mapping of existing business
functions as a member of IT engineering project. It has consistently pursued
conservation strategies in all areas of its operation.

These can be summarized as below:

  Mathura Refinery is the first refinery in Asia and third in the world to have ISO
14001 certified environment management system.
 Mathura Refinery is the first refinery in the world to have
OHSMS(Occupational Health and Safety Management System) certification.
 Desulphurization of fuel gas using sulphur recovery unit and provision of
100% stand by sulphur recovery unit.
 Commissioning of four no.s continuous Ambient Air Monitoring stations at
Farah, Keetham, Sikandra, and Bharatpur.
 Provision of effluent treatment plant with physical, chemical and biological
treatment facilities. Treatment effluent meets MINAS standard, and is being
used by farmers for irrigation purposes, 10 years study by Aligarh Muslim
University has concluded that increase crop yield upto 18% are achieved with
use of treatment effluent. Treated effluent is also reused in fire water network.
 National Environment Engineering Research Institute (NEERI) a well known
independent agency, periodically checks the treated water quality only to
confirm that MINAS(Minimum National Standards) are meet cent percent.
 Environment preservation is ensured through massive tree plantation and
development of green pasture of 18000 sqm as ecological park within the
refinery premises where about 70 varieties of Indian and migrated birds from
overseas are seen in large numbers during winter season. This is the first of
the kind in our country and one of the such few parks known outside the
country.
 Mathura Refinery has the unique distinction of ISO-9002 certification for
manufacture and supply of petroleum products and for support services.

Safety is an integral part of Refinery operations with the aim of making refinery a
safe place for its employees and the community. The refinery has been investing
substantially for updating existing safety and including new equipments.

PAYROLL ACCOUNTING-

 NEW JOINING
 DATA MAINTAINENCE OF EXISTING EMPLOYEES

PAYMENTS OTHER THAN SALARY-

 FB01
 FB05
  YF51
 PAYMENT OF LEASE FACILITY
 SUPPER ANNUATION BENEFIT

MASTER MAINTAINENCE FOR INCOME TAX –

 SEC 80 C
 HOUSEING-LOAN
 80 DEDUCTION

BASICALLY OFFCYCLE PAYMENTS ARE MADE ON TWO DAYS :-

 Tuesday
 Friday

Three types of cases-

RETIRE
 PAYMENT CLEARANCE
 STOP DEDUCTION IN MASTER
 TO CREATE HOLDS AS PER HR ADVICE

RESIGN
TO ACT AS PER HR ADVICE AS ABOVE

DEATH CASES
o AS PER ADVICE
o HR (3 YRS)—
 COMPULSARY
  VOLUNTARY

There are four classifications –

 Payroll accounting
 Medical
 TALTC
 PF accounts

OTHER THAN ASSESTS –

 Purchase accounts
 Works accounts
 Production accounts
 Oil accounts
  Main accounts
 Cenvat accounts
 Stores accounts

IN PAYROLL ACCOUNTIONG VARIOUS T- CODES ARE USED :-

T-CODE T-CODE

PA20 PA30

PCOOM40 PCOO_M40

USE T-CODE PA 20 FOR DISPLAY THE RECORD

USE T-CODE PA30 FOR CREATING THE RECORD

FOR DISPLAY THE PAYSLIP USE T-CODE (PC00_M40_HRF)

FOR DAY TO DAY PAYMENT LIKE M,EDICAL LTC ETC. (OFF CYCLE PAYMENT) USE T-CODE (YHOFFCYCLE)
SIMULATED PAYSLIP (FOR SEE THE ANY UPDATION OF RECORD ) USE T-CODE
(PC00_M40_CALC_SIMU)

WAGE TYPE REPORTER (MEANS SEE THE WAGE TYPE REPORT OF ANY EMPLOYEE) USE T-CODE
(PC00_M99_CWTR)

Pay and Allowance

PAY

Scales of Pay

The current approved scales of pay and the corresponding grades for officers
and non-officers in the Refineries Division are given below :

OFFICERS

GRADE SCALE OF PAY

I Rs.150000-300000

H Rs.120000-280000

G Rs.120000-280000
 F Rs.120000-280000

E Rs.100000-260000

D Rs.90000-240000

C Rs.80000-220000

B Rs.70000-200000

A Rs.50000-160000

Non-Officers

GRADE SCALE OF PAY

IX (New Grade) Rs. 20000 – 49200

(Prospective)

VIII Rs.16000 – 43700

VII Rs.14800 – 40500

VI Rs.13800 – 38500

V Rs.12800 – 35000

IV Rs.11900 – 32000

III Rs.10800 – 29000

II Rs.10600 – 26500
 I Rs.10500 – 24500

Pay Fixation

Pay fixation on initial appointment

a) The Board of Directors may fix the initial pay at any stage of the
sanctioned time-scale higher than the minimum, on the advice of
appropriate selection committee, with regard to appointments the
Board is competent to make. In this context, sanction of the Board is
necessary in respect of appointments in Grade ‘H’ and above.

b) Chairman/D(R) is competent to fix the initial pay at any stage of the

sanctioned time-scale higher than the minimum, on the advice of
appropriate selection committee, with regard to appointments he is
competent to make. In this context, sanction of the Chairman is
necessary in respect of appointments in Grades ‘E’ to ‘G’.

c) ED/GM (Unit Head) is competent to fix the initial pay of a selected

candidate at any stage, not exceeding five increments of the
sanctioned time scale, higher than the minimum on the advice of the
appropriate selection committee in approved scales of pay upto and
include grade vii

d) All other officers delegated the power to appoint against sanctioned

posts can do so in accordance with the rules laid in this regard only at
the minimum of the prescribed scales.

Pay fixation on promotion

For-Officers

 One notional increment equal to the increment being drawn by an

officer in the pay scale (i.e. @ 3% of Basic Pay), before such
promotion would be granted and pay fixed in the promoted pay scale.
Pay, after grant of promotional increment, will be rounded off to the
next multiple of rupees ten.

 If due to grant of Promotional Increment, the Basic Pay exceeds the

maximum of the promoted scale, the amount of Promotional
Increment shall be so reduced that the Basic Pay plus Promotional
Increment does not exceed maximum of the relevant scale.

For Non-Officers

 The promotional increment due in respect of promotions of workmen

after 01.01.2007(01.07.2007 in the case of BGR and 01.04.2007 in
case of IBP) shall be drawn @ 3% of Basic Pay. One notional
 increment equal to the increment being drawn by the workman in the
pay scale, i.e., @ 3% of Basic Pay, before such promotion would be
granted and pay fixed in the promoted Pay Scale. Pay, after grant of
promotion increment, will be rounded off to the next multiple of rupees
ten. The rate of increment applicable on promotion would also apply
for fixation in Special Grade on account of stagnation.

 If due to grant of Promotional Increment, the Basic Pay exceeds the

maximum of the promoted scale, the amount of Promotional
Increment shall be so reduced that the Basic Pay plus Promotional
Increment does not exceed maximum of the relevant scale

 Treatment of Personal Pay, Additional Personal Pay ( Non Officer

)Personal Pay, Additional Personal Pay to non-officers in Grade
VIII

As per the provisions of the Cluster Based Promotion Policy, employees in

Grade VIII who do not get promotion to officer Grade A upon completing 6
years are entitled to one increment at the rate of last increment drawn as
personal pay. Thereafter upon completion of another 4 years (from the date
of grant of personal pay) in Grade VIII, such non-officers who have minimum
two ‘Outstanding’ CR ratings in Grade VIII in the preceding 4 years will be
entitled to Additional personal pay at the rate of last increment drawn. This
benefit is to be treated as Basic Pay for all purposes and is admissible till the
employee is promoted to Grade A.

General

On each occasion of revision of pay scales for a category of employees,

arising out of a settlement or otherwise, the pay fixation need not necessarily
conform to the rule normally applicable, and may be governed by varying and
adhoc sets of principles as may be spelt out specifically for each such
occasion. .

Adhoc principles adopted on a particular occasion may cease to be of

relevance once a particular or mass revision of pay scales is effected.

Thereafter, promotions or officiating appointments will again be governed by

the normal rules of pay fixation.

Annual Increments
 Condition for grant of annual increment

An employee will continue to get his annual increment on the due date so long
as there is no adverse report regarding his conduct and work from his
Departmental Head, unless withheld by a specific order in writing to that effect.
In a case where increment has to be stopped/postponed for reasons of
unsatisfactory work or conduct, the concerned Departmental Head is required
to inform the Personnel and Finance Departments two months in advance so
that necessary action to stop or postpone the increment is taken in time.

Service counting for annual increment

The following shall count for annual increment :

i) Continuous duty in a post on a time scale;

ii) All leave other than unauthorized absence exceeding 60 days or

extraordinary leave without pay exceeding 180 days in a year, whether
at a stretch or in two or more spells; and

iii) Period of officiating service (in case of employees drawing officiating

pay in the scale of pay attached to the higher post) followed without
interruption by appointment on regular promotion to the higher post.
(The said officiating appointment should first be terminated before
promotion).

Regulation of annual increments

A) 1st January will be the common date of annual increment for all eligible
employees. Newly appointed employees will be eligible for annual increment
on 1st Jan., provided they have completed not less than six months of service
as on preceding 31st December. In case of every fresh appointment and
promotion the date of annual increment must be indicated in the Office Order.

B) Rate of Annual Increment :

i) For Officers

Anual increment in the revised pay scale will be 3% of revised Basic Pay and
will be rounded off to next multiple of Rs.10/-.

ii) For Non - Officers

Annual increment in the revised pay scale will be 3% of revised Basic Pay and
will be rounded off to next multiple of Rs.10/-.

If due to grant of Annual Increment, the Basic Pay exceeds the maximum of
the scale, the amount of Annual Increment shall be so reduced that the Basic
Pay pus increment does not exceed maximum of the relevant scale.
 C) Stagnation Increments

Officers: The rate of stagnation increment will be @3% of the revised basic
pay. Officers will be allowed to draw maximum three stagnation increments,
one after every two years, upon reaching the maximum of the revised pay
scale provided the officer gets a performance rating of ''Good" or above. Pay
of executive after grant of stagnation increment will be rounded off to the next
multiple of Rs.10/-

Non-Officers:

The workmen will be allowed to draw a maximum of three stagnation

increments one after every two years. The stagnation increment shall be
payable at the rate of 3% of Basic Pay. The first stagnation increment will be
admissible after completion of two years from the date of reaching the
maximum of the pay scale. The subsequent stagnation increment will be
admissible after completion of two years from the drawal of the last stagnation
increment.

The stagnation increment as above shall be admissible provided the workman

gets a Performance rating of 'Satisfactory/average' or above. The pay after
grant of stagnation increment will be rounded off to next multiple of Rs.10/-

Stagnation increment(s) will be treated as BP for all purposes and will be shown
separately from BP as Stagnation Pay.

Postponement of annual increment

a) Extension of Probation Period

i) In case of fresh appointees, increment will be released only after an

order regarding satisfactory performance during the probation period.
If , however, for reason of poor performance , Management takes a
decision to extend the probation period beyond 180 days, the annual
increment would be postponed by one year. There will be no effect on
 annual increment if the probation period is extended upto 180
days(Please also refer clause 6.2.4 (v) b).

ii) An employee on promotion will be allowed to draw the next annual

increment irrespective of whether he has completed the probation
period or has been confirmed in the post. In case, for any reason, the
probation period of an employee is extended or the confirmation is
postponed or the employee remains on leave without pay for a longer
period, then the next due annual increment will get postponed as at (i)
above.

b) Extraordinary leave without pay

In case of ELOWP on medical grounds exceeding 180 days at a stretch

or in spells in a calendar year, the competent authority as heretofore
will have the discretion to consider each case on its merit for the
purpose of postponement of annual increment. EOLWP on medical
grounds at a stretch or in various spells in a calendar year for less
than 180 days may be ignored.

c) Absence without authorized leave

Where unauthorised absence individually or cumulatively exceeds 60

days in a calendar year, the annual increment/stagnation increment
due to be granted on 1st January of the following year shall stand
postponed by one year. The unauthorised absence individually or
cumulatively in a calendar year for less than 60 days may be ignored.

d) Special/ Study Leave without pay

In case of study leave without pay/special leave without pay granted to

a female employee to join the husband/child care leave exceeding 180
days at a stretch or in spells in a calendar year, the annual increment
would be postoned by one year.

e) Period of Suspension

No increment will be released during the period of suspension The

withholding/ postponement of increment in a case shall depend upon
extent and nature of punishment awarded after inquiry proceedings
and the same would be regulated as per the decision in each case.
( Please also see Clause 10.1.5.5. b)
Withholding of annual increments

a) As distinct from the provisions of sub-clause 10.1.5.1 above, annual

increment can be withheld for a proven misconduct and as a measure of
penalty under the CDA Rules or Standing Orders, as the case may be.
The orders withholding the increments must indicate whether the
stoppage will have cumulative effect and thus postpone all future
increments or whether it will be a simple stoppage for a prescribed period
after which the employee’s salary would be raised to what it would have
been but for the stoppage of increment.

b) No increment will be released during the period of suspension. However,

once a decision regarding the issue(s) leading to the suspension is taken,
the question whether the suspension period should count for annual
increment or not will depend upon the instructions of the disciplinary
authority in this respect. Normally, the normal date of increment will not be
affected during such period unless there are instructions of the disciplinary
authority to the contrary.

