MEMORANDUM OF SETTLEMENT
OVER THE REVISION OF PAY
AND
CERTAIN ALLOWANCES
DATED 2nd DECEMBER, 2000
BETWEEN
MANAGEMENT OF
VIDESH SANCHAR NIGAM LIMITED
AND
THEIR WORKMEN REPRESENTED BY
THE FEDERATION OF VIDESH SANCHAR NIGAM
EMPLOYEES' UNION, MUMBAI
Under Section 12(3) read with Section 18(3) of the Industrial Disputes Act, 1947
and Under Section 20(p) and 18(1) of the Act.
PART-A
SHORT RECITAL
The last revision of the sale of pay of VSNL non-executives was made
effective from 1.1.1992 for a period of five years and after the expiry of
five years the next pay revision fell due from 1.1.1997. The Federation of
VSN Employees' Unions had submitted a Charter of .Demands (COD) on
20.10.1997 requesting VSNL Management for the revision of pay and
allowance and other related benefits to the non-executives effective from
1.1.1997. Federation subsequently vide its letter No.FED/F-4/99/2000/96
dated 21st September 1999 requested for deferment of negotiation on wage
revision until finalisation of pay revision in respect of executives.
1.2 DPE vide its OM No. 2 (11)/96-DPE (WC) dated 14.1.1999 conveyed the
decision of the Govt. in connection with the next round of wage
negotiations which fell due from 1.1.1997 with the workers
(non-executives) of Central PSEs to be commenced by the Management of the
Enterprises with the Trade Unions/Associations, subject to certain
conditions like revision should be within the approved parameters and to
ensure that also such negotiated wages would not come in conflict with the
wage revision of executives.
1.3 Pursuant to Govt. of India Office Memorandum NO.2(1l)/96-DPE(WC)-GL XXVII
dated 26th July; 2000 notifying that unionized employees governed by IDA
pattern, would have option to opt for either:
(1) a 10 year periodicity on wage revision with 100%
neutralization of DA as set out in the guidelines ~5d on
14.1.99, OR
(2) a five year periodicity on the basis of graded neutralization
as did exist previously i.e. from 1.1.92 to 31.12.96.
Federation indicated its preference for 10 year periodicity.
1.4 The issues arising out of the COD have been negotiated with the Employees'
Federation initially on 19th & 20th October 2000 & from 8th to 10th
November 2000 & finally from 23 November to 1st December 2000. After
exhaustive process of negotiation the Memorandum of Settlement was arrived
on 2nd Dec. 2000.
1.5 In the context of fast changing technologies, competitive environment and
tremendous growth potential in the field of Te1ecommunications around the
globe, both Employees' Federation and the Management commit themselves to
work together for attaining the objectives and increase productivity and
profitability.
1.6 It is also realized that re-training, re-deployment and re-adjustment of
manpower, changes in the work culture with commitment to productivity
would have to be achieved in the context of changing requirements of the
Company. Towards this end, employees and the representatives assure full
co-operation to the Management for implementing charges as may be required
periodically.
PART-B
TERMS OF SETTLEMENT
This settlement will be applicable to all the categories of non.executives who
were on the rolls of VSNL as on l.l.1997or have subsequently joined the Company.
This settlement shall be effective from 1st January 1997 till 31.12.2006 (ten
years) and will continue to be operative till next settlement is signed.
WAGE STRUCTURE
2.1 Scale of-pay
The following shall be the pay scales applicable to the non-executives of
the company from 1st January 1997:
--------------------------------------------------------------------------------
Pre-Revised Scales Revised Pay Scales w.e.f.
1.1.1997
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Level Scale of Pay Span Scale of Pay Span
(grade) (years) (years)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NE-1 2300-40-2620-50-3220 20 4825 - 125 - 6700 15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NE-2 2375-50-2775-60-3495 20 5100 - 140 - 7200 15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NE-3 2475-60-2955-70-3795 20 5450 - 175 - 8075 15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NE-4 2600-70-3160-80-4120 20 6000 - 200 - 9000 15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NE-5 2780-80-3420-90-4500 20 6700 - 225 - 10075 15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NE-6 2985-90-3705-100-4905 20 7150 - 240 - 10750 15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NE-7 3210-100-4010-110-5330 20 7700 - 250 - 11450 15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NE-8 3450-110-4330-120-5770 20 8400 - 265 - 12375 15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NE-9 3700-120-4660-130-6220 20 8590 - 300 - 13990 18
--------------------------------------------------------------------------------
2.2. Dearness Allowance
100 percent Dearness Allowance (DA) neutralization shall be adopted for
all the Non-Executives w.e.f. 1.1.1997. On 1.1.1997 at 1708 AICPI the IDA
in the revised scale of pay would be nil. The change in DA shall be paid
as notified by DPE from time to time.
