HINDUSTAN AERONAUTICS LIMITEDCORPORATE OFFICE, BANGALORE

PERSONNEL CIRCULAR NO. 684 28th May, 2009

Sub: Revision of Pay Scales and Allowances of Officers, w.e.f. 1.1.2007

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In pursuance of the Presidential Directives received from the Government of India vide Ministry of Defence Order No. 49011/12008-D (HAL) dated 29th April 2009, the Management is pleased to revise the Scales of Pay and certain Allowances for employees in the Officers’ Cadre (below Scheduled Posts at the Board level) on the regular rolls of the Company, in accordance with the Guidelines notified by the Department of Public Enterprises (DPE) vide OM No. 2/70/2008-DPE (WC) dated 26.11.08 & No. 2/70/08-DPE(WC) dated 2.4.09, as per details given in the following paragraphs :

2 REVISED SCALES OF PAY

2.1 The existing and the corresponding revised Scales of Pay effective from 1st January 2007 are as given below:

3 ANNUAL INCREMENT

3.1 Annual Increment will be granted at the rate of 3% of the revised running Basic Pay and the resultant amount will be rounded up to the next Rs. 10.

4 DEARNESS ALLOWANCE

4.1 100% Industrial Dearness Allowance (IDA) neutralization will continue to be adopted in the revised Pay Scales, as per the existing practice. The DA admissible to Officers in Grades I to X in

Contd…2/-

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Grade

Existing Scales of Pay(Rs.)

Revised Scales of Pay(Rs.)

I 6550 - 200 - 11350 12600 - 32500II 8600 - 250 - 14600 16400 - 40500III 10750 - 300 - 16750 20600 - 46500IV 13000 - 350 - 18250 24900 - 50500V 14500 - 350 - 18700 29100 - 54500VI 16000 - 400 - 20800 32900 - 58000VII 17500 - 400 - 22300 36600 - 62000VIII 18500 - 450 - 23900 43200 - 66000IX 20500 – 500 - 26500 51300 - 73000X 23750 - 600 - 28550 62000 - 80000

the revised Scales of Pay as on 1st January 2007 will be ‘Nil’ as the applicable amount of IDA drawn by them as on 1st January 2007 in the 1997 Salary Structure is merged in the revised Basic Pay, with All India Consumer Price Index (AICPI) (2001=100) link point of 126.33 as on 1.1.2007. The first installment of DA in the 2007 Salary Structure would become due from 1st April 2007. The rates of DA payable from 1st April 2007 onwards would continue to be worked out, as per the existing system, linked to AICPI 126.33 (2001=100) as on 1.1.07.

4.2 The revised rates of DA payable to Officers during the period 1st

April 2007 to 30th June 2009 would be as follows:

4.3 Rate of DA payable during each Quarter commencing from 1st July 2009 would be notified by the Corporate Office from time to time.

5 FIXATION OF PAY IN THE REVISED SCALES OF PAY

5.1 The Pay of Officers who were on the rolls of the Company on 31st December 2006 and continue to be in the service of the Company as on the date of issue of this Circular will be brought on to the revised Scales of Pay in the following manner:

a) Basic Pay (without reckoning the Additional Increments

granted w.e.f. 1.12.06) in the existing Scale of Pay (1997) as on 1st January 2007;

Plus

b) Personal Pay (without reckoning the Additional Increments granted w.e.f.1.12.06), if any, drawn as on 1st January 2007, which was granted to protect the Basic Pay on appointment and which is reckoned as Basic Pay for all purposes;

Plus

Contd…3/-

DA Payable for the Quarter

commencing from

Quarterly Average AICPI

applicable (2001=100)

Rate of DA payable (% of

Basic Pay)

01-04-0701-07-0701-10-0701-01-0801-04-0801-07-0801-10-0801-01-0901-04-09

127.33128.00131.67133.67134.33138.00142.67147.33147.67

0.81.34.25.86.39.2

12.916.616.9

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c) Applicable amount of Industrial Dearness Allowance (DA) @ 78.2% as on 1st January 2007, in the 1997 Salary Structure, on the Basic Pay (without reckoning the Additional Increments granted w.e.f.1.12.06) actually drawn as on 1.1.2007 (before promotion, if any, effected w.e.f. 1.1.07) and Personal Pay as at (b);

Plus

d) Fitment Benefit of 30 % of (a)+(b)+(c) above;

The total of (a)+(b)+(c)+(d) would be the aggregateamount.

