___________CHAPTER – IV

SALARY STRUCTURE AND ADMINISTRATION

1. Scales of Pay
The Company employees are governed by two pay structures namely
(i) the CDA Pattern generally for all those who were entitled to pay scales on this pattern before 1.1.89
and

(ii) the IDA Pattern for those appointed on or after 01.01.89.

The Scales of Pay adopted for its various cadres and the typical designations to which they are applicable
are indicated below against each Scale of Pay. These are applied to appointments below the level of the
Board of Directors. For appointments at the level of the Board, Central Government fixes the salary structure
including scale of pay, dearness allowance and other allowances.

S.No On CDA Pattern On IDA Pattern Designation

(Rs.) (Rs.)

1. 2550-55-2600-60-3200 2850-55-4225 Messenger, Field Helper and other unskilled staff

2. 2650-65-3200-70-4000 2950-65-4575 Sr. Messenger, FH Gr.I, Rec. Sort. Gr.II
3. 2750-70-3800-75-4400 3100-70-4850 Record Sorter, Cook, Messenger Gr. II, Field
Helper Gr.II
4. 3050-75-3950-80-4590 3400-75-5275 Jr. Asst.-cum-Typist, Driver, Jr.Data Entry
5. 4000-100-6000 4400-100-6900 Assistant, Personal Assistant , Jr. D’Man, Driver
6. 5000-150-8000 5200-140-8000 Sr. Assistant, Sr. Personal Assistant, Driver,
Technical Asstt. Jr. Accountant, Data Entry
Supervisor, D’Man
7. 5500-175-9000 6000-160-9200 SO, SPA, HDM, Spl. Grade Driver, Accountant,
Sr. Technical Assistants.
8. 6500-200-10500 6550-200-11350 Engineer/Jr. Manager
9. 8000-275-13500 8600-250-14600 Assistant Manager, Secretary –cum-Asst. Manager,
Asst. Inspecting Engineer, and Sr. Programmer
10. 10000-325-15200 10750-300-16750 Manager, Special Secretary, Senior Inspecting
Engineer, Senior Systems Analyst.
11. 12000-375-16500 13000-350-18250 Dy. General Manager, Dy. Chief Inspecting Engineer
12. 14300-400-18300 16000-400-20800 Joint General Manager
13. 16400-450-18300 17500-400-22300 Additional General Manager
14. 18400-500-22400 18500-450-23900 General Manager
15. – 20500-500-26500 Group General Manager
____2. Dearness Allowance
In addition to Pay, in the relevant scale of Pay as fixed under the relevant rules, the employees of the
Company are paid dearness allowance on CDA/IDA pattern as applicable to the corresponding scale, at
the rates notified from time to time.
3. Dearness Pay (For CDA Scales Employees)
DA equal to 50% of existing basic pay has been merged with the basic pay w.e.f. 01.04.2004 and
shown distinctly as Dearness Pay (DP). This would be counted for purposes like payment of
allowances, transfer grant, retirment benefits, contribution to GPF/CPF, various advances etc. However,
for entitlement for LTC, TA/DA while on tour and transfer and company accomodation shall continue to
be governed on the basis of basic pay alone, without taking into account the Dearness Pay. The
Dearness allowance converted into Dearness Pay would be deducted from the existing rate of DA.

4. .House Rent Allowance

a. House Rent Allowance is paid to such of the employees who are not allotted or provided with houses
/flats or other residential accommodation owned or leased by the Company. House rent allowance is
paid at the rates indicated below for different classes of cities subject to the House rent actually paid
being in excess of ten percent of the monthly pay as may be drawn from time to time. The classification
of cities for the purpose of payment of House Rent Allowance will also be determined and notified from
time to time.
The Rates of HRA are as under :
S. No. Class of Cities Rate of HRA

1. A-1 30% of Basic Pay

2. ‘A’ B1 & B2 15% of Basic Pay

3. ‘C’ 7.5% of Basic Pay

4. Unclassified 5% of Basic Pay

b. An employee living in a house owned by himself or his wife, children father or mother shall also be
eligible to be paid the House Rent Allowance under these Rules in lieu of the flat rate referred to in the
previous sub-rule. In such cases, the gross rental value of the house or of the portion of the house
occupied by him (calculated proportionately in terms of plinth area) as ascertained from its assessed
value for purpose of local taxes or otherwise, shall be taken as the rent paid by him for the purpose of
these rules.
c. An employee drawing house rent allowance at the admissible rates will, in the event of transfer to another station,
be entitled to house rent allowance as under,
___________upto a period of six months, provided he retains the accommodation at the previous station
and continues to incur the rental liability:
(i) For the first two months from the date of assumption of charge at the new station at the same
(ii) rate at which it was drawn at the previous station.
(iii) For the next four months At the rate at which it was being drawn at the previous station or the
maximum amount that would be admissible to him at the new station had he taken residence there
on rent, whichever is less. In either case, the grant of the allowance, under this provision shall not
be admissible beyond the date on which the employee rents out a house or is allotted the
Company’s own or leased accommodation at the new station of posting.
d. If an employee in receipt of house rent allowance dies, the allowance may be paid upto a period of four
months from the date of his death to the family who were residing with the employee on the same
conditions as applicable to the employee before his death, at the discretion of the Management. For the
purpose of this provision, “family” would mean the spouse, dependent legitimate / step /adopted
children or the parents of the deceased employees, who were residing with him.
5. City Compensatory Allowance
City Compensatory Allowance is paid to the employees at the following rates for different classes of
cities. Classification of cities for this purpose will be notified from time to time and will be on the same
basis as the one adopted by the Central Government in respect of its employees.
PAY RANGE
CDA IDA A1 A B1 B2

