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I, the undersigned, hereby declare that the Project Report entitled Wages & Salary Administration written and submitted by me to the ni!ersity o" Pune, Pune in partial "ul"illment o" the re#uirements "or the award o" degree o" $aster o" Personnel $anagement, under the guidance o" Pro"% R% &% Ratnawat is my original wor' and the conclusions drawn therein are based on the material collected by mysel"%

Place( )ona!ala ,ate( -.th sep/0

*Amrita 'umari+ Research Student

2he main objecti!e o" summer training 3 cum project is to pro!ide us with opportunity to e4perience the practical aspect o" management in any organi5ation i%e% chance to get into the "ield o" organi5ation and it6s "unctioning% ,uring this project I ha!e been "ortunate to get this opportunity to study not only a good organi5ation6s "unctioning but also to get the guidance o" some highly e4perienced e4ecuti!es% I e4press my deep sense o" gratitude to our

,irector ,r% Parag 7al'er and Project guide Pro"% R% &% Ratnawat "or their continuous support during my project wor' % 2his project would not ha!e been completed without their !aluable support and guidance% I hereby, deeply e4press my gratitude to AR2I8I9IA) )I$:S $A; 8A92 RI;& 9<RP<RA2I<; <8 I;,IA "or gi!ing

me an opportunity to wor' as trainee at its 7A;P R P)A;2 under summer inter ship program% I am !ery than'"ul to company guide $r% =% 7% 2ri!edi *$anager P&A+ "or his continuous support and guidance e4tended to me during entire period o" training% I would also li'e than' to all the employees o" A)I$9<, 7A;P R%

Place( Pune ,ate( -.th sep/0

Amrita 7umari


1 2 3 4 5 ! # $




2his Project is an o!erall implementation and understanding o" Wages & Salary Administration in Arti"icial )imbs $anu"acturing 9orporation o" India% 2he idea behind selection o" this project is mainly due to its nature and importance in the o!erall ? $A; R@S< R9@

$A;A&@$@;2 o" any organi5ation% It is important "rom both the organi5ational point o" !iew as well as "rom an indi!idual6s point o" !iew% In this project wor' the main emphasis is gi!en to "ind out( ,i""erent areas & challenges in managing the Wages and salary administration% 2he satis"action le!el o" the sta"", o""icers and wor'ers regarding salary% What are the allowances, basic and other bene"its related to salary% What is the earning amount *in salary+ and deduction amount *"rom salary+% Settlement o" wage and salary%

2his research wor' is purely based on sur!ey o" the "acts and "igures%


1.1 B'()* T+,o-,.)*'/ Co0*,1.( '02 Co0.,3.( o4 .+, To1)*

Wages and Salary Administration or Reward $anagement is concerned with the design, Implementation and maintenance o" remuneration system that help an organi5ation to achie!e its objecti!es% WAGE Wages are gi!en to blueCcollar employees% It is generally "i4ed on daily basis% It does not include wee'ly o""% SALAR" Salary is generally "i4ed o!er a monthly period% It is gi!en to permanent employees in an organi5ation% It is gi!en to whiteCcollar employees% Salary generally includes basic plus all type o" allowances%

W'5,( represents hourly rates o" pay, and ('/'-6 re"ers monthly rates o" pay, irrespecti!e o" the number o" hours put in by an employee% Wages and salaries are subject to annual increments% 2hey di""er "rom employee to employee, and depend upon the nature o" job, seniority, and merit%

Co0*,1. o4 W'5,( While e!ol!ing wage policy, three concepts o" wages, namely *a+ *b+ *c+ $inimum Wages 8air Wages )i!ing Wages

are generally considered% 2hese are broadly based on the needs o" the wor'ers, capacity o" the employer to pay, and the general economic conditions pre!ailing in a country% *a+ M)0)787 W'5,(: $inimum wages is the one which pro!ides not merely "or bare (8(.,0'0*, o" li"e, but also "or the preser!ation o" the e""iciency o" the wor'er% 8or this purpose, the minimum wage must also pro!ide "or some measure o" education, medical re#uirements and amenities% M)0)787 9'5, 7'6 :, .),2 :6 '0

