OIL INDIA LIMITED CORPORATE OFFICE, NOIDA OIL/OIL/PER/05(A)-1167 16.11.2017 All Executives 10 2.0 3.0 4.0 SUB: PAY REVISION OF BOARD LEVEL & BELOW BOARD LEVEL EXECUTIVES W.E.F. 01.01.2017 OIL Board in its 481 Meeting held on 15.09.2017 has accorded approval for implementation of pay revision in respect of Board and below Board level executives wef. 01.01.2017 based on guidelines issued by Department of Public Enterprises (DPE) vide OM No. W-02/0028/2017-DPE (WC) ~ GL-XIII/17 dated 03.08.2017, OM No.W- (02/0028/2017-DPE (WC)-GL-XIV/I7 dated 04.08.2017 & OM No.W-02/0028/2017- DPE (WC)-GL-XVI/I7 dated 07.09.2017. Ministry of Petroleum & Natural Gas has issued Presidential Directive vide letter No. 31018/31/2009-ONG-II dated 08.11.2017 for implementation of revision of pay and allowances for executives of OIL. Accordingly, it has been decided to revise Pay and Allowances with effect from 01.01.2017 as per details given hereunder:~ REVISED PAY SCALES: The following revised pay scales corresponding to existing pre-revised pay scales shall be adopted for executive's w.e.f. 01.01.2017: SIN. Grade Existing Pay Scale (Rs.) | Revised Pay Scale (Rs.) 1 A 20600-46500 50000-60000 Zz B 24900-30500. 60000-180000 3 ie 32900-58000 '80000-220000 4 D I 36600-62000 "90000-24000 5 E I 43200-66000 100000-260000 6 F 43200-66000 19000-26000 7 G 51300-73000 120000-280000 8 H 51300-73000 120000-280000 9 1 62000-80000 150000-300000 10 Director 75000-100000 180000-340000 11 CMD '80000-125000 20000-37000 FITMENT BENEFIT: ‘A uniform full fitment benetit ot 15% shall be provided on the sum of Basic Pay (including admissible Stagnation Increments) as on 31.12.2016 and IDA @ 119.5% as applicable on 01.01.2017 nt 43 Page 1 ofS5.0 S.A 52 6.0 70 8.0 METHODOLOGY FOR PAY FIXATION: Following fitment methodology shall be implemented to arrive at the revised Basic Pay as on 01.01.2017: D A B c (Revised Basic Pay as on 01.01.2017) * Basic Pay (BP) + Industrial Dearness ‘Aggregate Stagnation Allowance (IDA) @ 15% of amount increment(s) ason | + | 119.5% asapplicable |+] A+B rounded off to 31.12.2016 (Personal on 01.01.2017 (Fitment the next Rs. Pay / Special Pay not benefit) 10 ‘to be included) * In case revised basic pay us on 01.01.2017 arrived so is less than the minimum of the revised pay scale, pay will be fixed at the minimum of the revised pay scale. ‘The executives who join the service on or after 01.01.2017 will be placed in the revised pay scales from the date of their joining. Such executives will not be eligible for the fitment under the pay revision, INCREMENT: A uniform rate of 3% of Basic Pay will be applicable for both annual increment as well as promotion increment. STAGNATION INCREMENT: In case of reaching the end point of pay scale, an executives will be allowed to draw stagnation increments, une aller every Wwo years up to a maximum of three such increments, provided the executive get a performance rating of ‘Good’ or above, DEARNESS ALLOWANCE (DA): 100% DA neutralization will be adopted for all the executives. DA as on 01.01.2017 will become zero with link point of All India Consumer Price Index (AICPI) 2001 = 100, which is 277.33 (Average of AICPI for the months of September, October & November, 2016) as on 01.01.2017. The periodicity ot adjustment will be once in three months as per the existing practice. The quarterly DA payable from 01.01.2017 will be as under:~ Effective Date Rate of Dearness Allowance (%) 01.01.2017 0.0 01.04.2017 AL 01.07.2017 0.2 01.10.2017 22. Yt Page 20f59.0 O41 9.2 93 10.0 HOUSE RENT ALLOWANCE (HRA) / LEASED ACCOMMODATION & HOUSE RENT RECOVERY (HRR): House Rent Allowance (HRA): Payment of HRA on revised basic pay shall be at the following rates: (CLASSIFICATION OF CITIES RATE OF HRA X-Class (Population of 50 lakh and above) | 24% of Basic Pay Y-Class (Population of 5 lak to 50 lakh) | 16% of Basic Pay | Z-Class (Population below 5 lakh) 08% of Basic Pay Rate of HRA will be revised to 27%, 18% & 9% for X, Y and Z class cities respectively when IDA crosses 25% and further revised to 30%, 20% & 10% when IDA crosses 50%. Leased Accommodation: The decision on the grade wise rental ceilings for different level of executives in the revised pay scales, keeping in view/linkage to the HRA amount, classification of cities. for HRA purpose, pay scales of executives, House rent recovery rate etc. shall be communicated later. If an executive is staying in his / her own house then normally he or she shall be entitled to the HRA amount but if the said house is taken as lease accommodation for self- occupation purpose, the lease rental ceilings (after adjusting the HRR amount) shall not exceed the net applicable HRA amount. House Rent Recovery (HRR): ‘The HRR in respect of leased accommodation shall be at the following rate, or the actual ever is lower: Classification of Cities Rate of HRR X-Class: 7.3% of Basic Pay Y-Class 5% of Basic Pay Z-Class 2.5% of Dasic Pay For Company owned accommodation, the HRR shall be 7.5% of Basic Pay (for X-class cities) / 