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From       : Vikas Kumar Gupta, BSNL
To         : The wage revision committee, BSNL
Ref         : Demand relating to perks,perquisites and other allowances
Date       : 14 March, 2009

All the allowances should automatically increase by 25% whenever the DA crosses 50%


BSNL is facing stiff competition from the private operators. In the changed scenario, it is
necessary to improve the employee performance by encouraging an employee to increase his
skills and knowledge and develop new marketing tactics. The non-executive employees of
BSNL must be motivated to acquire the same by granting a special allowance called
PROFESSIONAL PURSUIT ALLOWANCE for the purchase of books, journals, etc. The
Executives of BSNL are being granted Professional Up gradation Allowance.
 Grade                                                            amount (p.m)
 NE-1 to NE-5                                                     350+i.d.a
 NE-6 to NE-8                                                     400+i.d.a
 NE-9 NE-12                                                       500 +i.d.a

Incentive for acquiring fresh higher qualifications

With a view to motivate the employees to further develop their academic worth and proficiency,
the system of payment of proficiency allowance at the rate of TWO advance increment for the
qualification possessed by them over and above the required recruitment qualification can be

Grant of Subsidies for the Non Executives for Acquiring Higher Qualifications

The non-executives should be encouraged to acquire higher qualification by allowing them to
avail study leaves and also subsidizing the amount charged for the professional
degrees/diplomas. In this way the quality of the manpower can be improved besides fulfilling the
academic needs of an individual. The same has already been granted to the executives. I
demand that the same should be extended to non-executive employees without discrimination.

Children education allowance (CEA) and reimbursement of tuition fees

   a) Reimbursement can be availed by the company employee subject to a maximum of 2
   b) Reimbursement as indicated above shall be applicable for the education expenses of
      school going children only, i.e. from nursery to 12th irrespective of the board of affiliation
      and it should not be linked to the academic performance of the child. In case the child
      fails, the above allowance shall not be stopped.
   c) The reimbursement should cover tuition fees, lab fees, special fees for agriculture,
      electronics,music etc,fee charged for practical work under the programme of work
      experience, fee paid for the use of any aid or appliance by the child, library fees,
        games/sports fee and fee for extra curricular activities. This should also include
        reimbursement for purchase of one set of text books and note books, two sets of uniform
        and one set of school shoes which can be claimed for a child, in a year.
     d) Upper ceiling for this allowance should be Rs. 25000 per year.
     e) Hostel subsidy of Rs. 3000/child/month should also be reimbursed

Merit scholarship

Merit scholarship of Rs.2000 p.m. should be allowed for all students securing admission based
on All India Entrance Examination in IIMs/AIIMs/IITs/IIITs and other institutions of national
reputation. The scholarship may be provided for the entire duration of the course.

Food/Diet allowance:

In lieu of canteen subsidy, workmen shall be paid food expenses reimbursement at the rate give

    Grade                                                       Food Diet Expense Allowance (p.m)
    NE-1 to NE-5                                                600+i.d.a
    NE-6 to NE-8                                                750+i.d.a
    NE-9 to NE-12                                               1000 +i.d.a

Transport Allowance and Conveyance Allowance

Company Employee should be entitled to transport allowance as per the rate given below:
 Grade                                                      Amount
 NE-1 to NE-V                                               Rs. 1500/-PM +i.d.a
 NE-VI to NE-VIII                                           Rs. 1800/-PM +i.d.a
 NE-IX to NE-XII                                            Rs. 2400/-PM +i.d.a

Special Compensatory (Remote LOCALITY Allowance)

Employees serving in the remote areas as notified by the Central Govt. may be paid Special
Compensatory Allowance (Remote LOCALITY Allowance) at the rates give below:

    Grade                                                     Amount
    NE-1 to NE-V                                              Rs. 400/-PM +i.d.a
    NE-VI to NE-VIII                                          Rs. 500/-PM +i.d.a
    NE-IX to NE-XII                                           Rs. 600/-PM +i.d.a

Bad Climate Allowance
Employees serving in the bad climate areas as notified by the Central Govt. may be paid Bad
Climate Allowance:

    Grade                                                      Amount
    NE-1 to NE-V                                               Rs. 400/-PM +i.d.a
    NE-VI to NE-VIII                                           Rs. 500/-PM +i.d.a
    NE-IX to NE-XII                                            Rs. 600/-PM +i.d.a
Special Duty Allowance for employees serving in North Eastern Region(Including Sikkim
and Ladakh)

Employees serving in the specified areas as notified by the Central Govt may be paid Special
Duty Allowance for serving in North Eastern Region (Including Sikkim and Ladakh).This
allowance may be granted to the employees who have been posted from other circles to the
above said areas.