If, on the conclusion of disciplinary proceedings, the period of suspension

is treated as spent on duty, the employee shall be given such increments
to which he would have been entitled had he not been suspended.
However, if the period of suspension is not treated as spent on duty, the
grant of increment to him shall be regulated in the manner laid down in
para (a) above.

Advance increments

a) The grant of advance increments on initial appointment in deserving

cases shall require specific sanction of the competent authority. (See
clause 10.1.2.1 above).

b) For recruitment to the post of Medical Officer in Grade ‘A’, two

advance increments may be granted to those having post-graduate
qualification (MD/MS and other equivalent qualifications) and one
advance increment to those having post-graduate diplomas.

ALLOWANCES

Dearness Allowance

Public Sector Dearness Allowance Scheme providing 100% neutralisation of

cost of living over AICPI 126.33 is applicable from 01.01.2007.Its salient
features are as under:

a) All India Consumer Price Index number for industrial workers (general)
based on 2001 = 100 (AICPI) is used for grant of compensation to the
employees of PSEs for price rise.
 b) DA instalments would be released 4 times a year w.e.f. 1 st January, 1st
April, 1st July and 1st October.

c) DA would be paid for the increase in AICPI above quarterly index

average of 126.33 to which the revised scales of pay are related.

d) The percentage increase/decrease in the quarterly average of AICPI

for the period ending February, May, August and November over index
126.33 would be taken upto one decimal point

e) The rate of compensation of the employee of PSEs over the basic pay
at index average of 126.33 is also in whole numbers with fractions
carried forward.

f) The percentage neutralisation to employee in different pay ranges

would be 100%.

DA will be revised and paid on Quarterly basis effective from 1 st January, 1st
April, 1st July and 1st October every year, as indicated below:

Quarterly Average for the months DA payable from

September, October & November 1st January

December, January & February 1st April

March, April & May 1st July

June, July & August 1st October

City Compensatory Allowance

City Compensatory Allowance has been dispensed with effect from

26.11.2008.

HOUSE RENT ALLOWANCE (HRA)

House Rent Allowance at the applicable rate is payable w.e.f. 26.11.08 at the
following rates:
 Cities with population Rate (% of B.P.)
50 lac and above 30% of Basic Pay
(classified as X)

5 to 50 lac 20% of Basic Pay

(classified as Y)

Less than 5 lac 10% of Basic Pay

(classified as Z)

Note :

1. Officers include the incumbents of the top posts.

2. HRA is payable with reference to the place of duty of the employee.

3. An employee may be allowed to draw HRA either related to the place of his
residence or place of work
whichever may be beneficial to him subject to the conditions that:

a) such an employee resides with his family as one unit at a city nearby or
in proximity to the place of duty, due to absence of basic facilities at the
work location, and
b) he has not retained his family at a station other than the place of posting
because of his transfer

4. Classification of towns/cities by the Government of India which is circulated

by Ref. Hqrs. from time to time for the purpose of payment of HRA , as the
case may be, shall be adopted and HRA paid at the IOC’s rate applicable to
employees.

5. HRA at the above rates shall be paid to all employees other than
those provided with company owned/leased accommodation without requiring
them to produce rent receipts.

6. Where an employee resides with either spouse/parent/ child/relative who is

employed in IOC and who has been allowed company-leased or self-leased
accommodation, the additional HRA (as per the respective entitlement of the
employee) would be payable to the employee other than the one in whose
name the accommodation is occupied, only where the rent paid or assessed
value exceeds the entitled lease amount/parent/child/relative to the extent of
the shortfall.

W.e.f. 01.04.11, if an employee and his/her spouse are both employed in IOC
and posted at the same location, HRA at applicable rate would be payable to
them in the individual capacity. In case rent receipt is submitted and the rental
 paid exceeds the HRA entitlement of the employee, the spouse would be
allowed to draw HRA at the applicable rate to the extent of shortfall in the
amount under rent receipt and HRA entitlement of the employees (Ref.
CR/Admn/12/2011 dt. 12.07.2011)

HRA being received by spouse of an employee employed in any organization

whether in Govt./ Public/ Private sector may not be taken into cognizance
while regulating the payment of rent of the officer towards self leased/self
owned accommodation.

7. An officer, who has been allowed to keep his family at a station other than the
place of his posting subject to meeting the prescribed conditions, can draw
HRA or avail leased accommodation for residence of his family at that station.
In case he opts for HRA, the same is admissible at the applicable rate as per
the classification of the city where the family is residing. The officer can avail
transit accommodation for self, if available, at the place of posting.

8. If a bachelor officer declares his parents as dependent on him, the parents

have necessarily to reside with him at the station of his posting to meet the
condition of dependency. He may, therefore, avail company owned, leased
accommodation or HRA at the station of his posting as per rules. In case of
bachelor officer availing Transit Accommodation, the facility of leased
accommodation or HRA will not be available for parents.

HRA to employees staying in villages

Employees staying in villages situated within a radius of 8 km from the

periphery of municipal limits of a city are entitled to HRA at the rates
admissible and paid in that city provided there is no other municipal/sub-urban
area within the 8 km limit and the place of residence is dependent upon the
municipal city for its essential supplies (like foodgrains, milk, vegetables, fuel
etc.)

HRA to employees posted in Assam& other North-Eastern States

An employee posted in Assam and other North-Eastern States, who has been
permitted to maintain his family as a separate establishment at a place outside
these States, may claim HRA applicable to such station. The employee
himself will be provided with single occupancy accommodation.

Stoppage of payment of HRA

Payment of HRA shall be automatically stopped for :

i) having been provided with the company-owned/leased

accommodation; or

ii) having declined to accept the company-owned/leased accommodation;

or
 iii) any stipulated contingency on the occurrence of which an employee
would normally lose his title to the HRA.

Conditions for drawl of HRA

An employee shall not be entitled to HRA if :

ii) He/she resides in accommodation allotted to his/her spouse or

parents/son/daughter by the IOC

iii) He/she shares accommodation with an employee of the Corporation

in a Refinery Township.

Special Allowance

Non-officer employees observing 48 hours per week duty schedule are paid

Special Allowance @10% of their basic pay.

Special Allowance will count for computation of provident fund, productivity

linked incentive, productivity incentive scheme and overtime but not for any
other purpose (except those specified separately in sub-clauses and below).

While Special Allowance will not form part of emoluments for payment of
gratuity, it will count as a component of wage/salary for the purpose of
payment of retrenchment/rehabilitation compensation allowance.

Special Allowance is payable for periods of leave with pay, but not for periods
of unauthorised absence or for periods of extraordinary leave without pay.

Special Allowance would be regulated on pro-rata basis w.e.f. 01.04.2011 on transfer of

non-officers between 48 hours work week schedule and 36.25 work week
schedule.

(Ref. P/P/279 CR No.05/2011 dated 18.02.2011)

Non-Practising Allowance

NPA at the rate of 25% of Basic Pay is payable to Company’s

Medical officers in lieu of private practice w.e.f. 01st October 2011.

NPA will not be considered as pay for the purpose of calculating any
benefits/allowances including retiral benefits.
 [Ref. P/P/13(CR No.35/11) dt. 15.12.11]

Rotating Duty Compensation

Payment of Rotating duty compensation to employees working in rotating

shifts is presently admissible at the following rates :

Category Grades Rate per shift(Rs.)

Mor/Eve Night

Officers A&B 130.00 200.00

C & above 155.00 225.00

Workmen All Grades 100.00 155.00

[Ref. CR No.04/08 dt.04/02/08 ,CR No.40/08 dt.07/08/08 & Ref. P/IR/49(09)

dt. 12.09.2013]

Payment of Rotating duty compensation is subject to the following conditions :

i) Employees working only in one shift without rotating in other shifts are
not entitled to any Rotating duty compensation

ii) Employees on overtime shift are to be paid Rotating duty

compensation separately for that shift;

iii) The general shift employees, when required to work on another shift in
a week, are entitled to Rotating duty compensation for the days of the
week when they work on other shift;

v) Shift employees when put on general shift duty are not entitled to
Rotating duty compensation for the days worked in general shift.

vi) Payment of Rotating duty compensation is admissible provided the

employee has worked for full shift of 8 hours duration, i.e., no Rotating
duty compensation is payable for less than 8 hours shift duty (Ref. CR
No.25/2011 dt. 19.07.11)
 Washing Allowance / Washing Charge

Employees will be paid Washing Allowance / Washing Charge as per the

following rates per month:

Category Provided with Others(Rs.)

Uniform/ Protective
clothing(Rs.)

Workman 150 60

Officer 200 85

Note : (Contribution of specified amount of Washing Allowance towards

Superannuation Benefit Fund discontinued w.e.f. April 2011 -
Ref. CR No.14/2011 dt. 18.04.11)

a) Washing Allowance will be paid at full rate during CL.

b) Washing Allowance will also be paid during periods of EL or SL when the

leave period at a stretch
does not exceed 30 days whereafter pro-rata deductions will be made.

c) Washing Allowance will not be payable during extraordinary leave without pay,
maternity leave, study
leave (without pay), special sick leave, etc.

TEA ALLOWANCE

The rates of Tea allowance (w.e.f. 01.10.2005) are as under :

Locations Officers Workmen

At locations where Rs.40/-p.m. Rs.40/-p.m.

subsidised canteen
facilities exist.

At locations where Rs.400/-p.m. Rs.370/- p.m.

subsidised canteen
facilities do not exist.
[Ref. CR No.04/08 dt.04/02/08 and CR No.40/08 dt.07/08/08]

Note : (Contribution of specified amount of Tea Allowance towards

Superannuation Benefit Fund discontinued w.e.f. April 2011 - Ref. CR
No.14/2011 dt. 18.04.11)

Tanker Unloading/ loading charge

Tanker unloading/loading charges @ Rs.1000/- for every block of 12 hours’

continuous duty will be admissible to officers attending tanker discharge on
board at jetty end subject to the following conditions :

i) A fraction over a block of 12 hours will be ignored;

ii) The allowance will not be admissible to officers attending receipt of

crude oil at the tank farm at the Refinery end.

iii) Officers attending tanker discharge at a place falling in city/town area,

though it may be beyond 8 km from headquarters, will be entitled to
Tanker (Duty) Allowance (and Refreshment Allowance), if otherwise
admissible. They will not be entitled to DA under TA Rules;

iv) Officers attending tanker discharge at a station other than their

headquarters will be eligible for TA/DA as admissible under the TA
Rules. They will be entitled to Tanker (Duty) Allowance, in addition, if
otherwise admissible, but not Refreshment Allowance.

Refreshment Allowance is payable to officers whose normal working hours are

48 in a week, attending tanker discharge at jetty end, working at the refinery
units when called upon to attend duty continuously for 12 hrs or more.

Payment of Tanker Unloading and Loading charges and Refreshment

Allowance to Officers in Grades ‘A’ to ‘D’ will be approved by the Departmental
Heads or controlling officers. Officers in Grade ‘E’ and above will be self-
controlling officers for the purpose. The allowance should be claimed in the
prescribed form.

Conveyance Allowance to Blind and Orthopaedically Handicapped

Employees

Regular employees of the Corporation who are orthopaedically handicapped

with the minimum prescribed disability and who generally require physical
 assistance for going to and coming from the place of their duty or regular
employees who are blind may be granted conveyance allowance. The Blind&
Orthopaedically handicapped employees shall be entitled to conveyance
allowance at double the normal rate of Transport Assistance/Subsidy,
otherwise admissible to the employees of comparable category.

Conveyance Allowance will be payable from the date the disability is certified by the
competent Medical Officer provided the application is made within a period of one month
of
issue of disability certificate.

In case of belated claims, the benefits should be authorised from the date of application
only.

Eligibility

a) An orthopaedically handicapped employee will be eligible for

conveyance allowance if he has a minimum 40% permanent/partial
disability of either upper or lower limbs or 50% permanent/partial
disability of both the upper and lower limbs together as certified by the
Head of Orthopaedics Department of a Govt. Civil Hospital (CMO in
the case of refineries). For the purpose of estimation of disability, the
standards as contained in the “Manual for Orthopaedic Surgeon in
Evaluating Permanent Physical Impairment” brought out by the
American Academy of Orthopaedic Surgeons, U.S.A. and published in
their behalf by Artificial Limbs Manufacturing Corporation of India, G.T.
Road, Kanpur, shall apply.

b) In the case of blind employees, the allowance will be admissible on the

recommendation of the Head of Opthalmological Department of a
Govt. Civil Hospital (CMO in the case of refineries). He should have
vision less than 3/60 or field vision less than 10 in both eyes.

c) The allowance will not be admissible during leave (except casual

leave) if the duration of absence on leave is 15 days or more or
absence without leave or leave without pay. It will be admissible
during period of suspension only for the days the employee has to
report or participate in enquiry proceedings.

d) The allowance will not be admissible in addition to any other

conveyance allowance (or similar benefit) generally admissible to
employees. The allowance will also not be admissible if conveyance is
provided to the employees.

Outfit Allowance
 Employees deputed abroad for training or otherwise to European and other
countries having cold climates for periods of about 6 months or more may be
granted in advance a lumpsum grant of Rs.1000 as Outfit Allowance to enable
them to equip themselves with adequate clothing.

No distinction is made between different grades of employees in the matter of

payment of Outfit Allowance.

