|
COMPENSATION POLICY
Compensation Philosophy
The management believes in paying a
fair compensation to all employees on the rolls of the company commensurate
with their qualification, experience and specialized skills. It will also
strive to maintain parity among the employees having the same skill sets,
qualification, potential, and experience while duly recognizing / demonstrating
exceptional performance in a befitting manner.
The management believes in having a
transparent policy & a simple procedure to administer the above policy.
With the above objectives the break
up of the compensation has been made keeping in mind the standard of living
expected by the professionals, their social security needs, health benefit
needs and their educational / learning needs.
Compensation
Applicability and Its Break Up
Applicability
The compensation policy is
applicable to all employees. This policy comes into effect from the 1st
of June, 2008.
Break-up
of Compensation
Compensation is divided into sub
components, like Basic Pay, Flexible Benefit Plan and Retiral Allowance.
Basic Pay
A.
Objective
Basic Pay is paid as per the Pay scale. It is a significant component of the overall
compensation which has a direct bearing on the employee’s retiral benefits.
B.
Applicability
Basic Pay is applicable to all
employees.
C.
Administrative Guidelines
§
Basic
pay will vary based on the grade / level of the employee.
§
This
is taken as a base for the calculations of Provident Fund, Gratuity, leave
encashment etc.
§
Basic
pay is payable on a monthly basis.
§
Basic
pay is paid to the number of days one is present during a calendar month
subject to credits availed on account of eligible leaves.
§
This
is paid for all paid leaves / holidays / weekly offs.
§
Loss
of pay will not entitle basic pay.
D.
Taxability:
Basic Pay is subject to income tax
as per the tax laws.
Special Academic Advancement Allowance
A.
Objective
Special Academic Advancement
Allowance is paid as a percentage component of the Basic Pay Applicable to the
employee. It is granted to employees to enable them to improve their academic
awareness and pursue research activities.
B.
Applicability
Special Academic Advancement
Allowance is applicable to the Teaching Faculty of the University who have
completed the following Qualifications:
a.
Post Graduate degree in Medicine (M.S.
/ M.D.)
b.
Post Graduate Degree in Engineering (M.Tech.
/ M.E.)
c.
Doctorate Degree (PhD.)
C.
Administrative Guidelines
§
Special
Academic Advancement Allowance will be calculated as ten percent of the Basic
pay applicable to the employee.
§
Special
Academic Advancement Allowance is payable on a monthly basis.
§
Special
Academic Advancement Allowance is paid as a percentage of the Basic Pay
applicable to the employee in the month.
§
This
is paid for all paid leaves / holidays / weekly offs.
§
Loss
of pay will not entitle SAAA.
D.
Taxability:
SAAA is subject to income tax as per
the tax laws.
Non Practicing Allowance
A.
Objective
Non Practicing Allowance is paid to
the Medical professionals to compensate them for the loss of revenue from
Private practice and is paid as a percentage of the Basic Pay applicable to the
employee.
B.
Applicability
Non Practicing Allowance is
applicable to the Medical Faculty of the University who possess an
undergraduate degree in Medicine i.e. MBBS Degree.
C.
Administrative Guidelines
§
Non
Practicing Allowance will be calculated as twenty five percent of the Basic pay
applicable to the employee.
§
Non
Practicing Allowance is payable on a monthly basis.
§
Non
Practicing Allowance is paid as a percentage of the Basic Pay applicable to the
employee in the month.
§
This
is paid for all paid leaves / holidays / weekly offs.
§
Loss
of pay will not entitle Non Practicing Allowance.
D.
Taxability
Non Practicing Allowance is subject
to income tax as per the tax laws.
A.
Objective
House Rent Allowance is paid so that
the accommodation need of an employee is taken care of in accordance to their
grades/positions.
B.
Applicability
This allowance is applicable to all
employees of the University staying in rented accommodation..
C.
Administrative Guidelines
§
HRA
exemption amount will be as per employee declaration.
§
The
maximum tax exemption limit allowed for HRA is, 40% of Basic pay in Non-Metros
and 50% of Basic pay in Metros.
§
HRA
is Payable on a monthly basis.
§
This
is paid for all paid leaves / holidays / weekly offs.
§
Loss
of Pay will not entitle HRA.
D.
Taxability:
This will be taxable in employee’s
hands as per the prevailing Income-tax laws.
HRA will not be payable when the
leased accommodation is provided to employees.
Conveyance Allowance
A.
Objective
This allowance is paid to employees
to meet the expenses incurred while traveling from their residence to office
and return.
B.
