MPPGCL Salary
MPPGCL Salary
TABLE OF CONTENTS
REVISION HISTORY.................................................................................................................................... 4
CHAPTER 1 INTRODUCTION .................................................................................................................... 5
1. Allowances .................................................................................................................................................... 16
2. Relocation assistance ................................................................................................................................. 17
ANNEXURES .............................................................................................................................................. 18
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Madhya Pradesh Power Generating Company Ltd.
“Wages & Allowances Manual”
INTRODUCTION Version: 1.2 Effective Date:
List of Tables
Table 5: Standard Deviation for determination of Variable Pay vis-a-vis performance rating ........................... 11
Table 12: Classification of cities for calculation of House Rent Allowance ......................................................... 19
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Madhya Pradesh Power Generating Company Ltd.
“Wages & Allowances Manual”
INTRODUCTION Version: 1.2 Effective Date:
REVISION HISTORY
Review Approval
Signature Signature
Designation Designation
Date Date
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Madhya Pradesh Power Generating Company Ltd.
“Wages & Allowances Manual”
INTRODUCTION Version: 1.2 Effective Date:
CHAPTER 1 INTRODUCTION
The Government of Madhya Pradesh vide order dated 1st July, 02 has incorporated Madhya Pradesh Power
Generating Company Limited (MPPGCL) (hereinafter referred as the “Company”) as a wholly owned
Government of Madhya Pradesh Corporation under the Companies Act, 1956 to undertake activities of
generation of electricity for and on behalf of the erstwhile Madhya Pradesh State Electricity Board (MPSEB).
The Company recognizes the importance of its Human Resources as an asset and as strategic partner. To
achieve its business objectives, the Company has recently revised its Human Capital policies and procedures
focusing on a performance driven culture. In line with the same and in its endeavor to reward good
performance, the Company has also redesigned its wage structure and allowances.
While the Human Capital policies and procedures form a separate manual, the purpose of this manual is to lay
down the new wage structure and the allowances.
This document shall be called the “MPPGCL Wages & Allowances Manual”.
(1) Wage Structure: The wage structure describes the basic pay and the other pay components which shall
form the pay package of a particular employee in the company. The wage structure and other benefits are
commensurate with the grade at which a job is placed.
(2) Travel Policy: The travel policy describes the travel and hotel entitlements for the employees in the
Company.
(3) Miscellaneous Allowance: This describes the various allowances which shall be admissible to the
employees of the company in addition to the pay package of a particular employee.
3. Applicability
These Rules shall be applicable to all Regular Employees (Refer Section 5 Classification of Employees) of the
Company on Company Cadre except any Employee(s) excluded by the management.
Note: This Manual shall not be applicable for MPSEB employees transferred to the Company.
For the purpose of this document, the expressions mentioned hereunder shall have the meaning respectively
assigned against them unless there is anything repugnant in the subject or context:
(1) Company shall mean Madhya Pradesh Power Generating Company Limited.
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Madhya Pradesh Power Generating Company Ltd.
“Wages & Allowances Manual”
INTRODUCTION Version: 1.2 Effective Date:
(2) Company Cadre shall mean a person who is employed by the Company post its conception.
(3) Competent shall mean with reference to the exercise of any powers under the Rules the
Authority Executive or Authority to whom such powers are delegated by the management
either in general or in particular.
(5) MPSEB Employees shall refer the employees that have been recruited by MPSEB and are transferred or
deputed to the Company
(6) Pay shall mean the wage package that is corresponding with the job and its complexity
assigned to an Employee.
(7) Seniority shall mean the precedence achieved by an Employee through period of service.
(8) State Government shall refer to the Government of Madhya Pradesh (herein after also referred as
“GoMP”)
(9) Wages & shall refer to this document which is a compilation of the wage structure, travel policy
Allowances Manual and miscellaneous allowances.
5. Classification of Employees
(1) Regular Employee shall mean an Employee who carries out and occupies a continuing function in the
Company.
(2) Probationer shall mean an Employee on probation. During the period of probation, continuous evaluation
of the Employee is done by his/ her supervisor.
(3) Trainee shall mean a learner who is paid a stipend during the period of his/ her training excluding
apprentices taken under Apprentices Act, 1961.