2.3. Fitment Method
Fitment in the revised scales shall be made applicable as per DPE
Guidelines as per following method.
a) Basic Pay in the Pre Revised pay scales as on 31.12.1996
Plus
b) Corresponding Dearness Allowances at AICPI at 1708 (Base 1960--100)
as on 1.1.1997
Plus
c) FDA component as on 1.1.97.
Plus
d) Fitment amount up to 20% of (a) above.
The new basic will be determined by placing the aggregate amount arrived
by adding (a) to (d) in the revised scale of pay. Where the aggregate
amount (a to d) thus arrived does not fit into the stage in the revised
scale of pay, the new basic pay will be determined by fixing the aggregate
amount at the next higher stage in the revised scale of pay.
2.4. Bunching Increments
One increment in the revised scale will be granted for every three
increments drawn in the pre revised scale held as on 31.12:1996, as
bunching increment. The amount so arrived will be added to the pay arrived
as in para 2.3 above.
2.5. Special Increments
One special increment in the revised scale shall be granted to the Non
Executives who were on-the rolls of the Company as on 31.12.1996. In
addition to this, employees who were in the grade of NE-9 as on 31.12.1996
shall be granted two additional increments in the revised scales. These
increments shall be payable from 1.1.1997.
2.6 Stagnation increments
15Non-executives who reach the maximum of the revised scale of .pay
(stagnation) would be granted up to a maximum of three stagnation
increments.
2.7 Fixed Dearness Allowance
The payment of Fixed Dearness Allowance (FDA) shall be discontinued in the
revised pay scale with effect from l.l.l997.
2.8 City Compensatory Allowance -
City Compensatory Allowance shall be paid with effect from 19th November
1999 as per the classification notified by the government from time to
time & quantum as per DPE notification.
2.9 House Rent Allowance
House Rent Allowance shall be paid with effect from 19th November 1999 as
per the classification notified by the government from time to- time &
quantum as per DPE notification.
2.10 PERKS & ALLOWANCES - - -
It has been agreed to negotiate perks & allowances separately, for which
the process will be initiated as-early as possible. For implementation of
this pay revision, perks & allowances and other entitlements linked to the
basic pay will remain unchanged until revised.
PART-C
It has been further agreed by and between the parties as follows:-
1. Improvement of overall efficiency.
i) Federation and its members must strive for improving overall
services and productivity.
ii) Federation will cooperate with the Management in matters relating to
restructuring of various wings/sections within the organisation.
iii) Federation will cooperate with the Management in ensuring industrial
peace by discussing disputes, if any with the Management for
arriving at mutually acceptable settlement
iv) Federation agrees that its member employees would accept diversified
jobs in order to ensure higher productivity in Internet Services,
Marketing, Customer Relations etc.
v) Federation agrees that its member employees would cooperate in the
matter of bringing out improvement in all areas of working like
office automation, etc.
vi) Due to rapid change in technology, the employees are expected to
keep themselves updated in their respective area of working and
Management will be providing necessary training, assistance, etc.
for the same.
vii) Federation must realise the bottom line in providing efficient
services both for domestic and international norms to remain
competitive.
viii) Keeping in view the competitiveness of. telecom sector in which VSNL
is operating, Federation and its members agree to- strengthen the
hands of the Management by rendering all possible cooperation to
remain competitive.
2. Management also appeals.the Federation of Employees Unions and Regional
Unions themselves to lead the employees to work together with the
Management in attaining the following goals emphasized in our targeted
plan for the coming years:
i) Efficient handling of the various telecommunications services
provided by VSNL.
ii) Services to the customers to their better satisfaction.
iii) Improvement in productivity and reduction in operational costs.
iv) Improving quality in all operations.
v) Necessary improvement in working conditions.
vi) Continuously adopt better working practices.
vii) Punctuality/reduction of unauthorized absenteeism.
viii) Effective utilization of all available resources.
ix) Improvement in housekeeping. -
3. Employees' Federation and unions acknowledge that redeployment and
retraining consistent with skills, dignity and earning of employees is
necessary in the context of modernization and changing advanced technology
in our organization.
