HINDUSTAN AERONAUTICS LIMITED

CORPORATE OFFICE, BANGALORE

PERSONNEL CIRCULAR NO. 684 28th May, 2009

Sub: Revision of Pay Scales and Allowances of Officers,

w.e.f. 1.1.2007
-o0o-

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 1 st January 2007 are as given below:

Existing Scales of Pay Revised Scales of Pay

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

DA Payable for the Quarterly Rate of DA

Quarter Average AICPI payable (% of
4.3 Rate commencing from applicable Basic Pay)
(2001=100)

01-04-07 127.33 0.8

01-07-07 128.00 1.3
01-10-07 131.67 4.2
01-01-08 133.67 5.8
01-04-08 134.33 6.3
01-07-08 138.00 9.2
01-10-08 142.67 12.9
01-01-09 147.33 16.6
01-04-09 147.67 16.9

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/-
 -3-

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 aggregate

amount.

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 1 st 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

5.10.1All 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 1 st January 2006 and 31 st
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 1 st 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 1 st 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.

5.10.4As 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. 1 st January 2007.

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

5.11.1One 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.

5.11.2Other 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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5.12.2Presently, 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.

5.12.3In 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 Revised date of Date of subsequent

next Increment next Increment Increment
1st January 2007 No change st
1 January 2008
1st July 2007 1st January 2007 1st January 2008

5.12.4In 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 & above 30% of Basic Pay
5 to 50 Lakhs 20% of Basic Pay
Less than 5 Lakhs 10% 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/ 30

Bangalore/ Hyderabad

Lucknow/ Kanpur/ Nasik/ Agra/ Vizag 20

Koraput/ Korwa 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 1 st 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-LSP
GM(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, Koraput
AGM(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, Lucknow
CoP(SU-30 MK Prog.), Hyderabad
CM(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, RWRDC

GM, 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 Delhi

DGM(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-I
ILLUSTRATIVE 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 - 36640

including 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. 38160
Advance 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. 24170

Advance 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.