'5-,,7,0. :,.9,,0 .+, 7'0'5,7,0. '02 .+, 9o-;,-(< :8. )( 8(8'//6 2,.,-7)0,2 :6 .+, /,5)(/'.)o0% *b+ F')- W'5,(: 8air wage is the wages "i4ed between the minimum wage and li!ing wage% T+, *o77)..,, o0 F')- W'5,(, in their report as early as 10A0, concluded, while the lower limit o" the "air wage must ob!iously be the minimum wage, the upper limit is e#ually set by what may broadly be called the capacity o" industry to pay% *c+ L)=)05 W'5,(: )i!ing wage is a step higher than "air wage% )i!ing wage may be described as one which should enable the wage earner to pro!ide "or himsel"Fhersel" and hisF her "amily not only the bare essential o" li"e but a measure o" "rugal com"ort too%2he concept o" li!ing wage, there"ore, !aries "rom country to country% In India, minimum wage is determined mainly "or sweated industries

under the pro!ision o" the $inimum Wages Act, 10A.% 8air wage is "i4ed "or other industries considering pre!ailing rates o" wages, producti!ity o" labour, capacity o" the employer to pay, le!el o" national income and other related "actors%


2he primary aim o" wages and salary administration is to rein"orce the dri!e to impro!e organi5ational per"ormance% @""ecti!e Wages and Salary Administration would help in achie!ing the "ollowing objecti!es( a+ Reduce ine#uities among employees earnings, thereby raising indi!idual morale and also reduce inter group "riction% b+ $oti!ate people to wor' "or pay increases and promotions% c+ Reduce employee grie!ances%

1.2 L).,-'.8-, R,=),9 8or the preparation o" the project report "ollowing literatures ha!e been re!iewedC Research $ethodology *$ethods & 2echni#ues+ by C. R. Ko.+'-)% ?uman Resource & Personnel $anagement by ;. A(9'.+'11'% ?uman Resource $anagement by C. B. G81.'% $aga5ine o" A)I$9<% 9ompany6s boo' o" rules & regulations% Website o" A)I$9<, 999.'-./)7:(.*o7%

Goo5/,.*o7< etc% 8or the purpose o" preparing the project report the boo's which ha!e been mentioned abo!e, website o" A)I$9< etc% ha!e been re!iewed% 8or instance, the boo' o" R,(,'-*+ M,.+o2o/o56 has been re!iewed in order to organi5e the project report% 2he boo's on H87'0 R,(o8-*, ha!e been re!iewed "or the better understanding o" the topic o" the project% M'5'?)0,( o" A)I$9< as well as the :oo;( o4 -8/,( @ -,58/'.)o0( ha!e been re!iewed in order to 'now more about the organi5ation and to collect the in"ormation regarding the topic o" the project% 2he in"ormation has also been collected through the use o" 9,:()., o" the 9ompany and "rom the 5oo5/,.*o7%



2.1 N'7,< A22-,(( '02 Lo*'.)o0 o4 .+, Co71'06 NAME( A-.)4)*)'/ L)7:( M'084'*.8-)05 Co-1o-'.)o0 o4 I02)'%

ADDRESS( R,5)(.,-,2 @ H,'2 O44)*, &%2 Road 7anpur * %P+ PinC -/./1D @CmailC alimcoA!snl%net LOCATION(







REHABILATION CENTERS( NEW DELHI 9F< Social Gustice 9enter $ahila Imdad 9ommittee, <pposite ;ew ,elhi Railway Station, paharganj ;ew ,elhiC 11//BB MUMBAI 9F< Ali Ha!ar Gung ;ational Institute, 7ishan 9hand $arg, :andra Reclamation, :andra West, $umbaiC A///B/ KOLKATA 9F< ;ational Institute o" <rthopaedically ?andicapped :%2% Road, :onC ?ooghly, 7ol'ataC E///0/ ALIMCO AUXILIAR" PRODUCTION CENTRE(C BHUBANESHWAR Alimco Au4iliary Production 9entre SC >FDD, $ancheswar Industrial Area, :hubaneshwarC EB1/1/ BANGALORE Regional $ar'eting & ,isability