Outfit Allowance is not payable to officers deputed abroad for less than 6
months.

The recipients of Outfit Allowance need not account for the amount spent by
them on the purchase of outfit etc.

SPECIAL COMPENSATORY ALLOWANCE(SCA):

(Ref. CR No.03/2011 dt. 08.02.2011)
Special Compensatory Allowance(SCA) is admissible to employees, who are
serving in difficult and far flung areas, listed under DOE's OM dated 29.8.08,
effective from 26.11.08 as per the following rates:
a) Locations appearing in Part A of above-referred OM : 10% of BP
b) Locations appearing in Part B of above-referred OM : 8% of BP
c) Locations appearing in Part C of above-referred OM : 6% of BP
d) Locations appearing in Part D of above-referred OM : 4% of BP

With the introduction of SCA at new rates, existing compensatory/hardship

allowances as applicable at our locations shall be dispensed w.e.f. 26.11.08
like Special Compensatory (Remote Locality Allowance) payable in North East
locations, Dimapur/Imphal Allowance, Additional Compensatory Allowance at
identified locations in Arunachal Pradesh, Mizoram and Manipur. In case the
SCA payable as per the DPE guidelines on revised pay is less than the frozen
amount of compensatory/hardhip allowances being presently drawn by an
employee, the said frozen amount shall be protected till such time the revised
SCA rate becomes beneficial to the employee. This protection shall however
be given only to the employee in position as on 25.11.08.

PROFESSIONAL UPDATION ALLOWANCE (inclusive of NEWSPAPERS/ PERIODICALS/

MAGAZINES ALLOWANCE): [Ref.CR No.04/08 dated 04.02.2008]

W.e.f. 01.01.2007, 'Professional Updation Allowance' and

'Newspapers/Periodicals/magazines Allowance' stand merged and it is paid to
officers as under:

Grades Amount per

month(Rs.)
A 1000
 B 1100

C 1200

D 1600

E 1800

F 2000

G 2200

H 2400

I 2500

The above allowance will not be available during period of Suspension/

ELWP/unauthorised absence.

(a) NEWSPAPER/PERIODICALS/MAGAZINE ALLOWANCE FOR WORKMEN

Grades Amount per

month(Rs.)
I to III 95

IV & V 135

VI to VIII 185

RATIONALISATION ADJUSTMENT ALLOWANCE:

The Rationalisation Adjustment Allowance is paid to Officers (upto Grade ‘F’)

at the following rates:

Period of service in regular scale Amount per month(Rs.)

Less than 5 years 85/-

5 years & more but less than 12 110/-

years

12 years & more but less than 125/-

19 years

19 years & more 140/-

 The allowance will, however, cease to be admissible from the date an officer is
promoted to a level higher than that of Grade ‘F’. All new entrants in officers'
cadre (including promotee officers from the ranks of non-officers) would also
be eligible to receive the allowance on the basis of their total service in the
Corporation.

As and when an officer progresses in terms of the length of his service to

higher, slab(s), he will be entitled to the rates related to that respective slab.

Persons on deputation joining from State/Central Government shall not be

eligible to receive the above allowance, irrespective of whether they have
opted for their parent department pay-scale or IOC pay-scale.

Officers assigned to PCRA/OISD/CHT/PII shall also be entitled to the above

allowance if otherwise, eligible. The amount paid to such officers will be
debited to the concerned organisation for the covered period of their posting
with the organisation. Officers on deputation to other PSUs retaining lien with
the Corporation as on 1.4.89 (or a subsequent date) are entitled to receive the
benefit from such date.

The amount of Rationalisation Adjustment will not be treated as “pay” for

claiming other salary-related allowances/perks and consequential benefits
such as HRA, PF, Gratuity, Special Allowance, TA/DA, Medical Benefits,
Productivity-Linked Bonus, Profit-sharing Bonus, superannuation benefit, etc.,
and any other such perquisites/benefits which are not listed here.

RATIONALISATION CUM SKILL UPDATION EXPENSES TO NON-

OFFICERS (w.e.f. 01.01.07)
[Ref. CR No.40/2008 dt. 07.08.2008]
Amount per month
Period of service in regular scale (Rs.)

Upto 5 years 500

Above 5 years & Upto 10 years 565

Above 10 years & Upto 15 years 675

Above 15 years & Upto 25 years 780

Above 25 years 820

 The above will not be available during period of suspension/ ELWP/unauthorised absence.
Upon moving the next slab of completed year of service, the non-officer will be entitled to
the
corresponding higher rate of the benefit.

The Rationalisation Adjustment cum Skill Updation Expenses would cease to

be payable to non-officer on promotion/appointment to Grade A scale of pay in
officer category.

SPECIAL COMPUTER ALLOWANCE TO NON-OFFICERS

Equivalent to 8% to 10% of Basic pay to the workmen for operating ERP and
related systems as under:

Grades Rate per month

I, II and III 8% of Basic Pay

IV and V 9% of Basic Pay

VI, VII and VIII 10% of Basic Pay

Upon movement from one cluster to the other, the above allowance would be
admissible at corresponding higher rate. The allowance would cease to be
payable to non-officer on promotion/appointment to Grade A scale of pay in
officer category. The above allowance is not to be treated as wages and will
not be reckoned for any consequential benefits/payments.

COMPENSATORY HILL CUM WINTER ALLOWANCE

This allowance is admissible to the employees posted to locations which are

at an altitude of 1500 meters or above for a period of six months from October
to March every year at the flat rate of Rs.400 p.m. to officers and Rs.500 p.m.
for non-officers.

Project Allowance

Project Allowance will be paid @10% of Basic Pay to eligible employees in the
regular scale of pay posted at the site of a grass root project of the
Corporation which will be admissible for the duration of the project
 commencing from the date of approval of the project by the Board till
completion by way of commercial production (mother unit commissioning or
unit itself). Project Allowance is admissible for grass root project which are
independent and not linked to the existing operating units/establishment. It is
also not applicable to expansion project, new units/revamping of existing
units/facilities, in the operating units within same premises.

The project allowance will be payable to an employee from the date of

approval of project or the date of joining at the site whichever is later and will
cease to be payable on transfer or cessation from service from project site
before completion of project. Notification will be issued by HQ regarding
commencement and completion of project.

INTERNET CHARGES FOR WORKMEN:

Payment of internet charges is admissible to workmen w.e.f. 01.08.2008 at

the following rates:

Grades Rate per month

100
I, II and III

125
IV and V

150
VI, VII and VIII

REGULATION OF PAY, ALLOWANCES ETC. DURING THE PERIOD OF

SUSPENSION

Suspension pending enquiry

S.No. Allowance/benefit Admissibility

Service related allowances

1. Basic pay As per Rule 27 of CDA Rules*/Standing Orders.

2. Dearness Allowance
3 House Rent Allowance
4 Company owned/leased
accommodation including
self-lease
5 CCA
6 Medical claims including
spectacles
7 North East Allowance
8 Remote locality allowance
9 NPA
10 Patrolling Allowance
11 Deputation Allowance
12 Provident Fund
Duty related Allowances:
a) Conveyance maintenance
reimbursement/Transport
subsidy/Conveyance
Allowance to Physically
Handicapped:
As per Rule 27 of CDA Rules*/Standing Orders.
Since HRA is related to basic pay, the same
should be related to reduced Basic Pay. However,
where receipt of rent has been submitted in
support of renting the accommodation, HRA to the
extent of rental paid (subject to maximum
entitlement as per rules) shall be admissible.
May be continued
Stands dispensed with w.e.f. 26.11.08.
The same are admissible during the period of
suspension.
As per Rule 27 of CDA Rules*/#.
As per Rule 27 of CDA Rules*/#
May be paid.
No
Related to reduced pay
As per extant rules on the subject.
As per the guidelines issued on the subject. Also
payable for the days if the employee under
suspension is asked to mark attendance/attend to
disciplinary proceedings
b) Professional updation No
allowance

c) Tea allowance No

d) Shift allowance / Rotating No

duty compensation

e) Duty allowance No

f) Special Allowance No

g) Washing Allowance / Washing No

charge

h) Rationalisation Adjustment No
cum Skill updation Allowance
for workmen/ Rationalisation
Adjustment Allowance for
Officers

i) ERP Allowance No

j) Uniform Not to be issued during this period.

k) Long Service Award As per the guidelines issued on the subject

l) Cash Handling allowance No

m) SCO to Officer(s) Not admissible during suspension period.

n) Reimbursement of lunch No
expenses

Other benefits
a) Children Education May be paid
allowance, hostel subsidy

b) Furniture maintenance May be paid

c) Ex-gratia, PLIB & PLI Ex-gratia/Bonus to be calculated on the basis of

subsistence allowance paid to him during the
period of suspension.

d) SABF Period of suspension pending enquiry or as a

measure of punishment is included for the
purpose of reckonable service.

e) Leave Travel Concession Suspended employee will not be eligible for LTC
as he/she cannot enjoy leave during the period of
suspension. However, family can avail LTC. He
can however encash it for self.

f) Leave He will not be entitled for any leave either on

medical grounds or otherwise during the period of
suspension. If the employee falls sick, he need
not come to office for recording his attendance
everyday, but should intimate to the concerned
Officer.

g) Leave encashment Yes, as per rules.

h) Housing Loan No

i) Vehicle loan No

j) News paper No

k) Incentive for acquiring higher No

qualification

l) Calculator/briefcase No
* Applicable to Officers and Non-officers (not covered by Standing Orders)
# Non-Officers : Full upto 4 months. To be reviewed thereafter to decided whether or not to give
depending upon the merits of each case(Either the allowance will be payable in full or not at all)

10.3.1.2 Deductions/recoveries from subsistence allowance

i) Contributions towards PF are recoverable from subsistence allowance

paid to an employee under
suspension.

ii) Recoveries towards PF loan, house rent and water and electricity
charges are to be made from subsistence allowance. Recovery of
house rent towards Corporation’s accommodation/quarter allotted to
an employee will be on full pay otherwise admissible to him and not
only on subsistence allowance.

iii) Contribution under Group Savings Linked

Insurance.

iv) Full contribution under SBF Scheme.

v) Refund of HBA, conveyance advance etc., if any.

vi) Amount required to be paid to LIC in respect of HBA under Mortgage

Redemption Scheme.

vii) Employees required to pay transport charges at the units (@Rs.5 per
month) will continue to pay the same during suspension (pending
enquiry) period exceeding 15 days.

REGULATION OF PAY, ALLOWANCES ETC. DURING THE PERIOD OF

DEPUTATION

Pay fixation

a) Pay fixation on deputation to top posts and non-scheduled

postsin PSUs

The pay of the Central Government employees deputed to top posts

and to non-scheduled posts carrying pay scales identical to those
applicable to the top posts in the public sector undertakings is to be
regulated under the provisions of Ministry of Finance (Department of
Expenditure)’s OM No.F.1(4).E.III(B)/65 dated 10.3.1966 (read with
DPAR’s OM No.F.1(3)/Estt.(P.II)/80 dated 27.7.1981), as amended
from time to time. These deputationists will be entitled to all
 allowances and concessions as are admissible to the employees of
corresponding status in public sector undertakings.

Note: The Government has classified the top posts in the public
sector undertakings into Schedule A,B,C and D posts carrying
the following scales of pay.

Schedule A - Rs.27750-750-31500

Schedule B - Rs.25750-650-30950

Schedule C - Rs.22500-600-27300

Schedule D - Rs.20500-500-25000

The above scales of pay of the incumbents of top posts are

applicable to those executives whose appointments are made
by the Government at the board level. These orders are not
applicable to the executives whose appointments are below
the board level under the powers vested in the Board of
Directors even if they carry similar scales of pay and
allowances.

b) Pay fixation on deputation on foreign service basis in PSUs

When a Central Government employee is deputed to a post in a public

sector undertaking where the industrial DA rates are being granted, he
may be allowed an option either :

- to draw the grade pay plus deputation(duty) allowance @ (i)

5% of BP subject to a ceiling of Rs.500 for transfer within the
same station and (ii) 10% of BP subject to a ceiling of
Rs.1000 in other cases; or

- to draw pay in the scale of pay attached to the post in PSU.

Where the employee opts to draw pay in the time scale of the post in
the PSU, his pay may be fixed in the pay scale of the post at the stage
next above the amount arrived at by adding to his grade pay one
increment in the scale of his cadre post in the Government (and if he
was drawing pay at the maximum of the scale by the increment last
drawn) and appropriate dearness allowance, additional dearness
 allowance, adhoc dearness allowance and interim relief on such pay
as admissible to the Government employee on the date of his
deputation to the PSU, reduced by the industrial rates of dearness
allowance, additional dearness allowance and interim relief, if any,
applicable to the post in the undertaking. The pay so fixed should not,
however, be less than the minimum of the pay scale of the post and
also should not exceed the maximum of the pay scale of the post to
which the Government employee is deputed. The option once
exercised shall be final except in the following cases when a
fresh option will be allowed :

i) On proforma promotion in the Parent Office under the next

below rule; or

ii) On reversion to lower grade in the Parent Office; or

iii) On appointment to another grade in the undertaking; or

iv) On revision of pay scale of the deputation post or of the post

held in Parent Office (DPT’s OM 6/30/86-ESTT-P2
dt.09/02/1986)

c) Pay fixation on reverse of foreign service in Central Government

The pay of an employee of public sector undertaking who is in receipt

of industrial rates of DA and who is appointed on deputation under the
Central Government will have an option to draw either :

i) pay in the scale of the post held by him on reverse foreign

service under the Central Government; or

ii) his grade pay in the public sector undertaking plus deputation
(duty) allowance as per rules.