4. Employees' Federation and unions agree that discipline at all levels is
essential for smooth and efficient functioning of the organization and
will ensure compliance by all its members.
5. Employees' Federation assure to work shoulder to shoulder with the
Management towards attaining the customer satisfaction because of the
changed scenario in the telecommunications field.
6. Management expect the characteristics of the workmen with respect to
degree of skill, punctuality, adaptability, willingness to accept
innovation, attitudinal changes etc. for higher work responsibility.
7. GENERAL
1) No individual or collective representation of whatsoever nature
arising out of this settlement shall be entertained by the
Management.
2) There will be no change in the dates of drawal of annual increment.
3) Increment/promotion falling after -1.l.1997 will be granted in the
revised pay scales.
4) Anomalies, if any, arising out of this revision should be referred
to HQ for resolution within the administrative rules and guidelines.
8. The above agreement will be applicable subject to the approval of the VSNL
Board.
SIGNED AT VSNL, VSB, MUMBAI ON 2~ DAY OF DECEMBER 2000.
PARTIES TO THE SETTLEMENT
On behalf of Workmen (Non Executives)
On behalf of VSNL Management represented by Federation of VSN
Employees' Unions
1 S.M.Pimpale, President
2 Syed Altaf Hussain, V.President
Amitabh Kumar, Director (0) 3 S.D. Shukla, Secretary General
4 G.E. Gosavi, Jt. Secy General -
5 M.B.More, Treasurer
6 J.C. Parashar, Liaison Officer
M.G. Wasnikar, CGM (0) 7 M.M.Solanki, ASG Gioup D
8 K. Balan, Advisor_ - -
9 P.Y. Patil, President, Mumbai
10 TS.-Shivkumar, Gen. Secy, Mumbai -
Arun Gupta, CGM (F) 11 A.B.Gamre, ASG, Mumbai
12 P.V. Mohite, Councillor
13 J.S.Dhaliwal, President, New Delhi
14 Pyrelal Bhatt, Gen. Secy, N~' Delhi
G.R. Shaikh, SGM (HR) 15 S.K. Sharma, ASG, New Delhi
16 R.Vasu, President Chennai
17 Joshep Manoharan, G. Secy. Chennai
18 V. Srinivasan, Councillor, Chennai
V. Natarajan, SGM (FIR) 19 A.K~Mitra, President, Calcutta
20 R. Gangopadhyay, Gen.Secy, Calcutta
20 P:R. Gaikwad, President, Pune
22 S.G.Sinnarkar, Gen. Secy. Pune
K.S.B.Nair, DGM(HR) 23 R.S. Inamke, President, Arvi
24 N.T.Sarwade, Gen Secy. Arvi
25 A.D.Bhosle, ASG, Arvi
26 C.P.Kala, Gen. Secy, Dehradun
27 Dinesh Sharma, ASG, Debradun
OFFICE ORDER
Sub: Revision of Pay and certain A1lowances of Non-executives of VSNL w.e.f.
1.1.1997 - Implementation of.
1. The last revision of the scale of pay of VSNL non-executives was made
effective from 1.1.1992 for a period of five years and after the expiry five
years the next pay revision fell due from 1.1.1997. The Federation of VSN
Employees' Unions had submitted-a Charter of Demands requesting VSNL Management
for the revision of pay & allowances and other related benefits to the
non-executives effective from 1.1.1997. Subsequently, the issues arising out of
the COD was negotiated with the Employees' Federation by the Management on
several occasions. After prolonged negotiation, Settlement has been arrived at
between the Management and- the Employees' Federation of VSNL on 2.12.2000 over
the issue of revision of pay scales effective from 1.1.1997 as well as certain
other relatedallowances.
2. Particulars of the revised pay structure of non-executives w.e.f. 1.1.1997
and the guidelines for implementation, etc. are enclosed herewith at Annex l. In
the enclosed annexure sequence of events for fixation in the revised scale is
clearly set out and all concerned are advised to comply with the same
diligently. In the guidelines, precautions have been taken to ensure that no
ambiguity prevails while-fixing the pay in the revised scales. A format has been
prepared by HQ office which is enclosed at Annex II.. It is expected that
uniformity is maintained in utilising same.
