Transcript
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CHAPTER – VII

WAGE AND SALARY ADMINISTRATION

1. Meaning and objectives of wage and salary administration.

2. System of wage and salary payment.

3. Basic pay.

4. Allowances.

5. Respondents’ opinion regarding success of wage and salary administration – from sample

unit.

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One of the most important factor to be taken care of in human resources

management is the amount of remuneration to be paid to an employee for a fairway’s work.

Work is the expenditure of human energy for direct remuneration or pay. Pay in one form or

another is certainly one of the main spring of motivate in our society. Wage and salary

administration is concerned with establishing and implementing sound policies and practices of

employee compensation. It satisfies physical needs of employees and determines social status.

In this chapter we shall discuss meaning and objectives of wage and salary

administration, system of wage and salary payment, basic pay, various allowances and advances

with special reference to PGVCL in following pages.

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1 – Meaning and objectives of Wage and Salary Administrative:

A Wage is the remuneration paid for the service of labour in production periodically to an

employee / worker. So payment made to labour is generally referred to as wages. Wages also

refer to the hourly rate paid to such groups as production and maintenance. Salary normally

refers to the periodically rates paid to clerical. administrative and professional employees. So

money paid periodically to person whose output cannot be measured is generally referred as

salary. Wage and salary are paid as per contract of employment. Wages include basic wage /

salary and allowances. Allowances are paid in addition to basic wage to maintain the value of

basic wage over a period of time. In India, different Acts include different item under wages.

Though all the lets includes basic wages and Dearness allowance under the item wages. E.g.

under the Workmen’s Compensation Act, 1923, section 2(m) wages for leave period, holiday,

overtime pay, bonus, attendance bonus and good conduct bonus form part of wages and under

the payment of wages Act, 1936 section 2(vi) any reward of settlement and production bonus, if

paid constitutes wages.

Wage and salary administration is establishment and implementation of sound policies

and practices of employee compensations. Wage policies of different organisations very

somewhat. Some organisations pay minimum necessary to attract the required number and kind

of labour, while some organisations pay well above the going rates in the labour market. Various

factors influence wage and salary structure and administration like govt. legislation and public

policy, organisations ability to pay, labour supply and demand, going wages and salaries, cost of

living, productivity, trade union’s bargaining power, job requirement, management attitude about

wage to be paid etc.

The basic objective of wage and salary administration is to establish and maintain an

equitable wage and salary structure and secondary objective is to establish and maintain an

equitable labour cost structure. Generally sound wage and salary administration tries to achieve

following objectives.

(1) To attract and retain the service of employee.

(2) To pay employees according to the content and difficulty of the job.

(3) To reward employees according to the effort and merit.

(4) To improve employee morale and productivity.

(5) To satisfy employee as to how and why they are paid.

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(6) To facilitate pay roll administration, budgeting and wage and salary control.

(7) To simplify collective bargaining.

(8) To promote employee organizational flexibility promotion and transfer.

Remuneration provides more than a means of satisfying the physical needs-it provides

recognition, a sense of accomplishment and determines social status. Hence formulation and

administration of wage and salary to attract and retain right personnel in right position is the prime

responsibility of the management in any organisation.

[2] System of wage and salary payment:

Wages if dependent generally on the rates of wages which may be an hourly rate or time

rate or based on a piece rate i.e. dependent on worker’s output. The time and piece output rate

wage plans are the two basic systems. All other plans are simply variation of these two.

In this wage system, an employee is paid a define amount of money for a specific period

of work. Production of an employee is not taken into consideration to fix the wages. In piece

wage system, an employee is paid fixed rate per unit produced of job completed.

The PGVCL applies time wage system for payment of wages and salary which includes

basic pay, dearness allowance, C.L.A./H.R.A project allowance tribal allowance, bad climate

allowance, hotline allowance, charge allowance etc.

[3] Basic pay:

The basic pay determines many other payment such as allowances, advances and

certain fringe benefits. The existing scales of pay of PGVCL employees have been revised from

1-1-2006. the existing scales of basic pay are shown in table 7.1.

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Table 7.1

Scales of basic pay

Source : General standing order.