Where the employee has opted for the alternative at (i) above, his
initial pay will be fixed by raising his grade pay in the public sector
undertaking by one increment in his pay scale and equating the pay
so raised plus appropriate dearness allowance, additional dearness
allowance and interim relief, if any, admissible in the public sector
undertaking, to the pay plus dearness allowance, additional dearness
allowance, adhoc dearness allowance and interim relief, if any,
admissible under the Government, and fixing the pay at the
appropriate stage in the pay scale of the post in the Govt. If there is
no stage equal to that pay in the pay scale of the post under the
 Government, his pay will be fixed at the next stage in the scale. The
pay so fixed will, however, be restricted to the maximum of the pay
scale under the Government.

Entitlement for IOC employees on deputation to PPAC, PCRA, CHT and

OISD

a) Pay and Allowance

Employees on deputation will continue to draw pay in the IOC scale of

pay plus allowances as were being drawn by him/her. They will also
get benefits as applicable to the employees of equivalent status and
grade in the Corporation from time to time.

Further they will also be entitled to all such additional benefits which
may be granted to IOC employees of their grade and status during the
period of deputation including revision of pay scales, enhancement in
allowances/perquisites. They will also be given consideration for
promotional opportunities during the period of deputation.

b) Deputation (duty) allowance to employees deputed to Govt.

Deptt/Agencies like PPAC, PCRA, OISD, etc.

IOC employees deputed to organisations like PPAC, PCRA, OISD etc.

will be entitled to deputation (duty) allowance @10% of the BP.

c) Recovery of expenses incurred on employees deputed to OCC,

PCRA, CHT and OISD.

The following expenses incurred by IOC will be debited to the

concerned organisation:

– Cost of salaries including cost of leave salary, employer's PF and

Gratuity contribution, ex-gratia/bonus payment.

– Reimbursement of various allowances such as HRA,

Rationalisation Adjustment Allowance, Tea, Washing, Children
Education Allowance, Deputation Allowance, Conveyance
Reimbursement, Medical, Rent on Self Lease/Maintenance on
Self Lease Accommodation, Uniform Expenses, Furniture
Maintenance Expenses, etc.
 – Reimbursement of notional rent of houses where employees are
staying in Company's accommodation. This should be equivalent
to the entitlement of self-leased rent and maintenance expenses
as per his entitlement.

– Reimbursement of residential telephone expenses.

– Reimbursement of LTC

– Transfer Benefits

– Loans subsidy equivalent to differential between the interest

@15% on the outstanding loan amount and the interest charged
by the company will also be debited to the organisations where
employees are on deputation.

– Any other expenses incurred.

In addition, wherever applicable, the following expenses incurred by

IOC will also be debited to the concerned organizations:

– Rent for the office premises.

– Electricity/maintenance expenses of the office premises.

– Cost of furniture and fixture provided by IOC.

– Cost of interior decoration carried out by IOC, if any.

– Any specific expenses incurred by IOC.

Regulation of allowances and other facilities during period of deputation

in IOC.

Dearness Allowance

In case the deputationist exercises an option to draw pay in the time scale of
the deputation post, he will be entitled to DA under the rules of the
Corporation. In other cases, he will be entitled to DA in accordance with the
rules of Parent Office as applicable from time to time.

As regards CCA, HRA and other local allowances, the same shall be regulated
as admissible to employees of similar rank in the Corporation.
Increments

The deputationist will draw increment in his parent grade or in the grade
attached to the deputation post, as the case may be, depending on whether
he has opted for his own grade pay plus deputation (duty) allowance or the
time scale of the deputation post.

Joining Time & Transfer benefits

The deputationist will be entitled to joining time and transfer benefits both on
joining the post on deputation and on reversion therefrom to the Parent Office
under the rules of the Corporation. The expenditure on this account will be
borne by the Corporation.

TA/DA

The deputationist will be governed by the TA rules of the Corporation for

journey on duty during the period of his deputation.

Leave and working hours

During the period of deputation, the deputationist shall continue to be

governed by the leave rules of the Parent Office applicable to him before such
transfer. He will, however, be governed by the Corporation’s rules in respect of
casual leave, holidays (including restricted holidays) and working hours.

The Corporation shall pay leave salary contribution to the Parent Office at the
rates specified by them. Since leave salary contributions are payable to the
Parent Office, the liability towards leave or its encashment shall rest with the
Parent Office.

Reimbursement of local travelling expenses

This will be regulated as per rules of the Corporation.

The deputationist shall continue to be entitled to LTC under the rules of Parent
Office and the cost thereof will be borne by the Corporation. The block period
in his case shall be the same as applicable in his Parent Office.

There is no objection to encashment of LTC against the title of the

deputationist to all-India LTC. Government servants are entitled to only one
all-India LTC in a period-block of 4 years which is in lieu of the normal title
towards LTC facility for home town. It is only in alternate two-yearly blocks that
a deputationist might be entitled to all-India LTC unlike the facility admissible
to IOC employees. Accordingly, the encashment of LTC in their case would be
confined to their title for all-India LTC only.

Bonus/Ex-gratia/PLI/Productivity incentive payment

The deputationist will be entitled to ex-gratia/productivity incentive payment as

per rules of the Corporation.

Provident Fund

During the period of deputation, the deputationist will continue to subscribe to

the Provident Fund of his Parent Office in accordance with the rules of such
fund and employer’s contribution to the fund for the period of his deputation
will be borne by the Corporation. The Corporation will recover employee’s
contribution from the salary of the deputationist and remit the same alongwith
the employer’s contribution thereon, if any, to his Parent Office regularly every
month.

Gratuity

The deputationist will continue to be governed by the Gratuity Rules of his

Parent Office.

Other allowances

The deputationist irrespective of whether he opts for pay of parent department

or IOC will be eligible for following allowances:

1. Tea Allowance

2. Washing Allowance
3. Lumpsum amount in lieu of Uniform for completed calender year. Pro-
rata in other case at the end of calender year.

4. Medical Facilities

5. Conveyance Allowance/Transport Subsidy.

6. Reimbursement of Lunch/Refreshment Expenses

7. Children Education Allowance

8. Professional Updation Expenses to officers.

9. Rationalisation Adjustment to officers.

10. Rationalisation Adjustment cum Skill Updation Expenses for non-officers.

11. Housing facilities/leased accommodation/self-leased accommodation/HRA

12. Reimbursement of Newspapers/Periodicals Expenses.

13. Brief Case/Digital Diary/Electronic Organiser to officers/Calculator to Non-

officers

14. Reimbursement of expenses towards spectacles.

15. Compensation for extended hours/working on holidays.

16. Conveyance Advance, subject to guidelines/rules applicable in respect of

deputationists.

17. Reimbursement of Excursion Trip expenses wherever being extended to

regular employees.

18. Sanction of priority/LPG Connection on payment of necessary security

deposit.

19. Furniture on hire including Home Desk Top PC

20. NE Allowance.

Transfer of benefits on absorption in IOC

A deputationist may, on resignation from his Parent Office and permanent

absorption in the IOC, be allowed to avail of the following benefits :
 Provident Fund

A deputationist from Government/public sector undertaking subsequently

absorbed in the Corporation shall be entitled and required to become a
member of the provident fund of the IOC from the date of his permanent
absorption in the Corporation. He may get his GPF/CPF balances alongwith
interest thereon transferred to the Corporation, provided concerned Parent
Office also agrees to such a transfer.

Gratuity

Previous service of a deputationist in his Parent Office will be counted for

computing the minimum qualifying service for determining eligibility to gratuity
under IOC rules. Payment of gratuity by IOC will be for the period of service
rendered in IOC from the date of absorption provided that the total of gratuity
received by the deputationist from Parent Office and that payable by IOC does
not exceed the amount of maximum gratuity admissible under IOC rules.

IOC can accept the transfer of gratuity amount and make the payment to the
employee concerned when he leaves and is otherwise eligible to receive the
same. In case the gratuity amount is not ultimately paid to the employee for
any reason whatsoever, the transferred amount shall be paid back to his
Parent Office.

Family Pension

The Government will not accept any liability for family pension after permanent
absorption of its employees in public sector undertakings.

Leave Salary

A deputationist on absorption in the Corporation can carry forward EL/SL on

half pay due to him with the previous employer upto the prescribed ceilings
provided the previous employer has already credited lumpsum leave salary for
the carried forward leave to the Corporation or is committed to do so.

10.5 Posting of officers of Indian Oil Group of Companies / within Group of Companies
– Admissibility of
Payments/ Benefits / Facilities

All the employees on posting from Indian Oil to Indian Oil Group of Companies and vice-versa
shall draw their salary
and all other perquisites/reimbursements from the place where they are working as per
the provisions in the parent
company based on last pay certificate.
Payments/Benefits/Facilities that would be admissible as per rules of the Parent Company:

 Pay and allowances which are pay-related or normally admissible to all the employees,
such as Tea Allowance, Washing Allowance, Newspaper Allowance, RAA, Professional
Updation Allowance, Conveyance Reimbursement/Allowance etc.

 Earned Leave & Sick Leave and LTC facility

 Retirement benefits, like PF, Gratuity, SABF, Group Insurance, Post Retirement Medical
Facility etc.

 Loans/Advances and their recoveries and facilities like furniture/Desk-Top PC on hire or

Furniture given to or procured by senior Executives for their office at residence.

 For regulating these benefits contributions from individual’s salary and/or management’s
contribution, wherever required, shall be recovered and paid by the borrowing Company
to the parent Company.

Payments/Benefits/Facilities that would be admissible as per rules in the Borrowing

Company:

 Allowances/Benefits, which are work related or Company/location specific such as

Entertainment Allowance (for senior Executives), Shift Allowance, Officiating Allowance,
SCOs for 48 hrs. duty or any Allowance in lieu thereof, Chidren Education Allowance,
Hostel Subsidy, Lunch Reimb. Expenses, Hardship Allowances, monetary benefit for
extended hour duties etc.

 Working Hours, Holidays and Casual Leave

 TA/DA entitlements on tour

Payments/Facilities that would be admissible from parent Company or borrowing

Company as per option to be given by the officer:

 Medical facilities – since these are admissible on need basis and availed through
reimbursement of expenses or in Company’s own hospitals/Hospitals on Panel.

 Incentive payments – since incentives are based on individual’s performance, team

performance and Company’s performance

 Transfer benefits

. The payments/reimbursements/expenses related to the posting of the officers under the above
guidelines shall be borne by the borrowing company as under the existing guidelines.
 ACCOUNTING OF EMPLOYEE RELATED TRANSACTIONS

PART – A (PAYROLL)

1 GENERAL OUTLINE FOR PAY ROLL FUNCTION

1.1 In a company, payroll function in finance means, keeping the records for the payment
and deductions related to employees, processing of employee's claim, salaries and wages
including bonus and arrear. From accounting perspective, payroll is crucial because payroll
and employee related taxes are quite complex in nature and also subject to statutory laws and
regulations. The primary objective of the payroll section is to ensure timely and accurate
payment after withholdings & deductions, settlement of withholdings and deductions and
accounting and compliances of statutory requirement.

9.1.2 In the corporation, the major part of salary functions is being executed on SAP Payroll
& ESS

(Employee Self Service) platform which is maintained by both HR & Finance. The major

function of payroll can be grouped under following areas namely:

1. Monthly Processing of Salary

2. Off-cycle Payments

3. Bonus Payment

4. Arrear Payment

5. Accounting and payment of deputation In/Out employees

6. Final Settlement for separated employees

7. Payment of Statutory & Other Liabilities

8. Closing related activities- Quarterly & Annual

9. Preparation of MIS

10. Filing of Statutory Returns

9.2 EMPLOYEE SELF SERVICE PORTAL (ESS PORTAL)

Employee self-service (ESS) is a web-based application that allows employees to access their

personal information available in corporation's records, their payroll details and allow them to

submit various claims and declaration. The information and claims in ESS gets updated in
SAP
employee master after due approvals at competent level and claims if any will be paid off in

monthly salary processing or off-cycle payments depending upon the nature of the claim.

