PETITION - tantransco

A. Employee Cost:
i. Salaries
• The basic salary and the grade pay have been considered at an escalation of
5%. This is on account of the fact that yearly increments on the basic salary
and grade pay are provided at 3%. Further, seniority based promotions are
being provided depending on the number of vacancies created every year;
for which an additional 3% rise is provided to the employees who are
promoted. Also, due to assigning of additional responsibilities to the officers,
20% of the basic and grade pay will be additionally paid for a maximum of 5
months depending on the vacancies and the nature of work. Hence,
considering all the above factors, basic salary and grade pay are escalated at
5% for the year FY 2012-13.
• TANTRANSCO would like to submit that, wage revisions are generally
provided to the employees once in four years. The last revision fell on 1 st Dec
2011 which is already due and is in process of being finalized in the current
year and for this purpose a committee has been formed. The next wage
revision will be from 1 st Dec 2015. Therefore, a hike of 10% has been
considered for the years FY 2012-13 and FY 2015-16.
ii. Dearness Allowance
• The rate of dearness allowance is applied on the basic salaries plus grade
pay; the rate is subjected to revision as notified by the Central Government
in every six months i.e. in January and July on the basis of consumer price
index. the DA rates in effect in the previous years were as under:
Table 29: Dearness Allowance rates for past years
Year 1 st Half 2 nd Half % Hike
2010 35 45 29%
2011 51 58 29%
2012 65 72 24%
• Based on the trend during previous years, the escalation of DA rate is
considered at 15%.
iii. Surrender Leave Salary, Terminal Benefits (including pension), Pension Scheme
• The amount equivalent to 15 days of salary and DA with applicable HRA is
generally encashed by employees every year. In addition, the leave salary for
the period of 8 months or the amount pertaining to balance leave whichever
lesser is paid at the time of retirement to the retirees. Since this includes
both DA and a lump sum of 8 month salary, the escalation is considered at
10%. Likewise, the emoluments related to Terminal Benefits (including
pension) also tend to increase every year. Hence, escalation for surrender
leave salary and terminal benefits (including pension) is considered at 10%.
On the Basic and DA quantum of eligible employees to Contributory Pension
Scheme (CPS), the utility has to contribute 10% as employer’s portion and
thus a hike of 10% over previous years has been considered for CPS.
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