Table 7.1 shows that the highest pay scale is Rs.54700-77000 & lowest pay scale is Rs.

7300-17940. various allowances and advances are paid to employees, in line with basic pay. The

basic pay differences reflect differences in qualification, experience, physical and mental ability,

etc. Generally inequalities in emoluments of employees belonging to same basic pay are not

observed-from the survey of respondents belonging to class I and II (From sample unit), 66.05

percent respondents are agree with success of the objective-eliminating inequalities in pay

(please see table no.7.7).

Sr.no. Existing Pay Scales Rs. Revised Pay Scale Rs.

1 2 3

1 2750-5215 7300-17940

2 3050-5985 8100-19870

3 3200-6905 8800-20940

4 3400-8300 9700-21710

5 3600-9350 10100-22000

6 4000-10025 11300-22470

7 5000-10525 13600-31300

8 6500-11750 17300-38610

9 8000-13000 21200-42000

10 8500-14250 21900-43350

11 10400-15525 27000-44710

12 13000-18600 41200-70270

13 16000-20050 48590-75900

14 18400-22400 54700-77000

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[4] Allowance

Allowance from an important part of the employees compensation structure. The PGVCL

pay following allowance to the employees.

4.1 Dearness allowance

4.2 C.L.A / H.R.A

4.3 Compensatory local allowance

4.4 Other allowance

4.5 Benefits & facilities

[4.1] Dearness allowance:

Dearness allowance is a device to meet the needs of the employees in the light of price

increase. This reduces the purchasing power of the employees. The objective of paying D.A. to

employees is to compensate them for the loss in the real earning caused to them by increase in

the cost of living from time to time.

PGVCL’s employees are paid D.A. as per central govt. rules. Rate of D.A. is revised

from time to time (Six monthly) with rise in the average of living index, the rate of D.A.

applicable from 1-1-2006 existing rate are presented in table 7.2.

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Table 7.2

D.A payable to employees

[4.2]

House Rent Allowance

The house Rent Allowance will be paid on State Government rates with effect from 1.4.2009 and

as may be revised from time to time by GOG.

Table 7.3

House rent Allowance payable to employee

Classification of Cities/Towns Rate of H.R.A. on Basic Pay + (NPA

wherever applicable)

X (earlier classification A-1) 30% of actual basic pay drawn

Y (earlier classification A, B1 and

B2)

20% of actual basic pay drawn

Z (earlier classification C &

unclassified)

10% of actual basic pay drawn

Note : The list of Towns / Cities classified shall be as per State

Government orders.

Date from which

applicable

Rate of Dearness Allowance on Basic pay + (NPA

wherever applicable)

From 1/1/2006 No Dearness Allowance

From 1/7/2006 2% of Basic pay

From 1/1/2007 6 % of Basic pay

From 1/7/2007 9 % of Basic pay

From 1/1/2008 12 % of Basic pay

From 1/7/2008 16 % of Basic pay

From 1/1/2009 22 % of Basic pay

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[4.3] Compensatory Local Allowance

The compensatory Local allowances will be paid on State Government rates with effect from 1st

April, 2009 and as may be revised from time to time.

Table 7.4

Compensatory Local Allowance Payable to employees.

Revised Pay

Scale

Amount of C.L.A. in class of cities (per month)

X

(earlier A-1)

Y

(earlier A, B1, & (B2)

11300-22470 and

above

Rs.300 Rs.240

Below 11300-

22470

Rs.200 Rs.150

[4.4] Other allowance

[1] Leave/LTC etc.

The existing rules regarding LTC Encashment, Earned Leave Encashment, Maternity Leave,

Paternity Leave, Sick Leave etc. will be as per State Government lines.

[2] NPA and Special Grade to Doctors

The Doctors will be eligible for NPA and Selection Grade as per State Government rates as may

be revised from time to time. Revised N.P.A. will be paid as per GOG.

[3] HBA, Vehicle Advance and other Advance

The existing limit and guidelines shall continue. However for enhancing the existing limits of

these advances a committee would be formed wherein one representative of recognized Union /

Association would be include.

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[4] Food/Festival Advance

The existing amount of advance granted shall be continued for employees having revised Basic

Pay of less than Rs.20000/-.