Currently ESS allows employees to apply for the following claims:

1) Children Education Allowance

2) Hostel subsidy

3) Conveyance maintenance

4) Toll Tax

5) Professional Membership Fees

6) Telephone Reimbursement

7) Medical Reimbursement

8) Leave Fare Assistance (LFA)

9) Award to meritorious children

10) Conveyance maintenance

11) Conveyance declaration

12) Leave Request (Sick Leave, Earned Leave, Casual Leave & Restricted Holiday)

13) Furniture/ PC/ Mobile Claim

14) Furniture/ PC Maintenance claim

15) Income Tax declarations

INFOTYPE/ WAGE TYPE/ GL CODES

9.3.1 In SAP Payroll package, master information of employees is being maintained in

various Info

Types and Wage Types. Info Types identify the broad category within which the employee
master

data is maintained e.g. Info Type 9 denotes 'Bank Details'; Info Type 14 denotes 'Recurring

payments/ deductions'. Wage Type on the other hand indicated the different heads within the

respective Info Type e.g. within IT 14 the Wage Types are 'Children Education Allowance,

Electricity charges etc. Wage types are mapped with general ledger (GL) codes. One Wage
type

cannot be mapped with more than one GL code, however multiple wage types can be
mapped

with single GL code. Payment and deductions are maintained in these wage types and
accordingly

payment/ deductions are being made through salary or off-cycle run. Accounting entries are

automatically posted through SAP depending on the mapped GL codes in the respective
company

codes. The list of GL codes with assigned wage types can be seen using SAP T-Code

PC00_M99_CWTR

Payroll Area Description Company Code Go Live Date

R1 RHQ 9000, 0015, 9070 01.10.2012

R2 MR 9050 01.06.2011

R3 HR 9040 01.09.2011

R4 PR 9060 01.09.2012

R5 BR 9020 01.06.2012

R6 GR 9010 01.07.2012

R7 JR 9030 01.08.2012

R8 AOD 9500, 9600, 9610 01.04.2012

R9 BGR 9800 01.04.2012

MONTHLY PROCESSING OF SALARY

9.5.1 Monthly Salary processing is being processed at CPC (Centralized Payroll

Processing) however

data maintenance is still with respective unit/ location. Following activities are included in

monthly payroll processing and is indicated sequentially:

1) Maintenance of all payroll data in SAP by respective unit’s HR/Payroll Section

2) Uploading of payments & deductions by payroll section which are not currently
maintained

in the system such as exigencies claim, medical recoveries, overtime payment, honorarium

payments, transport recoveries etc.

3) Payroll Simulation run by CPC

4) Cross verify the number of employees as per HR Headcount with the list of employees
for

whom payroll is being processed for the month

5) Maintenance of bank details in SAP

6) Info type update run by Units/Divisions

7) Payroll Live run by CPC

8) First Posting Simulation

9) Bank details changed by Units/Divisions to be updated by CPC on SBI site

10) Processing of Full & Final settlements (For superannuated/separated employees)

11) Ensuring error free simulation run

12) Final Payroll Live run by CPC

13) Final Posting Simulation run by CPC

14) Ensuring error free Posting simulation run

15) Payroll posting by CPC

16) IDOC run by CPC for scheduling payments

The salary payment gets credited through bank transfer as per the bank details maintained
in the

system.
 Pay and Allowance
PAY

Scales of Pay

The current approved scales of pay and the corresponding grades for officers
and non-officers in the Refineries Division are given below :

OFFICERS

GRADE SCALE OF PAY

I Rs.150000-300000

H Rs.120000-280000

G Rs.120000-280000

F Rs.120000-280000

E Rs.100000-260000

D Rs.80000-220000

C Rs.70000-200000

B Rs.60000-180000

A Rs.50000-160000

Non-Officers

GRADE SCALE OF PAY

IX Rs. 20000 – 49200

 VIII Rs.16000 – 43700

VII Rs.14800 – 40500

VI Rs.13800 – 38500

V Rs.12800 – 35000

IV Rs.11900 – 32000

III Rs.10800 – 29000

II Rs.10600 – 26500

I Rs.10500 – 24500

Pay Fixation

Pay fixation on initial appointment

a) The Board of Directors may fix the initial pay at any stage of the
sanctioned time-scale higher than the minimum, on the advice of
appropriate selection committee, with regard to appointments the
Board is competent to make. In this context, sanction of the Board is
necessary in respect of appointments in Grade ‘H’ and above.

b) Chairman/D(R) is competent to fix the initial pay at any stage of the

sanctioned time-scale higher than the minimum, on the advice of
appropriate selection committee, with regard to appointments he is
competent to make. In this context, sanction of the Chairman is
necessary in respect of appointments in Grades ‘E’ to ‘G’.

c) ED/GM (Unit Head) is competent to fix the initial pay of a selected

candidate at any stage, not exceeding five increments of the
sanctioned time scale, higher than the minimum on the advice of the
appropriate selection committee in approved scales of pay upto and
include grade vii

d) All other officers delegated the power to appoint against sanctioned

posts can do so in accordance with the rules laid in this regard only at
the minimum of the prescribed scales.

Pay fixation on promotion

For-Officers

 One notional increment equal to the increment being drawn by an

officer in the pay scale (i.e. @ 3% of Basic Pay), before such
promotion would be granted and pay fixed in the promoted pay scale.
Pay, after grant of promotional increment, will be rounded off to the
next multiple of rupees ten.

 If due to grant of Promotional Increment, the Basic Pay exceeds the

maximum of the promoted scale, the amount of Promotional
Increment shall be so reduced that the Basic Pay plus Promotional
Increment does not exceed maximum of the relevant scale.

For Non-Officers

 The promotional increment due in respect of promotions of workmen

after 01.01.2007(01.07.2007 in the case of BGR and 01.04.2007 in
case of IBP) shall be drawn @ 3% of Basic Pay. One notional
increment equal to the increment being drawn by the workman in the
pay scale, i.e., @ 3% of Basic Pay, before such promotion would be
granted and pay fixed in the promoted Pay Scale. Pay, after grant of
promotion increment, will be rounded off to the next multiple of rupees
ten. The rate of increment applicable on promotion would also apply
for fixation in Special Grade on account of stagnation.

 If due to grant of Promotional Increment, the Basic Pay exceeds the

maximum of the promoted scale, the amount of Promotional
Increment shall be so reduced that the Basic Pay plus Promotional
Increment does not exceed maximum of the relevant scale

 Treatment of Personal Pay, Additional Personal Pay ( Non Officer

)Personal Pay, Additional Personal Pay to non-officers in Grade
VIII

As per the provisions of the Cluster Based Promotion Policy, employees in

Grade VIII who do not get promotion to officer Grade A upon completing 6
years are entitled to one increment at the rate of last increment drawn as
personal pay. Thereafter upon completion of another 4 years (from the date
of grant of personal pay) in Grade VIII, such non-officers who have minimum
two ‘Outstanding’ CR ratings in Grade VIII in the preceding 4 years will be
entitled to Additional personal pay at the rate of last increment drawn. This
benefit is to be treated as Basic Pay for all purposes and is admissible till the
employee is promoted to Grade A.
 General

On each occasion of revision of pay scales for a category of employees,

arising out of a settlement or otherwise, the pay fixation need not necessarily
conform to the rule normally applicable, and may be governed by varying and
adhoc sets of principles as may be spelt out specifically for each such
occasion. .

Adhoc principles adopted on a particular occasion may cease to be of

relevance once a particular or mass revision of pay scales is effected.

Thereafter, promotions or officiating appointments will again be governed by

the normal rules of pay fixation.

Annual Increments

Condition for grant of annual increment

An employee will continue to get his annual increment on the due date so long
as there is no adverse report regarding his conduct and work from his
Departmental Head, unless withheld by a specific order in writing to that effect.
In a case where increment has to be stopped/postponed for reasons of
unsatisfactory work or conduct, the concerned Departmental Head is required
to inform the Personnel and Finance Departments two months in advance so
that necessary action to stop or postpone the increment is taken in time.

Service counting for annual increment

The following shall count for annual increment :

i) Continuous duty in a post on a time scale;

ii) All leave other than unauthorized absence exceeding 60 days or

extraordinary leave without pay exceeding 180 days in a year, whether
at a stretch or in two or more spells; and

iii) Period of officiating service (in case of employees drawing officiating

pay in the scale of pay attached to the higher post) followed without
interruption by appointment on regular promotion to the higher post.
(The said officiating appointment should first be terminated before
promotion).

Regulation of annual increments

 A) 1st January will be the common date of annual increment for all eligible
employees. Newly appointed employees will be eligible for annual increment
on 1st Jan., provided they have completed not less than six months of service
as on preceding 31st December. In case of every fresh appointment and
promotion the date of annual increment must be indicated in the Office Order.

B) Rate of Annual Increment :

i) For Officers

Anual increment in the revised pay scale will be 3% of revised Basic Pay and
will be rounded off to next multiple of Rs.10/-.

ii) For Non - Officers

Annual increment in the revised pay scale will be 3% of revised Basic Pay and
will be rounded off to next multiple of Rs.10/-.

If due to grant of Annual Increment, the Basic Pay exceeds the maximum of
the scale, the amount of Annual Increment shall be so reduced that the Basic
Pay pus increment does not exceed maximum of the relevant scale.

C) Stagnation Increments

Officers: The rate of stagnation increment will be @3% of the revised basic
pay. Officers will be allowed to draw maximum three stagnation increments,
one after every two years, upon reaching the maximum of the revised pay
scale provided the officer gets a performance rating of ''Good" or above. Pay
of executive after grant of stagnation increment will be rounded off to the next
multiple of Rs.10/-

Non-Officers:

The workmen will be allowed to draw a maximum of three stagnation

increments one after every two years. The stagnation increment shall be
payable at the rate of 3% of Basic Pay. The first stagnation increment will be
admissible after completion of two years from the date of reaching the
maximum of the pay scale. The subsequent stagnation increment will be
admissible after completion of two years from the drawal of the last stagnation
increment.
 The stagnation increment as above shall be admissible provided the workman
gets a Performance rating of 'Satisfactory/average' or above. The pay after
grant of stagnation increment will be rounded off to next multiple of Rs.10/-

Stagnation increment(s) will be treated as BP for all purposes and will be shown
separately from BP as Stagnation Pay.

Postponement of annual increment

a) Extension of Probation Period

i) In case of fresh appointees, increment will be released only after an

order regarding satisfactory performance during the probation period.
If , however, for reason of poor performance , Management takes a
decision to extend the probation period beyond 180 days, the annual
increment would be postponed by one year. There will be no effect on
annual increment if the probation period is extended upto 180
days(Please also refer clause 6.2.4 (v) b).

ii) An employee on promotion will be allowed to draw the next annual

increment irrespective of whether he has completed the probation
period or has been confirmed in the post. In case, for any reason, the
probation period of an employee is extended or the confirmation is
postponed or the employee remains on leave without pay for a longer
period, then the next due annual increment will get postponed as at (i)
above.

b) Extraordinary leave without pay

In case of ELOWP on medical grounds exceeding 180 days at a stretch

or in spells in a calendar year, the competent authority as heretofore
will have the discretion to consider each case on its merit for the
purpose of postponement of annual increment. EOLWP on medical
grounds at a stretch or in various spells in a calendar year for less
than 180 days may be ignored.

c) Absence without authorized leave

Where unauthorised absence individually or cumulatively exceeds 60

days in a calendar year, the annual increment/stagnation increment
due to be granted on 1st January of the following year shall stand
 postponed by one year. The unauthorised absence individually or
cumulatively in a calendar year for less than 60 days may be ignored.

d) Special/ Study Leave without pay

In case of study leave without pay/special leave without pay granted to

a female employee to join the husband/child care leave exceeding 180
days at a stretch or in spells in a calendar year, the annual increment
would be postoned by one year.

e) Period of Suspension

No increment will be released during the period of suspension The

withholding/ postponement of increment in a case shall depend upon
extent and nature of punishment awarded after inquiry proceedings
and the same would be regulated as per the decision in each case.
( Please also see Clause 10.1.5.5. b)

Withholding of annual increments

a) As distinct from the provisions of sub-clause 10.1.5.1 above, annual

increment can be withheld for a proven misconduct and as a measure of
penalty under the CDA Rules or Standing Orders, as the case may be.
The orders withholding the increments must indicate whether the
stoppage will have cumulative effect and thus postpone all future
increments or whether it will be a simple stoppage for a prescribed period
after which the employee’s salary would be raised to what it would have
been but for the stoppage of increment.

b) No increment will be released during the period of suspension. However,

once a decision regarding the issue(s) leading to the suspension is taken,
the question whether the suspension period should count for annual
increment or not will depend upon the instructions of the disciplinary
authority in this respect. Normally, the normal date of increment will not be
affected during such period unless there are instructions of the disciplinary
authority to the contrary.

If, on the conclusion of disciplinary proceedings, the period of suspension

is treated as spent on duty, the employee shall be given such increments
to which he would have been entitled had he not been suspended.
However, if the period of suspension is not treated as spent on duty, the
grant of increment to him shall be regulated in the manner laid down in
para (a) above.

Advance increments
 a) The grant of advance increments on initial appointment in deserving
cases shall require specific sanction of the competent authority. (See
clause 10.1.2.1 above).

b) For recruitment to the post of Medical Officer in Grade ‘A’, two

advance increments may be granted to those having post-graduate
qualification (MD/MS and other equivalent qualifications) and one
advance increment to those having post-graduate diplomas.

ALLOWANCES

Dearness Allowance

Public Sector Dearness Allowance Scheme providing 100% neutralisation of

cost of living over AICPI 126.33 is applicable from 01.01.2007.Its salient
features are as under:

a) All India Consumer Price Index number for industrial workers (general)
based on 2001 = 100 (AICPI) is used for grant of compensation to the
employees of PSEs for price rise.

b) DA instalments would be released 4 times a year w.e.f. 1 st January, 1st

April, 1st July and 1st October.

c) DA would be paid for the increase in AICPI above quarterly index

average of 126.33 to which the revised scales of pay are related.

d) The percentage increase/decrease in the quarterly average of AICPI

for the period ending February, May, August and November over index
126.33 would be taken upto one decimal point

e) The rate of compensation of the employee of PSEs over the basic pay
at index average of 126.33 is also in whole numbers with fractions
carried forward.

f) The percentage neutralisation to employee in different pay ranges

would be 100%.