3. It is not open for the Regions/Centres to draw their own inferences and
conclusions in interpreting the fixation and other related benefits. A back
reference has to be made to the HQ office with specific terms of reference so
that the matter could be examined and suitable instructions be given as early as
possible.
4. The Interim Ad-hoc advances paid on two occasions to the eligible
non-executives in terms of Office Orders No. HQ-A/01-10/97-PE.1 dated 24.4.1998
& 23.l0.2000 and also the monthly Interim Relief paid w.e.f. 1.10.1998 in terms
of Office Orders No. HQ-A/01 - 10.98-PE.1 dated 15.10.1998 & 6.10.1999, shall be
adjusted in full against the payment-of arrears arising out of the pay revision
to be made as per this order. In cases where there is no scope for adjustment.
it should be adjusted suitably.
5. No individual or collective representation arising out of the fixation sahll
be entertained by the HQ office and the Regions/Centres are requested to dispose
of the same in light of the instructions issued herewith. Anomalies, it any,
arising out of the fixation on revision, shall be considered for resolution as a
one time measure after the process of auditing is completed.
6. It should be noted that implementation of the revised pay scales is subject
to Board's approval and pending Boards approval, it is necessary to obtain
individual undertaking in the prescribed format (format enclosed.Annex-III) from
each non-executive to the effect that in the event of any modification to the
pay scales by the VSNL. Board, the excess amount drawn, if any, shall be
refunded by him/her.
7. Heads of Regions/Centres are advised to take necessary steps to complete the
implementation of pay revision in the shortest time possible in order to draw
salary payable for the month of December 2000 and onwards in the revised scales
to the non-executives. Arrears arising out of this pay revision under these
orders may be disbursed by the Centres/Units expeditiously.
8. Subsequent to implementation of revised pay scales by the Regions/Centres, HQ
will constitute an audit committee for carrying out inspection for ensuring that
the pay scales implementation like fixation, etc. has been done strictly in
accordance with the guidelines issued with this order.
9. All issues arising out of the provisions contained in this order/guidelines
which may require interpretation/clarification are to be referred to HR Wing of
HQ for-decision.
for VIDESH SANCHAR NIGAM -LIMITED
1 (G.R. Shaikh)
SENIOR GENERAL MANAGER (HR)
Encl: Annex.I, II, III, IV & V
Copy for information & necessary action:
1. CGM(ER)/Calcutta 2. CGM(NR)/New Delhi 3. CGM(WR)/Mumbai
4. SGM(SR)/Chennai 5. SGM(EK)/Ernakulam 6. SGM(H'D/Hyderabad
7. SGM(AU)/Arvi 8. SGM( BG)/Bangalore 9. GM(DU)/Dehradun
10. GM(J'D)/Jullandhar 11. DGM(PC)/Pune 12. DGM(KP)/Kanpur
13. DGM(GN)/Gandhingar 14. DGM(C&B)/HQ/LVSB I5. SM (ID )/Indore
16. CMD's Office/Dir.(NW)/Dir.(D)/Dir.(Fin.)/Dir.(O)/C.V.O./CS/CGM(Planning)/
CGM(lnternet)/CGM(O/HR)/CGM (Mktg.)/CGM (F&A)-B/CGM
(PR)/CGM (F&A)-S.
17. CGM(VIG)/SGM(HR)-S/SGM(Estate)/SGM(Coml.)/SGM(TP)-A/SGM (HR)- N/SGM
(HR)-D/SGM (TA)/ SGM (NW)-CSS/GM (TO) - B/ GM (TO) - R / GM (NW)/ GM (RD)/
GM (TP)/GM (Systems )-AKS/ GM (Systems) BC/ GM (Comm.) HQ Office. - -
18. TP Wing/TO Wing/ Traffic Wing/ R&D Wing/ Estate/ Coml./ SWP/ EDP/ Satcom/
Markg. Section of HQ Office.
19.- Per-II/ Advance/ Admn. / Legal/Recruitment/ Training/ Logistic/ Welfare/
CR Section of VSNL, HQ Office, Mumbai.