5% of Basic pay (for Y-class cities) / 2.5% of Basic Pay (for Z-Class cities), or standard rent fixed by OIL, whichever is lower. PERKS & ALLOWANCES: Cafeteria approach shall be adopted for payment of perks and allowances admissible to different categories of executives subject to a ceiling of 35% of Basic Pay. The recurring cost incurred on running and maintenance of infrastructure facilities like hospitals, colleges, schools, ete. would be outside the ceiling of 35% of Basic Pay. As regards Company owned accommodation to the executives. the Company would bear the Income Tax liability on the “non-monetary perquisite” of which 50% shall be loaded within the ceiling of 35% of Basic Pay on perks and allowances. iu Page 3 of 511.0 Wl OTHER PERKS AND ALLOWANCES OUTSIDE THE CEILING OF 35% OF BASIC PAY UNDER CAFETERIA APPROACH: Location based Compensatory Allowances: 11.1.1 For serving in North-East States and Ladakh Region: 11.1.2 For serving in Ist 11.1.3 Special Allowance: For serving in difficult and far flung areas: 2 12.0 13.0 131 13.2 133 ‘Assam, Meghalaya, Manipur, Nagaland, Tripura, Arunachal | 10% of Basic Pay Pradesh, Mizoram and Sik} Ladakh Region 10% of Basic Pay \d Territories of Andaman and Nicobar (A&N) Islands of Lakshadweep: ‘Areas around capital towns (Port Blair in ABN islands, | 10% of Basic Pay Kavaratti and Agatti in Lakshadweep) Difficult Areas (North and Middle Andaman, South Andaman | 16% of Basic Pay excluding Port Blai, entire Lakshadweep except Kavaratti, Agatti and Minicoy) More Difficult Areas (Little Andaman, Nicobar group of | 20% of Basic Pay islands, Narcondam islands, East islands and Minicoy) Part A (Areas covered under Annexure-I of Deparment of | 8% of Basic Pay | expenditure O.M. No. 3/1/2017-E-II(B) dated 19.07.2017) | Part B (Areas covered under Annexure-II of Department of | 6% of Basic Pay expenditure O.M. No. 3/1/2017-E-1(B) dated 19.07.2017) Part C (Areas covered under Annexure-IIl of Department of | 4% of Basic Pay expenditure O.M. No. 3/1/2017-E-11(B) dated 19.07.2017) Part D (Areas covered under Annexure-IV of Department of | 3% of Basic Pay expenditure O.M. No. 3/1/2017-E-II(B) dated 19.07.2017) In the event of a place of falling in more than one category i.e. 11.2.1/11.2.2 and 11.2.3 mentioned above, in that case only the higher rate of allowance will be admissible. Non Practicing Allowance (NPA): ‘NPA @ 20% of Basic Pay shall be paid to Medical Officers. NPA will not be considered as pay for purpose of calculating other benefits. PERFORMANCE RELATED PAY (PRP): Payment of PRP shall be regulated as per DPE guidelines from FY 2017-18 and onwards. SUPERANNUATION BENEFITS: Company shall continue to contribute up to 30% of Basic Pay plus DA towards Provident Fund, Gratuity, Post-Superannuation Medical Benefits (PRMB) and Pension of employees. The ceiling of gratuity of the executives stands raised from Rs. 10 lakhs to Rs. 20 lakhs wwe-f. 01.01.2017 and funding for the entire amount of gratuity would be met from within the ceiling of 30% of Basic Pay plus DA. Besides, the ceiling of gratuity shall increase by 25% whenever IDA rises by 50%. The existing requirement of superannuation and of minimum of 15 years of service has been dispensed with for the pension, \ Page 4 ofSB4 14.0 15.0 16.0 17.0 18.0 Copy The existing Post-Retirement Medical Benefits will continue to be linked to requirement of superannuation and minimum of 15 years of continuous service for other than Board level executives, The Post-Retirement Medical Benefits shall be allowed to Board level executives (without any linkage to provision of 15 years of service) upon completion of their tenure or upon attaining the age of retirement, whichever is earlier. CORPUS FOR MEDICAL BENEFITS FOR RETIREES: Corpus for post-retirement medical benefits and other emergency needs for the employees who have retired prior to 01.01.2007 would be created with approval of the Board by contributing existing ceiling of 1.5% of PRT. CLUB MEMBERSHIP: Board level executives would be provided with Corporate Club membership (up to ‘maximum of two clubs), co-terminus with their tenure, PERIODICITY: The next pay revision shall take place in line with the periodicity as decided for Central Government employees but not later than 10 years, EFFECTIVE DATE OF IMPLEMENTATION & PAYMENT OF ALLOWANCES: The revised basic pay, DA, perks & allowances under the cafeteria approach shall be effective from 01.01.2017. Other perks and allowances such as HRA / Lease Accommodation / House Rent Recovery / Lacatinn hased compensatory allawances / Non-practicing allowance (NPA) shall be effective from the date of issue of Presidential Directive i.e. 08.11.2017. EXISTING ALLOWANCES: A\ll existing allowances not specifically covered under this order shall be paid at the existing rate in the pre-revised pay scales till the date of issue of Presidential Directive ive. 08.11.2017, MD Alll Directors/ CVO AIL EDs / Project Heads/ Basin Managers/ Asset Managers/ All HoDs CGM(KOY CGM(TLS) Page 5 of 5