DA will be revised and paid on Quarterly basis effective from 1 st January, 1st
April, 1st July and 1st October every year, as indicated below:

Quarterly Average for the months DA payable from

September, October & November 1st January

 December, January & February 1st April

March, April & May 1st July

June, July & August 1st October

City Compensatory Allowance

City Compensatory Allowance has been dispensed with effect from

26.11.2008.

HOUSE RENT ALLOWANCE (HRA)

House Rent Allowance at the applicable rate is payable w.e.f. 26.11.08 at the
following rates:

Cities with population Rate (% of B.P.)

50 lac and above 30% of Basic Pay
(classified as X)

5 to 50 lac 20% of Basic Pay

(classified as Y)

Less than 5 lac 10% of Basic Pay

(classified as Z)

Note :

1. Officers include the incumbents of the top posts.

2. HRA is payable with reference to the place of duty of the employee.

3. An employee may be allowed to draw HRA either related to the place of his
residence or place of work
whichever may be beneficial to him subject to the conditions that:

a) such an employee resides with his family as one unit at a city nearby or
in proximity to the place of duty, due to absence of basic facilities at the
work location, and
b) he has not retained his family at a station other than the place of posting
because of his transfer
4. Classification of towns/cities by the Government of India which is circulated
by Ref. Hqrs. from time to time for the purpose of payment of HRA , as the
case may be, shall be adopted and HRA paid at the IOC’s rate applicable to
employees.

5. HRA at the above rates shall be paid to all employees other than
those provided with company owned/leased accommodation without requiring
them to produce rent receipts.

6. Where an employee resides with either spouse/parent/ child/relative who is

employed in IOC and who has been allowed company-leased or self-leased
accommodation, the additional HRA (as per the respective entitlement of the
employee) would be payable to the employee other than the one in whose
name the accommodation is occupied, only where the rent paid or assessed
value exceeds the entitled lease amount/parent/child/relative to the extent of
the shortfall.

W.e.f. 01.04.11, if an employee and his/her spouse are both employed in IOC
and posted at the same location, HRA at applicable rate would be payable to
them in the individual capacity. In case rent receipt is submitted and the rental
paid exceeds the HRA entitlement of the employee, the spouse would be
allowed to draw HRA at the applicable rate to the extent of shortfall in the
amount under rent receipt and HRA entitlement of the employees (Ref.
CR/Admn/12/2011 dt. 12.07.2011)

HRA being received by spouse of an employee employed in any organization

whether in Govt./ Public/ Private sector may not be taken into cognizance
while regulating the payment of rent of the officer towards self leased/self
owned accommodation.

7. An officer, who has been allowed to keep his family at a station other than the
place of his posting subject to meeting the prescribed conditions, can draw
HRA or avail leased accommodation for residence of his family at that station.
In case he opts for HRA, the same is admissible at the applicable rate as per
the classification of the city where the family is residing. The officer can avail
transit accommodation for self, if available, at the place of posting.

8. If a bachelor officer declares his parents as dependent on him, the parents

have necessarily to reside with him at the station of his posting to meet the
condition of dependency. He may, therefore, avail company owned, leased
accommodation or HRA at the station of his posting as per rules. In case of
bachelor officer availing Transit Accommodation, the facility of leased
accommodation or HRA will not be available for parents.

HRA to employees staying in villages

 Employees staying in villages situated within a radius of 8 km from the
periphery of municipal limits of a city are entitled to HRA at the rates
admissible and paid in that city provided there is no other municipal/sub-urban
area within the 8 km limit and the place of residence is dependent upon the
municipal city for its essential supplies (like foodgrains, milk, vegetables, fuel
etc.)

HRA to employees posted in Assam& other North-Eastern States

An employee posted in Assam and other North-Eastern States, who has been
permitted to maintain his family as a separate establishment at a place outside
these States, may claim HRA applicable to such station. The employee
himself will be provided with single occupancy accommodation.

Stoppage of payment of HRA

Payment of HRA shall be automatically stopped for :

i) having been provided with the company-owned/leased

accommodation; or

ii) having declined to accept the company-owned/leased accommodation;

or

iii) any stipulated contingency on the occurrence of which an employee

would normally lose his title to the HRA.

Conditions for drawl of HRA

An employee shall not be entitled to HRA if :

ii) He/she resides in accommodation allotted to his/her spouse or

parents/son/daughter by the IOC

iii) He/she shares accommodation with an employee of the Corporation

in a Refinery Township.

Special Allowance

Non-officer employees observing 48 hours per week duty schedule are paid

Special Allowance @10% of their basic pay.

Special Allowance will count for computation of provident fund, productivity

linked incentive, productivity incentive scheme and overtime but not for any
other purpose (except those specified separately in sub-clauses and below).
 While Special Allowance will not form part of emoluments for payment of
gratuity, it will count as a component of wage/salary for the purpose of
payment of retrenchment/rehabilitation compensation allowance.

Special Allowance is payable for periods of leave with pay, but not for periods
of unauthorised absence or for periods of extraordinary leave without pay.

Special Allowance would be regulated on pro-rata basis w.e.f. 01.04.2011 on transfer of

non-officers between 48 hours work week schedule and 36.25 work week
schedule.

(Ref. P/P/279 CR No.05/2011 dated 18.02.2011)

Non-Practising Allowance

NPA at the rate of 25% of Basic Pay is payable to Company’s

Medical officers in lieu of private practice w.e.f. 01st October 2011.

NPA will not be considered as pay for the purpose of calculating any
benefits/allowances including retiral benefits.

[Ref. P/P/13(CR No.35/11) dt. 15.12.11]

Rotating Duty Compensation

Payment of Rotating duty compensation to employees working in rotating

shifts is presently admissible at the following rates :

Category Grades Rate per shift(Rs.)

Mor/Eve Night

Officers A&B 130.00 200.00

C & above 155.00 225.00

Workmen All Grades 100.00 155.00

[Ref. CR No.04/08 dt.04/02/08 ,CR No.40/08 dt.07/08/08 & Ref. P/IR/49(09)

dt. 12.09.2013]
 Payment of Rotating duty compensation is subject to the following conditions :

i) Employees working only in one shift without rotating in other shifts are
not entitled to any Rotating duty compensation

ii) Employees on overtime shift are to be paid Rotating duty

compensation separately for that shift;

iii) The general shift employees, when required to work on another shift in
a week, are entitled to Rotating duty compensation for the days of the
week when they work on other shift;

v) Shift employees when put on general shift duty are not entitled to
Rotating duty compensation for the days worked in general shift.

vi) Payment of Rotating duty compensation is admissible provided the

employee has worked for full shift of 8 hours duration, i.e., no Rotating
duty compensation is payable for less than 8 hours shift duty (Ref. CR
No.25/2011 dt. 19.07.11)

Washing Allowance / Washing Charge

Employees will be paid Washing Allowance / Washing Charge as per the

following rates per month:

Category Provided with Others(Rs.)

Uniform/ Protective
clothing(Rs.)

Workman 150 60

Officer 200 85

Note : (Contribution of specified amount of Washing Allowance towards

Superannuation Benefit Fund discontinued w.e.f. April 2011 -
Ref. CR No.14/2011 dt. 18.04.11)

a) Washing Allowance will be paid at full rate during CL.

b) Washing Allowance will also be paid during periods of EL or SL when the

leave period at a stretch
does not exceed 30 days whereafter pro-rata deductions will be made.
c) Washing Allowance will not be payable during extraordinary leave without pay,
maternity leave, study
leave (without pay), special sick leave, etc.

TEA ALLOWANCE

The rates of Tea allowance (w.e.f. 01.10.2005) are as under :

Locations Officers Workmen

At locations where Rs.40/-p.m. Rs.40/-p.m.

subsidised canteen
facilities exist.

At locations where Rs.400/-p.m. Rs.370/- p.m.

subsidised canteen
facilities do not exist.

[Ref. CR No.04/08 dt.04/02/08 and CR No.40/08 dt.07/08/08]

Note : (Contribution of specified amount of Tea Allowance towards

Superannuation Benefit Fund discontinued w.e.f. April 2011 - Ref. CR
No.14/2011 dt. 18.04.11)

Tanker Unloading/ loading charge

Tanker unloading/loading charges @ Rs.1000/- for every block of 12 hours’

continuous duty will be admissible to officers attending tanker discharge on
board at jetty end subject to the following conditions :

i) A fraction over a block of 12 hours will be ignored;

ii) The allowance will not be admissible to officers attending receipt of

crude oil at the tank farm at the Refinery end.

iii) Officers attending tanker discharge at a place falling in city/town area,

though it may be beyond 8 km from headquarters, will be entitled to
Tanker (Duty) Allowance (and Refreshment Allowance), if otherwise
admissible. They will not be entitled to DA under TA Rules;

iv) Officers attending tanker discharge at a station other than their

headquarters will be eligible for TA/DA as admissible under the TA
 Rules. They will be entitled to Tanker (Duty) Allowance, in addition, if
otherwise admissible, but not Refreshment Allowance.

Refreshment Allowance is payable to officers whose normal working hours are

48 in a week, attending tanker discharge at jetty end, working at the refinery
units when called upon to attend duty continuously for 12 hrs or more.

Payment of Tanker Unloading and Loading charges and Refreshment

Allowance to Officers in Grades ‘A’ to ‘D’ will be approved by the Departmental
Heads or controlling officers. Officers in Grade ‘E’ and above will be self-
controlling officers for the purpose. The allowance should be claimed in the
prescribed form.

Conveyance Allowance to Blind and Orthopaedically Handicapped

Employees

Regular employees of the Corporation who are orthopaedically handicapped

with the minimum prescribed disability and who generally require physical
assistance for going to and coming from the place of their duty or regular
employees who are blind may be granted conveyance allowance. The Blind&
Orthopaedically handicapped employees shall be entitled to conveyance
allowance at double the normal rate of Transport Assistance/Subsidy,
otherwise admissible to the employees of comparable category.

Conveyance Allowance will be payable from the date the disability is certified by the
competent Medical Officer provided the application is made within a period of one month
of issue of disability certificate.

In case of belated claims, the benefits should be authorised from the date of application
only.

Eligibility

a) An orthopaedically handicapped employee will be eligible for

conveyance allowance if he has a minimum 40% permanent/partial
disability of either upper or lower limbs or 50% permanent/partial
disability of both the upper and lower limbs together as certified by the
Head of Orthopaedics Department of a Govt. Civil Hospital (CMO in
the case of refineries). For the purpose of estimation of disability, the
standards as contained in the “Manual for Orthopaedic Surgeon in
Evaluating Permanent Physical Impairment” brought out by the
American Academy of Orthopaedic Surgeons, U.S.A. and published in
their behalf by Artificial Limbs Manufacturing Corporation of India, G.T.
Road, Kanpur, shall apply.

b) In the case of blind employees, the allowance will be admissible on the

recommendation of the Head of Opthalmological Department of a
Govt. Civil Hospital (CMO in the case of refineries). He should have
 vision less than 3/60 or field vision less than 10 in both eyes.

c) The allowance will not be admissible during leave (except casual

leave) if the duration of absence on leave is 15 days or more or
absence without leave or leave without pay. It will be admissible
during period of suspension only for the days the employee has to
report or participate in enquiry proceedings.

d) The allowance will not be admissible in addition to any other

conveyance allowance (or similar benefit) generally admissible to
employees. The allowance will also not be admissible if conveyance is
provided to the employees.

Outfit Allowance

Employees deputed abroad for training or otherwise to European and other

countries having cold climates for periods of about 6 months or more may be
granted in advance a lumpsum grant of Rs.1000 as Outfit Allowance to enable
them to equip themselves with adequate clothing.

No distinction is made between different grades of employees in the matter of

payment of Outfit Allowance.

Outfit Allowance is not payable to officers deputed abroad for less than 6
months.

The recipients of Outfit Allowance need not account for the amount spent by
them on the purchase of outfit etc.

SPECIAL COMPENSATORY ALLOWANCE(SCA):

(Ref. CR No.03/2011 dt. 08.02.2011)
Special Compensatory Allowance(SCA) is admissible to employees, who are
serving in difficult and far flung areas, listed under DOE's OM dated 29.8.08,
effective from 26.11.08 as per the following rates:
a) Locations appearing in Part A of above-referred OM : 10% of BP
b) Locations appearing in Part B of above-referred OM : 8% of BP
c) Locations appearing in Part C of above-referred OM : 6% of BP
d) Locations appearing in Part D of above-referred OM : 4% of BP
 With the introduction of SCA at new rates, existing compensatory/hardship
allowances as applicable at our locations shall be dispensed w.e.f. 26.11.08
like Special Compensatory (Remote Locality Allowance) payable in North East
locations, Dimapur/Imphal Allowance, Additional Compensatory Allowance at
identified locations in Arunachal Pradesh, Mizoram and Manipur. In case the
SCA payable as per the DPE guidelines on revised pay is less than the frozen
amount of compensatory/hardhip allowances being presently drawn by an
employee, the said frozen amount shall be protected till such time the revised
SCA rate becomes beneficial to the employee. This protection shall however
be given only to the employee in position as on 25.11.08.