20. Cash & Bill/ Budget/ Finance/ Public Relations Sections/ CPF Trust.
21. SC/ST CeII.
22. The Secretary General, Federation of VSNL Employees' Unions, Mumbai.
23. The Secretary General, Federation of Telecom Officers' Associations,
Mumbai
24. The Secretary General, Federation of VSNL. Officers' Associations, Mumbai.
25. Hindi Section for the needful.
26. Copy to Notice Board/Guard File.
*****
ANNEX-1
GUIDELINES FOR REVISION OF PAY AND CERTAIN ALLOWANCES OF NON~EXECUTIVES OF VSNL
WITH EFFECT FROM 1st of .JANUARY 1997:
I. REVISED SCALES OF PAY
1.1 The following shall be the pay scales applicable to the non-executives of
the company from 1ST January 1997:
--------------------------------------------------------------------------------
Pre-Revised Scales Revised Pay Scales w.e.f.
1.1.1997
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Level Scale of Pay Span Scale of Pay Span
(grade) (years) (years)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NE-1 2300-40-2620-50-3220 20 4825 - 125 - 6700 15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NE-2 2375-50-2775-60-3495 20 5100 - 140 - 7200 15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NE-3 2475-60-2955-70-3795 20 5450 - 175 - 8075 15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NE-4 2600-70-3160-80-4120 20 6000 - 200 - 9000 15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NE-5 2780-80-3420-90-4500 20 6700 - 225 - 10075 15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NE-6 2985-90-3705-100-4905 20 7150 - 240 - 10750 15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NE-7 3210-100-4010-110-5330 20 7700 - 250 - 11450 15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NE-8 3450-110-4330-120-5770 20 8400 - 265 - 12375 15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NE-9 3700-120-4660-130-6220 20 8590 - 300 - 13990 18
--------------------------------------------------------------------------------
2. DURATION
2.1 The revised Pay Sca1es will be effective for a period of 10 (Ten) years
from 1st January l997.
DEARNESS ALLOWANCE
The Industrial Dearness Allowance (IDA) at All India Consumer Price Index
(AICPI) 1708 admissible to Non-Executives in the revised Scales of Pay as on 1st
January I997 will be "Nil" as the applicable amount of IDA as on 1st January
1997 in the 1992 Salary Structure has been merged in the revised Basic Pay. The
first installment of DA in the 1997 Salary Structure would become due from 1st
April 1997. The DA payable from 1st April 1997 would be as per the new DA
Scheme. The details of the Scheme are as follows:
(i) All India Consumer Price Index (AICPI) Number for Industrial Workers
(general) based on 1960 = 100 would continue to be used for grant of
compensation to non-executives of VSNL against price rise.
(ii) DA would be paid for the increase in AICPI above quarterly index average of
1708 to which the revised Scales of Pay (1997) are related.
(iii) DA installments would continue to be revised 4 times a Calendar year,
i.e., w.e.f. 1st January, 1st April, 1st July and 1st October.
(iv) The quaterly average of AICPI would continue to be computed in the
following manner:
Quarterly Average Payable from
September, October and November of
previous year 1st January
December of the previous year and
January and February of the current year 1st April
March, April and May of the current year 1st July
June, July and August of the current year 1st October
(v) The percentage increase in the quarterly average of AICPI for the period
ending February, May, August and November over AICPI 1708 would be as
notified by DPE.
(vi) The rate of compensation to Non-executives over the Basic Pay at AICPI
1708 will be in whole numbers. Fractions, if any, will be carried forward
to the next quarters.
(vii) Calculating the quantum of DA payable on this basis, fraction of 50 paise
and above will be rounded off to the next higher rupee and fraction below
50 paise will be ignored.
(viii) The percentage DA neutralisation to all Non-executives in the 1997 Salary
Structure will be 100%.
3.2 The revised rates of DA payable to Non-executives during the period from 1st
April 1997 to 31st December 2000, would be as follows:
--------------------------------------------------------------------------------
DA payable for Quarter Quarterly average Rate of DA payable (% of
commencing from AICPI applicable Basic Pay)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
35433 1726 1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
35436 1737 1.7
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
35439 1762 3.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
35795 1794 5
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
35798 1870 9.5
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
35801 1893 10.8
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
35804 2010 17.7
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
36160 2122 24.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
36163 2077 21.6
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
36166 2051 20.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
36169 2087 22.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
01.01.2000 2143 25.5
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
01.04/2000 2123 24.3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
01.07.2000 2156 26.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
01.10.2000 2186 28
--------------------------------------------------------------------------------
3.3 Rate of DA payable during each Quarter commencing from 1st January, 2001
would be notified by the HQ Office from time to time.