5.2 The aggregate amount arrived as at Para 5.1 would be rounded up to the next Ten Rupees and will be fixed as the revised Basic Pay as on 1.1.07. In case the revised Basic is less than the minimum of the revised Scale, it will be fixed at the minimum of the Scale. Two Illustrative Pay fixations are indicated in Annexure-I.

5.3 As per the DPE OM dated 26.11.08, if any extra ordinary increment(s) and/ or increase in the Pay in respect of Officers have been granted with retrospective effect, which affects the revision of Pay as on 1.1.2007, such increment and/or increase in Pay will be ignored for the purpose of Fitment/ Pay Revision. Accordingly, the Additional Increments granted to Officers w.e.f. 1.12.2006, in terms of Personnel Circular No. 674 dated 22.02.07, either as Basic Pay within the Pay Scales or as Personal Pay beyond the Pay Scales, are ignored for the purpose of Fitment Benefit and fixation of Pay in the revised Scales.

5.4 Where Executives drawing Pay at two or more consecutive Stages in an existing Scale get bunched, then, for every two Stages so bunched, benefit of one Increment shall be given. Illustrative Pay fixations in Grades-IX & X, including the bunching benefit, are indicated in Annexures-II A & II B.

5.5 The higher of the amounts arrived as at Para 5.2 OR 5.4 will be the revised Basic Pay as on 1st January 2007.

5.6 In case the revised Basic Pay + applicable DA payable per month happens to be less than the Pay (Basic Pay + Dearness Pay + DA) already drawn in the 1997 Salary Structure, during the period 1.1.07 to 31.5.09, no recovery will be made for the present. The difference, which will not be reckoned as Basic or DA for any purpose, will be treated as dues from the employee, which will be adjusted/recovered based on separate orders.

Contd…4/-

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5.7 If the Basic Pay + DA payable from June 2009 onwards in the revised Structure is lower than the Basic Pay + DP + DA drawn in the 1997 Salary Structure as of May 2009, the differential amount will be payable in the revised Structure, till the Basic Pay + DA + the differential amount becomes equal to or greater than the Basic Pay + DP + DA drawn during May 2009 in the 1997 Salary Structure. The difference will be treated in the same manner as indicated at para-5.6. An illustrative case covering paras 5.6 & 5.7 is given at Annexure-III.

5.8 Officers who reach the maximum of the revised Scale of Pay (Stagnation) would be granted Stagnation Increments @ 3% of the revised running Basic Pay, one after every two years, upto a maximum three Stagnation Increments, provided the Officer has secured PAR Marks of ‘80’ or above during the preceding 2 years.

5.9 In cases of Officers who were promoted to higher Grades w.e.f. 1st January 2007, the Pay is to be first fixed in the revised Scale of the lower post in the manner explained above and then their Pay is to be fixed in the revised Scale of Pay of the promoted post.

5.10 Officers appointed on or after 1st January 2007

5.10.1 All Officers who joined the Company on or after 1.1.07 would be deemed to have been appointed/ recruited directly in the revised Scales of Pay and no Fitment Benefit will be admissible to them. Their Pay shall be fixed in the revised Pay Scales as indicated in the following paragraphs.

5.10.2 Officers appointed on or after 1st January 2007 at the minimum Pay in the 1997 Pay Scales

5.10.2.1 Pay of Officers who were appointed on or after 1.1.07 at the minimum of the pre-revised Scales of Pay or already issued with Offers of Appointment indicating the said Pay, will be fixed at the minimum of the corresponding revised Scales of Pay w.e.f. the date of appointment.

5.10.3 Officers appointed on or after 1st January 2007 in the 1997 Pay Scales and who had been granted Advance Increments etc.

5.10.3.1 Officers who had been granted Advance Increment(s) on appointment in the pre-revised Scales on or after 1.1.07, beyond the minimum Basic Pay in the 1997 Pay Scales, will be granted equal number of Advance Increments from the minimum Basic Pay in the corresponding revised Pay Scales,

Contd…5/-

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subject to the condition that the Pay so arrived will be restricted to the revised Pay of an Officer in the same Grade as on 1.1.07 (whose next Annual Increment was due on 1.7.07), who was on the rolls of the Company as on 31.12.06 and was drawing the same pre-revised Basic Pay as on 31.12.06 (including the Additional Increments). Two illustrative cases are indicated in Annexure-IV.

