HR MANUAL Book - 4 PAY & ALLOWANCES; LOANS & ADVANCES; SCHEMES FOR PAYMENT OF INTEREST SUBSIDIES; AND AWARDS & INCENTIVES st (Updated upto 31 March 2015) HINDUSTAN AERONAUTICS LIMITED Corporate Office 15/1, Cubbon Road, Bengaluru - 560 001 www.hal-india.com (for Private Circulation only) HR MANUAL Book - 4 PAY & ALLOWANCES; LOANS & ADVANCES; SCHEMES FOR PAYMENT OF INTEREST SUBSIDIES; AND AWARDS & INCENTIVES st (Updated upto 31 March 2015) HINDUSTAN AERONAUTICS LIMITED Corporate Office 15/1, Cubbon Road, Bengaluru - 560 001 www.hal-india.com (for Private Circulation only) INDEX Chapter No./ Page Description Annexure No. No. I PAY & ALLOWANCES I.1 Scales of Pay 3 I.2 Personal Pay 4 I.3 Dearness Allowance 4 I.4 Increment 5 I.5 House Rent Allowance 6 I.6 Service Weightage Pay 23 I.7 Allowances under the Cafeteria System for Executives 24 I.8 Non Practicing Allowance 27 I.9 Reimbursement of expenditure incurred on Official 27 Entertainment at Residence I.10 Reimbursement of Membership Fees paid to Professional 28 Bodies I.11 Special Allowance, Insurance Coverage & Survival Benefit in respect of Company Test Pilots / Flight Test 30 Engineers / Flight Test Instrumentation Engineers / Communication Pilots I.12 Retention Incentive in respect of Company Test Pilots / Flight Test Engineers/ Flight Test Instrumentation 32 Engineers I.13 Special Flying Allowance 33 I.14 Special Qualification Allowance to AME/ ARME Licence 34 Holders I.15 Flight Data Processing Allowance for Air Traffic Hands 35 I.16 Rating Allowance and Stress Allowance 35 I.17 Scheme for purchase of Furniture, Household items etc. 35 by Senior Executives I.18 Scheme for Allotment, Recovery & Purchase of Company- 38 Owned Cars being used by Officers in Grade-IX & above I.19 Residential Landline Phone with Internet Connection & 42 Mobile Phones I.20 issuance of iPADs/Laptops to Officers in Grade IX & above 49 I.21 Additional Perquisites to Officers in Grade-X & above 50 I.22 Special Allowances for Officers & Workmen at Koraput & 50 Korwa I.23 Payment of North-East Allowance & Special Allowance for 52 serving in difficult & far flung areas I.24 Outstation Allowance 53 Chapter No./ Page Description Annexure No. No. I.25 Payment of High Altitude/ Counter Insurgency /Modified 54 Counter Insurgency Area Allowance I.26 Special Process Allowance 55 I.27 Special Allowance To Sportsmen 56 I.28 Canteen Allowance / Meal Vouchers 59 I.29 Special Allowance to Blind/ Orthopaedically Handicapped 60 employees I.30 Transport Allowance to Blind/ Orthopaedically 60 Handicapped, Deaf & Dumb employees I.31 Reimbursement of expenditure incurred on Conveyance 62 for Official Purposes I.32 Conveyance Allowance 63 I.33 Special Allowance 64 I.34 Additional Special Allowance 64 I.35 Allowance in lieu of issue of Milk 64 I.36 Night Shift Allowance 64 I.37 Split Shift Allowance 64 I.38 Special Allowance for Call Duties 65 I.39 Washing Allowance 65 I.40 Cash Handling Allowance 65 I.41 Turnout Allowance 66 I.42 Uniform Allowance to Nursing Staff 66 I.43 Reimbursement of School Fees 67 I.44 Welders Bonus 67 I.45 Incentive for Safe Driving 68 I.46 Professional Development Allowance & Magazine 69 Allowance for Workmen in Special Scale I.47 Arms Allowance 70 I.48 Scheme for presentation of Service Gifts 70 I.49 Gift at the time of Separation 72 I.50 Conveyance Reimbursement/ Allowance, Canteen Allowance & Leave Travel Allowance - Ex-Servicemen 72 engaged on Contract basis ANNEXURES I.A Application for Leased Accommodation 74 I.B Format for Letter from owner of the house/flat-Company 76 Leased Accommodation Chapter No./ Page Description Annexure No. No. I.C Receipt cum Security Deposit-Lease Agreement 78 I.D Lease Agreement 79 I.E Format for letter to be issued to the Officer- Leased Accommodation 82 I.F The Basket of Allowances (for selection based on Cafeteria Approach) 84 I.G Application Format for indicating the Optional Allowances under 85 the "Cafeteria System" for the Financial Year I.H Illustrative list of Professional Bodies in ‘areas other than Technical’ 86 I.I Application for reimbursement of Membership Fee paid to Professional Body/Bodies 87 I.J Application for grant of Special Allowance to Sportsmen 89 I.K Format for Annual Report on Special Allowance paid to Sportsmen for the Financial Year 92 I.L Form of application for reimbursement of expenditure on use of Conveyance 93 I.M Certificate of monthly claim- Scheme for reimbursement of expenditure on use of Conveyance 94 II LOANS AND ADVANCES Rules governing grant of Advance for purchase of II.1 97 Vehicles in respect of Officers Rules governing grant of Advance for purchase of Motor II.2 97 Cycle / Scooter / Auto Cycle in respect of Workmen Grant of Advance for purchase of Motorised II.3 Wheel-Chair / Tricycle in respect of Orthopedically 100 Handicapped Workmen Special Loan to employees whose Houses are II.4 101 damaged by Floods / Cyclones II.5 Special Advance for Workmen 102 II.6 Contingency Advance for Officers 102 II.7 Salary Advance 103 ANNEXURES Application for Advance to purchase Motor Cycle / II.A 104 Scooter / Auto Cycle/ Motorised Wheel-Chair/ Tri-Cycle Chapter No./ Page Description Annexure No. No. Agreement for drawing Advance by Workmen for the II.B purchase of a Motor Cycle / Scooter / Auto Cycle / 106 Motorised Wheel-Chair/ Tri-Cycle Letter of Hypothecation for Advance paid for purchase III.C of Motor Cycle / Scooter / Auto Cycle / Motorised 108 Wheel-Chair/ Tri-Cycle III.D Application for Salary Advance 111 III SCHEMES FOR PAYMENT OF INTEREST SUBSIDIES III.1 Interest Subsidy Schemes - Officers 115 Scheme for Payment of Interest Subsidy for House III.2 115 Building Loan in respect of Workmen Scheme for Payment of Interest Subsidy for Vehicle Loan III.3 119 in respect of Workmen in the Special Scale Scheme for Payment of Interest Subsidy on Computer III.4 121 Loans in respect of Workmen Scheme for payment of Interest Subsidy on Loans taken III.5 122 for Higher Education of Children in respect of Workmen ANNEXURES III.A Declaration 126 III.B Authorization Letter to HAL 127 Application for sanction of Interest Subsidy on Housing III.C 128 Loans - Workmen Application for payment of Interest Subsidy on Housing III.D 131 Loan – Workmen Application for Sanction of Interest Subsidy on Vehicle III.E 132 Loan - Workmen in the Special Scale Application for payment of Interest Subsidy on Vehicle III.F 134 Loan – Workmen in the Special Scale Application for sanction of Interest Subsidy on III.G 136 Computer Loan – Workmen Application for payment of Interest Subsidy on III.H 138 Computer Loan – Workmen Application for sanction of Interest Subsidy on Loan III.I 139 taken for Higher Education of children – Workmen Application for payment of Interest Subsidy on Loan III.J 141 taken for Higher Education of children – Workmen IV AWARDS & INCENTIVES IV.1 HAL Employee Suggestion Scheme 145 Grant of Incentive to employees acquiring Higher IV.2 150 Educational Qualification after joining the Company IV.3 HAL Merit Scholarship Scheme 152 IV.4 Incentive Scheme for promoting Small Family Norms 159 IV.5 Uniform Rate Incentive Scheme For Workmen – 2013 163 IV.6 Quarterly Performance Pay Scheme for Workmen - 2013 176 Chapter No./ Page Description Annexure No. No. IV.7 Performance Related Pay (PRP) Scheme for Officers 180 ANNEXURES IV.A Suggestion Form 189 List of Qualifications and amount of Incentive – Technical IV.B 190 Disciplines List of Qualifications and amount of Incentive – Non- IV.C 191 Technical Disciplines Worksheet for deriving Output and payment of Monthly/ IV.D 192 Annual Incentive IV.E Calculation of Incentive for Direct Labour in a Group 196 Apportionment of Total Incentive amount between IV.F 198 Production/ Overhaul Divisions and Common Services Attachment of R & D Centres, Corporate / Complex Officers, Liaison Offices and Central Services to IV.G 199 Production / Overhaul Divisions – for computation of Incentive IV.H Illustrative example on assessment of Annual Incentive 200 IV.I Divisional Performance (DP) Factor 201 IV.J Distribution of Output 202 IV.K Computation of Quarterly Performance Pay 203 Attachment of R & D Centres, Corporate / Complex IV.L Offices, Liaison Offices and Central Services to Production 205 / Overhaul Divisions – for computation of QPP IV.M Format for Report on Payment of QPP 206 IV.N Format of Mutually Agreed Task – Individual Performance 207 IV.O Suggested list for Individual Performance Parameters 208 IV.P Penalty Factors 214 Attachment of R & D Centres, Corporate / Complex IV.Q Offices, Liaison Offices and Central Services to Production 215 / Overhaul Divisions – for computation of PRP IV.R Sample PRP Computation 216 IV.S Divisional Performance Index 218 IV.T Individual Performance Details 219 I. PAY AND ALLOWANCES I.1 SCALES OF PAY I.1.1 Scales of Pay and Allowances of Officers are revised from time to time. The last revision of Pay Scales and Allowances was done w.e.f 1.1.2007. The Pay Scales and Allowances of Workmen are also revised periodically after Settlement with the recognized Trade Unions in the Company. The current Wage Settlement, which is effective from 1.1.2012 is valid upto 31.12.2016. Further, the Settlement shall continue to be operative beyond 31.12.2016, till a new Settlement is arrived at w.e.f. 1.1.2017. I.1.2 The Pay Scales and Allowances of Officers and Workmen are as indicated below: I.1.2 SCALES OF PAY:: EXECUTIVES (EFFECTIVE FROM 1.1.07) Reference: PC No.684 Dt. 28.5.09 Grade Scale of Pay (Rs.) I 12600 – 32500 II 16400 – 40500 III 20600 – 46500 IV 24900 – 50500 V 29100 – 54500 VI 32900 – 58000 VII 36600 – 62000 VIII 43200 – 66000 IX 51300 – 73000 X 62000 – 80000 Directors 75000 – 100000 Chairman 80000 – 125000 I.1.2 SCALES OF PAY:: WORKMEN (EFFECTIVE FROM 1.1.12) Reference: PC No.704 Dt.