[5] CONVEYANCE ALLOWANCE TO BLIND & ORTHOPEDICALLY

HANDICAPPED EMPLOYEES:

The existing allowances being paid to blind and orthopedically handicap employees at the rate of

Rs. 100/- pm shall stand revised to Rs. 500/- pm. w.e.f. 1.4.2009.

[6] FAMILY PLANNING INCENTIVE:

The existing Family Planning incentive shall be paid at the rates and terms as decided by the

State Govt. from time to time.

The Tribal Allowance and bad climate allowance will be paid on State Government rates as

revised from time to time.

Following allowances paid over and above the State Govt. norms shall stand revised w.e.f.

1.1.2006 as mentioned in col.no.5.

Table 7.5

Family Planning Allowances Payable to employees.

Sr.

no.

Type of Allowance Payable to Existing

Rate(basic+

DP)

Revised

Percentage

on Basic

(1) (2) (3) (4) (5)

1. Fringe Benefit All employees 10% 8.00(*)

2. Special Allowance All Non-Tech. employees

and engineers working in

other than Power Stn. &

Sub-Station.

5% 3.75

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Sr.

no.

Type of Allowance Payable to Existing

Rate(basic+

DP)

Revised

Percentage

on Basic

(1) (2) (3) (4) (5)

3. Medical- cum-

Misc. Allowance

All employees Rs.100/-

p.m.

Rs.100/- p.m.

4. Generation/ Sub-

Stn. Allowance

Engineers and Medical

Doctors

Working in PS/SS

8% 5.50

5. Field / SS/ Gen.

Allowance

Class III/IV Technical

employees and Sr. Security

Officer /P.O. /IRO / LWO

in Power Station &

Doctors Working at other

than Power Station.

11% 7.75

6. Field Allowance JE/DE working in S/Dn. 19% 13.00

JE/DE working in Dn.

/C.O.

16% 11.00

JE/DE working in Corp.

office/Z.O.

6% 4.00

EE working in Dn. /C.O. 14% 9.50

EE working in Corp.

Office /Z.O.

5% 3.50

7. Special Comp.

Allowance (power

Station)

JE/DE working in PS 19% 13.00

EE and Safety Officer in

PS

16% 11.00

SE/ACE/CE in PS 12% 8.00

8. Special Comp. JE/DE working in S/S 19% 13.00

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Sr.

no.

Type of Allowance Payable to Existing

Rate(basic+

DP)

Revised

Percentage

on Basic

(1) (2) (3) (4) (5)

Allowance (Power

Station)

EE working in S/S 16% 11.00

9. Shift Charge

Allowance

EE working in Shift in P.S. 5% 3.50

10. Transport

Allowance

To handicapped children of

employees

Rs.40/-p.m.

per child

Rs.100/-

P.M. per

child

Note : (i) Fringe Benefit Allowance shall hence forth be drawn in the name of General Facility

Allowance.

(ii) Existing rules, applicability and guidelines for drawl of above allowances remains

unchanged except altered by the settlement entered.

(i) The categories of officers i.e. Sr. Security Officer, IRO, Personnel Officer and

Labour Welfare Officer working in Power Station including Medical Officer & Asst.

Medical Officer working at Vadodara / Rajkot Dispensaries shall only be eligible for

Generation Allowance / Field Allowance at the rate of 7.75% of Basic Pay and entitle

for 8 Public Holidays in a year.

Above officer working at locations other than power station and dispensaries shall

be entitled to only special allowance at the rate of 3.75% of Basic pay and holidays at par

with other administrative staff with effect from the date of issue of this GSO. However, there

shall be neither recovery not payment of appears on this account.

A. The existing amount & rules of Kutch allowance, Hotline allowance shall remain unchanged.

Charge allowance shall be paid as per rules and regulations of Government of Gujarat in this

regard as applicable from time to time.

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B. (*) An incentive scheme shall be introduced with effect from 01/04/2009 covering 50%

amount of the General Facility Allowance and shall be paid in the form of Performance

incentive at the end of the Financial Year. Management to give matching contribution of the

above amount towards the corpus. Further depending upon company’s performance,

Management may consider giving higher contribution to corpus to incentive and motivate

employees to achieve higher productivity consequently, the rate of General Facility

Allowance shall stand revised to 4% from 01/04/2009.