5.10.3.2 In cases where pay fixation had been done in the pre-revised Scale (1997) taking into account the Basic Pay & other applicable items last drawn in the previous Organisation (1997 Scale), in terms of the provisions of Circular No. HAL/P&A/27(1)/2005/228 dated 22.11.05, pay protection would be granted in the revised Scale (2007) also. In cases of such Officers who joined from other PSUs etc, the protection would be based on the revised (2007) last Pay drawn in the previous Organisation, provided the Scales of Pay in the previous Organisation have also been revised and a revised Last Pay Certificate is produced. Otherwise, the Pay shall be fixed as at paras-5.10.2.1 or 5.10.3.1, as the case may be.

5.10.3.3 Pay fixation in respect of Officers, if any, who had been appointed in the Company between 1st January 2006 and 31st

December 2006 from the Central Government, State Government, Public Sector Undertakings following the CDA pattern etc., shall be dealt with separately, keeping in view the revision of Pay Scales effected in the Government etc. w.e.f 1st January 2006. Such Officers will not be eligible for fixation benefits as envisaged in Paras 5.1 to 5.5. Pay in the revised Scale in such cases will provisionally be fixed at the minimum of the revised Scales of Pay.

5.10.3.4 In respect of Officers (including cases of Immediate Absorbtion, re-employed Pensioners, Ex-Servicemen etc.) who have already been appointed/ re-employed in the Company on or after 1st January 2007 but before issue of this Circular, from the Central Government, State Government, Public Sector Undertakings following the CDA Pattern etc., the Pay will be re-fixed in the revised Scale as if they have been appointed directly in the revised Scale, as per the extant rules applicable in such cases.

5.10.3.5 In case the revised Basic Pay + the applicable DA payable per month happens to be less than the Pay (Basic Pay + Dearness Pay + DA) already drawn in the 1997 Salary Structure, from the date of appointment to 31.5.09, no recovery will be made for the present. The difference, which will not be reckoned as Basic or DA for any purpose, will be treated as dues from the employee, which will be adjusted/recovered based on separate orders.

Contd…6/-

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5.10.3.6 If the Basic Pay + DA payable from June 2009 onwards in the revised Structure is lower than the Basic Pay + DP + DA

drawn in the 1997 Salary Structure as of May 2009, the differential amount will be payable in the revised Structure, till the Basic Pay + DA + the differential amount becomes equal to or greater than the Basic Pay + DP + DA drawn during May 2009 in the 1997 Salary Structure. The difference will be treated in the same manner as indicated at para-5.10.3.5. An illustrative case covering paras 5.10.3.5 & 5.10.3.6 is given at Annexure-V.

5.10.3.7 Cases of Officers, if any, falling under the categories at paras 5.10.3.2 to 5.10.3.4 are to be referred to the Corporate Office, with necessary details, for final fixation of Pay.

5.10.4 As the Wage Revision in respect of Workmen due w.e.f. 1.1.07 is not finalised, Pay of Workmen promoted/ appointed to posts in Grade-I on or after 1.1.07 would provisionally be fixed at the minimum Pay in the revised Grade-I Scale (2007). They will draw their Salary (Basic Pay and DA) in the revised Grade-I Scale (2007) or continue to draw their Salary (Basic Pay, Dearness Pay and DA) in the pre-revised Scale (1997), whichever is higher. Their final pay fixation in the revised Scale (2007) will be done upon finalisation of Wage Revision of Workmen due w.e.f. 1st January 2007.

5.11 Pay fixation on promotions effected on or after 1st January 2007

5.11.1 One notional Increment equal to the Increment being drawn by the Officer in the revised Pay Scale before such promotion would be granted and Pay fixed in the Promoted Scale and rounded off to the next multiple of Rs. 10/-. In case the amount so arrived at is less than the minimum of the promoted Scale, the Pay will be fixed at the minimum of the Promoted Scale.

5.11.2 Other existing provisions for pay fixation on promotion (like re-fixation on the date of Annual Increment) would continue to be applicable.