Applicability
The allowance is applicable to all
employees except employees provided with a company vehicle or employees availing
of the “Drivers salary” or “Fuel and maintenance” under the provisions of this
policy.
C.
Administrative Guidelines
§
The
amount will be as per the employee declaration.
§
The
maximum tax exempt amount provided for this allowance shall
not exceed Rs. 800/- per month.
§
Conveyance
allowance is paid on a monthly basis and linked to the attendance of the
employee.
§
Employee
need not produce any proof of expense towards Conveyance Allowance.
Children Education Allowance
This allowance is provided to employees
so as to enable their children to pursue education.
This allowance is applicable to all
the employees of the University who have dependent children pursuing education.
·
The
amount will be as per the employee declaration.
·
The
maximum tax exempt amount provided for this allowance shall not exceed Rs. 100/- per month per dependent
child.
·
The
allowance shall be paid monthly and shall be linked to the employee’s
attendance.
·
For
claiming the allowance the employee shall have to produce bills showing proof
of expenditure of the amount. This shall be an annual one time process
Sikkim Border Area Compensatory Allowance
The Allowance is provided to the
employees to compensate them for working in the border state of Sikkim.
This allowance is applicable to all
employees of the University working within the state of Sikkim.
·
The
Allowance shall be as per the employee’s declaration.
·
The
maximum amount that is exempt from tax is Rs. 1,300/- per month.
·
The
allowance shall be paid monthly and shall be linked to the employee’s
attendance.
The allowance is tax free.
Mobile reimbursement
This allowance is paid to compensate
the employees for communication on Official issues made from their personal
mobiles.
This allowance is applicable to all
the employees of the University.
·
The
allowance shall be as declared by the employee.
·
The
Mobile phone and SIM should be owned by the employee and should be a post-paid
connection.
·
The
allowance is limited to 20% of the monthly bill amount (inclusive of service
charges rental etc), subject to a maximum of Rs. 600/- per month.
·
The
employee would have to submit the original bill for the month.
This allowance is tax free.
Fuel and Maintenance Allowance
This allowance is provided so as to provide
employees compensation for expense for usage of their vehicles for official and
personal purposes.
This allowance is only applicable
for Heads of Institutions and Professors.
·
The
Allowance shall be as per the employee’s declaration.
·
This
allowance is only applicable if the employee owns a car.
·
The
allowance shall be limited to Rs. 2500/- per month.
·
As
per prevailing tax laws, a part of the allowance shall be exempt from taxation.
·
The
employee shall have to submit proof of the vehicle registration.
·
For
claiming tax benefit under this allowance the employee shall have to provide
fuel purchase / maintenance bills, this shall be submitted the Payroll
department on a monthly basis.
·
Employees
opting for this allowance shall not be eligible for Conveyance Allowance
Tax exemption as per Tax laws shall
be applicable.
Driver’s Salary
This allowance is provided so as to
enable employees the comfort of having a driver for a owned car.
·
The
Allowance shall be as per the employee’s declaration.
·
This
allowance is only applicable if the employee owns a car. The driver, having a
valid driving license has to be engaged by the employee.
·
The
allowance shall be limited to Rs. 2500/- per month.
·
As
per prevailing tax laws , a part of the allowance shall be exempt from
taxation.
·
The
employee shall have to submit proof of the vehicle registration and the licence
of the driver to be eligible for this allowance.
·
Employees
opting for this allowance shall not be eligible for Conveyance Allowance
Tax exemption as per Tax laws shall
be applicable.
Medical Reimbursements
A.
Objective
To reimburse expenses incurred by
the employee towards medical expenses for self and their family members.
B.
Applicability
This is applicable to all employees,
from the date of their joining.
C.
Eligibility
Family for this purpose means the
spouse and children of the individual. Family also includes parents, brothers
and sisters of the individual if they are wholly or mainly dependant on the
individual
D.
Administrative Guidelines
§
The
amount shall not exceed Rs. 15,000 per year.
§
Claims
may be submitted for expenses incurred by the member for self and family from
the date of his/ her joining and shall pertain to the month for which the claim
is made.
§
Medical Claims may be submitted before the 20th of every month in the
prescribed form as per
(Annexure
- I) and must be accompanied by cash memos / receipts as proof of
having spent the money on account of medical expenses. Prescriptions are not
necessary.
§
Domiciliary
medical expenses would cover medical practitioner’s fees, payments made towards
purchase of medicines, vitamins and tonics. Cosmetics, hygiene products
(toothpaste, soap etc) cannot be claimed.
§
This
also covers expenses incurred towards Dental treatment, purchase of spectacles
and/or frames, contact lenses or hearing aids etc.