 Grade                                                      Amount
 NE-1 to NE-V                                               15% of (pay +ida)
 NE-VI to NE-VIII                                           15% of (pay +ida)
 NE-IX to NE-XII                                            15% of (pay +ida)

Hard Area Allowance in regions as notified by the Central Govt

 Grade                                                      Amount
 NE-1 to NE-V                                               25% of (pay +ida)
 NE-VI to NE-VIII                                           25% of (pay +ida)
 NE-IX to NE-XII                                            25% of (pay +ida)

Island Duty Allowance

As per the sixth Pay Commission’s recommendations.

Schedule/Tribal Area Allowance

Grade                                                     Amount
NE-1 to NE-V                                              300 +ida
NE-VI to NE-VIII                                          400 +ida
NE-IX to NE-XII                                           500 +ida

Vehicle Maintenance allowance

Grade                                                     Amount
NE-1 to NE-V                                              300 +ida
NE-VI to NE-VIII                                          400 +ida
NE-IX to NE-XII                                           500 +ida

Washing Allowance

Grade                                                     Amount
NE-1 to NE-V                                              400 +ida
NE-VI to NE-VIII                                          400 +ida
NE-IX to NE-XII                                           400 +ida

Shift Duty Allowance

Grade                                                     Amount
Night                                                     400 +ida
morning                                                   300 +ida
evening                                                   200 +ida
 Field Duty Allowance

 Rs 50 per day with ceiling of Rs. 1000 p.m

 Over time allowance (OTA)

      a) The workmen shall be entitled to OTA for the work done in excess of prescribed hours of
      b) OTA shall be admissible if on any day the over time duty performed exceeds 30 minutes
          of prescribed duty hours, such periods shall be rounded to the next half hour.
      c) There shall be no ceiling on OTA amount.
      d) The staff shall be entitled for OTA at Two time of the “Time rate of wages” for work in
          excess of prescribed hours on normal days and double the time rate on public holidays
          and week off days.
      e) The time rate shall be worked out on the basis of weekly wages (BP+IDA) divided by
          weekly prescribed duty hours
      f) Time rate = weekly wages
                     weekly Duty hours
All India LTC

 The concession to go to any place in India will be allowed once in four calendar years to all
 workmen under BSNL employment. The entitled class of travel will be as follows:-

   Grade                                                           Class of Travel
   NE-1 to NE-5                                                    A/C-3 Tier
   NE-6 to NE-9                                                    A/C-2 Tier
   NE-10 NE-11                                                     A/C-1 Class or by Air (Excursion

 Home Town LTC

 The concession to Home town will be allowed once in a year for a block period of two calendar
 years with family.

 Encashment of All India LTC

 Encashment of All India LTC will be permitted once in four years. Such encashment will be
 limited to 1500 km each way by the entitled class by rail travel not exceeding A/C first class. For
 this purpose, the family will be limited only to employee, his/her spouse, children and dependent
 parents and such entitlement will be to the extent of 100% of the rail fare.

 Transfer TA on retirement/Death while on job:

     a) The family of a workman, who dies while in service, shall be entitled to draw transfer TA
        with incidentals and baggage allowance. The same may be provoded to the workman
        and his family on retirement
     b) Workmen shall be entitled for transfer grant equal to a month’s pay inclusive of DA and
        personal/special pay, if any, before he proceeds.
     c) Reimbursement of Transportation of personal effects shall be allowed.
     d) The cost of such reimbursement may be restricted to the limit of amount which would
        have been admissible had the same been taken by train.
     e) The maximum limit of baggage allowance/personal effects may be 2000 kg with or
        without family.
     f) The cost of transportation of conveyance shall also be admissible.
   g) Such travelling allowance may not be reduced on account of availing of LTC during the
      same block year.
   h) Retiring officials shall have the freedom of settling in any station after retirement and
      benefit of TA on such cases shall not be restricted for journey to home town only.


All workmen shall be entitled to medical expense reimbursement equal to a maximum of one
month’s salary (basic plus DA) for out door treatment on production of bill/vouchers; 50% of
which shall be paid through pay bill in equal installments in four quarters without production of

For Indoor Treatment

Workmen should be eligible for full reimbursement in case of treatment in empanelled hospitals
or the hospital he/she or his/her families are referred to in case the facility is not available at the
empanelled hospital.

Emergency Cases

In emergency cases, the reimbursement will be allowed for treatment in non-recognized
hospitals with the approval of competent authority. The amount will be restricted to the rates
applicable in AIIMS, New Delhi.

Maternity/Paternity Benefits:
As per the Sixth pay recommendations

Medical Examination

Wherever the recruitment rule specifies medical examination of a workman on his first
appointment, the company shall, at its own expense make arrangements for the medical
examination by a registered medical practitioner. All the workmen shall be allowed
reimbursement for complete medical examination once in a year

Reimbursement of spectacle cost

Spectacle cost (all type of lenses and frame) should be reimbursed fully, subject to a maximum
of Rs.2000/- per year.