Rehabilitation 9entre, A)I$9< ;o% 1AFA>, Industrial Suburb, Heshwantpur, 2um'ur Road, :angaloreCBD//-&ABALPUR Plot ;o% A/, 1/D and 1/E Richhai Industrial Area, GabalpurC A.-/1/ GUWAHATI A)I$9< <utrich 9entre 9% R% 9, P%$%R%2 :uilding 8irst "loor , &uwahati $edical 9ollege and ?ospital 9ampus :hangaghar &uwahatiC E.1/>-

2.2 %)()o0 @ M)(()o0 o4 .+, O-5'0)?'.)o0 %ISION @4pansion o" the manu"acturing base by establishing new production centers% $oderni5ing its e#uipments and "acilities% Introducing new products and technology% @stablishment o" new R&, centers%


,e!elopment o" cost e""ecti!e aids and appliances "or the handicapped "rom rural and remote areas% pgradation o" ?uman Resource S'ill%

MISSION BR@S2<RA2I<; <8 ,I&;I2H <8 $A;C

2.3 H)(.o-)*'/ B'*;5-o802 o4 .+, O-5'0)?'.)o0 2he &o!ernment o" India under (,*.)o0 25 o4 T+, Co71'0),( A*. 1D5! set up A-.)4)*)'/ L)7:( M'084'*.8-)05 Co-1o-'.)o0 o4 I02)' EALIMCOF )0 1D#2% Its objecti!e is not to earn pro"it instead it has (o*)'/ o:>,*.)=,(% And this was proposed to be done by manu"acturing

arti"icial limbs components & rehabilitation aids and by promoting, encouraging & de!eloping the a!ailability, use, supply and distribution o" arti"icial limb components & rehabilitation aids o" high #uality to the needy, disabled o" the country at reasonable cost% A)I$9< comes under M)0)(.-6 o4 So*)'/ &8(.)*, @ E71o9,-7,0.. 2he (.o0, o4 ALIMCO was laid down on Sunday 1.th ;o!ember 10E> by the /'., P-)7, M)0)(.,- S7.. I02)-' G'02+). 2he organi5ation started manu"acturing disability aids in 10ED and brought about the concept o" mass manu"acturing o" module limb components to reduce the time o" "abrication o" prosthesis & orthosis and cost o" production o" all !arieties o" aids and appliances% A)I$9<, an ISO DGG1:2GGG9ompany is the premier and the largest manu"acturer o" #uality disability aids and appliances "or orthopaedically, !isually and hearing impaired% A)I$9< is spread in a sprawling area o" 43 '*-,(. Its manu"acturing unit and head o""ice are located in 7anpur%

2.4 H),-'-*+6 S.-8*.8-, o4 ALIMCO

In A)I$9< there are 4o8- /,=,/( o" management( TOP MANAGEMENT :oard o" ,irector 9hairman & $anaging ,irector

&eneral $anager *<""icers in grade @E & abo!e+ SENIOR MANAGEMENT ,H% &@;@RA) $A;A&@R Sr% $anager *<""icers in &rade @B & @D+ MIDDLE MANAGEMENT $anagers ,y% $anagers *<""icers in &rade @> & @A+ &UNIOR MANAGEMENT Sr% <""icers Assistant @ngineers, Assistant <""icers Gunior <""icers *<""icers in &rade @-, @1 & @/+

OPERATING WORK FORCE Wor'men, who are wor'ing "or the operations o" the 9ompany, are "rom G-o81 A .o H. 2.5 D)44,-,0. D,1'-.7,0.( o4 .+, O-5'0)?'.)o0:


D,1'-.7,0.( C.M.D G,0,-'/ M'0'5,A27)0)(.-'.)o0 EP@AF M'-;,.)05 APOC H8'/).6 Co0.-o/ F)0'0*, H,'-)05 A)2 P-o28*.)o0 M'.,-)'/ M'0'5,7,0. Co718.,- S,*.)o0 P-o28*.)o0 S,-=)*,( E05)0,,-)05 S,-=)*,( M')0.,0'0*, D,1'-.7,0. D,()50)05 @ D,=,/o17,0. CSri S% 7% $u'herjee C Sri S% 7% Sa4ena C Sri =%7%2ri!edi, $anager C Sri $%9% ,ubey *Sr% $anager+ C ,r% 7%P%&aur C Sri $anish 7othari C Sri :%7%$ishra C Sri A% 7% Singh C Sri ?%;% Sharma C Sri :%)%Wadhwani C Sri P% 7% Sri!asta!a C Sri Ramesh 9handra C Sri A% 7% Sri!asta!a C Sri A% 7% Sri!asta!a C Sri A% 7% Sri!asta!a

2.! O-5'0)?'.)o0'/ Chart of the Personnel & Administration Department

M'0'5,- EP@AF M-. %. K. T-)=,2)


S-. S.,0o .o M'0'5,EP@AF

D,18.6 M'0'5,- EP@AF M)(( N,,/8 D9)=,2)

S-. (.,0o EB/'0;F S-. A((.. 1.S-) %. N. D)3). 2.S7.. K.K.P'02,6 3.S-) M.K.D)3). 4.S-) N.K.S)05+ &-. A((.. 1.S-) A7). S)05+ C+'(,- 1.S-) &')1'/ S)05+ C/,-; 1.S-) S8-,02-' S)05+

P,-(o00,/ O44)*,-

A27)0)(.-'.)=, O44)*,-

M'/)< S,*8-).6 o44)*,- 9).+ S.'44 @ S'4');'-7'*+'-)

S-. S.,0o S-. A((.. ES-) S. ;. M'00'F U0(;)//,2 Wo-;,-EB/'0;+

S-. A(()(.'0.


2.# D)44,-,0. P-o28*. P-o4)/, o4 .+, O-5'0)?'.)o0 ALIMCO manu"actures 355 .61,( o" aids & appliances o" !arious categories% ,i""erent categories o" products being manu"actured by A)I$9< are "or(C 1. <rthopaedically ?andicapped 2. =isually ?andicapped 3. ?earing ?andicapped 4. Special Purpose 2ools & @#uipment 1. O-.+o1',2)*'//6 H'02)*'11,2:'. R,+':)/).'.)o0 A)2(: )ower limb orthotics *9alipers+ )ower limb prosthetics *Arti"icial legs+ pper limb prosthetics *Arti"icial hands+

Spinal orthotics *:races "or nec' and bac'+ Prosthetic supplies *stoc'inettes, soc's and surgical boots+%

:. Mo:)/).6 A)2(: Wheel 9hairs 2ricycles A4illa & @lbow 9rutches Wal'ing Stic' 2. %)(8'//6 H'02)*'11,2: :raille Short ?and $achine :raille Slate Wal'ing cane & stic' >% H,'-)05 H'02)*'11,2: ?earing Aids in $ild $oderate & Strong category 4. I00o='.)o0( @ R,(,'-*+:A)I$9< in its endea!our to bring new technology products has de!eloped range o" new products which includes production o"C Poly Propylene based Abo!e 7nee & :elow 7nee Prosthetic Systems 8loor Reaction <rthosis


Poc'et 2ype ?earing Aid*:IS 9erti"ied+ @lectric ?and )ight Weight 8olding Wheel 9hair :attery <perated 2riC9ycle Silicon ?eel Pad @ndos'eletal Prosthetic System ;irtar & Alimco ,esign% F).7,0. S,-=)*,( A majority o" A)I$9<6s products are prosthesis and orthosis appliances which re#uire "itting "acility% 2here"ore, A)I$9< has helped in ,(.':/)(+)05 1#G 4)..)05 *,0.,-( in !arious parts o" the country% 2.$ F8.8-, P/'0( o4 .+, O-5'0)?'.)o0: 2he 9orporation has ambitious 48.8-, 1/'0( "or C pgradation o" present "acilities with StateCo"Cthe Art technology%

@4pansion o" e4isting manu"acturing base through setting up o" additional production centres% Widening o" present product range% 2.D S1,*)'/ A9'-2 .o .+, O-5'0)?'.)o0