5.12 Drawal of Increments

5.12.1 Annual Increments would continue to be granted as per the existing procedure/ practice, in the revised Scales of Pay, w.e.f. 1.1.07. In respect of Officers, if any, who were due for Annual Increment on 1.1.07, the Pay drawn in the revised Scale is to be fixed with reference to the Pay drawn by them in the pre-revised Scale as on 1.1.07 (without adding the Annual Increment) and the Increment due on 1.1.07 is to be granted in the revised Scale of Pay.

Contd…7/-

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5.12.2 Presently, Increments are granted to Officers on 2 standard dates in a year i.e., 1st of January or July. Considering that there are no fixed Stages in the revised Pay Scales, anomalies are likely to arise between Officers who were drawing Pay at 2 consecutive stages in the pre-revised Scale, in the revised Scales, in case the Officer at the lower stage in the pre-revised Scale draws his Increment in the revised Scale earlier to the Officer at the higher Stage.

5.12.3 In order to eliminate occurrence of such anomalies in the revised Scale, it is decided to re-schedule the dates of Increment of Officers o one standard date in a year i.e., 1st January, from the year 2007, as indicated below:

Normal date of next Increment

Revised date of next Increment

Date of subsequent Increment

1st January 2007 No change 1st January 20081st July 2007 1st January 2007 1st January 2008

5.12.4 In respect of Officers who are appointed or promoted to higher Grades on or after 1.1.07, the first Increment after appointment/ promotion would be granted w.e.f. the 1st of the month in which they are confirmed. The date of their next Annual Increment would be re-scheduled to 1st January of the subsequent year.

6 HOUSE RENT ALLOWANCE (HRA)

6.1 For the period 1st January 2007 to 30th November 2008

6.1.1 For the period 1st January 2007 to 30th November 2008, no changes would be made in the rates/quantum of HRA already drawn.

6.2 From 1st December 2008 onwards:

6.2.1 Effective from 1st December 2008, eligible will be paid House Rent Allowance (HRA) on the running Basic Pay in the revised Scales of Pay (2007), based on the re-classification of Cities as notified by the Government of India, subject to the applicable Rules & Guidelines, at the following rates:

Cities with Population HRA rate per month

50 Lakhs & above5 to 50 LakhsLess than 5 Lakhs

30% of Basic Pay20% of Basic Pay10% of Basic Pay

Contd..8/-

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6.2.2 The rates of HRA applicable w.e.f. 1st December 2008 in the Cities/ Locations where HAL Divisions/ Offices/ Units are located are as follows:

City/ Locality Rate per month(% of Basic Pay)

Delhi/ Mumbai/ Chennai/ Barrackpore/ Bangalore/ Hyderabad

Lucknow/ Kanpur/ Nasik/ Agra/ Vizag

Koraput/ Korwa

30

20

10

6.2.3 In case the actual amount of the revised HRA as per the prescribed rate is less than the actual amount of HRA drawn as on 30.11.08 in the case of a particular Officer, the difference would be allowed to be drawn by the Officer as ‘Personal Allowance’, until the difference is eliminated in course of time, subject to the condition that the difference will be subsumed within the overall limit prescribed for Perquisites & Allowances. Protection thus granted will be ‘personal’ to the individual Officer concerned.

6.2.4 The HRA protection provided at Para 6.2.3 will cease to apply as and when the HRA on revised Basic Pay at revised rates exceed the amount of HRA paid as on 30.11.08.

7 LEASED RESIDENTIAL ACCOMMODATION (SELF-LEASE AND COMPANY LEASE)

7.1 Separate Orders will be issued in this regard, in due course of time, which will take effect from 1st December 2008. Till then, payment of Lease Rent to Officers living in Self-Leased Houses will continue as at present. They would have an option to draw HRA as at para-6.2.2, w.e.f. 1.6.09, if they so desire.

8 HOUSE RENT RECOVERY

8.1 Separate Orders will be issued in this regard, in due course of time, which will take effect from 1st December 2008. Till then, recovery of House Rent would continue to be effected as at present.