C. Within period of one year a performance – based Variable pay on individual basis for all

Employees/Officers covering pay and allowance will be introduced after working out

modalities with the recognized Unions / Associations and appropriate contribution will be

provided by the management of the companies.

[4.5] Benefits & Facilities:

[1] Medical Facilities

The existing medical facilities and medical reimbursement scheme will be continued. The

levy of Rs.2/- per case for availing facilities in GUVNL’s Dispensaries shall be stopped. Matter

regarding extending the facility in GUVNL Dispensaries to retired employee/officer or spouse

and dependents of compassionate appointee would be examined separately.

[2] Workman compensation

The employees covered by workman compensation Act,1923 and who meet with an accident

arising out if an during course of employment, shall be given 100% reimbursement of medical

expenditure and granted special leave for the period of medical treatment.

However, in case of employees who are incapacitated due to accident while on duty and sustain

60% & above permanent partial disablement shall have the option of either seeking employment

for their dependent as per compassionate appointment norms or a lump sum amount equivalent

to the amount of workman compensation, provided the concerned employee resigns.

[3] Over Time

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All eligible employees/workmen defined under the Bombay Shops & Establishment Act and

Rules, Factories Act and Gujarat Factories Rules as the case may be, shall be paid the overtime

as per applicable rules. Since Engineers are not covered for the purpose of overtime under these

Acts and rules, they shall be given Compensatory off when they perform extra hours of work to

be utilized within two months. This shall be effective prospectively from the date of issue of

GSO. Over time based on revised pay shall be payable w.e.f 01/06/2009.

[4] Holidays

The officers mentioned in note (iii) of clause no.23.0 and Engineers working in general and

rotating shifts in power stations and sub-stations shall be eligible for 8 public holidays in a year.

If a public holiday falls on the day of a weekly off / leave, then compensatory off towards the

said public holiday shall not be granted. The above arrangement shall come into force w.e.f July,

2009.

[5] Gratuity

The maximum financial ceiling on the amount of gratuity payable will see as per the payment of

Gratuity Act, 1972 as amended from time to time.

[6] Bonus

The Bonus will be paid in accordance with payment of Bonus Act, 1965

[7] Facilities to Union

The existing facility of considering union leaders on duty for attending conciliation and court

cases shall be continued for general demands and general disputes only and not for individual

employees cases.

[8] Shoes/Sandals & Socks

Employees/officers working in administrative offices for more than two years shall be paid

Rs.1000/- at the end of second financial year for purchase of shoes and sandals. Those of the

employees working in field, substation and power plants shall be given industrial safety shoes of

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ISI mark every two years. They shall also the eligible for reimbursement towards purchase of

two pair of socks of not more than Rs.150/- per pair every two years.

[9] Higher Grade

The existing scheme of grant of higher grade as per GSO 334 and its amendments shall continue.

Similarly, the benefit of GSO-247, GSO-235 & GSO-43 as available at present shall continue.

Any wrongful payment made to employee/ officer pursuant to these orders or any other justified

action of the company, being public money, the same shall be recovered in suitable equal

installment. Further those of the employees/officers who have been charge sheeted for loss the

companies, misappropriation etc. the amount of loss/misappropriation shall be recovered from

arrears payment and / or other sources. Such disciplinary action cases shall be finalized

preferably within one year from the date of GSO.

Respondents’ opinion regarding encouraging for the best effort to be achieved and to

continue with the PGVCL by existing wage and salary policy .

An attempt to study respondents’ view, belonging to class III and IV regarding encouraging

for the best effort to be achieved and to continue with the PGVCL by existing wage and salary

policy was made by the researcher. The details are presented in table 7.6

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Table – 7.6

Respondents’ opinion regarding encouraging for the best effort to be achieved and to

continue with the PGVCL by existing wage and salary policy

(class III and IV)

Note: Figure in brackets is percentage to total.

Source: Questionnaire – B, Qu.no. 17.

Sr.

No.