3.4 Dearness Allowance already paid from January 1997 to November 2001, based
on the 1992 salary structure would be fully adjusted against the arrears
payable under this order.
4. FIXATION OF PAY IN THE REVISED SCALES OF PAY
--------------------------------------------
4.1 The pay of Non-Executives who were on the rolls of the Company on 31st
December l996 and continue to be in the service of the Company as on the
date of issue of this Order will be brought on to the revised Scales in
the following manner:
(a) Basic Pay in the existing Scale of Pay (1992) as on 31st December 1996
Plus
(b) Corresponding Dearness Allowance at AICPI of 1708 (base 1960) = 100 as on
1.1.1997.
Plus
(c) Fitment amount up to 20% of (a) above i.e. 20% at Basic Pay drawn as on
31st December 1996)
Plus
(d) FDA component as on 31.12.1996
The total or(a) / (b) / (c) + (d) would be the :aggregate amount.
4.2 The new basic pay will be determined by placing the aggregate amount
arrived by adding (a) to (d) in the revised scale of pay: - Where the
aggregate amount (a) to (d) thus arrived does not fit into the stage in
the revised scale of pay,. the new basic pay will be determined by fixing
the aggregate amount at the next higher stage in the revised scale of pay.
4.3 BUNCHING INCREMENT
4 3 1 One increment in the revised scale will be granted for every three
increments drawn in the pre-revised 1992 scale of pay and this amount will
be added to the pay arrived at as in para 4.2 above.
4 SPECIAL INCREMENT
4.4.1 One special increment in the revised scale shall be granted to
Non-executives who were on the rolls of the Company, as on 31.12.1996-. In
addition to this, non-executives who were in-the grade on NE-9 as on
31.12.1996 shall be granted two additional increments in the revised
scales. These increments shall be payable from 1.1.1997.
4.5 - STAGNATION INCREMENT
4.5.1 Non_executives who reach the maximum of the revised scale of pay
(stagnation) would be granted upto, a maximum of three stagnation
increments.
4.6 FIXED DEARNESS ALLOWANCE (FDA)
------------------------------
4.6.1 The payment of Fixed Dearness Allowance (FDA) shall be discontinued in the
revised pay scale with effect from 1.1.1997.
4.7 APPOINTMENT ON OR AFTER AFTER 1.1.1997
--------------------------------------
4.7. 1 Non-executives appointed on or after 1st January 1997, at the minimum of
the 1992 scales will be deemed to have been directly appointed in the
revised scales of pay effective from 1.1.1997 and no fitment benefit will
be admissible to them. Pay of Non-executives whowere appointed at the
minimum of the pre-revised scales of pay will be fixed at the minimum of
the corresponding revised scales of pay w.e.f. the date of appointment.
4.7.2 Non.executives appointed on or after 1" January 1997 and who have been
granted advance increments, if any, on appointment in the pre-revised
scales, their pay.in the revised scale will provisionally be fixed at the
minimum of the corresponding revised scale of pay.
4.7.3 In cases where pay fixation had been done in the pre-revised scale (1992)
taking into account pay & allowances last drawn in the previous
Organization (1992 scale), pay protection would be granted in the revised
scale (1997) on the basis of last pay drawn in the previous Organization,
provided the scales of pay in the previous Organization have also been
revised and a revised Last pay Certificate is produced. In the absence of
such a revision in the previous Organisation, the pay shall be fixed at
the minimum of the concerned revised scale of pay.
4.7.4 Pay fixation in respect of Non-executives, if any. who have, been
appointed in the Cornpany between 1st January 1996 and 31st December 1996
- from the Central Government, State Government, Public Sector
Undertakings following the CDA pattern etc. will be dealt with separately,
keeping in~view the revision of pay scales effected in the Government
w.e.f.' 1st January'.l996. Such Non-executives will not be eligible for
fixation benefits as envisaged in paras 4:1 to 4.4 above. Pay in the
revised scales in such cases will provisionally be fixed at the minimum of
the corresponding revised scale of pay.