(4) Note : The terms and conditions of employment and the period of training of all trainees shall be
governed by the contract of employment and service bond and shall be subject to the rules or orders
framed by the management from time to time.
6. Jurisdiction
All matters relating to the wages and allowances of the Employees of the Company shall be adjudicated by the
courts situated at the headquarters of the Company only.
7. Interpretation
In the event of any doubts arising with respect to the provisions of the rules and inadequacy in the scope of its
coverage, the final authority of interpretation shall vest with the CMD whose decision shall be final.
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Madhya Pradesh Power Generating Company Ltd.
“Wages & Allowances Manual”
INTRODUCTION Version: 1.2 Effective Date:
All cases not covered in this Manual shall be decided by the Company.
9. Revision Control
Any changes made to this document shall be approved by the Board of Directors (BoD). All amendments and
changes to this document will be recorded in the revision history and the same will be communicated as and
when required.
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Madhya Pradesh Power Generating Company Ltd.
“Wages & Allowances Manual”
WAGE STRUCTURE Version: 1.2 Effective Date:
(2) Driving principles of the proposed wage structure is to encourage excellence in performance and spirit of
healthy competitiveness in the organization.
(3) The financial year which shall be considered for the calculation and the disbursement of the increments
shall be from the date of 1st July each year to 30th of June next year. The increments in a particular year
shall be based on the performance of the past financial year.
(4) All Regular Employees (excluding trainees) shall be eligible for getting increments only if s/he has served
the company at least for duration of 6 months in the previous financial year.
(i) Fixed Components: These components are independent of an individual’s or company’s performance.
These components are:
(a) Basic
(b) Fixed Allowance
(c) Conveyance Allowance
(d) House Rent Allowance
(e) Pension contribution as per the New Pension Scheme
(ii) Variable Components: These components are dependent on Individual’s and Company’s
performance. These components are:
(1) Basic Pay: Employee shall be eligible for a defined basic pay which shall be constant for a year. An
employee’s basic is dependent on their designation, Grade, Years of Experience and Performance
Ratings.
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Madhya Pradesh Power Generating Company Ltd.
“Wages & Allowances Manual”
WAGE STRUCTURE Version: 1.2 Effective Date:
Grade Amount
S1 Rs. 5,200
S2 Rs. 5,700
S3 Rs. 6,500
S4 Rs. 7,000
S5 Rs. 7,800
S6 Rs. 9,860
E4 Rs. 25,000
E5 Rs. 28,000
E6 Rs. 31,000
E7 Rs. 34,000
Note: These are required for hiring new talent in the company i.e. fresh candidates. This band should be not
considered for fitment of employees on promotion.
(2) Fixed Allowance: This is a fixed component i.e. it is constant for a year and is defined at a fixed
percentage for basic. Its % share is dependent on the grade of the employee however it is independent of
the performance of the employee.
Grade % of Basic
S1 – S5 30%
S6 35%
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Madhya Pradesh Power Generating Company Ltd.
“Wages & Allowances Manual”
WAGE STRUCTURE Version: 1.2 Effective Date:
(3) House Rent Allowance: This is calculated as a percentage of the Basic Pay and shall be dependent of
the type of city. This component is independent of the designation, grade or performance of the employee.
Cities are divided in to three categories based on their population and cost of living index.
Table 3: HRA
Cities Percentages
Category C 5% of Basic
(4) Conveyance: Conveyance allowance shall be fixed for the employees at the following rates:
S1- S6 150
(5) Pension Contribution as per National Pension Scheme: The Company has adopted National Pension
Scheme for pension liability of the Company Cadre employees. As per the mandate the organization will
be contributing every month 10% of the current months basic towards NPS to the designated Trustee
Bank.
Note: In addition to the Company contribution, employee has to make its own contribution. The percentage of
the same is to be defined by the employee in the prescribed format. It is to be noted here that the percentage
defined by the employee shall not have any effect on the percentage of Company’s contribution.
(6) Variable Component: Variable is another essential and major component of the wage structure.
(i) It is dependent on employee’s grade and performance. This component shall be governed primarily by
the employee’s performance.
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Madhya Pradesh Power Generating Company Ltd.