Respondents’

opinion

regarding

encouraging

for the best

effort to be

achieved and

to continue

with the

PGVCL by

existing wage

and salary

policy

Number of respondents / percentage

Head

office

Rajkot

Jam-

nager

Juna-

gadh

Porb

Andar

Amreli

Total

1. Strongly

agree

6

(100.00)

12

(22.22)

4

(8.70)

8

(13.33)

20

(41.67)

8

(12.90)

58

(21.02)

2. Agree 0

(0.00)

40

(74.08)

24

(52.17)

38

(63.34)

22

(45.83)

42

(67.74)

166

(60.14)

3. Neither agree

nor disagree

0

(0.00)

0

(0.00)

6

(13.14)

2

(3.33)

0

(0.00)

6

(9.68)

14

(5.07)

4. Disagree 0

(0.00)

2

(3.70)

12

(26.09)

10

(16.67)

6

(12.50)

6

(9.68)

36

(13.04)

5. Strongly

disagree

0

(0.00)

0

(0.00)

0

(0.00)

2

(3.33)

0

(0.00)

0

(0.00)

2

(0.73)

6. Total 6

(100.00)

54

(100.00)

46

(100.00)

60

(100.00)

48

(100.00)

62

(100.00)

276

(100.00)

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Table 7.6 shows:

(1) 81.16 per cent respondents agree with the existing wage and salary policy encourages them

for the best efforts to be achieved and to continue with the PGVCL. (21.02 per cent

respondents strongly agree and 60.14 per cent respondents agree).

(2) 13.37 per cent respondents disagree with the existing wage and salary policy encourages

them for the best effort to be achieved and continue with PGVCL. (13.04 per cent

respondents disagree and 0.73 per cent respondents strongly disagree.)

It can be said that the existing wage and salary policy encourages the employees for the

best efforts to be achieved and to continue with the PGVCL.

[5] - Respondents Opinion Regarding Success of Wage and Salary

Administration:

An attempt to study respondents’ view, belonging to class I and II, regarding success of

wage and salary administration was made by the researcher. The details are presented in table 7.7

Table 7.7 shows that:

(1) Maximum respondents (85.80 per cent of the respondents) agree with success of the

objective-satisfying employees to reduce the incidence of quitting and grievances. (37.65 per

cent of the respondents strongly agree and 48.15 per cent respondents agree).

(2) Minimum respondents (53.09 per cent of the respondents) agree with success of the

objective-motivating employees to performance better (16.67 per cent of the respondents

strongly agree and 36.42 per cent of the respondents agree).

(3) 82.10 per cent respondents agree with success of the objective-attracting and retaining the

services of employees and 11.73 per cent respondents disagree with success of this objective.

(4) 77.77 per cent respondents agree with success of the objective-facilitating pay-rate

administration, budgeting and wage and salary control and 8.03 per cent respondents disagree

with success of these objective.

Table – 7.7

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Respondents’ opinion regarding success of wage and salary administration

(class I and II)

Sr.

No.

Objectives of

wage and salary

administration

Number of respondents / percentage

Strongly

agree

Agree Neither

agree

nor

disagree

Dis-

agree

Strongly

disagree

Total

1. Attracting and

retaining the

services of

employees

80

(24.69)

186

(57.41)

20

(6.17)

36

(11.11)

2

(0.62)

324

(100.00)

2. Facilitating pay-

roll

administration,

budgeting and

wage and salary

control

42

(12.96)

210

(64.81)

46

(14.20)

26

(8.03)

0

(0.00)

324

(100.00)

3. Satisfying

employees to

reduce the

incidence of

quitting and

grievances

122

(37.65)

156

(48.15)

16

(4.94)

24

(7.41)

6

(1.85)

324

(100.00)

4. Motivating

employees to

perform better

54

(16.67)

118

(36.42)

0

(0.00)

132

(40.74)

20

(6.17)

324

(100.00)

5. Eliminating

inequalities in pay

40

(12.35)

174

(53.70)

40

(12.35)

66

(20.37)

4

(1.23)

324

(100.00)

Note: Figures in brackets are percentage to total.

Source: Questionnaire – A, Qu.no. – 26.

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(5) 66.05 per cent respondents agree with success of the objective-eliminating inequalities in pay

and 21.60 per cent respondents disagree with success of this objective.