A)I$9< has been awarded by the 8ederation o" Indian 9hambers o" 9ommerce & Industry "or O8.(.'02)05 A*+),=,7,0. in training and placement o" disabled persons% 2.1G O.+,- R,/,='0. I04o-7'.)o0 o4 .+, O-5'0)?'.)o0 1. A)I$9< is an IS< 0//1( -/// 9ompany% 2. 2iming o" the 9oming 0%ooa%mCB%//p%m 3. It is the largest manu"acturing <rgani5ation o" arti"icial limbs in whole o" South Asia & A"rica% 4. It manu"actures >BB types o" aids & appliances "or <rthopaedically, ?earing and =isually ?andicapped% 5. 1E Products o" A)I$9< con"orm to standard, laid down by :ureau o" Indian Standards, *:IS+% !. It is responsible "or establishment o" 1E/ )imb 8itting 9enters all o!er India% #. A)I$9< employed .%/>I persons with disabilities% $. A)I$9< has transitioned into a product, ser!ice & solutions 9ompany "rom generally a manu"acturing 9ompany in the Past% D. It pro!ides aids, appliances and component to 1 million disabled persons in the country e!ery year%


1G. A)I$9< has earned goodwill "or the country by pro!iding Arti"icial limbs .o 1GGG /'02 7)0, =)*.)7( o4 A45+'0)(.'0 in only one month and by establishing a limb "itting centre there including training to local artisans% 11. 9ustomers o" A)I$9<( ;ational Institutes State &o!ernments ,ealers and <thers @4ports ;&<6s



R,(,'-*+ is an organi5ed and systematic way o" "inding answers to #uestions through the application o" scienti"ic procedures% R,(,'-*+ M,.+o2o/o56 is a way to systematically sol!e the research problem% It has many dimensions and research method does constitute a part o" the research methodology% Research $ethodology


includes !arious steps% 2here should be systematic way o" data collection and presentation o" the project report% Proper decisions ha!e to be ta'en based on data collected 3.1 R,(,'-*+ D,()50 R,(,'-*+ D,()50 is the conceptual structure within which research is conductedJ it constitutes the blueprint "or the collection, measurement and analysis o" data% 8or the project report E31/o-'.o-6 R,(,'-*+ D,()50 has been used% 2he main purpose o" e4ploratory research is o" "ormulating a problem "or more precise in!estigation% 2he major emphasis in such studies is on the disco!ery o" ideas and insights% 3.2 S'71/)05 D,()50 A ('71/, 2,()50 is a de"inite plan "or obtaining a sample "rom a gi!en population% As there are !arious departments in A)I$9< and the total numbers o" employees wor'ing in A)I$9< are ABA, it was not practically possible and "easible to collect in"ormation and data "rom each o" them% So "or the project report KP-o:':)/).6 S'71/)05 M,.+o2I has been used, to gather and collect in"ormation% In this sample design each and e!ery item in the population has an e#ual chance o" inclusion in the sample% In this sampling design, the population must be clearly de"ined% 3.3 Po18/'.)o0 S)?,

Population re"ers to the total items about which in"ormation is desired% It is o" two typesJ "inite and in"inite% 8or the project report population is o" "inite type% 2he si5e o" the population is ABA% 3.4 S'71/, S)?, It re"ers to the 087:,- o4 ).,7( .o :, (,/,*.,2 4-o7 .+, 1o18/'.)o0 to constitute a sample% 2he sample si5e selected consisted o" A/ respondents% 3.5 S'71/)05 M,.+o2 S)71/, R'02o7 S'71/)05 has been used "or the project report% It comes under Probability Sampling methods% 3.! So8-*, '02 7,.+o2( o4 D'.' Co//,*.)o0 8or the purpose o" gathering in"ormation and collecting data regarding wages & salary administration at A)I$9<, two types o" method ha!e been adopted namely, Primary ,ata, and Secondary ,ata% P-)7'-6 D'.' Primary data means, data which is collected a"resh and "or the "irst time and thus happen to be original in character% U02,- P-)7'-6 D'.' Co//,*.)o0, the "ollowing techni#ue has been adopted% a+ Structured Luestionnaire b+ In"ormal tal's with e4ecuti!e personnel%