“Wages & Allowances Manual”
WAGE STRUCTURE Version: 1.2 Effective Date:
(ii) Variable share of total basic shall be dependent on the employee’s grade and it shall start from 23% of
total salary for JE and goes to as high as 46% for Executive Directors.
(iii) It can be clearly observed that the variable component varies within a range of 24% (of basic) for the
staff cadres and as high as 100% (of basic) in the executive cadres. This variability has been inbuilt in
to the wage structure keeping in view the degree of responsibility of that specific grade toward the
overall company’s performance.
(iv) The rates for average variable calculation are mentioned below:
S6 35% of Basic
(v) The above mentioned rate of variable is dependent on the Performance Rating of the individual.
Illustrative value for the variable share is mentioned below. These values are to be decided by the
company each year.
Table 5: Standard Deviation for determination of Variable Pay vis-a-vis performance rating
A+ 20%
A 10%
B 0
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Madhya Pradesh Power Generating Company Ltd.
“Wages & Allowances Manual”
WAGE STRUCTURE Version: 1.2 Effective Date:
C -10%
D -15%
*Indicative values
(vi) Example: A Junior Engineer/ Assistant Manager attain a rating of A+ in 2012 and his/her rating in 2011
was B. Hence s/he shall get a variable of = 35 %*( 1+20%) = 42%.
(a) Employee Variable Component: This component shall vary on employee’s performance.
(b) Company Variable Component: This component shall vary on the Company’s previous
year’s performance. Based on the Company’s performance the component can be distributed
75% - 125% of its value monthly
(viii) Distribution of Individual and Company Performance share in the structure is as below:
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Madhya Pradesh Power Generating Company Ltd.
“Wages & Allowances Manual”
WAGE STRUCTURE Version: 1.2 Effective Date:
Example: If the Company’s performance has been average then the Company variable shall be distributed at
100%. However in case the Company does above average then the Company variable shall be distributed at
125% i.e. Rs. 600*1.25 = Rs. 750.
For example a starting basic is Rs. 9,860 and the shares of various components are:
Employee
Variable
80%
Starting Fixed Variable at
Grade Designation Basic Allowance HRA Conveyance basic
Company
Assistant Manager
E1a 9,860 35% 11% 250 35% Variable
20%
Performance Rating B
Grade XYZ
Basic Increment 4%
(1) Every Employee shall be required to declare his/ her / her dependents (as per the group health insurance
policy) at the time of joining for claiming medical benefits. The dependents list shall be updated by
submitting a request to the HR department which shall be subject to verification and approval. The details
of the policy shall be notified by the Company.
(2) Medical allowance at the rate of Rs.150 per month shall be disbursed to all the Employees for their OPD
coverage.
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Madhya Pradesh Power Generating Company Ltd.
“Wages & Allowances Manual”
WAGE STRUCTURE Version: 1.2 Effective Date:
(3) Group Life / Accident Insurance: All Employees shall be covered under a Group Life / Accident Insurance
Scheme which shall cover compensation to the Employees on account of death, partial disablement and
permanent disablement. Details of the same shall be notified by the Company.
Each year the Basic shall be increased by a set percentage. This increase in basic is also dependent on the
employee’s Individual performance.
Grade A+ A B C D
All 9% 6% 4% 3% 0%
On promotion each employee shall be entitled with an additional increment which shall be given over and
above their annual increment. This increment is proposed at 3% over basic however the same can be modified
by the Company from time to time.
Example: Employee XY gets a promotion in 2012 and has a rating on ‘A’ for FY11-12. Hence his/ her
increments shall be:
Annual Increment – 6% increase in Basic
Basic at each grade shall need revision at frequent intervals as based on the industry standards. This shall
require benchmarking with respect to the following parameters
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Madhya Pradesh Power Generating Company Ltd.
“Wages & Allowances Manual”
TRAVEL POLICY Version: 1.2 Effective Date:
(1) The defined travel policy is for all permanent Employees of the Company. This section covers the mode of
travel and travel entitlement for an Employee on business travel.