House building advance
The employee may raise loans from financial institutions like LIC, HDFC,SBI, HUDCO etc.
towards house building advance.(with fidelity insurance coverage) BSNL should provide the
interest subsidy to the extent of difference between the interest charged by the lending
institution and the interest rate agreed by the management for house building advance. Interest
subsidy shall be paid by BSNL to the employee up to maximum loan amount of Rs. 25 lakhs or
100 months basic salary, which ever is less. The tenure for repayment of HBA will be as per the
existing clauses.

The following rates of interest for various slabs for HBA will be charged from the employee.
Amount rates of interest per annum
i)      Upto 20 lakhs                           4%
ii)     Above 20 lakhs                          5%

The interests are to be calculated on reducing principal basis.
Interest Bearing Advances for purchase of vehicle and personal computer /laptop

The following terms for advance shall apply:-
Motor Car/Scooter advance shall be restricted to Rs. 2, 50,000/-or the price of Car/Scooter,
whichever is less and interest rate shall be 6%. The re-payment of Motor Car advance is to be
made in 84 equal monthly installments and the Scooter advance in 60 equal monthly
The employees will be eligible for personal computer/laptop advance of Rs. 50,000 or price of
computer/laptop whichever is less. The rate of interest shall be 6% and re-payment is to be
made in not more than 60 monthly installments.


With a view to provide assistance to the workers, we propose introduction of utility loan towards
purchase of home appliances, furniture, and other electrical / electronic gadgets etc. We
propose Rs.50, 000/- recoverable in 50 installments at an interest rate of 2.5%, subject to the
condition of repaying capacity of the beneficiary.

If any area is affected by draught or inundation, rain or water related calamities or earth quake
or any other natural calamity, an advance at the rate of one month’s basic may be paid.
This allowance should be provided without linking it to the official declaration of the respective
State Government, based on the facts of the situation and report of the Heads of Circles.

Interest Free Advances

Festival Advance to all the non-executive employees who are covered by the scope of this
wage revision and comprehensive memorandum of agreement between the management and
the recognized unions should be eligible for ONE MONTH’S BASIC + DA, recoverable in 10
equal monthly installments without any interest.

Education Advance equal to 10 months basic pay + DA shall be granted to the non-executive
employees for each child subject to a maximum of 2 children for the purpose of higher
professional education like engineering, medicine, masters in computer science, Masters in
Business Management, Commercial Pilot Training, Master of Surgery & Medicine. The recovery
of such advance would be purely based on the personal bond obtainable from the employee on
the employment of the child. This Advance will be free of interest for an initial period of 5 years
and will attract simple interest of 4% as per the existing educational advance schemes in State
Bank of India.

Leave Salary Advance: The non-executive employee proceeding on full pay leave of more
than 30 days would be granted advance equivalent to one month’s emoluments. This advance
may be recovered in 3 lump sum equal installments from the following month’s pay bill or in one
lump sum from the leave salary bill as may be desired by the employee.

We propose there be a uniform dress code for all categories of officers/officials in BSNL.All
categories of workmen under permanent employment of BSNL shall be eligible for uniform
allowance .Existing norms with regard to scale of uniforms for summer and winter including
stitching charges for deferent uniforms shall be admissible till further revision . Back log of
uniform should be cleared as per existing norms and periodicity.

Hours of work
         i)Prescribed hours of work for the staff working in administrative offices: Working week
         shall consist of 6 days with off on Second Saturday; the net weekly hours of work being
         48 approximately with a Lunch break of half-an-hour on each working day.

         ii)The prescribed hours of work for the staff working in telephone exchanges/workshops
         or engaged in operating and maintenance job where round the clock service is
         maintained through shift working, the net weekly hours of work shall be 48 per week with
         a break for half-an-hour in rotation for having their meals.
         The staff posted in exchanges/field units may be paid an incentive of 10% of the

      A) Workmen covered by employment standing orders of BSNL shall be entitled to:-
      i) 17 effective public holidays in a calendar year including 3 national holidays i.e. The
      Republic day, Independence day and Mahatma Gandhi’s Birthday.

         ii) 16 Casual Leave & 2 restricted holidays in each calendar year .The restricted holidays
         may be selected out of the list of restricted holidays which shall be decided mutually with
         the Unions.

         B) Workmen engaged in providing essential 24 hours service of operating and
         maintenance staff/Workshop staff shall be entitled to a weekly off in rotation.

         C) Sh. Vishwa Karma Jayanti & May Day-Workers Day shall be additional effective
         public holidays to be observed in BSNL.

         D) Holiday declared under Negotiable Instrument Act 1881 shall be applicable to the
         workmen of BSNL.

         E) The workmen shall be entitled to monitory compensation for the work performed on
         public holidays at prescribed OTA rates.

Note: Help of various sources of information have been taken to prepare this document which would duly acknowledged

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