4.7.5 In respect of Non-executives (including cases of immediate absorption,
re-employed pensioners, ex-servicemen, etc.) who have been
appointed/re-employed in the Company on or after 1st January 1997 from the
Central Government, State Government, Public Sector Undertakings following
the CDA pattern etc., their pay will be re-fixed in the revised scale, as
per the extant rules applicable in such cases.
4.7.6 Cases of Non-executives, if'any, falling under the above categories at
paras 4.7.2 to -
4.7.5 above should be referred to the HR Wing of HQ. with necessary details, for
final fixatiori of pay.
HOUSE RENT / LICENCE FEE RECOVERY
Separate Orders will be issued in this regard in due course of time. Till -then.
recovery of House Rent / Licence Fee from those employees who are provided with
Company Quarters/leased accommodation would continue to be effected as at
present.
CITY COMPENSATORY ALLOWANCES (CCA)
City Compensatory Allowances (CCA) would be computed and paid based on- the
reclassified list of cities as notified by the Government of India for the
purposes of payment of CCA to Government employees, which is as under:
----------------------------------------------------------------
Basic Pay per A-I - A B-i B-2
month Population> Population>Population> Population
SD-Iakhs 20 10 lakhs and >
- laklis -~ 20 lakhs 5 lakhs
and and <
< 50 10 Iakhs
lakhs - ----------------------------------------------------------------
---------------------------------------------------------------- Below Rs.4000
90 65 - 45 [ 25 ----------------------------------------------------------------
---------------------------------------------------------------- Rs,4000-5250 1
125 - 95 65 ., 35 J -
----------------------------------------------------------------
---------------------------------------------------------------- - 200 - 150 - -
[00 - 65 Rs.5251-6499 -
----------------------------------------------------------------
---------------------------------------------------------------- Rs.650() & 300
-. 240 iS)) I l2() - above
---------------------------------------------------------------- The revised
classified list otciies as nocilied b~ the Urn erottient otlndiu t~r the
purpose otdra~va1 otC,\ is appended hereto (Annex-Vt. Fur the purposeI
classiIicatjoz-~ of cities for pa~-mcnt of CCA. the classification as notified
h~ the ~ ~ t. 1India from time S.
9.
to time shall he t~ilowed, - - -
FAMILY PLANNINc INCREMENT - - -
Non-executives who have been drawing the special incrememit in the Ibrm
atPersomial Pa~(PP) for undergoing Family Planning / Scerilisatioti C )peration
prior to I Januamv 1997 would be allowed to draw the PP equivalent to the
)o~~est rate oineremnemu in the revised scale corresponding to the pre-rcvised
pay scale against .~ hich the individual had earned the PP. w.e.tl I" January
1997. Employees who ~ hose spouse ha. e ttnder~otte the sterilisacion operation
on or afier I January 1997 would be a! to.. ed the )I based on the
incremenc rate in the revised scale ofpav. as per the extant rules. Ihe
special increment would riot be reckoned as basic pay for computing t)earnes~
Allowance and any other consequential benefits. - - -, - - -
J~QYIDENTFUND/VSNL E~lPLQYEE SELF CONTRIBUTORY PENSION -
SCHEME - - - - -
Consequent upon revision of- pay scales and DA. emplovers as \velI as employees
-contribution to the Provident Fund will be recalculated and recovered at the
applicabLe -rate viz. ~ tO percent ott the revised-basic pay and-DA .v.e.f. I~
Jaiiuarv 1997 to 21st September, 1997 and @ 12 percent effective from 22nd
September. 1997 onwards. Emplove&s contribution, towards the VSNL Emee
Self Contributory PensIon - -Scheine shall be recalculated and recovered at the
applicable rate. - 10. - - PAYMENtOF A-R~EARS - - - - - - -- - - - - - - -
10.1 - Payment qf~ears arising out of revision of pay scales from I ~Januar~:
1997 d~war~_ - - to Non-executives who were on the rolls of the Compartv on I
January 1997 and who -have joined thereafter. .vill comprise of amounts arising
out of the following: -
1. Revised Basic Pay. - 2. Revised DA~ - - - .3. - Increments. - 4.- HRA & CCA
at revised rates w.e.f l9t~Nember 1999. wherever applicable. - - 5.~-
Fixation of Pay on promotion. - 6. Family Planning Increment. 7. Earned Leave
encashrnent. 3. Terminal benefits of- Provident Fund & Gratuity. 9.
