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SAIL-ISP
Clarification of Expectations
(with special emphasis on
MONEY MATTERS)
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PRESENTED BY:

SURESH SIVARAMAN
SR. MANAGER (FIN)-PAY
SAIL-ISP
BURNPUR



Venue: DIPONI Date: 03-03-2014
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AN AGE OLD ADAGE
CONTENMENT
IS
INVERSELY
PROPORTIONATE
TO
OUR
EXPECTATIONS
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Hence,
BE CONTENDED
WITH WHAT YOU HAVE
AND NOT
WITH WHAT YOU ARE .

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SALARY
A sign of our having grown up from the
days of pocket money to money in our
pocket.



Perhaps the main reason why we work.
Something that we most eagerly look
forward to.
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Till now you were perhaps rich but chances
are that from now onwards you would be
afflicted with PURSITIS.
Pain caused by reaching for the wallet

Rich father/poor father
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WHAT IS SALARY
1. Remuneration received by an individual,
periodically, for service rendered, as a result
of a contract.

2. Employer-employee relationship is a
sine-qua-non for taxing purpose.

1. Salary of partner Profits & Gains from Business
and Profession.
2. Salary of MP, MLA- Income from Other Sources.
3. Pension received from former employer- Salary.
4. Pension received by family on death of employee-
Income from Other sources.

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SALARY as per I.T.Act 1961
Sec.17(1) of I.T.Act - inclusive definition
Includes
Wages
Perquisites
Gratuity
Profits in lieu of salary (V.R.compensation)

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SALARY COMPONENTS in SAIL
Basic Pay
Dearness Allowance
Allowances including cafeteria
Perquisites
Leave encashment
Non Practising allowance for doctors
Provident fund
Gratuity
GRADE SCALE (Rs.) ANNUAL
INCREMENT
FOR ALL
GRADES IS
3% in JULY
E-0 12600-32500
E-1 20600-46500
E-2 24900-50500
E-3 32900-58000
E-4 36600-62000
E-5 43200-66000
E-6 51300-73000 E-6, E-7, E-8
MERGED
w.e.f. 01.01.2007
E-7 51300-73000
E-8 51300-73000
E-9 62000-80000
G
R
A
D
E


S
T
R
U
C
T
U
R
E

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TERMS OF APPOINTMENT
To be designated as Management Trainee
(E1) for 1 year.
Then designated as Jr.Mgr. will be on
probation for another year.
Confirmation in E1 w.e.f. date of joining
only on successful completion of probation
period (i.e. after 2 yrs).
Confirmation will be informed in writing.
Cannot seek transfer to other plants for first
4 years (2 yrs for departmental candidates)


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INCREMENT
Annual increment @ 3%
Basic would be rounded to next higher
multiple of rupees ten.
Increments for all executives throughout
SAIL will be on 1
st
of July each year.
(from 01.07.2011).
FIRST increment after confirmation in E1
grade i.e. after 2 yrs.
Service- 6 month on increment date.
INCREMENT - clarification

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JOINING
DATE
DATE OF COMPLETION OF RELEASE OF 1
ST

ANNUAL
INCREMENT
TRAINING PROBATION
MAR
2014
MAR
2015
MAR
2016
JUL
2016
OCT
2014
OCT
2015
OCT
2016
OCT
2016

- Paid in Oct16
- w.e.f. Jul16
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DEARNESS ALLOWANCE
A part of the salary and is a percentage of
the basic pay.
Reviewed & may be changed every quarter
Apr-Jun, Jul-Sep, Oct-Dec, Jan-Mar
Provided to help against rise in prices
PRICE DOUBLED
OR
QUANTITY HALVED

Change dependant on All India Consumer
Price Index for Industrial Workers .
DA: Jan-Mar14= 90.50% of Basic
CAFETERIA- (a)
% age of BASIC PAY ONLY
Choose out of 17 heads of payment
No change will be allowed during the year
except for % age change due to postings
As per duty hours at the place of posting
48 hours or more in a week = 46%
<48 hours in a week = 44%
44% during TRAINING period i.e. 1
st
year, then
as per department to which posted


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CAFETERIA - (b)
PLEASE REMEMBER TO:

Fill up form ONLINE within the 15.03.14 for
March14 salary.

For next f.y. fill up online within 15.04.2014

(SAIL ISP PORTAL PAY SECTION-
CAFETERIA)
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OTHER ALLOWANCES
Fixed quantity given in addition to salary to
meet requirements of employees
Fully taxable unless specifically exempted
Exempt allowances (to specified extent)
House Rent Allowance: [20%=4120/- p.m.]
Conveyance allowance [ 5%=1030/- p.m.]
Meal Coupon
LTC/LLTC- Twice in block of 4 yrs-
Travelling allowance on tour

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EXEMPT - HOUSE RENT ALLOWANCE



Monthly Rent receipts
Landlords PAN for rent > Rs.1 lakh per annum
Exemption- least of the following
a. Actual house rent allowance received
b. Excess of rent paid over 10% of salary
c. 40% of salary (Salary= Basic + DA)
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EXEMPT - TRANSPORT/CONVEYANCE
Use of OWN vehicle partly for official use &
partly for private use: EXEMPTION LIMITS:

. up to 1600cc - Rs.1800/- p.m.