9 CITY COMPENSATORY ALLOWANCE (CCA)

9.1 Payment of City Compensatory Allowance to Officers stands dispensed with, effective from 25.11.08. Payment of CCA made from 26.11.08 will be adjusted against the arrears payable as per this Circular. If no arrears will accrue in certain cases, CCA paid w.e.f. 26.11.08 would be recovered from their Salary for the month of June 2009.

Contd..9/-

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10 FAMILY PLANNING INCREMENT

10.1 Officers who have been drawing the Special Increment in the form of Personal Pay for undergoing Family Planning/ Sterilisation Operation prior to 1st January 2007 would be allowed to draw the Personal Pay equivalent to the lowest rate of Increment in the revised Scale (2007) corresponding to the pre-revised Pay Scale against which the individual had earned the Personal Pay, w.e.f. 1st January 2007. Officers who/whose spouse have undergone the Sterilisation Operation on or after 1st January 2007 would be allowed the Personal Pay based on the Increment rate in the revised Scale of Pay (i.e., @ 3% of the minimum of the Scale, rounded up to the next Rs. 10), as per the extant Rules. This Special Increment would not be reckoned as Basic Pay for computing Dearness Allowance.

11 PROVIDENT FUND / EMPLOYEES PENSION SCHEME

11.1 Consequent upon revision of the Pay Scales, Employer’s as well as Employee’s contribution to the Provident Fund and Employees Pension Scheme will be recalculated and recovered at the applicable rate viz. 12 % of Basic Pay + DA.

11.2 In case the Divisions/ Offices have not made the adjustment of the Management contribution of PF on Vacation Leave encashment from 12.3.08, in terms of the provisions of para-4 of Circular No. HAL/P&A/16(1)/PF/2009/39 dated 2.4.09, the same can be done from the contribution which becomes due as per this Circular.

11.3 Employees can remit the entire amount of net arrears arising out of Basic Pay + DA, or any part thereof, to the Provident Fund, at their option.

12 GRATUITY

12.1 The ceiling of Gratuity payable to Officers is revised as Rs. 10 Lakhs, with effect from 1.1.2007. Gratuity/ differential Gratuity shall be calculated and paid on the basis of the revised Basic Pay and DA, w.e.f. 1st January 2007, subject to the applicable terms & conditions, Income Tax Rules, etc.

12.2 Payment of the differential amount of Gratuity in respect of eligible ex- Officers will be made on receipt of applications for the same.

Contd..10/-

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13 PAYMENT OF ARREARS

13.1 Payment of arrears from 1st January 2007 onwards to Officers who were on the rolls of the Company on 1st January 2007 and who have joined thereafter will comprise of amounts arising out of the following:

a) Revised Basic Pay;b) Revised DA;c) Increments;d) HRA w.e.f. 1st December 2008, wherever applicable;e) Fixation of Pay on promotion;f) Family Planning Increment;g) VL Encashment (on the basis of ’26 days’ upto 10.3.09 and

‘30 days’ from 11.3.09);h) Terminal Benefits of:

i) Provident Fund; ii) Gratuity;

iii) Ex-gratia paid on termination of service on continued ill-health.

i) Ex-gratia paid for Prolonged Illness;j) Hindi Allowance for Examinations passed on or after 1st

January 2007.

13.2 In respect of Officers who are on the rolls of a Division/ Office on the date of issue of orders by the Division/ Office, payment of arrears due will be arranged by that Division/ Office. Provisional payment may be made to Officers who have moved on transfer after 1st

January 2007, alongwith others, based on the available data. Information like attendance, date of promotion, date of Increment etc., as may be required in respect of such Officers, will be furnished by the transferor Division/ Office, before making final adjustments.

13.3 Officers who have ceased to be in the services of the Company after 1st January 2007 due to Superannuation, termination of service on account of continued ill-health, Optional Retirement, Resignation with permission and Death (Nominee(s) in case of Death) will be eligible for revised Pay and arrears as per the provisions of this Circular, on a pro-rata basis, wherever due. Payment of arrears to such Officers/ Nominee(s) is to be effected only after receipt of a written request from the ex-Officer/ Nominee(s) concerned.

13.4 With regard to ex-Officers who were transferred from one Division/ Office to another after 1st January 2007, payment of arrears is to be made by the transferee Division only after obtaining necessary details, if any, from the transferor Division.