EX-gratia/PLJ ~1 / Provisional payment may he made to non-execuu\ es
ha. e moved ott transfer aller 1 January 1997. along with others. hasec~ on
the available data.. ftan~ int~irmatiofl liLe attendance. date of promotion.
date of increment etc.. is requited in res)~eCt of ~u~h nonexecutives. these can
be obtained trom otlice .heretrotu the nomm~e\eeutt es .aS transferred -
-
10.3 Non_exectxtiCS who have ceased to be in the services ol the Louipai1~
~dter l~ January 1997 due to superaflflUati0t~. termination of service on
account of cunimnued ill-health. resignation with permission and death (payment
to the nominee in ease oldeath) .ill be --eligible for arrears in terms of
this order on a pro-rata basis. .here er due. Payment oarrears to such
non~exeCUties / nominees is to he effected omiI~ at~er receipt ofzt
.rittefl request from the non_executi\c I nominee concerned.
.t().4 \Vith regard to Non_executieS. transferred from one Station Office to
another atier V January 1997. payt~lcnt of arrears is to be made (by the
trunsferec office) only. after obtainin~ necessary details. if any. from the
transferors uttice. -
io.s Recoveries like Notice pay. if any. to be efte~ted from ex.eniployecs is ma
he recalculated and recovered. Similarly, wherever amounts are due and payable
h~ ex-employces. the same will -be recovered fron~tl~e arrears payable. - - -
10.6 Benefits of revised Basic Pay and Allowances in terms of this order and
consequent payment of arrears shall not be applicable to Non-executives who
ceased to be in the services of the Company on the,toUowiflg grounds on. or
after l~January 1997: 1. Dismissal; - - 2. - Absconding:
3. Resigned and left where disciplinary actiOn against him/her riaci already
been - - initiated and-was in progress: -- - -.
4. Resigned and left ~ithdut d~ notice add where bond liability had not been -
discharged at the time of leavi~ig the Company:
5. In cases where the alleged misconductagaiflst the employee is prejudicial to
the interest of VSNL and an et:lquiry is contemplated or is in progress. 11.
RE~QV~IES OF 1NcO~iEJrAWc- - - -
Recoveries towards Income Tax. Professional Tax. etc.. are to be effected as per
Rules. Finance Wing may take up the matter of extending relief under Section 8~
of the Income Tax Act~ with the concerned Income Tax Authorities. 12. INTERL\1
RELIEF / ONE T1~1E ADIIOC AI)VANCE
The Interim Ad-hoc advances paid on two occasions to the eli~ible
110F1-CNCCULiVCS in ~crms olOtlice Orders No.!-IQA/Ol-10197-1E.l dated
24.4.1~)9~ & 23. li).201)() and also the monthly Interim Relief paid w.e.f.
1.10.1998 in ternis oiOliic~ Ord~rs No.1-IQA/0 I -1 0/98PE. 1 dated 15.10.1998
& 6. 10.1999. shall be adjusted in lull. a~ainsL the payment of arrears arising
out of the pay revision to be made as per this order. In cases where there is no
scope for adjustment. it should be adjusted suitably by appropriate instalments
from their salary.
13. PAY RELATEI) MATTERS
13.1 Merely because otrevision of Basic Pay / Scales of Pay. there will not he
any upward revision in the enUtlement to various Allowances / Benefits (other
than those mentioned in the ~rder~, related to Basic Pay. Such allowances /
b~netits will continue io be paid based on the pre-revised basic pay I scale of
pay (I 99~ scales).
13.2 All other allowances (not related to basic pay and not revised as mentioned
above), benefits, perquisites and performance related incentives will continue
to be paid at the, existing rates / quantum.
13.3 Revision of other allowances / benefitsi perquisites / performance related
payments, etc. will be considered separately and de~isions taken will be
intimated in due course of time.
14. INTERPRETATIONS I CLARIFICATIONS
All issues arising out of~the provisions contained in [his ~derwhich thay
require -interptetation klarification are t6 be referred to the HR Wing I.
Finance Wing of Headquarters for decision.