Thus it can be said that the existing wage and salary policy reduces the incidence of

quitting and grievances attracts and retains the services of employees, eliminates inequalities in

pay and acts as an incentive to exploit potentialities of employees.

The researcher made an attempt to gather suggestions from the respondents for making

wage and salary administration more effective-from sample unit. The details are presented in

table 7.7.1 to table 7.7.3 as under.

Table 7.7.1 shows suggestion made by respondents to make wage and salary administration more

effective- class I and II.

Table 7.7.2 shows suggestion made by respondents to make wage and salary administration more

effective- class III and IV.

Table 7.7.3 shows suggestion made by respondents to make wage and salary administration more

effective- class I, II, III and IV.

Table 7.7.1 shows:

(1) Maximum respondents (63.59 per cent of the respondents) have suggested-revising existing

pay scales in order to make wage and salary administration more effective.

(2) Minimum respondents (22.22 per cent of the respondents) have suggested –ensuring prompt

payment of dues of the employees and not accumulating arrears of payment with a view to

make wage and salary administration more effective.

(3) According to 56.80 per cent respondents, the PGVCL should provide job environment, wage-

salary and perquisites as of the private sectors and according to 52.47 per cent respondents,

the PGVCL should appoint representatives of employees on the administration of wage and

salary plan committees in order to make wage and salary administration more effective.

All these observations show that the existing pay scale should be revised in order to

improve wage and salary administration. Though presently govt. is progressively taking steps in

this regard. Moreover so far as possible, job environment, wage-salary and perquisites should be

provided as of the private sectors.

Table 7.7.1

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Suggestion made by respondents (class I and II) to make wage and salary

administration more effective

Note: Figures in brackets are percentage to total.

Source: Questionnaire – A, Qu.no. – 27.

Sr.

No.

Suggestion made

to make wage

and salary

administration

more effective

Number of respondents / percentage

Head

office

Rajkot

Jam-

nager

Juna-

gadh

Porb

Andar

Amreli

No

opinio

n

Total

1.

Appointing

representatives of

employees on the

administration of

wage and salary

plan committees

10

(3.09)

34

(10.49)

38

(11.73)

30

(9.26)

24

(7.41)

34

(10.49)

154

(47.53)

324

(100.00)

2. Revising existing

pay-scale

24

(7.41)

32

(9.88)

60

(18.52)

32

(9.88)

22

(6.79)

36

(11.11)

118

(36.41)

324

(100.00)

3. Ensuring prompt

payment of dues

of the employees

and not

accumulating

arrears of

payment

6

(1.85)

22

(6.79)

20

(6.17)

2

(0.62)

12

(3.70)

10

(3.09)

252

(77.78)

324

(100.00)

4. Providing job

environment,

wage-salary and

perquisites as of

the private sector

22

(6.79)

18

(5.56)

54

(16.67)

30

(9.26)

18

(5.56)

42

(12.96)

140

(43.20)

324

(100.00)

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Table 7.7.2

Suggestion made by respondents (class III and IV) to make wage and salary

administration more effective

Sr.

No.

Suggestion

made to make

wage and salary

administration

more effective

Number of respondents / percentage

Head

office

Rajkot

Jam-

nager

Juna-

gadh

Porb

Andar

Amreli

No

opinion

Total

1. Appointing

representatives

of employees on

the

administration

of wage and

salary plan

committees

4

(1.45)

30

(10.87)

32

(11.59)

50

(18.12)

24

(8.70)

42

(15.22)

94

(34.05)

276

(100.00)

2. Revising

existing pay-

scale

4

(1.45)

42

(15.22)

38

(13.77)

50

(18.12)

40

(14.49)

46

(16.67)

56

(20.28)

276

(100.00)

3. Ensuring

prompt

payment of dues

of the

employees and

not

accumulating

arrears of

payment

0

(0.00)

12

(4.35)

4

(1.45)

16

(5.80)

12

(4.35)

24

(8.70)

208

(74.35)

276

(100.00)

4. Providing job

environment,

wage-salary and

perquisites as of

the private

sector

4

(1.45)

36

(13.04)

26

(9.42)

42

(15.22)

18

(6.52)

50

(18.12)

100

(36.23)

276

(100.00)

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Note: Figures in brackets are percentage to total.

