No PER/EC/121307P&A, Sub: . s AUTHO! DIA LIMITED NEW DELHI December 29, 2009 Ql IRDER Revision of Perquisites and Allowances for executives of SAIL. In pursuance of the ‘Presidential Directives’ received from the Government of India, Ministry of Stee! vide letter No.7 (12)/2008-SAIL(PC) dated 5™ October, 2009, revision of perquisites and other allowances for executives under Cafeteria Approach w.e.f. 5.10.2009 shall be as per details given below :- 10 CAFETERIA APPROACH FOR PERQUISTES & OTHER ALLOWANCES ON REVISED BASIC PAY WITHIN 50% CEILING “Cafeteria Approach” shall be adopted for perquisites & other allowances allowing ‘executives to choose from a given set of cafeteria of perquisites and allowances (Annexure-1) by exercising option as mentioned herein below. In accordance with DPE guidelines, the recurring expenditure on maintaining and running infrastructure facilities such as schools, hospitals, clubs etc. shall be accounted within the ceiling of 50% of revised Basic pay. Accordingly, admissibility of perquisites and other allowances to executives in SAIL under the “Cafeteria Approach” w.e.f. 5" October, 2009 shall be subject to the following ceiling ~ ‘+ Bxecutives working for 48 Hours or more per week - limited t0 46% of revised basic pay * Executives working for Less than 48 hours per week - limited to 44% of revised basic pay LTC/LLTC shalll be allowed as per the following: i) For block year 2007-09 (extended period), executives shall be allowed to avail LTC/LLTC es per the existing LTC/LLTC Rules. ii) For the block year 2009-11, those executives who have already availed LTC/LLTC, actual expenditure incurred shall be adjusted/deducted against the payment under the ‘Cafeteria Approach’ for perquisites and allowances over the period October 2009 to Marck,2011. In other words, the amount spent on LTC/LLTC shall be divided by 18 (i.e, period from 5.10.2009 to 31.3.2011) and monthly monetary value will be deducted / adjusted against the maximum permissible limit of Perks & Allowances of the concemed executive. In case of executive separating on or before 31% ‘March,2011, the factor of 18 will be revised accordingly. wee cath... U16 7 18 19 a2e Executives would be required to exercise their option under “Cafeteria Approach” in the prescribed format (Annexure II) only once at the beginning of every financial year {by 10 March) in the prescribed format and payment of perquisites and allowances shall be made as per the option subject to the prescribed ceiling. For the current financial year, the option shail be exercised by 10” January,2010. If an executive docs not opt for cafeteria within the prescribed time frame, there shal! be no payment on account of the perquisites and allowances under the cafeteria in the revised structure of pay. The payments shall be made on the basis of certification from the executive concemed. Payments made on account of the following items shall be adjusted / recovered against the payments under “Cafeteria Approach” effective from 5" October, 2009: a) Reimbursement of Local Traveling Expenses (RLTE) b) Reimbursement of Transport Expenses ©) Reimbursement of Magazine/Periodicals/Membership of Professional Bodies 4) Reimbursement of Entertainment Expenses * 7 ©) Reimbursement of Education Expenses like Tuition Fee/Annual Charges, wherever appligable © 6) Cantecr/Lunch coupon/Fuel/Coke subsidy Reimbursement of vehicle Maintenance Expenses h) Communication Allowance i) Washing Allowance, wherever applicable i) Uniform Allowance, wherever applicable k) Professional Development Allowance to Doctors Benefits admissible under various schemes mentioned at para 1.9 above shall be withdrawn in case of executives with the implementatior of the ‘Cafeteria Approach’ for perquisites and other allowances. Accordingly, the policies/rules/schemes pertaining to items at paru 1.9 above stand withdrawn/modified w.e.f 05.10.2009, as far as it relates to executives. The existing facility of providing Company car to senior executives shall continue to operate. In case of suspension, only subsistence allowance as applicable on the revised basic pay shall be payable. A suspended executive shall not be eligible to opt for Cafeteria Approzch. Executives on long leave such as Study Leave, EOL on any grounds and Child Care Leave shall not be eligible to opt for Cafeteria Approach. contd. 3! CTLis 116 30 3 Executives separating on or after 5.10.09, shall be paid the balance amount as percentage (permissible as per Clause 1.3 and 1.4) of revised basic pay after adjusting/tecovecing any sum already paid on account of other perquisites end allowances. Income tax exemption, if any may be sought directly from Income Tax authorities. With the implementation of this “Cafeteria Approach”, all subsidies towards electricity. canteenmeal coupons etc. will also stand withdrawn in case of executives Mining Allowance on the existing rates shall continue to be paid and shall be beyond the 50% ceiling of revised basic pay. However, Mining Allowance shall be adjusted against Difficult Area Allowance as and when the same (Difficult Area Allowance) is introduced. The perquisites and other allowances under “Cafeteria Approach” shall be subject (0 review every year. Payments on account of perquisites and allowances shall be subject to Income Tax as per Income Tax Act ae This issues with the approval of the Competent Authority, Executive Director (P&A}Annexure I Set of Perquisites and Allowances (for 2009-10; w.e.f 5.10.2009) SE Percentage of Perquisite / Allowance ee eee | Conveyance / Transport Allowan 5% _ 2 | Lunch 7 Meal Coupon 1-5% | Entertainment Expenses CL 5% \ q___| Newspaper Professional Literature = | | Reimbursement i Education Expenses — ~ I [ Schools ee | College | 8% UG/ PG / Professional Courses 0% | 6 Hostel Subsidy 3% 7 Tnterset / Communication 5% | 8. _ | Professional Body Allowance | 2% 9. House Upkeep Allowance a 3% "0. | Gardener Allowance 3% ; [il] Uniform Allowance 3% fiz. Self Development Allowance 10% (73. ] Washing Allowance 23% "aT ETeT ELIS 15% 15, | Reimbursement of Expenditure on Vehicle Repair and Maintenance *Perquisie/Allowance at SI, No. 1 1s in place of existing RLTE and is compulsory for all executives except those senior executives provided with Company Car facility ai. Ge iAnnexure tl : Option Form for exercising the option under Cafeteria Approach Year — 2009-10, st Percentage of 1 Sk | Perks Allowance Berle Fey [Orden | —| [| Conveyance / Transport Allowance* 2 3% Compulsory | | { Yes/No }2. | Lunch / Meal Coupon 15% Specify the % :__ Entertainment Expenses 5% Yes iNo ‘Newspaper / Professional Literature Reimbursement 5% YesiNo Education Expenses | i) Schools ae E College iit) _UG/PG/ Professional Courses 7 [Hostel Subsid; Intemet / Communication Professional Body Allowance House Upkeep Allowance Yes No [ 10, _| Gardener Allowance : Yes No ii [Uniform Allowance Yeo '12.__| Self Development, Aliowan Yes/No. 1 | 1 Yes/No 13, | Washing Allowance | 23% (ie [ere LeTe Pal eaae 1596 Reimbursement of Expenditure on Vehicle Repair = ‘and Maintenance e Total % of Perks & Allowances opted | irsited to 46 96 for Exec. working for 48 hours or more rer week & limited to 44 96 for Exec. working for less | than 48 hours per week *erquisite/Alfowance at St. No. ? is in place of L Fexisting RLTE and is compulsory for all executives