Contd..11/-

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13.5 Recoveries like Notice Pay, if any, to be effected from ex-Officers is to be recalculated and effected. Similarly, any other recovery due from the Officers/ex-Officers of the Company will be fully adjusted against the arrears due to them.

13.6 The amount pertaining to the period of service in the transferor Division in respect of Officers mentioned in paras-13.2 and 13.4 will be transferred through Control Account Adjustment to the transferor Division.

13.7 Benefits of revised Basic Pay and Allowances in terms of this Circular and consequent payment of arrears shall not be applicable to Officers who ceased to be in the services of the Company on the following grounds on or after 1st January 2007:

a) Dismissal; b) Resigned and left without permission or notice;

c) Resigned and left where disciplinary action against him had already been initiated and was in progress;

d) Resigned and left without due notice where bond liability had not been discharged at the time of leaving the Company;

e) Abandoned the Service; f) Absconding from Service

14 ADDITIONAL INCREMENTS GRANTED w.e.f. 1.12.06 AND DEARNESS PAY (DP) & DEARNESS ALLOWANCE (DA) DRAWN w.e.f. 1.1.07

14.1 The actual Basic Pay drawn w.e.f. 1.1.07 (including the Additional Increments granted w.e.f. 1.12.06 in terms of Personnel Circular No. 674 dated 22.2.07), Dearness Pay (DP) paid w.e.f. 1st January 2007 in terms of Circular No. HAL/P&A/11(1)/2008/90 dated 7th May 2008, Dearness Allowance drawn w.e.f. 1.1.07 etc, are to be adjusted in full against payment of arrears to be made as per this Circular.

15 RECOVERIES OF INCOME TAX ETC.

15.1 Recoveries towards Income Tax, Professional Tax etc., are to be effected as per Rules. Divisions/ Offices may take up the matter of extending relief under Section 89(1) of the Income Tax Act, with the concerned Income Tax Authorities.

16 PAY RELATED MATTERS

16.1 Merely because of revision of Basic Pay/ Scales of Pay, there will not be any upward revision in the entitlement to various Allowances/ Benefits (other than those mentioned in this Circular), related to Basic Pay. Such Allowances / Benefits will continue to be paid based on the notional pre-revised Basic Pay / Scales of Pay (1997 Scales).

Contd..12/-

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16.2 All other Allowances (not revised as mentioned in this Circular), Benefits, Perquisites and Performance Related Incentives will continue to be paid at the existing rates / quantum.

17 PERQUISITES/ALLOWANCES/COMPANY CAR/PERFORMANCE RELATED PAYMENTS (PRP)

17.1 Revision of other Allowances/ Benefits/ Perquisites/ Performance Related Payments etc. will be considered separately and decisions taken notified in due course of time.

17.2 Revision of rates of various recoveries will be notified separately.

18 LONG TERM INCENTIVES; INTRODUCTION OF COST TO COMPANY (CTC); ADOPTION OF CAFETERIA APPROACH; OTHER SUPERANNUATION BENEFITS

18.1 These issues will be examined and notified separately.

19 PAY ETC. OF EXECUTIVES ON DEPUTATION

19.1 PSU Officers who are on deputation to/ from HAL will draw their Basic Pay & DA as drawn in the Parent Organisation. They will, however, be entitled to draw other Allowances and Variable Pay/ Performance Related Pay as applicable to the borrowing Organisation.

20 PAY ETC. OF GOVERNMENT OFFICERS ON DEPUTATION TO HAL

20.1 Government Officers, who are on deputation to HAL, will draw the Salary as per their entitlement in the Parent Department. Only those who come on permanent absorption basis will be entitled to HAL Pay Scales, Perks & Benefits.

21 GENERATION OF RESOURCES TO MEET THE INCREASED EXPENDITURE

21.1 Implementation of the revised Pay Scales, Allowances, Perquisites, etc is subject to the principle of affordability as envisaged in DPE OM No. 2/70/2008-DPE(WC) dated 26.11.08.

21.2 Resources for meeting the increased expenditure on account of the revision are to be generated by the Company, internally. Guidelines for resource generation/ cost saving measures by means of Increased Productivity, Cost Reduction, Increased Profitability, etc. have been issued by the Corporate Office. Division-wise targets have also been set, for the year 2009-10.