Source: Questionnaire-B, Qu.No-18.

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Table 7.7.3

Suggestion made by respondents (class I, II, III and IV) to make wage and

salary administration more effective

Sr.

No

Suggestion

made to

make wage

and salary

administra-

tion more

effective

Numbers of Respondents / Percentage

Head

office

Rajkot

Jam-

nager

Juna-

gadh

Porb

Andar

Amreli

No

opinion

Total

1. Appointing

representative

s of employees

on the

administratio

n of wage and

salary plan

committees

14

(2.33)

64

(10.67)

70

(11.67)

80

(13.33)

48

(8.00)

76

(12.67)

248

(41.33)

600

(100.00)

2. Revising

existing pay-

scale

28

(4.67)

74

(12.33)

98

(16.33)

82

(13.67)

62

(10.33)

82

(13.67)

174

(29.00)

600

(100.00)

3. Ensuring

prompt

payment of

dues of the

employees

and not

accumulating

arrears of

payment

6

(1.00)

34

(5.67)

24

(4.00)

18

(3.00)

24

(4.00)

34

(5.67)

460

(76.66)

600

(100.00)

4. Providing job

environment,

wage-salary

and

perquisites as

of the private

26

(4.33)

54

(9.00)

80

(13.33)

72

(12.00)

36

(6.00)

92

(15.34)

240

(40.00)

600

(100.00)

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Sr.

No

Suggestion

made to

make wage

and salary

administra-

tion more

effective

Numbers of Respondents / Percentage

Head

office

Rajkot

Jam-

nager

Juna-

gadh

Porb

Andar

Amreli

No

opinion

Total

sector

Note : Figures in brackets are percentage to total.

Source : Table 7.7.1 and 7.7.2

Table 7.7.2 shows:

(1) Maximum respondents (79.71 per cent of the respondents) have suggested-revising

existing pay scales in order to make wage and salary administration more effective.

(2) Minimum respondents (24.64 per cent of the respondents) have suggested –ensuring

prompt payment of dues of the employees and not accumulating arrears of payment with

a view to make wage and salary administration more effective.

(3) According to 65.94 per cent respondents, the PGVCL should appoint representatives of

employees on the administration of wage and salary plan committees and according to

63.77 per cent respondents, the PGVCL should provide job environment, wage-salary

and perquisites as of the private sectors in order to make wage and salary administration

more effective.

All these observations suggests that the existing pay scales should be revised so far as

possible job environment, wage-salary and perquisites should be provided as of the private sector

and representative of employees should be appointed in wage-salary plan committee in order to

improve wage and salary administration. Thus any remarkable change in the suggestion

suggested by class I and II respondents and class III and IV respondents to make wage and salary

administration more effective have not been found.

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Table 7.7.3 shows:

(1) Maximum respondents (71.00 per cent of the respondents) have suggested-revising

existing pay scales in order to make wage and salary administration more effective.

(2) Minimum respondents (23.33 per cent of the respondents) have suggested –ensuring

prompt payment of dues of the employees and not accumulating arrears of payment with

a view to make wage and salary administration more effective.

(3) According to 60.00 per cent respondents, the PGVCL should provide job environment,

wage-salary and perquisites as of the private sector and according to 58.66 per cent

respondents, the PGVCL should appoint representative of employees on administration

of wage and salary plan committees in order to make wage and salary administration

more effective.

All these observations show that the PGVCL should revise existing pay scale in order to

improve wage and salary administration. Though presently govt. is progressively taking steps in

this regard. Moreover the PGVCL should provide job environment, wage-salary and perquisites

as of the private sectors for improving wage and salary administration.PGVCL applies time wage

system for payment of wage and salary which includes basic pay, D.A. and other allowances and

monetary benefits as per govt. rules. The findings indicate that the PGVCL’s existing wage and

salary policy is attracting and retaining efficient personnel, acting as an incentive to exploit their

potentialities and encouraging employees to continue with the PGVCL.

All these findings clearly indicate that the PGVCL’s existing wage and salary policy is

quite fair, equitable and sound in line with cost of living index.