PROFESSIONAL UPDATION ALLOWANCE (inclusive of NEWSPAPERS/ PERIODICALS/

MAGAZINES ALLOWANCE): [Ref.CR No.04/08 dated 04.02.2008]

W.e.f. 01.01.2007, 'Professional Updation Allowance' and

'Newspapers/Periodicals/magazines Allowance' stand merged and it is paid to
officers as under:

Grades Amount per

month(Rs.)
A 1000

B 1100

C 1200

D 1600

E 1800

F 2000

G 2200

H 2400

I 2500

The above allowance will not be available during period of Suspension/

ELWP/unauthorised absence.

(a) NEWSPAPER/PERIODICALS/MAGAZINE ALLOWANCE FOR WORKMEN

Grades Amount per

month(Rs.)
I to III 95

IV & V 135

VI to VIII 185
 RATIONALISATION ADJUSTMENT ALLOWANCE:

The Rationalisation Adjustment Allowance is paid to Officers (upto Grade ‘F’)

at the following rates:

Period of service in regular scale Amount per month(Rs.)

Less than 5 years 85/-

5 years & more but less than 12 110/-

years

12 years & more but less than 125/-

19 years

19 years & more 140/-

The allowance will, however, cease to be admissible from the date an officer is
promoted to a level higher than that of Grade ‘F’. All new entrants in officers'
cadre (including promotee officers from the ranks of non-officers) would also
be eligible to receive the allowance on the basis of their total service in the
Corporation.

As and when an officer progresses in terms of the length of his service to

higher, slab(s), he will be entitled to the rates related to that respective slab.

Persons on deputation joining from State/Central Government shall not be

eligible to receive the above allowance, irrespective of whether they have
opted for their parent department pay-scale or IOC pay-scale.

Officers assigned to PCRA/OISD/CHT/PII shall also be entitled to the above

allowance if otherwise, eligible. The amount paid to such officers will be
debited to the concerned organisation for the covered period of their posting
with the organisation. Officers on deputation to other PSUs retaining lien with
the Corporation as on 1.4.89 (or a subsequent date) are entitled to receive the
benefit from such date.

The amount of Rationalisation Adjustment will not be treated as “pay” for

claiming other salary-related allowances/perks and consequential benefits
such as HRA, PF, Gratuity, Special Allowance, TA/DA, Medical Benefits,
Productivity-Linked Bonus, Profit-sharing Bonus, superannuation benefit, etc.,
and any other such perquisites/benefits which are not listed here.
 RATIONALISATION CUM SKILL UPDATION EXPENSES TO NON-
OFFICERS (w.e.f. 01.01.07)
[Ref. CR No.40/2008 dt. 07.08.2008]
Amount per month
Period of service in regular scale (Rs.)

Upto 5 years 500

Above 5 years & Upto 10 years 565

Above 10 years & Upto 15 years 675

Above 15 years & Upto 25 years 780

Above 25 years 820

The above will not be available during period of suspension/ ELWP/unauthorised absence.
Upon moving the next slab of completed year of service, the non-officer will be entitled to
the
corresponding higher rate of the benefit.

The Rationalisation Adjustment cum Skill Updation Expenses would cease to

be payable to non-officer on promotion/appointment to Grade A scale of pay in
officer category.

SPECIAL COMPUTER ALLOWANCE TO NON-OFFICERS

Equivalent to 8% to 10% of Basic pay to the workmen for operating ERP and
related systems as under:

Grades Rate per month

I, II and III 8% of Basic Pay

IV and V 9% of Basic Pay

VI, VII and VIII 10% of Basic Pay

 Upon movement from one cluster to the other, the above allowance would be
admissible at corresponding higher rate. The allowance would cease to be
payable to non-officer on promotion/appointment to Grade A scale of pay in
officer category. The above allowance is not to be treated as wages and will
not be reckoned for any consequential benefits/payments.

INTERNET CHARGES FOR WORKMEN:

Payment of internet charges is admissible to workmen w.e.f. 01.08.2008 at

the following rates:

Grades Rate per month

100
I, II and III

125
IV and V

150
VI, VII and VIII

REGULATION OF PAY, ALLOWANCES ETC. DURING THE PERIOD OF

SUSPENSION

Suspension pending enquiry

S.No. Allowance/benefit Admissibility

Service related allowances

1. Basic pay As per Rule 27 of CDA Rules*/Standing Orders.

2. Dearness Allowance As per Rule 27 of CDA Rules*/Standing Orders.

3 House Rent Allowance Since HRA is related to basic pay, the same
should be related to reduced Basic Pay. However,
where receipt of rent has been submitted in
support of renting the accommodation, HRA to the
extent of rental paid (subject to maximum
entitlement as per rules) shall be admissible.

4 Company owned/leased May be continued

accommodation including
self-lease

5 CCA Stands dispensed with w.e.f. 26.11.08.

6 Medical claims including The same are admissible during the period of
spectacles suspension.

7 North East Allowance As per Rule 27 of CDA Rules*/#.

8 Remote locality allowance As per Rule 27 of CDA Rules*/#

9 NPA May be paid.

10 Patrolling Allowance No

11 Deputation Allowance Related to reduced pay

12 Provident Fund As per extant rules on the subject.

Duty related Allowances:

a) Conveyance maintenance As per the guidelines issued on the subject. Also

reimbursement/Transport payable for the days if the employee under
subsidy/Conveyance suspension is asked to mark attendance/attend to
Allowance to Physically disciplinary proceedings
Handicapped:

b) Professional updation No
allowance
c) Tea allowance No

d) Shift allowance / Rotating No

duty compensation

e) Duty allowance No

f) Special Allowance No

g) Washing Allowance / Washing No

charge

h) Rationalisation Adjustment No
cum Skill updation Allowance
for workmen/ Rationalisation
Adjustment Allowance for
Officers

i) ERP Allowance No

j) Uniform Not to be issued during this period.

k) Long Service Award As per the guidelines issued on the subject

l) Cash Handling allowance No

m) SCO to Officer(s) Not admissible during suspension period.

n) Reimbursement of lunch No
expenses

Other benefits

a) Children Education May be paid

allowance, hostel subsidy
 b) Furniture maintenance May be paid

c) Ex-gratia, PLIB & PLI Ex-gratia/Bonus to be calculated on the basis of

subsistence allowance paid to him during the
period of suspension.

d) SABF Period of suspension pending enquiry or as a

measure of punishment is included for the
purpose of reckonable service.

e) Leave Travel Concession Suspended employee will not be eligible for LTC
as he/she cannot enjoy leave during the period of
suspension. However, family can avail LTC. He
can however encash it for self.

f) Leave He will not be entitled for any leave either on

medical grounds or otherwise during the period of
suspension. If the employee falls sick, he need
not come to office for recording his attendance
everyday, but should intimate to the concerned
Officer.

g) Leave encashment Yes, as per rules.

h) Housing Loan No

i) Vehicle loan No

j) News paper No

k) Incentive for acquiring higher No

qualification

l) Calculator/briefcase No

* Applicable to Officers and Non-officers (not covered by Standing Orders)

# Non-Officers : Full upto 4 months. To be reviewed thereafter to decided whether or not to give
depending upon the merits of each case(Either the allowance will be payable in full or not at all)

10.3.1.2 Deductions/recoveries from subsistence allowance

 i) Contributions towards PF are recoverable from subsistence allowance
paid to an employee under
suspension.

ii) Recoveries towards PF loan, house rent and water and electricity
charges are to be made from subsistence allowance. Recovery of
house rent towards Corporation’s accommodation/quarter allotted to
an employee will be on full pay otherwise admissible to him and not
only on subsistence allowance.

iii) Contribution under Group Savings Linked

Insurance.

iv) Full contribution under SBF Scheme.

v) Refund of HBA, conveyance advance etc., if any.

vi) Amount required to be paid to LIC in respect of HBA under Mortgage

Redemption Scheme.

vii) Employees required to pay transport charges at the units (@Rs.5 per
month) will continue to pay the same during suspension (pending
enquiry) period exceeding 15 days.

REGULATION OF PAY, ALLOWANCES ETC. DURING THE PERIOD OF

DEPUTATION

Pay fixation

a) Pay fixation on deputation to top posts and non-scheduled

postsin PSUs

The pay of the Central Government employees deputed to top posts

and to non-scheduled posts carrying pay scales identical to those
applicable to the top posts in the public sector undertakings is to be
regulated under the provisions of Ministry of Finance (Department of
Expenditure)’s OM No.F.1(4).E.III(B)/65 dated 10.3.1966 (read with
DPAR’s OM No.F.1(3)/Estt.(P.II)/80 dated 27.7.1981), as amended
from time to time. These deputationists will be entitled to all
allowances and concessions as are admissible to the employees of
corresponding status in public sector undertakings.

Note: The Government has classified the top posts in the public
sector undertakings into Schedule A,B,C and D posts carrying
the following scales of pay.
 Schedule A - Rs.27750-750-31500

Schedule B - Rs.25750-650-30950

Schedule C - Rs.22500-600-27300

Schedule D - Rs.20500-500-25000

The above scales of pay of the incumbents of top posts are

applicable to those executives whose appointments are made
by the Government at the board level. These orders are not
applicable to the executives whose appointments are below
the board level under the powers vested in the Board of
Directors even if they carry similar scales of pay and
allowances.

b) Pay fixation on deputation on foreign service basis in PSUs

When a Central Government employee is deputed to a post in a public

sector undertaking where the industrial DA rates are being granted, he
may be allowed an option either :

- to draw the grade pay plus deputation(duty) allowance @ (i)

5% of BP subject to a ceiling of Rs.500 for transfer within the
same station and (ii) 10% of BP subject to a ceiling of
Rs.1000 in other cases; or

- to draw pay in the scale of pay attached to the post in PSU.

Where the employee opts to draw pay in the time scale of the post in
the PSU, his pay may be fixed in the pay scale of the post at the stage
next above the amount arrived at by adding to his grade pay one
increment in the scale of his cadre post in the Government (and if he
was drawing pay at the maximum of the scale by the increment last
drawn) and appropriate dearness allowance, additional dearness
allowance, adhoc dearness allowance and interim relief on such pay
as admissible to the Government employee on the date of his
deputation to the PSU, reduced by the industrial rates of dearness
allowance, additional dearness allowance and interim relief, if any,
applicable to the post in the undertaking. The pay so fixed should not,
however, be less than the minimum of the pay scale of the post and
also should not exceed the maximum of the pay scale of the post to
which the Government employee is deputed. The option once
 exercised shall be final except in the following cases when a
fresh option will be allowed :

i) On proforma promotion in the Parent Office under the next

below rule; or

ii) On reversion to lower grade in the Parent Office; or

iii) On appointment to another grade in the undertaking; or

iv) On revision of pay scale of the deputation post or of the post

held in Parent Office (DPT’s OM 6/30/86-ESTT-P2
dt.09/02/1986)

c) Pay fixation on reverse of foreign service in Central Government

The pay of an employee of public sector undertaking who is in receipt

of industrial rates of DA and who is appointed on deputation under the
Central Government will have an option to draw either :

i) pay in the scale of the post held by him on reverse foreign

service under the Central Government; or

ii) his grade pay in the public sector undertaking plus deputation
(duty) allowance as per rules.

Where the employee has opted for the alternative at (i) above, his
initial pay will be fixed by raising his grade pay in the public sector
undertaking by one increment in his pay scale and equating the pay
so raised plus appropriate dearness allowance, additional dearness
allowance and interim relief, if any, admissible in the public sector
undertaking, to the pay plus dearness allowance, additional dearness
allowance, adhoc dearness allowance and interim relief, if any,
admissible under the Government, and fixing the pay at the
appropriate stage in the pay scale of the post in the Govt. If there is
no stage equal to that pay in the pay scale of the post under the
Government, his pay will be fixed at the next stage in the scale. The
pay so fixed will, however, be restricted to the maximum of the pay
scale under the Government.

Entitlement for IOC employees on deputation to PPAC, PCRA, CHT and

OISD
a) Pay and Allowance

Employees on deputation will continue to draw pay in the IOC scale of

pay plus allowances as were being drawn by him/her. They will also
get benefits as applicable to the employees of equivalent status and
grade in the Corporation from time to time.

Further they will also be entitled to all such additional benefits which
may be granted to IOC employees of their grade and status during the
period of deputation including revision of pay scales, enhancement in
allowances/perquisites. They will also be given consideration for
promotional opportunities during the period of deputation.

b) Deputation (duty) allowance to employees deputed to Govt.

Deptt/Agencies like PPAC, PCRA, OISD, etc.

IOC employees deputed to organisations like PPAC, PCRA, OISD etc.

will be entitled to deputation (duty) allowance @10% of the BP.

c) Recovery of expenses incurred on employees deputed to OCC,

PCRA, CHT and OISD.

The following expenses incurred by IOC will be debited to the

concerned organisation:

– Cost of salaries including cost of leave salary, employer's PF and

Gratuity contribution, ex-gratia/bonus payment.

– Reimbursement of various allowances such as HRA,

Rationalisation Adjustment Allowance, Tea, Washing, Children
Education Allowance, Deputation Allowance, Conveyance
Reimbursement, Medical, Rent on Self Lease/Maintenance on
Self Lease Accommodation, Uniform Expenses, Furniture
Maintenance Expenses, etc.

– Reimbursement of notional rent of houses where employees are

staying in Company's accommodation. This should be equivalent
to the entitlement of self-leased rent and maintenance expenses
as per his entitlement.