E3a & E3b Hired Taxi 2nd Class Economy Remaining Cities Actuals subject Rs. 240
AC or Within and to a maximum per day
below outside MP - of Rs. 240 per
Limited to rent of day
AC single room
E2a & E2b Hired Taxi 2nd Class - at MP Tourism Actuals subject Rs. 160
AC or hotel to a maximum per day
below of Rs. 160 per
day
E1a& E1B Hired Taxi 3rd Class - Limited to rent of Actuals subject Rs. 160
AC or Non - AC single to a maximum per day
below room at MP of Rs. 160 per
Tourism hotel day
(2) Note: Any business travel needs a prior approval from the Competent Authority and the same needs to be
shown to the respective personal for attendance regularization. Also it is to be noted that post travel all
bills and tickets shall have to be submitted to the respective Regional Accounts Office’s for clearance
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Madhya Pradesh Power Generating Company Ltd.
“Wages & Allowances Manual”
ALLOWANCES Version: 1.2 Effective Date:
1) Washing Allowance
All Class III and IV employees, nurses, ANM who are provided liveries are entitled to washing allowance at Rs.
50/- PM.
2) Uniform Allowance
All women nurses who are attached to MPPGCL hospitals are entitled to uniform allowance. The initial grant
shall be of Rs.1000/- and then Rs. 500/- after every 3 years.
All employees who are working in night shifts in power stations are entitled to allowance at the following rates:
Class Allowance
Security Officer
Security Inspector
Fire officer
Security Officer
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Madhya Pradesh Power Generating Company Ltd.
“Wages & Allowances Manual”
ALLOWANCES Version: 1.2 Effective Date:
Leading Fireman
Security Inspector
SG/ SSG
Fireman
Fire Driver
5) Special Allowance to Boiler Operation Engineers who are Certificate Holders and Working in Power
Stations
(i) Those who obtain boiler proficiency certificates – Rs. 200/- per months
(ii) Those who obtain boiler attendant certificate – Rs. 150/- per months
6) Interstate Allowance
All employees posted at Totladoh HPS are eligible to get an allowance at 5% of their basic pay
7) Welding Allowance
All high pressure welders who are posted perform welding work are eligible for an allowance of Rs. 300/- per
month
Note: Any other allowances shall be applicable as per the company policies
2. Relocation assistance
(1) Relocation of household articles, vehicle etc shall be reimbursable to all Employees at the rates as below:
Cadres Amount
*The km (distance) considered between any two particular destinations shall be the shortest distance between the two.
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Madhya Pradesh Power Generating Company Ltd.
“Wages & Allowances Manual”
ANNEXURES Version: 1.2 Effective Date:
ANNEXURES
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Madhya Pradesh Power Generating Company Ltd.
“Wages & Allowances Manual”
ANNEXURES Version: 1.2 Effective Date:
1 A • Bhopal
• Indore
• Jabalpur
• Gwalior
2 B • Rewa
• Sagar
• Ujjain,
• Dewas
• Morena
• Hoshangabad and
• Other commissioner head quarters
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Madhya Pradesh Power Generating Company Ltd.
“Wages & Allowances Manual”
ANNEXURES Version: 1.2 Effective Date:
Engineer / Chief
Chemist/ Addl. Chief Superintending
E4 Superintending Engineer Medical Officer Engineer
Sr. Executive Engineer/
Jr. Chief Chemist/ Dy. Sr. Executive
E3B Sr. Executive Engineer Chief Medical Officer Engineer
Executive Engineer/ Sr.
Fire Officer/ Sr.
Chemist / Senior
E3A Executive Engineer Medical Officer Executive Engineer
Sr. Civil
S4 Assistant Sr. Plant Assistant
S3 Civil Assistant Plant Assistant
Sr. Civil
S2 Attendant
IV
ss
Cla
S1 Civil Attendant*
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Madhya Pradesh Power Generating Company Ltd.
“Wages & Allowances Manual”
ANNEXURES Version: 1.2 Effective Date:
Confidential
Officer
Chief Stock
E2A Law Officer I* Manager* Manager* verifier
E1B
Administrative
E1A Officer
Personal
Assistant
S5 Section Officer
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Madhya Pradesh Power Generating Company Ltd.
“Wages & Allowances Manual”
ANNEXURES Version: 1.2 Effective Date:
STATIC CADRES
GRADES Category I / Technical Category II / Non Technical
Class II
Company Secretary
E2A
Publicity Officer
Horticulturist
Motor Driver ECG Technician
S2 Dresser
ANM (Midwife)
Class IV
Lab Attendant
S1
Peon
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