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Pay Refixation

- The document proposes re-fixing the basic pay of non-executive employees of MUNPL who were recruited as Diploma Trainees in 2018. - It references a recent one-time special dispensation by NTPC to protect basic pay for similar trainees recruited during a specific window period. - Calculations are provided showing how the basic pay would be re-fixed from April 2021 onwards, providing an increase of around Rs. 4 lakhs per employee until March 2023 and a total financial implication of Rs. 72.57 lakhs for MUNPL's 18 employees. - Some riders are noted regarding MUNPL being a newer company compared to NTPC and having its own

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30 views

Pay Refixation

- The document proposes re-fixing the basic pay of non-executive employees of MUNPL who were recruited as Diploma Trainees in 2018. - It references a recent one-time special dispensation by NTPC to protect basic pay for similar trainees recruited during a specific window period. - Calculations are provided showing how the basic pay would be re-fixed from April 2021 onwards, providing an increase of around Rs. 4 lakhs per employee until March 2023 and a total financial implication of Rs. 72.57 lakhs for MUNPL's 18 employees. - Some riders are noted regarding MUNPL being a newer company compared to NTPC and having its own

Uploaded by

MUNPL HR
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© © All Rights Reserved
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Presentation on proposed

Basic Pay Re-fixation


of non-executive employees of MUNPL

Date: 01 August 2023


Background
• DT (Diploma Trainees) -2018 batch was recruited on the rolls of MUNPL through offer of
appointment issued to them in April 2019.
• Selected from the panel of candidates available with NTPC, NRHQ against advertisement no.
01/2018.
• Projected vacancies were for Singrauli, Rihand, Unchahar, Tanda and Vindhyachal stations under
the Northern Region of NTPC Ltd.
• Rider: Total number of projected vacancies may increase/ decrease at the discretion of NTPC.
• NTPC reserves the right to cancel/ restrict/ enlarge/ modify after the recruitment process, if
need so arises, without issuing any further notice or assigning any reason thereafter.
• Selected candidates shall undergo 02 years training and will be paid a consolidated stipend of Rs.
15,500/- per month.
• On successful completion of training, these candidates will be absorbed in the pre-revised pay
scale of Rs. 15,500 – 3% - 34,500 (W7 grade). The wage revision is due w.e.f. 01.01.2017.
Background (contd.)
• MUNPL Board during its 51st Meeting held on 25.01.2019, for recruitment and deployment of DTs
at MUNPL through invoking the existing panel of NTPC.
• Offer of Appointment issued by MUNPL on its own letterhead clearly stipulating :
 That MUNPL is a JV of NTPC and UPRVUNL.
 That they have been selected for the post of Diploma Trainee of MUNPL, and the offer for appointment is being made
by MUNPL.
 That in the event of acceptance of the offer, they will not have any subsequent claim on NTPC Limited for the said
recruitment process.
• If found suitable for absorption, the candidates shall be placed in W7 grade in the applicable pay
scale as per prevailing policy.
• Board of Directors of MUNPL in their 52nd Meeting held on 08.04.2019 approved the proposal for
revision of stipend payable to the DTs of MUNPL to Rs. 24,500/- per month, as applicable to the
DTs of NTPC Limited.
• After 02 years training, the DTs were regularized in NE-7 grade at the Basic Pay of Rs. 24,000/- per
month (which was the same as the prevailing W7 grade pay-scale of NTPC ) + IDA + Cafeteria Allowance (35%)
Offer of Appointment : Terms &
Conditions
Recent Developments in NTPC
• Protection of Basic Pay of DTs/ATS, who had joined/got regularized in NTPC after 27.09.2018
(i.e., the date of signing the Wage Revision MOU in NBC) but for whom the Recruitment
Advertisements were issued before 01.02.2019 (i.e., the date of issuance of NTPC Pay Revision Circular
for Workmen) and whose Basic Pay was fixed at minimum of revised pay-scales of concerned
grades, has been done as a one-time special dispensation.
• Cases at NTPC are analogous to the DTs recruited at MUNPL, whose advertisement was issued
(by NTPC) in November 2018 (i.e., before 01.02.2019) and who were regularized in April 2021 (i.e.
after 27.09.2018) and their Basic Pay was fixed at Rs. 24,000/- per month (i.e. minimum of the pay-
scale of the concerned grade).
• Revised Basic Pay plus DA as on their respective date of regularization of DTs of NTPC has been
fixed as the sum of the Basic Pay in the pre-revised pay scales (i.e., Rs. 15,500/- for DTs) plus DA in
the pre-revised pay scales (as on their date of regularization).
• New Basic Pay shall be effective from the date of their regularization and the arrears payment
shall be regulated accordingly.
Proposal
• DTs of MUNPL had applied against the advertisement no. 01/2018 issued by NTPC Ltd.
• It was stipulated that the candidates shall be absorbed in the pre-revised pay scale of Rs. 15,500
– 3% - 34,500 (W7 grade), with the additional information that wage revision is due w.e.f.
01.01.2017.
• Any benefit associated with wage revision/ pay fixation extended by NTPC to its own DTs
recruited during the window between 27.09.2018 and 01.02.2019, may be concurrently adopted
by MUNPL for its own DTs.
• Non-executives have submitted multiple requests for re-fixation of their Basic Pay, and issue also
discussed in various Interaction Meetings at HOP and Chairman level.
• Similar pay refixation benefit has also been already extended at other subsidiaries/ JVs of NTPC
like BRBCL.
• Non-executives are permanent on-roll employees of MUNPL. Advisable to keep their morale
high for the future growth of MUNPL, including Stage-II, Obra-D and Anpara-D projects in the
pipeline.
• Negligible financial impact considering small employee strength (only 18 nos.).
Proposal & Calculations
• To re-fix the pay-scales of MUNPL non-executives (currently at NE-7 level), like the principle
adopted by NTPC for its DTs regularized in W-7 grade, as a special one-time dispensation.
A Basic Pay (As per 2007 Pay Revision Pay Scale) Rs. 15,500.00