c+ In"ormal tal's with nonC e4ecuti!e personnel% S,*o02'-6 D'.' I. re"ers to the data which has already been collected and analysed by someone else %U02,- S,*o02'-6 D'.' Co//,*.)o0< in"ormation and data "rom the "ollowing documentary sources ha!e been gathered% a+ Personnel manual A)I$9< b+ :oo's and $aga5ines in the library% c+ =arious publications o" :?@)% d+ <nline database% 3.# L)7).'.)o0( o4 .+, S.826 2ime "actor was a""ecting the research study, though I tried to collect the ma4imum in"ormation in the minimum time slot% I couldn6t get enough time to interact with the some people as they were busy with their schedule% Some respondent were unwilling to answer my #uestions% 2hey were hesitating to put their opinions%



D'.' P-,(,0.'.)o0 While wor'ing on the project titled Wages & Salary Administration in A)I$9<, in order to collect the in"ormation, in #uestionnaire, #uestions ha!e been included ranging "rom satis"action le!el o" employees in regard with salary, wor'ing en!ironment, salary scale compared to the

nature o" wor', bonus, "acilities under @SI Act 10A. to retirement bene"its, pension scheme etc% S'/'-6 (.-8*.8-, o4 ALIMCO:

E'-0)05 D,(*-)1.)o0 B'()* P'6S1,*)'/J P,-(o0'/ P'6 - B/I o" basic pay D,'-0,(( A//o9'0*, R'.,( 8or <""icers, 8oreman & M AD%.I o"*basic payN special pay+ Super!isor ha!ing code no% /1, /8or employees ha!ing code no% 1//I o" AD%.I*basic payN special />, /A, /B pay+ upto a basic o" DBB/FC EBI o" AD%.I*basic payN special pay+ "or basic abo!e DBB/FC subject to minimum o"

9ode ;o%/1 9ode ;o%/9ode ;o%/> 9ode ;o%/A 9ode ;o%/B

<""icers Super!isors, 8oreman Sta"" &Wor'er Sta"" &Wor'er ns'illed Wor'er

I028(.-)'/ D.A- 0E%>I o" *basic payN dearness pay+ OB/I C+)/2-,0 E28*'.)o0 A//o9'0*,- 1-/ "or - children till 1/NHo8(, R,0. A//o9'0*,- -BI o" *basic pay N special pay+ C).6 Co71,0('.o-6 A//o9'0*,- -A/ Rupees W'(+)05 A//o9'0*,- ./ Rupees per month, e4cept o""icers


T-'0(1o-. S8:()26-

8or cycle 8or scooter 8or car

1- Rupees -B Rupees B/ Rupees

O0/6 o0 9o-;)05 2'6(

D,28*.)o0 2otal deduction cannot e4ceed more than B/I o" 5-o(( ('/'-6% W'5, S.-8*.8-, o4 ALIMCO :asic PayN Special PayN ,%AN ?%R%AN 9%9%A $onth K 1 2'6 9'5, S.-,05.+ o4 E71/o6,,( '( o0 3G.+ A1-)/ 2GGD S,-)'/ No. 1. P'-.)*8/'-( O44)*,-( )0*/82)05 CMD@ GM Fo-,7'0 @ S81,-=)(o-( S.'44J Wo-;7,0 A8.+o-)?,2 SC #5 G5 ST OBC G5 OC 3! To.'/ 4!

2. 3.