– Reimbursement of residential telephone expenses.

– Reimbursement of LTC
 – Transfer Benefits

– Loans subsidy equivalent to differential between the interest

@15% on the outstanding loan amount and the interest charged
by the company will also be debited to the organisations where
employees are on deputation.

– Any other expenses incurred.

In addition, wherever applicable, the following expenses incurred by

IOC will also be debited to the concerned organizations:

– Rent for the office premises.

– Electricity/maintenance expenses of the office premises.

– Cost of furniture and fixture provided by IOC.

– Cost of interior decoration carried out by IOC, if any.

– Any specific expenses incurred by IOC.

Regulation of allowances and other facilities during period of deputation

in IOC.

Dearness Allowance

In case the deputationist exercises an option to draw pay in the time scale of
the deputation post, he will be entitled to DA under the rules of the
Corporation. In other cases, he will be entitled to DA in accordance with the
rules of Parent Office as applicable from time to time.

As regards CCA, HRA and other local allowances, the same shall be regulated
as admissible to employees of similar rank in the Corporation.

Increments

The deputationist will draw increment in his parent grade or in the grade
attached to the deputation post, as the case may be, depending on whether
he has opted for his own grade pay plus deputation (duty) allowance or the
time scale of the deputation post.
Joining Time & Transfer benefits

The deputationist will be entitled to joining time and transfer benefits both on
joining the post on deputation and on reversion therefrom to the Parent Office
under the rules of the Corporation. The expenditure on this account will be
borne by the Corporation.

TA/DA

The deputationist will be governed by the TA rules of the Corporation for

journey on duty during the period of his deputation.

Leave and working hours

During the period of deputation, the deputationist shall continue to be

governed by the leave rules of the Parent Office applicable to him before such
transfer. He will, however, be governed by the Corporation’s rules in respect of
casual leave, holidays (including restricted holidays) and working hours.

The Corporation shall pay leave salary contribution to the Parent Office at the
rates specified by them. Since leave salary contributions are payable to the
Parent Office, the liability towards leave or its encashment shall rest with the
Parent Office.

Reimbursement of local travelling expenses

This will be regulated as per rules of the Corporation.

The deputationist shall continue to be entitled to LTC under the rules of Parent
Office and the cost thereof will be borne by the Corporation. The block period
in his case shall be the same as applicable in his Parent Office.

There is no objection to encashment of LTC against the title of the

deputationist to all-India LTC. Government servants are entitled to only one
all-India LTC in a period-block of 4 years which is in lieu of the normal title
towards LTC facility for home town. It is only in alternate two-yearly blocks that
a deputationist might be entitled to all-India LTC unlike the facility admissible
to IOC employees. Accordingly, the encashment of LTC in their case would be
confined to their title for all-India LTC only.

Bonus/Ex-gratia/PLI/Productivity incentive payment

The deputationist will be entitled to ex-gratia/productivity incentive payment as

per rules of the Corporation.

Provident Fund

During the period of deputation, the deputationist will continue to subscribe to

the Provident Fund of his Parent Office in accordance with the rules of such
fund and employer’s contribution to the fund for the period of his deputation
will be borne by the Corporation. The Corporation will recover employee’s
contribution from the salary of the deputationist and remit the same alongwith
the employer’s contribution thereon, if any, to his Parent Office regularly every
month.

Gratuity

The deputationist will continue to be governed by the Gratuity Rules of his

Parent Office.

Other allowances

The deputationist irrespective of whether he opts for pay of parent department

or IOC will be eligible for following allowances:

1. Tea Allowance

2. Washing Allowance

3. Lumpsum amount in lieu of Uniform for completed calender year. Pro-

rata in other case at the end of calender year.

4. Medical Facilities

5. Conveyance Allowance/Transport Subsidy.

6. Reimbursement of Lunch/Refreshment Expenses

7. Children Education Allowance

 8. Professional Updation Expenses to officers.

9. Rationalisation Adjustment to officers.

10. Rationalisation Adjustment cum Skill Updation Expenses for non-officers.

11. Housing facilities/leased accommodation/self-leased accommodation/HRA

12. Reimbursement of Newspapers/Periodicals Expenses.

13. Brief Case/Digital Diary/Electronic Organiser to officers/Calculator to Non-

officers

14. Reimbursement of expenses towards spectacles.

15. Compensation for extended hours/working on holidays.

16. Conveyance Advance, subject to guidelines/rules applicable in respect of

deputationists.

17. Reimbursement of Excursion Trip expenses wherever being extended to

regular employees.

18. Sanction of priority/LPG Connection on payment of necessary security

deposit.

19. Furniture on hire including Home Desk Top PC

20. NE Allowance.

Transfer of benefits on absorption in IOC

A deputationist may, on resignation from his Parent Office and permanent

absorption in the IOC, be allowed to avail of the following benefits :

Provident Fund

A deputationist from Government/public sector undertaking subsequently

absorbed in the Corporation shall be entitled and required to become a
member of the provident fund of the IOC from the date of his permanent
absorption in the Corporation. He may get his GPF/CPF balances alongwith
interest thereon transferred to the Corporation, provided concerned Parent
Office also agrees to such a transfer.
 Gratuity

Previous service of a deputationist in his Parent Office will be counted for

computing the minimum qualifying service for determining eligibility to gratuity
under IOC rules. Payment of gratuity by IOC will be for the period of service
rendered in IOC from the date of absorption provided that the total of gratuity
received by the deputationist from Parent Office and that payable by IOC does
not exceed the amount of maximum gratuity admissible under IOC rules.

IOC can accept the transfer of gratuity amount and make the payment to the
employee concerned when he leaves and is otherwise eligible to receive the
same. In case the gratuity amount is not ultimately paid to the employee for
any reason whatsoever, the transferred amount shall be paid back to his
Parent Office.

Family Pension

The Government will not accept any liability for family pension after permanent
absorption of its employees in public sector undertakings.

Leave Salary

A deputationist on absorption in the Corporation can carry forward EL/SL on

half pay due to him with the previous employer upto the prescribed ceilings
provided the previous employer has already credited lumpsum leave salary for
the carried forward leave to the Corporation or is committed to do so.

10.5 Posting of officers of Indian Oil Group of Companies / within Group of Companies
– Admissibility of
Payments/ Benefits / Facilities

All the employees on posting from Indian Oil to Indian Oil Group of Companies and vice-versa
shall draw their salary
and all other perquisites/reimbursements from the place where they are working as per
the provisions in the parent
company based on last pay certificate.

Payments/Benefits/Facilities that would be admissible as per rules of the Parent Company:

 Pay and allowances which are pay-related or normally admissible to all the employees,
such as Tea Allowance, Washing Allowance, Newspaper Allowance, RAA, Professional
Updation Allowance, Conveyance Reimbursement/Allowance etc.

 Earned Leave & Sick Leave and LTC facility

  Retiral benefits, like PF, Gratuity, SABF, Group Insurance, Post Retirement Medical
Facility etc.

 Loans/Advances and their recoveries and facilities like furniture/Desk-Top PC on hire or

Furniture given to or procured by senior Executives for their office at residence.

 For regulating these benefits contributions from individual’s salary and/or management’s
contribution, wherever required, shall be recovered and paid by the borrowing Company
to the parent Company.

Payments/Benefits/Facilities that would be admissible as per rules in the Borrowing

Company:

 Allowances/Benefits, which are work related or Company/location specific such as

Entertainment Allowance(for senior Executives), Shift Allowance, Officiating Allowance,
SCOs for 48 hrs. duty or any Allowance in lieu thereof, Chidren Education Allowance,
Hostel Subsidy, Lunch Reimb. Expenses, Hardship Allowances, monetary benefit for
extended hour duties etc.

 Working Hours, Holidays and Casual Leave

 TA/DA entitlements on tour

Payments/Facilities that would be admissible from parent Company or borrowing

Company as per option to be given by the officer:

 Medical facilities – since these are admissible on need basis and availed through
reimbursement of expenses or in Company’s own hospitals/Hospitals on Panel.

 Incentive payments – since incentives are based on individual’s performance, team

performance and Company’s performance

 Transfer benefits

. The payments/reimbursements/expenses related to the posting of the officers under the above
guidelines shall be borne by the borrowing company as under the existing guidelines.

ACCOUNTING OF EMPLOYEE RELATED TRANSACTIONS

PART – A (PAYROLL)

1 GENERAL OUTLINE FOR PAY ROLL FUNCTION

1.1 In a company, payroll function in finance means, keeping the records for the payment
and deductions related to employees, processing of employee's claim, salaries and wages
including bonus and arrear. From accounting perspective, payroll is crucial because payroll
and employee related taxes are quite complex in nature and also subject to statutory laws and
regulations. The primary objective of the payroll section is to ensure timely and accurate
payment after withholdings & deductions, settlement of withholdings and deductions and
accounting and compliances of statutory requirement.

9.1.2 In the corporation, the major part of salary functions is being executed on SAP Payroll
& ESS

(Employee Self Service) platform which is maintained by both HR & Finance. The major

function of payroll can be grouped under following areas namely:

1. Monthly Processing of Salary

2. Off-cycle Payments

3. Bonus Payment

4. Arrear Payment

5. Accounting and payment of deputation In/Out employees

6. Final Settlement for separated employees

7. Payment of Statutory & Other Liabilities

8. Closing related activities- Quarterly & Annual

9. Preparation of MIS

10. Filing of Statutory Returns

9.2 EMPLOYEE SELF SERVICE PORTAL (ESS PORTAL)

Employee self-service (ESS) is a web-based application that allows employees to access their

personal information available in corporation's records, their payroll details and allow them to

submit various claims and declaration. The information and claims in ESS gets updated in
SAP

employee master after due approvals at competent level and claims if any will be paid off in

monthly salary processing or off-cycle payments depending upon the nature of the claim.

Currently ESS allows employees to apply for the following claims:

1) Children Education Allowance

2) Hostel subsidy

3) Conveyance maintenance

4) Toll Tax

5) Professional Membership Fees

6) Telephone Reimbursement

7) Medical Reimbursement

8) Leave Fare Assistance (LFA)

9) Award to meritorious children

10) Conveyance maintenance

11) Conveyance declaration

12) Leave Request (Sick Leave, Earned Leave, Casual Leave & Restricted Holiday)

13) Furniture/ PC/ Mobile Claim

14) Furniture/ PC Maintenance claim

15) Income Tax declarations

INFOTYPE/ WAGE TYPE/ GL CODES

9.3.1 In SAP Payroll package, master information of employees is being maintained in

various Info

Types and Wage Types. Info Types identify the broad category within which the employee
master

data is maintained e.g. Info Type 9 denotes 'Bank Details'; Info Type 14 denotes 'Recurring
payments/ deductions'. Wage Type on the other hand indicated the different heads within the

respective Info Type e.g. within IT 14 the Wage Types are 'Children Education Allowance,

Electricity charges etc. Wage types are mapped with general ledger (GL) codes. One Wage
type

cannot be mapped with more than one GL code, however multiple wage types can be
mapped

with single GL code. Payment and deductions are maintained in these wage types and
accordingly

payment/ deductions are being made through salary or off-cycle run. Accounting entries are

automatically posted through SAP depending on the mapped GL codes in the respective
company

codes. The list of GL codes with assigned wage types can be seen using SAP T-Code

PC00_M99_CWTR

Payroll Area Description Company Code Go Live Date

R1 RHQ 9000, 0015, 9070 01.10.2012

R2 MR 9050 01.06.2011

R3 HR 9040 01.09.2011

R4 PR 9060 01.09.2012

R5 BR 9020 01.06.2012

R6 GR 9010 01.07.2012

R7 JR 9030 01.08.2012

R8 AOD 9500, 9600, 9610 01.04.2012

R9 BGR 9800 01.04.2012

MONTHLY PROCESSING OF SALARY

9.5.1 Monthly Salary processing is being processed at CPC (Centralized Payroll

Processing) however

data maintenance is still with respective unit/ location. Following activities are included in
monthly payroll processing and is indicated sequentially:

1) Maintenance of all payroll data in SAP by respective unit’s HR/Payroll Section

2) Uploading of payments & deductions by payroll section which are not currently
maintained

in the system such as exigencies claim, medical recoveries, overtime payment, honorarium

payments, transport recoveries etc.

3) Payroll Simulation run by CPC

4) Cross verify the number of employees as per HR Headcount with the list of employees
for

whom payroll is being processed for the month

5) Maintenance of bank details in SAP

6) Info type update run by Units/Divisions

7) Payroll Live run by CPC

8) First Posting Simulation

9) Bank details changed by Units/Divisions to be updated by CPC on SBI site

10) Processing of Full & Final settlements (For superannuated/separated employees)

11) Ensuring error free simulation run

12) Final Payroll Live run by CPC

13) Final Posting Simulation run by CPC

14) Ensuring error free Posting simulation run

15) Payroll posting by CPC

16) IDOC run by CPC for scheduling payments

The salary payment gets credited through bank transfer as per the bank details maintained
in the

system.
Conclusion- IOCL Refineries are facing global competition i.e;
to quality of products, timely availability of on grade products and
cheaper availability of unlimited fuels.

Since in refineries there is constantly technological improvement,

tough environmental norms, incremental cost tool is very important
for taking the correct decisions.

Once the batch input session has been processed, the accounting
documents for payroll have been posted to the general ledger and
the payroll posting is complete.