>100cc - Rs.900/- p.m.

Rs.800/- p.m.

Rs.1600/- p.m.
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EXEMPT - MEAL COUPON
Option for Meal Coupon must be availed in
the cafeteria form (1 to 10% of basic)
Meal coupon must be purchasedvalue
Rs.1300 per month
Maximum exemption limit - Rs.1300/- p.m.
% age option in cafeteria must be over this
limit to get maximum benefit.
(Rs.20600 * 7% = Rs.1442)

CAUTION: Verify Scope For Using Meal Coupons

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PERQUISITES
Casual emolument or benefit attached to an
office or position
Value of accommodation provided at
concessional rent
Value of concessional loans
No perquisites on phone including mobile
phone
talk time/handset value limit set by company
rates
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HOUSE PERQUISITE
7.50% of Salary (Basic + DA + Taxable cafeteria
+ Leave Encashment + Reward/Bonus etc- other
than perquisites like concessional loan etc.) will be
added to the total income as house perquisites
Rent recovered from the employee will be
decreased from the above.
Income will exclude perquisites, other income
declared by the employee.
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OTHER PERQUISITES
Vehicle loan at concessional rates perquisites is
the difference between SBI rates and SAIL rates
Others- not applicable for this group of
management trainees
Medical Expenses up to Rs.15000/ per year at branch
offices is exempt.
Furnishing allowance (applicable from E4 )
House Building loan (applicable after 7 yrs)
SALARY
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RS.
Basic pay 20600.00
D.A.(90.5%-Jan-Mar14) 18643.00
CAFETERIA-44% 9064.00
Total earnings 48307.00
P.F.-12%- of Basic + D.A. 4709.00
SESBF-2% - of Basic + D.A. 785.00
PROFESSION TAX 200.00
INCOME TAX-APPROX (with H.P.) 2931.00
Total deductions 8625.00
NET 39682.00
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INFORMATION
Salary will be credited
to bank accounts
Local banks and their
core bank branches
SBI same day credit
Other banks credit
may take 3-4 days
HRD will facilitate
opening of bank A/c
SBI AXIS UBI
United
Bank of
India
UCO
BOI IDBI
Bank
of
Baroda
BCCB
CONGRATULATIONS!
You will draw your FIRST salary in ISP
(may be the first salary in your life)
For March 2014 ON 1
st
of APRIL 2014

(APRIL FOOL not intended)

This will be on notional attendance basis.
Adjustments based on actual attendance
will be made in April salary.
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BLINKING BREAK
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FACILITIES - Accommodation
First year Rent Free hostel accommodation
No electricity charges
However, House Perquisites will be levied
****
Thereafter, B.B.Type Flats @ Rs. 96/- p.m.
HRA @ 20% of ONLY BASIC
PROVIDED accommodation as per
eligibility is NOT available
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FACILITIES- Loans
Vehicle Loan
Circulars will be issued by PL-OD Sec.
Loan - 2 wheeler Rs.50000;
Loan - 4 wheeler Rs.3 lakhs - ( up to E4)
Interest - 2 wheeler
4% up to Rs.30000/-
6% above Rs. 30000/-
Interest 4 wheeler - 6% - up to 3 lakhs
HBL- MIN 7 YRS OF SERVICE
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FACILITIES- Mobile
MOBILE
GRADE SET VALUE (Rs.) CALL/P.M.(Rs.)
E0 3000 150
E1-E2 3000 250
E3-E4 5000 350
E5-E6 8000 600
E7 10000 650
E8 15000 1200
E9 20000 ACTUAL
Call charge - within ISP=free, within SAIL 1 paise per 3 sec.
Mobile-contd
New set 3 yrs after purchase of old set
Purchase not allowed during last 3 months of
service
SIM to be surrendered on separation
Retention value of set to be paid

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PERIOD RETENTION VALUE
UP TO 6 MONTHS 75% of original cost
>6 months & up to 12 months 50% of original cost
>12 months & up to 24 months 30% of original cost
>24 months & up to 36 months 15% of original cost
> 36 months 5% of original cost
>48 months 2.50% of original cost
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FACILITIES - Medical
Treatment at Co. hospital for self & family
Dependants:
parents (Rs.6000/- p.m. both together)
Children, spouse, brother, sister - (Rs.3000/-
p.m. on individual basis)
Occupational Health Unit inside works
Refer to outside speciality hospitals
Medical books fill particulars online
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FACILITIES-Official tours

Training/official tours (incl.foreign training)



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TRAVELLING ALLOWANCE
Tour Approval (ED)- tour approval- online
Entitlements
TA bills(aprv.E-6)
Bills to be submitted within one month of
completion of tour
Tour advance only through salary
- tour on 10
th
, adv on next 1
st
preplan

