WASA OF GOVERNMENT EMPLOYEES

Group – 1
Gauri – 3
Hamdi – 15
Andrea – 23
Shawn – 28
Megan - 33
 Comparison between Government and
Private Sector
Component Government Private Sector

Basic pay The pay commission arrives at The various jobs have to be
pay scales for all the levels. “evaluated” for their “relative
worth” in comparison to other
jobs to arrive at a hierarchy.
Then using comparative
organizations’ pay, the basic
pay for the position is arrived
at.
Annual increment & The increments in The private sector uses
pay scale government are time based. performance as a measure of
deciding the pay increase.
“inflation”
“Demand and supply
considerations”
Component Government Private Sector

Dearness allowance Based on consumer price

index, DA is 35% of Basic
plus Dearness Pay.
House rent allowance House rent allowance is Roughly it is 40% of basic
(HRA) calculated as a percentage pay, though it can go as
of base pay depending on high as 60%.
the classification of the city
City compensatory In the government pay The private sector uses City
allowance (CCA) scale however it is a compensatory allowance to
standard amount and not normalize pay across
calculated as a percentage metros and non metros. It
of basic pay. hence takes a huge weight
at higher levels of
hierarchy.
Transportation allowance A standard amount based Conveyance allowance in
on class of city Private sectors usually is a
percentage of pay,
Component Government Private Sector

LTC In a block of four years LTC is en-cashable

either two journeys

Advances The employees have to Private sector too provides

repay the loan in simple subsidy which it adds to
interest and hence is a cost the compensation package
to the government

Pension 50% of the pay-scale the But Private sector has EPF,
employee is retiring in if where employer
he/she has rendered 33 contributes 12% of
years of service. basic+DA.

Gratuity It is calculated as 16.5 focusing on the annual cost

times (assuming 33 years incurred by the
of service) the basic pay organization to give
Plus DP+DA at the time of gratuity to the employee
retiring or 3.5 lakh Rs, after five years.
whichever is smaller
Component Government
Group insurance Benefit 30% of their contribution
goes to an insurance fund.
Provident fund Government employees
have the GPF (general
provident fund scheme)
where the employees have
to contribute a minimum of
6% of their BP+DP+DA
Bonus and incentives Almost all government
employees receive some
kind of non-productivity
linked bonus. Running staff
in railways have their pay
Private Sector
Organizations contribute to
group insurance on behalf
of their employees.
All private sector
organizations have a EPF
scheme where the
employee contributes 12%
of BP+DP+DA
Depending on the level in
the organization variable
pay form a minimum of
10% of CTC and go upto
50% of CTC.
Component Government Private Sector

Medical benefit Government authorized Organizations pay a

doctors/government medical insurance
hospitals treat employees premium that covers the
without taking any fee. employees and their family
(ranging from a cover of
2,00,000 Rs to 7,00,000)
apart from reimbursing
medical bills/prescriptions
up to Rs. 15,000 per annum
 Cost of Pension

 The amount of pension payable is 50% of the basic

pay.
 If employee demise his family gets pension @ 30% of
the basic pay.
 The pay increases by 6% per annum.
 40 % of the pension can be commuted by the
employee at the time of retirement.
 Vehicle and computer advance

 Benefit to government employees to the extent in the

difference in the cost of the loans.

 The government employee pays back the vehicle and

computer advance that he/she avail from the government on
the basis of simple interest.
 Medical benefits

 Cost of insurance is based on the annual insurance

premium of Rs. 2951

 Insurance premium rates are different for different

age groups.
 Medical benefits for post retirement

 Costing is done in a manner similar to gratuity/pension.

CTG of group insurance benefit

 Government employees contribute to a fund every month.

 The insurance fund gives insurance benefits in case of loss

of life.

 The employee contributes less than what he/she should, to

get the same insurance benefit.
 CTG FOR RAILWAY EMPLOYEES

 The constituents of pay and benefits for railway employees are

almost the same as the general category employees except for
railway passes and a special category called running staff
 Constituents of gross pay for railway employees
 Allowances for railway employees
 Function specific allowance like Washing allowance, Night duty
allowance, National holiday allowance, goods train special duty
allowances, breakdown allowance, night patrolling allowance,
risk allowance etc
COST OF THE BENEFITS OF RLY. EMPLOYEES

 Education allowance
 Newspapers
 Telephones
 Pension
 Medical facilities
 Gratuity
 Housing, computer and vehicle loan benefits
 Leave encashment
 Computer at home for certain levels
 They do not have LTC or HTC
 Railway Passes

 The Railways get passes in lieu of LTC, and they get it every
year
 The employees get 3 passes up to a certain level and six passes

thereafter
Cost of passes post retirement
 Railway employees are eligible for passes even after

retirement
 The employee will travel only two times a year post retirement

along with his family

 The duration of such passes have been taken for a period of 20

years post retirement

Grade Pay at the minimum of pay Passes
scale
S1 2550 506
S2 2610 506
S3 2650 506
S4 2750 506
S5 3050 506
S6 3200 506
S7 4000 506
S8 4500 1950
S9 5000 1950
S10 5500 1950
S11 6500 1950
S12 6500 1950
S13 7450 1950
S14 7500 1950
S15 8000 2732
S19 10000 2732
S21 12000 2732
 Running staff (railways)

 Running staff have two important differences in

their pay:
 The pay component has a huge variable pay based on
running kilometers
 This component is very necessary because it gives in
hands a very high gross pay to the running staff and
employers
 The minimum alternative pay that the running staff
will receive if they do not run many kilometers
 The running staff’s HRA, CCA etc. are cost at 30 % of the
basic plus DP of the corresponding pay-scale

 The pensions and benefits of the running staff are more

than the pensions and benefits of the other railway
employees by 55%
 Running staff pay scale Table

Post / Grade Basic Salary Annual Final

Increment Payment
S4 2750.00 72.50 4400.00
S5 3050.00 77.50 4590.00
S7 4000.00 100.00 6000.00
S8 4500.00 125.00 7000.00
S9 5000.00 150.00 8000.00
S10 5500.00 175.00 9000.00
6000.00 9800.00
S12 6500.00 200.00 10500.00
S13 7450.00 225.00 11500.00
Cost of Enhancement 300
 The calculation is very similar to that of gratuity.

o Pay increases by 8% over 33 years.

o An employee is eligible to en-cash upto 300 days

basic plus DA of the last drawn pay.

o The government has to save a small amount every

month which grows over 33 years.
LEAVE TRAVEL CONCESSION
 Employees of the government are reimbursed the
travel expense they incur towards going home once
in 2 years.
 This is called home travel concession.
 The employee can travel to any part of the country
along with their family.
 The reimbursement amount increases by pay level.
HOUSE BUILDING ADVANCE
o The house building advance that the employees get
is 84 times the basic pay plus dp or Rs. 750000.

o The pricipal is repaid first anf then the simplew

interest is recovered.

o House building advance is now shown in the CTC

of any organization whenever the organization
gives them an interest subsidy.