3# 43$

G2 $3


G# D4

14 2G5

23 3$5









N87:,- o4 M'/, @ F,7'/, E71/o6,,( )0 To.'/ Wo-;4o-*,

Chart 1
Male 95% Female 5%

N87:,- o4 D)(':/,2 E71/o6,,( )0 To.'/ Wo-;4o-*,

Chart 2
Normal 91% Disabled 9%

Co0.-'*. Wo-;,-( In A)I$9< around >BI o" wor' is done through contract basis% It means contract wor'ers constitute around >BI o" the total wor'"orce%


Chart 3
Contract basis 35% Regular basis 65%

M)0)787 W'5,( 4o- Co0.-'*. Wo-;,-( G-o81 A C'.,5o-6 : ns'illed Wor'ers 9 SemiC s'illed , S'illed @ 8 &

P'6 S*'/, >.B/C0BCBEB/ W'5,( >0//C11/CD1// 11A Rs% Per ,ay A/-/C1-BCDB-/ 1>/ Rs% Per ,ay A1B/C1>BCD.B/ 1AA Rs% Per ,ay ADB/C1A/CEAB/ BB//C1B/C.B// B0//C1D/C01//

? D1//C10BC1/,/// F)0'0*, D,1'-.7,0. loo's a"ter the 1'6-o//% In ALIMCO o=,-.)7, )( 0o. '//o9,2 '( 1,- .+, Go=,-07,0. -8/,(. In ALIMCO employees also get C'0.,,0 S8:()26. 2hey get an amount o" R(. 22% 2his "acility can be a!ailed only on the wor'ing days% M)0)787 B'()* W'5,( 2he minimum basic wage will be Rs% >.B/FC as basic pay% B8-,'8 o4 P8:/)* E0.,-1-)(,( re!iew the wage structure o" A)I$9<%


Fo- O44)*,-( P'6 S*'/, G-'2, @C/ @C1 @C@C> @CA @CB @CD @CE Pay Scale o" CMD- -E>// P'67,0. T)7)05 T,*+0)*'/ S.'44 gets salary on the last day o" the month% And all the O.+,- E71/o6,,( get salary on the "irst day o" the month% 2he 2)(:8-(,7,0. o4 ('/'-6 is done through the S.'., B'0; o4 I02)' "or all employees e4cept contract wor'ers% A..,02'0*,

O44)*,-( Gunior o""icersF engineer Asst% engineerF o""icers Asst% managerF senior o""icer ,eputy $anager $anager Senior $anager ,eputy &$ &eneral $anager

P'6 S*'/, DB//C-//C11>B/ .D//C-B/C1AD// 1/EB/C>//C1DEB/ 1>///C>B/C1.-B/ 1AB//C>B/C1.EB/ 1D///CA//C-/.// C 1.B//CAB/C->0//

T)7, O44)*, 'eeps the attendance record o" all the sta"" & wor'ers, super!isors, "oreman% ?e also maintains absenteeism record% C'(+ '9'-2 is gi!en "or good attendance% Co71'06 S,*-,.'-6 'eeps the attendance record o" o""icers% Fo- .+, *'/*8/'.)o0 o4 ('/'-6< '..,02'0*, )( *o80.,2 4-o7 21 (. o4 .+, 7o0.+ .o 2202 o4 .+, 0,3. 7o0.+% C'(+ A9'-2 4o- Goo2 A..,02'0*,: 9ash award o" Rs% >//FC will be paid to those employees e!ery #uarter who remain continuously physically present during the #uarter in the 9orporation% 2he award will be paid #uarterly i%e% in the month o" M'6< A858(.< No=,7:,- '02 F,:-8'-6 e!ery year% 2his is only "or the S.'44 @ Wo-;,-( o" the 9ompany% S.'50'.)o0 I0*-,7,0.: In case any employee gets stagnated in his scale o" pay "or more than > years, he will be gi!en one stagnation increment "or e!ery > years ser!ice a"ter stagnation% 2he ma4imum number o" stagnation increment will not be more than > times%


;early e!ery organi5ation in our country pro!ides bene"its and ser!ices to its employees% 2o hold that a bene"it is a "ringe, three criteria need to be "ul"illed( 1% It should be computable in terms o" money% -% 2he amount o" bene"it is not generally predetermined% >% ;o contract, indicating when the sum is payable, should e4ist% In A)I$9< too according to these .+-,, *-).,-)', many items are included in the category o" "ringes% 2hey are as "ollowsC 1% )ea!e Rules -% $edical Rules >% @mployee State Insurance A% )ea!e 2ra!el 9oncession B% 2ra!elling Allowance D% :onus E% Pension