TA/DA ENTITLEMENT: E0E3
HOTEL
SPECIFIED LOCATIONS OTHER LOCATIONS
3 STAR = ACTUAL
NON-STAR=1400 per day
3 STAR=ACTUAL
NON-STAR=1200 per day
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D.A.
STAY IN HOTEL STAY AT M.T.I. OWN ARRANGEMENT
Rs.380/- per day Rs.190/- per day Rs.670/- per day
TRAVEL
RAIL AIR ROAD MILEAGE
2 AC/CC NO Rs.7.00 per k.m.
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IN A LIGHTER VEIN
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After the Lanka War, Hanuman submitted his TA Bill for his tour to pick up the
Sanjevani booti.
The Dealing Assistant in the TA Section raised 3 objections as under: -
a) Hanuman did not take permission of King Bharat for undertaking the tour;
b) Hanuman being a Group 'D' official was not entitled to Air Travel; and,
c) Hanuman was asked to carry a plant, but instead carried the whole
mountain. Hence claim for excess baggage not acceptable.
When Hanuman invited Ram's attention to the above, he stated that he
could do nothing since the queries raised were as per rule. However, seeing
the plight of Hanuman, Lakshman offered to speak to the dealing assistant.
Lakshman spoke to the dealing assistant and offered him 10% of the TA
Bill.
Now the dealing assistant wrote on file: -
Re-examined. Since Bharat was ruling as a representative of Ram, and,
since Hanuman had gone on official work under directions of Ram, these
directions would not only suffice, but would also constitute permission to
utilize non - entitled class of travel. The excess baggage is justified as
Hanuman being a Group 'D' official might not have been able to properly
identify the proper plant, and, bringing the wrong plant would have
entailed multiple journeys, thereby increasing expenditure from the
exchequer.
Accordingly, the claim, as submitted, may be passed."

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PROVIDENT FUND
Compulsory
Recovery @ 12% of Basic + DA
Employers matching contribution
Interest payable @ declared rate each year -
(below 9% is tax free)
Share of Contribution to Pension (RPFC)
from employers contribution (max Rs.541/-
p.m.)
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V.P.F.
Voluntary
Fixed amount-MAXIMUM Rs.25000/- p.m.
No Employers matching contribution
Interest payable @ P.F. Rates
New Membership only in Apr & Oct
No change allowed during the year
However, may stop recovery anytime
Contact Pay section
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S.E.S.B.F.
Compulsory
Recovery @ 2% of Basic + DA
No matching contribution
Interest payable @ declared rate each year
CLUBS & CO-OPERATIVES
CLUBS ORGANISATIONS CO-OPT
SOCIAL SPORTS RELIGIOUS
- B.C.
- B.B.
- F.S.
- RSTS
(with
Library
facility)
- BUC
- BCC
- TOWN PUJA
- SHIVASTHAN
- UTKAL PARISHADA
- STEEL
- WORKS
-EMPLOYEES
(with loan facility)

In addition, you can become member of the
OFFICERSASSOCIATION (with GSLI membership in addition)
IOA office bearers would contact you for GSLI scheme
Membership only in March every year.
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E.F.B.S.
Minimum 1 yr. service must be completed.
On death or termination of service on
medical grounds
Deposit PF (excluding VPF) + Gratuity
Last drawn Basic + DA till original
scheduled retirement date
Refund of deposit money on scheduled
retirement date
EFBS(V)
Employees Mutual Family Benefit Scheme (Voluntary)

Contribute Rs.25/- per death, per month
Contribution shall be paid to the nominee
Around two lakhs for each nominee
A valuable support to the bereaved family at
the most crucial juncture in their life.

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GRATUITY
Minimum 5 yrs of service to be rendered
except in death cases
Pay means last drawn Basic + DA
Gratuity amount is[PAY*15/26*service yrs]
More than 6 months of service=1 year
Max. ceiling for executives=Rs.10 lakhs
Keep this in mind before doing job hopping.
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TAXING TIMES
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TAXES
STATUTORY TAXES
INCOME TAX ACT 1961

WEST BENGAL STATE TAX ON
PROFESSIONS, TRADES, CALLINGS &
EMPLOYMENTS ACT 1979
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PROFESSION TAX
GROSS SALARY PROFESSION TAX
>Rs.40,000/- p.m. Rs.200/- p.m.

Handicapped employees exempt from P.Tax
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INCOME TAX

Re.1 Rs.2,00,000 NIL
Rs.2,00,001 Rs.5,00,000 10%
Rs.5,00,001 Rs.10,00,000 20%
Above Rs. 10,00,000 30%
Ed.Cess @ 3% on tax amount
Income 5 lakhs or below tax relief of Rs.2000
(Sec.87A- from f.y.13-14)
eFiling of I.T returns for income >5 lakhs(fy.13-14)
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Confused?

Dont worry simply follow the action
points in the next slide and relax.
Dont think much thinking is bad for
health.
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ACTION POINTS
Submit bank account details salary to
local banks and their core bank branches
Submit PAN details else 20% or higher
tax slab
Opt for V.P.F- start only in April or Oct
Fill up PF and Gratuity nomination forms
Fill up Cafeteria form online
Fill up provisional savings declaration
forms for tax savings online
Medical card online application
Company quarters- online application


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We look forward to a long & pleasant association