B DA (As per 2007 Pay Revision Pay Scale) on 170.50% (15500x170.5/100) = Rs. 26,427.50/-
regularisation i.e. 17.04.2021
C Basic Pay + DA (As per 2007 Pay Revision Pay (A + B)= {15500+26,427.50} = Rs. 41,927.50/- This is to be protected the revised wage agreement of
Scale) as on date of regularisation of MUNPL 2017
Cadre Employees after training

D Dearness Allowance as per 2017 wage revision as 23.20%


on 17.04.2021
E Basic Pay as per 2017 wage revision as on Rs. 34,032.06 E+D=(A+B)
17.04.2021 considering DA to be 23.20 % (For Pay [{E+D}=34,032.06/-+ (34,032.06x23.20/100) =Rs.
Protection) 7895.438/-] Rs. 41,927.50/-
[{A+B}=15500+(15500x170.50/100 =26,350/-)]
Rs. 41,927.50/-

F Revised Basic Pay in 2017 Pay Scale (rounded off) Rs. 34,032/-
on regularisation i.e. as on 17.04.2021

G Annual increment @ 3% on 01.04.2022 Rs. 1,020.96

H Basic Pay as on 01.10.2021 after increment (F+G) = (34032 + 1020.96) Rs. 35,053.02/-

I Basic Pay as on 01.10.2021 after increment Rs. 35,060/-


(Rounded off)

• Total increase in payout per person for the period April’21 – March’23: Rs. 4,03,2022/-
• Total Financial Implication for MUNPL for 18 DTs : Rs.72.57 lacs.
Riders
• MUNPL DTs are the 1st batch to be recruited by the Company as no non-executive was previously
present at NE-7 (or any other grade) at MUNPL. Therefore, there is no reference grade/ pay-scale
previously available within MUNPL, as on 01.01.2017, for the purpose of pay revision.
• The MUNPL non-executives are a fresh cadre of employees whose starting pay-scales were
finalized by the Company’s Board, in due exercise of its rightful prerogative.
• Consequent to the proposed pay-refixation, the revised basic pay of NE-7 shall be fixed at
Rs.34,032/- (w.e.f. April 2021) which shall be higher than starting basic at E0 Grade of NTPC Ltd.
i.e. Rs.30,000/-.
• The pay, perks, and benefits of any organization are decided after due deliberation considering
the practices of other organizations in the industry, applicable statutory provisions, and financial
position of the Company. The revenues of MUNPL are a fraction of NTPC, and it is little over a
decade old, unlike NTPC, which has been around for 47+ years and a Maharatna CPSE.

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