Contd..13/-

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21.3 Divisions will be signing MOUs with the Complex Offices, indicating the Action Plans and other related aspects to meet the targets; and the Complexes with the Corporate Office. These will be monitored on a monthly basis.

21.4 Similar targets will be set & MOUs entered into, for the coming years.

21.5 All the employees will need to fully support the Divisions, in order to achieve the set targets.

22 INTERPRETATIONS/ CLARIFICATIONS

22.1 All issues arising out of the provisions contained in this Personnel Circular, which may require interpretation/ clarification, are to be referred to the Corporate Office for decision.

23 DATE OF PAYMENT OF ARREARS

23.1 The Arrears becoming due to Officers under these Orders may be disbursed by the Divisions/ Offices, on 8.6.09.

24 GENERAL

24.1 Excess payments, wrong payments, arithmetical & system errors etc, in calculation of arrears shall be subject to correction, adjustments and recoveries.

(T SUDHAKAR RAO)EXECUTIVE DIRECTOR (HR)

DISTRIBUTION

MD, Bangalore Complex, Bangalore/CTP(FW)/ED, LCA-LSP & ASC, BC GM, Aerospace/F&F/Engines/Aircraft/IMGT/Overhaul/IJT-LSP/CoP, LCA-LSPGM(F)/CoMS, BC /DGM(HR), BC/Aircraft/ Aerospace/F & F/CM(HR), M&H/Engines/Overhaul /ASC/ IMGT /SM(HR), LCA-LSP/IJT-LSP/AGM(F), Engines/ Aircraft/DGM(F), Aerospace/Overhaul /LCA-LSP /CM(F), F&F /IJT-LSP/ SM(F), M&H/IMGT/ASC/CM(SYA), BC

MD/ GM(F)/ GM, SU-30, MiG Complex, Nasik GM, AURDC, Nasik/ AOD, Nasik/ AMD, Nasik/ Koraput/ SED, KoraputAGM(HR), MiG Complex/ CM(HR), Nasik/ Koraput AGM(F), Koraput/ Nasik/ CM(SYA), Nasik/ SM(SYA), Koraput

Contd…14/-

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MD/GM(Proj)/AGM(HR), Accessories Complex, Lucknow ED(AD & SLRDC), Hyd./ ED,TAD, Kanpur & Korwa GM, SLRDC, Hyd./ Lucknow/ Korwa/ CD, ASERDC, LucknowCoP(SU-30 MK Prog.), HyderabadCM(HR), Hyderabad/ Lucknow/ TAD, Kanpur/Korwa AGM(F), Hyderabad/ DGM(F), Kanpur/ Lucknow/ CM(F), Korwa SM(SYA), Lucknow/ Hyderabad/ Mgr(SYA), Kanpur/ Korwa

Director (D & D)/ ED, RWRDCGM, ARDC/ALH-MRO/Helicopter/CMD/ MCSRDC/Barrackpore/ETBRDC/CoP (ALH)/CTP(RW)/CD(S)/CD(L)/CD(A),ARDC/CD(WSI)/CD(D)/CD(NP&U)/CD(A),RWRDC /GM(F), DC /DGM(HR), DC/CM(HR), Helicopter/Barrackpore/ ARDC/RWRDC/DGM(F), Helicopter/MRO/ CM(F), ARDC/RWRDC/Barrackpore/SM(F), CMD/CM(SYA), DC /SM(HR), CMD/MRO

ED/ CM(HR)/SM(F), HMA/RM, London / Moscow / Mumbai/ New DelhiDGM(Mktg.) CS Cell, New Delhi/Liaison Officer, LO, Chennai/Vizag.

INTERNAL:

D(HR)/D(CP&M)/DF/ED(F)/ED(QASI)/CVO/CO.SECY/GM(MS&IT)/GM(Projects)/GM(CS)/GM(Plg) GM(F)/GM(Mktg)/GM(IMM)/Chief of Plg./AGM(FOS)/ AGM(SYA)/ AGM(Indgn)/ AGM(HR)/DGM(Security)/CM(Works)/ CM-HR(OL)/CMC/CM-HR(TM)-D/ CM-HR(TM)-S/CM-HR(Estt.)/CM-HR(FM) / CM-HR(Rect)/SM-HR(ERM)/SM(F)-CO/ VDSO

Cc: SO to CH

Annexure-IILLUSTRATIVE PAY FIXATIONS ON REVISION

(A) OFFICER IN GRADE-II :

Pre-revised Basic Pay (Rs./p.m.)

