Wasa of Government Employees

8/8/2019 Wasa of Government Employees

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WASA OF GOVERNMENT EMPLOYEES

Group 1

Gauri 3

Hamdi 15

Andrea 23

Shawn 28Megan - 33


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Comparison between Government and

Private SectorComponent Government Private Sector

Basic pay The pay commission arrives at

pay scales for all the levels.

The various jobs have to be

evaluated for their relative

worth in comparison to otherjobs to arrive at a hierarchy.

Then using comparative

organizations pay, the basic

pay for the position is arrived

at.

Annual increment &

pay scale

The increments in

government are time based.

The private sector uses

performance as a measure of

deciding the pay increase.

inflation

Demand and supply

considerations


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Component Government Private Sector

Dearness allowance Based on consumer price

index, DA is 35% of Basic

plus Dearness Pay.

House rent allowance

(HRA)

House rent allowance is

calculated as a percentage

of base pay depending on

the classification of the city

Roughly it is 40% of basic

pay, though it can go as

high as 60%.

City compensatory

allowance (CCA)

In the government pay

scale however it is a

standard amount and not

calculated as a percentage

of basic pay.

The private sector uses City

compensatory allowance to

normalize pay across

metros and non metros. It

hence takes a huge weight

at higher levels of

hierarchy.

Transportation allowance A standard amount based

on class of city

Conveyance allowance in

Private sectors usually is a

percentage of pay,


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LTC In a block of four years

either two journeys

LTC is en-cashable

Advances The employees have to

repay the loan in simple

interest and hence is a cost

to the government

Private sector too provides

subsidy which it adds to

the compensation package

Pension 50% of the pay-scale the

employee is retiring in if

he/she has rendered 33

years of service.

But Private sector has EPF,

where employer

contributes 12% of

basic+DA.

Gratuity It is calculated as 16.5times (assuming 33 years

of service) the basic pay

Plus DP+DA at the time of

retiring or 3.5 lakh Rs,

whichever is smaller

focusing on the annual costincurred by the

organization to give

gratuity to the employee

after five years.


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Group insurance Benefit 30% of their contribution

goes to an insurance fund.

Organizations contribute to

group insurance on behalf

of their employees.

Provident fund Government employees

have the GPF (general

provident fund scheme)where the employees have

to contribute a minimum of

6% of their BP+DP+DA

All private sector

organizations have a EPF

scheme where theemployee contributes 12%

of BP+DP+DA

Bonus and incentives Almost all government

employees receive some

kind of non-productivity

linked bonus. Running staff

in railways have their paytied to their erformance

Depending on the level in

the organization variable

pay form a minimum of

10% of CTC and go upto

50% of CTC.


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Medical benefit Government authorized

doctors/governmenthospitals treat employees

without taking any fee.

Organizations pay a

medical insurancepremium that covers the

employees and their family

(ranging from a cover of

2,00,000 Rs to 7,00,000)

apart from reimbursing

medical bills/prescriptionsup to Rs. 15,000 per annum


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Cost of Pension

The amount of pension payable is 50% of the basic

pay.

If employee demise his family gets pension @ 30% of

the basic pay.

The pay increases by 6% per annum.

40 % of the pension can be commuted by theemployee at the time of retirement.


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Vehicle and computer advance

Benefit to government employees to the extent in the

difference in the cost of the loans.

The government employee pays back the vehicle andcomputer advance that he/she avail from the government on

the basis of simple interest.


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Medical benefits

Cost of insurance is based on the annual insurance

premium of Rs. 2951

Insurance premium rates are different for different

age groups.


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Medical benefits for post retirement

Costing is done in a manner similar to gratuity/pension.

CTG of group insurance benefit

Government employees contribute to a fund every month.

The insurance fund gives insurance benefits in case of loss of

life.

The employee contributes less than what he/she should, toget the same insurance benefit.


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CTG FOR RAILWAY EMPLOYEES

The constituents of pay and benefits for railway employees are

almost the same as the general category employees except for

railway passes and a special category called running staff

Constituents of gross pay for railway employees

Allowances for railway employees

Function specific allowance like Washing allowance, Night duty

allowance, National holiday allowance, goods train special dutyallowances, breakdown allowance, night patrolling allowance,

risk allowance etc


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COST OF THE BENEFITS OF RLY. EMPLOYEES

Education allowance

Newspapers

Telephones

Pension

Medical facilities

Gratuity

Housing, computer and vehicle loan benefits

Leave encashment

Computer at home for certain levels

They do not have LTC or HTC


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Railway Passes

The Railways get passes in lieu of LTC, and they get it every

year

The employees get 3 passes up to a certain level and six passes

thereafterCost of passes post retirement

Railway employees are eligible for passes even after retirement

The employee will travel only two times a year post retirement

along with his family The duration of such passes have been taken for a period of 20

years post retirement


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Grade Pay at the minimum of pay

scale

Passes

S1 2550 506

S2 2610 506

S3 2650 506

S4 2750 506

S5 3050 506

S6 3200 506

S7 4000 506S8 4500 1950

S9 5000 1950

S10 5500 1950

S11 6500 1950

S12 6500 1950

S13 7450 1950

S14 7500 1950

S15 8000 2732

S19 10000 2732

S21 12000 2732


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Running staff (railways)

Running staff have two important differences in theirpay:

The pay component has a huge variable pay based onrunning kilometers

This component is very necessary because it gives inhands a very high gross pay to the running staff and

employers

The minimum alternative pay that the running staff willreceive if they do not run many kilometers


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The running staffs HRA, CCA etc. are cost at 30 % of the

basic plus DP of the corresponding pay-scale

The pensions and benefits of the running staff are more

than the pensions and benefits of the other railway

employees by 55%


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Running staff pay scaleTable

Final

Payment

Annual

Increment

Basic SalaryPost / Grade

4400.0072.502750.00S4

4590.0077.503050.00S5

6000.00100.004000.00S7

7000.00125.004500.00S8

8000.00150.005000.00S9

9000.00175.005500.00S10

9800.006000.00

10500.00200.006500.00S12

11500.00225.007450.00S13


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Cost of Enhancement 300

The calculation is very similar to that of gratuity.

o

Pay increases by 8% over 33 years.

o An employee is eligible to en-cash upto 300 days

basic plus DA of the last drawn pay.

o The government has to save a small amount every

month which grows over 33 years.


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LEAVE TRAVELCONCESSION

Employees of the government are reimbursed the

travel expense they incur towards going home once

in 2 years.

This is called home travel concession.

The employee can travel to any part of the country

along with their family.

The reimbursement amount increases by pay level.


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Documents

Wasa of Government Employees