§
The
choice of the form of treatment is left to the individuals. All forms of
medical treatment are reimbursable.
§
In
case the member has claimed more than his eligibility as on the date, the
excess claims will be recovered at the time of settling dues.
This reimbursement is tax free.
Food Vouchers
To provide employees with the
facility of availing food items.
B.
Applicability
This benefit is applicable to all
employees.
C.
Administrative Guidelines
§
The
amount shall not exceed Rs. 15,600 per year per employee.
§
Any
service charge applicable will be paid by the company.
§
Coupons
shall be provided to employees at the beginning of the month for the current
month.
§
Unspent
coupons cannot be encashed.
§
Any
food subsidy provided now will stand withdrawn.
This benefit is tax free.
Gift Voucher
A.
Objective
To provide employees with the facility of availing gift items.
B.
Applicability
This benefit is applicable to all employees of the University
C.
Administrative Guidelines
§ The amount shall not exceed Rs. 5,000 per year per employee.
§ Any service charge applicable will be paid by the company.
§ Coupons shall be provided to employees at the beginning of the month for the current month.
§ Unspent coupons cannot be encashed.
This benefit is Tax free.
Special Allowance
A.
Objective
Special Allowance is part of your
overall compensation as determined by the company after considering all the
benefits provided in this policy document.
B.
Applicability
This allowance is applicable to all
employees.
C.
Administrative Guidelines
§
This
amount will be taxed as per norms and given to the employee, for the number of
days worked per month.
§
Any
amount for which bills are not produced during the settlement cycle for the FBP
allocation shall be added to the Special Allowance.
§
At
the time of separation Excess/ Short recoveries shall be considered under
Special Allowance and taxed accordingly.
This amount shall be treated as
taxable income in the hand of the employee and shall be taxed at normal rates.
A.
Objective
To provide employee with adequate
social security benefit, post retirement.
This
includes the following schemes: -
§
Provident
Fund Scheme
§
Gratuity
Scheme
Provident Fund Scheme
A.
Objective
To
provide Employees with the statutory post retirement benefits as per the
Employee’s Provident Fund & Miscellaneous Provisions Act 1952 (“EPF Act”).
B.
Applicability
The Scheme is applicable to all
employees, from their date of joining.
C.
Administrative Guidelines
§
The
company will contribute 12% of basic earned by the employee during the month
towards this scheme. This is applied
towards Provident Fund and Family Pension Scheme in accordance with provisions
of EPF Act.
§
For
calculating the Employee Pension Scheme contribution, the ceiling for the basic
salary is Rs. 6500/- only i.e. maximum contribution will be 8.33% of Rs. 6500/-
i.e. Rs. 541/- even if an Employee’s basic salary exceeds Rs. 6500/-. The
ceiling for the basic salary will vary as amended from time to time by the EPF
Act.
§
8.33%
of the company contribution (of the total 12% company’s contribution) up to a
maximum of Rs. 541/- per month is transferred to the Employees Pension Scheme
and the balance amount is credited to the Provident Fund Account.
§
The
employees have the option in contributing more than the required % i.e. 12 %,
of the basic pay earned during a month.
§
Voluntary
contribution to this Fund can be made by a member up to an additional 88% of
his / her basic salary (Maximum member contribution = 12% mandatory + 88%
voluntary contribution). However, the
Company’s contribution will remain at 12% only.
§
Interest
shall be paid to the member at the rate determined by the Government from time
to time which will be calculated on a monthly running balance.
§
Any
changes to the EPF Act will be incorporated.
The employee’s contribution to PF
shall be considered as eligible deduction for computation of income tax in
employee hands. The employee shall get the relief from income tax in accordance
with the provisions of income tax laws.
Gratuity Scheme
A.
Objective
To provide
employee benefits, in the form of post retiral income.
B.
Applicability
§
All the Employees are covered under the Company’s Gratuity Scheme
managed by an insurance company.
§
Eligibility period for Gratuity benefit is five years of continuous
service from the date of joining in all cases except apprentice training under
the Apprentice Act. However in case of death or disablement the minimum
continuous service condition is not necessary.
C.
Administrative Guidelines
§
Gratuity
entitlement is as per the Gratuity Act which is Last Basic Salary / 26 x 15
days x no. of years of service
§
For the purpose of calculation of Gratuity for part of the year more
than six months of service is considered as one full year but less than six
months of service is ignored.
§
Maximum tax free amount payable in one financial year under this Fund
is Rs. 3,50,000/-as per the current income tax laws, the balance would be
taxable.
§
All
employees will be a member of the respective unit’s Gratuity Fund Trust
created/to be created. |