Below Rs.3000 /-p.m. Below Rs. 3250 Rs.90/- Rs. 65/- Rs. 45/- Rs. 25/-

Rs. 3001-4499 Rs. 3251-4899 Rs. 125/- Rs. 95/- Rs. 65/- Rs. 35/-

Rs. 4500-5999 Rs. 4900-6039 Rs. 200/- Rs. 150/- Rs. 100/- Rs. 65/-

Rs. 6000 & above Rs. 6040 & above Rs. 300/- Rs. 240/- Rs. 180/- Rs. 120/-

6. Transport Allowance
1. Consequent to the implementation of 5th Central Pay Commission’s recommendations, RITES
employees are entitled to Transport Allowance at the following rate w.e.f. 1.8.97
___ Pay Scale of the Employee Rate of Transport Allow-
ances per month (in Rupees)

‘A-1’/‘A’ Other
Class Cities Places
1. Employees drawing pay in the scale of 800/- 400/-
pay Rs. 8000-13500 or above/equivalent
IDA Pay Scale
2. Employees drawing pay in the scale of 400/- 200/-
Rs. 6500-6900/- or above but less than
Rs. 8000-13500/- or equivalent in IDA
Pay Scale.
3. Employees drawing pay below the scale 100/- 75/-
of Rs. 6500-6900/- or equivalent in IDA
Pay Scale.

2. The employees who are required to travel on official work within their headquarters station and use
their own vehicle for such movement may claim reimbursement at the rate indicated below :
Travel by own Car - Rs. 8 per Km
Travel by own Scooter - Rs. 4 per Km
(These rates are applicable, where no specific rates have been prescribed either by the Director of
Transport or the concerned state or of the neighbouring states, and are provisional.)
3. Transport allowance upto Rs. 800/- is exempted from the purview of the Income Tax Act.
7. Vehicle maintenance Allowance
RITES officials having their own vehicles are eligible for Vehicle Maintenance Allowance in lieu of
Transport Allowances, on optional basis, at the rates indicated below :
 __________ (Figures in Rs. Per month)
S.No. Category 'A' Class cities Other than 'A' Class
Cities
01. Non - executive 400 200
02. Jr. Managers 600 300
03. AMs / Managers 1000 500
04. Dy.GMs/Jt.GMs/AGMs 1200 600
05. GMs 3000 2000
06. GGMs/EDs 4000 3000

Terms & Conditions :

1. Those provided with official vehicles including pooled one are not entitled to draw Vehicle Maintenance
Allowance.
2. Employees opting for Vehicle Maintenance Allowance will not be eligible for conveyance to perform
journeys on official account to diferent places within the Municipal limits of their HQ station and also to
attend office beyond normal duty hours and to attend office on holidays. In case of employees posted in
Gurgaon and Delhi, the limit would be treated as municipal limits of Gurgaon and NCT of Delhi as the
limit of their HQ territory.
3. Vehicle Maintenance Allowance to the extent of eligible amount is to be granted on maintenance of
auto-vehicle by the employee concerned.
4. An official drawing Vehicle Maintenance Allowance is not eligible for use of official vehicle for his
movement in connection with official work. However this is not applicable to official journeys to/from
Railway station/Airport/Bus stand at the commencement of and on return from tours to outstations.
5. Vehicle Maintenance Allowance will not be admissible if an employee is absent from the
Headquartors/place of duty on leave/tour/temporary transfer for a period of 30 days or more.
6. Option, once excercised will be for a minimum period of one year.
The option, as aforesaid, is to be exercised in the Proforma enclosed
(Annexure – I).

8. Project Allowance
The Company sanctions Project Allowance at specified rates as determined from time to time to the employees
who are posted to work at certain places of
_________remote location for execution / supervision of different projects on behalf of the Company. The
rates of allowance payable for different Pay ranges are given below:
Pay Range Rate of Project Allowance p.m.