1.7.06 (Annual Increment) - 11850

1.12.06 (Grant of Addl. Increments) - 14100

1.1.07 (with Addl. Increments) - 14100

1.1.07 (without Addl. Increments) - 11850

Applicable Personal Pay as on 1.1.07 - NIL

Pay Fixation in the Revised Scale:

a) Basic Pay drawn as on 1.1.07 - 11850 (ignoring the Addl. Increments)

Plus b) DA to be merged (78.2% of the 9267 Basic Pay of Rs. 11850 actually drawn on 1.1.07, ignoring the Addl. Increments)

Plus c) Fitment Benefit [30% of (a) + (b)] - 6335_

Total 27452

Revised Basic Pay - 27460

Revised Basic Pay as on 1.1.07 - 28290 including the Annual Increment

(para-5.12.3 of PC No.684 dt 28.5.09 refers)

(B) OFFICER IN GRADE-V :

Pre-revised Basic Pay (Rs./p.m.)

1.1.06 (Annual Increment) - 15200

1.12.06 (Grant of Addl. Increments) - 16950

1.1.07 (with Annual Increment +Addl. Increments) - 17300

1.1.07 (without Addl. Increments) - 15550

Applicable Personal Pay as on 1.1.07 - NIL Pay Fixation in the Revised Scale:

a) Basic Pay drawn as on 1.1.07 - 15200 (without reckoning the Annual Increment due on 1.1.07 and by ignoring the Addl. Increments)

Plus b) DA to be merged (78.2% of the - 12160 Basic Pay of Rs. 15550 actually drawn on 1.1.07, ignoring the Addl. Increments)

Plus c) Fitment Benefit [30% of (a) + (b)] - 8208_

Total 35568

Revised Basic Pay - 35570

Revised Basic Pay as on 1.1.07 - 36640including the Annual Increment

Annexure-IV

ILLUSTRATIVE EXAMPLES OF FIXATION OF PAY OF OFFICERS APPOINTED AFTER 1.1.2007 WITH ADVANCE INCREMENTS

(A) OFFICER APPOINTED IN GRADE-VI W.E.F. 1.6.07:

Date of appointment in Grade-VI. - 1.6.2007

Pay in the pre-revised Scale - Rs. 18000(Minimum Pay in Grade-VI + (16000+2000)5 Advance Increments).

Pay to be fixed in the Revised Scale:

Pay in the revised Scale with 5 - Rs. 38160Advance Increments. (32900+5 Incs)

OR

Revised Pay as on 1.1.07 of an - Rs. 37070 Officer in Grade-VI appointed before 1.1.2007 and drawing pre-revised Basic Pay of Rs. 18000/- as on 1.1.07 (whichever is lower)(including the Additional Increments granted w.e.f. 1.12.06) whose next Annual Increment is due on 1.7.07.

The Basic Pay of the Officer appointed in Grade-VI on 1.6.07 with 5 Advance Increments in the 1997 Pay Scale is to be fixed at Rs. 37070 in the revised Scale w.e.f. 1.6.07.

(B) OFFICER APPOINTED IN GRADE-II W.E.F. 1.6.08:

Date of appointment in Grade-II. - 1.6.2008

Pay in the pre-revised Scale - Rs. 11850(Minimum Pay in Grade-II + (8600+3250)13 Advance Increments).

Pay to be fixed in the Revised Scale:

Pay in the revised Scale with 13 - Rs. 24170Advance Increments. (16400+13 Incs)

OR

Revised Pay as on 1.1.07 of an - Rs. 22240 Officer in Grade-II appointed before 1.1.2007 and drawing pre-revised Basic Pay of Rs. 11850/- as on (whichever is lower) 1.1.2007 (including the Additional Increments granted w.e.f. 1.12.06) whose next Annual Increment is due on 1.7.07

The Basic Pay of the Officer appointed in Grade-II on 1.6.08 with 13 Advance Increments in the 1997 Pay Scale is to be fixed at Rs. 22240 in the revised Scale w.e.f. 1.6.08.