CDA IDA

1) Below Pay Rs.3000/- Below Rs. 3250 Rs. 150/-

2) Rs. 3000-4499 Rs. 3251-4899 Rs. 300/-

3) Rs. 4500-5999 Rs. 4900-6039 Rs. 450/-

4) Rs. 6000-8999 Rs. 6040-9599 Rs. 600/-

5) 9000 & above Rs. 9600 & above Rs. 750/-

9. Special Compensatory Allowances

Special Compensatory Allowance is granted for the exceptionally difficult localities in various places. In
RITES the allowance is granted on case to case basis as per the requirement of Project Office. The
existing and revised rates of special compensatory Allowances shall be as under :
Areas Basic Pay Basic Pay Basic Pay Basic Pay Basic Pay
Below Rs. 3050-4999 Rs. 4500-5999 6000-8999 Rs. 9000
Rs. 3050 & above
A 300 500 700 1000 1300
B 250 400 550 800 1050
C 150 300 450 600 750
D 40 80 120 160 200

(Part A, B, C, D denote localities

10. Special Duty Allowances

Special Duty Allowance is granted to RITES employees posted in the N.E. Region, Sikkim and
Andaman & Nicobar Island etc. @12.5% of their basic pay.

11. Children Educational Assistance and Reimbursement of tuition fees

The Company will make reimbursement for its employees as assistance on different counts in respect
of education of their children (legitimate children, including step children and adopted children) in lower-
middle, high and higher secondary schools as indicated below on the same conditions prescribed from
time to time by the Central Government in respect of similar education of the children of its own
employees.
____________12. Reimbursement of tuition fees and children education assistance
1) Class X and below Rs. 40/- p.m. per child
2) Class XI & XII Rs. 50/- p.m. per child
3) Science fees Rs. 10/- p.m. for class XI to XII, if
charged separately.
4) Education Assistant for Primary Rs. 100/- p.m. per child
Secondary & Higher Secondary
class
5) For physically handicapped and Rs. 300/- p.m. per child
mentally retarded children upto
class XII
6) Hostel Subsidy Rs. 300/- p.m. per child
The above reimbursement is further subject to the conditions that:-
(i) The child is enrolled in a recognised school;
(ii) The concession is restricted to two children;
(iii) Reimbursement for a child is not admissible for more than 2 academic years in the same class;
(iv) The reimbursement is not admissible when the child gets a Government or non-Government
scholarship, where the amount of scholarship is in excess of tuition fees amount, and where it is
less the difference to the extent admissible may be allowed.
(v) The Educational assistance is admissible only when an employee is compelled to send his child to
a school away from the station where he is posted and / or is residing owing to the absence of a
school of requisite standard at the station and is limited to two children.

13. Fixation of Pay

(a) The initial basic pay of an employee newly appointed to a post in the Company will be fixed at the
minimum of the scale of pay of the post to which he is appointed. The Management may, however,
permit the pay of an individual new recruit to be fixed at a higher stage in the scale of pay, taking into
account the special circumstances of his case like, higher qualifications, and greater experience and
other merits than the minimum standards prescribed for the post.
(b) When an employee is promoted to a higher post or grade, his initial pay in the new scale of pay will be
fixed.
___________(f) Pay of an employee on deputation with the Company will be fixed in accordance with the rules laid
down for the purpose by the organisation from where he is taken on deputation, so long as he continues to remain
on deputation. On permanent absorption in the Company, his pay will be refixed in accordance with the Rules of
the Company. On such permanent absorption, the Management may permit the deputation allowance, if any drawn
by him, to be protected in the fixation of his pay in the grade in which he is absorbed.
(g) In the case of an employee reverted from a higher to a lower grade, his pay in the lower grade will be fixed at the
stage, he would have been in, had he continued in the lower grade, but for promotion to the higher grade.
(h) The management may modify the provisions in the rules for fixation of pay from time to time by issue of general
orders for governing cases of hardships or anomalies.

14. Drawal of Increment

(a) In the case of employees who are on probation, the first increment will be drawn with effect from the first day of
the month in which the probation is declared to have been successfully completed or the month following the
completion of twelve months from the date of appointment on probation, whichever is later.
(b) Subsequent increments will in the case of those newly recruited and of those promoted to a higher grade be
granted after every year of service from the first of the month in which it becomes due. Leave without pay (if it is
not on medical grounds) and period of suspension will not count for increment unless in the case of suspension the
Competent disciplinary authority decides otherwise.
(c) Stagnation increments :Employees in grade Rs. 18400-22400 or equivalent and below who reach the maximum of
the grade will be granted Personal Pay equal to the rate of one increment last drawn, with effect from the date of
completion of two years at the maximum, subject to a maximum of three such increments and that Pay plus
stagnation increments would not exceed Rs. 23900/-. The ‘Personal Pay’ ; will be taken into account for the
purpose of DA;HRA; CCA and retirement benefits but will be not reckoned for the purpose of fixation of Pay on
promotion.

15. Bonus
The management will grant with the approval of the Board of Directors annual bonus to its employees in
accordance with the statutory provisions contained in the Payment of Bonus Act, 1965 as amended from time to
time.
 _______Annexure – I

OPTION TO DRAW OF VEHICLE MAINTENANCE ALLOWANCE

I have gone through and understood the elibibility conditions for drawal of Vehicle Maintenance Allowance
and hereby give my option to draw Vehicle Maintenance Allowance in lieu of Transport Allowance.

Signature ________________________

Name ___________________________

Designation ______________________

Emp. No. ________________________

Office/Deptt. & ____________________

Place of working

Forwarded to Accounts (Estt.) for necessary action

Office/Deptt. &
Controlling officer __________________
Designation