L,'=, R8/,(
In A)I$9< employees get D types o" lea!es, and they are as "ollowsC 1. @arned lea!e 2. ?al" pay lea!e or medical lea!e 3. )ea!e without payF 9ompensatory lea!e 4. 9asual lea!e

5. Special casual lea!e !. $aternity lea!e 1. E'-0,2 /,'=,: @arned )ea!e shall accrue to an employee at the rate o" o0, 9+o/, 2'6 4o- ,=,-6 4)4.,,0 2'6( spent on duty% 2he ma4imum period o" @arned )ea!e which can be accumulated by the employee shall be >// days% 2he ma4imum @arned )ea!e which can be sanctioned at a shall not e4ceed D/ days% @arned )ea!e will not be granted more than si4 times in a year% 2. H'/4 1'6 /,'=, o- 7,2)*'/ /,'=,: ?al" Pay )ea!e shall accrue to an employee at the rate o" one whole day "or e!ery -/ days on duty% ?al" Pay )ea!e may be granted on medical grounds only% 2he ma4imum period up to which hal" pay lea!e can be accumulated shall be 0/% time

3. L,'=, 9).+o8. 1'6JCo71,0('.o-6 /,'=,: @4traC<rdinary )ea!e may be granted to an employee who is on probation or con"irmed when no other lea!e is admissible to him% 4. C'(8'/ /,'=,: 9asual )ea!e is admissible to the employees o" the 9orporation to the e4tent o" 1- days in a calendar year%


5. S1,*)'/ *'(8'/ 1'6: Special 9asual )ea!e up to a ma4imum o" B days in a year may be granted to an employee at the discretion o" the competent authority "or participation in cultural, sports and other occasions% 6. M'.,-0).6 /,'=,: $aternity )ea!e may be granted to women employees "or periods which may e4tend up to 0/ days%

E0*'(+7,0. o4 L,'=,:
E'-0,2 L,'=, e4ceeding >/ days standing to the credit o" an employee and up to a ma4imum o" >/ days may be enchased at the lea!e salary rate% 8or the purpose o" encashment o" @arned )ea!e, there should be a minimum o" D/ days accumulation to the credit o" an employee% B'()* 1'6L S1,*)'/ P'6L D.A 3G

M,2)*'/ R8/,( $edical Rules shall apply to all the employees o" the 9orporation other than casual employees and those co!ered under @SI scheme% 1. In case the employee o" the 9orporation or member o" hisFher "amily undergoes treatment in any +o(1).'/< 08-()05 +o7, o- o.+,-9)(,,

the medical e4penses will be borne by the 9orporation in "ollowing manner( 'F In case o" employee or member o" hisFher "amily undergoes indoor treatment in a +o(1).'/ entire medical e4penses will be allowable on actual basis e4cept operation charges% <peration charges will be limited to the e4tent o" amount chargeable by AII$S "or such operation% T+, Co-1o-'.)o0 9)// :,'- ,0.)-, 7,2)*'/ ,31,0(,( )0 *'(, o4 '**)2,0. o**8--,2 o0 28.6 9).+)0 4'*.o-6 1-,7)(,(% :F In case an employee or member o" hisFher "amily undergoes indoor medical treatment in a N8-()05 Ho7, e4penses borne by the 9orporation will be as under( <peration charges will be limited to the e4tent o" amount chargeable by AII$S "or such operation% ./I o" the balance amount o" bills *e4cluding medicines+ raised by the ;ursing ?ome, $edicines during treatment and se!en days there a"ter will be reimbursed at "ull cost by the 9orporation% A**o77o2'.)o0 J B,2 J Roo7 -,0. *+'-5,(:


C'.,5o-6 o4 ,71/o6,,( :asic pay p to Rs% 0///FC :asic pay abo!e Rs% 0///FC 9hairman & $anaging ,irector

A**o77o2'.)o0 J B,2 J Roo7 -,0. *+'-5,( Room up to Rs%>B/FC per ,ay Room up to Rs%AB/FC per ,ay Actual

T-'=,//)05 A//o9'0*,( Railway "are "or 1'.),0. '02 o0, '..,02'0. will be admissible to an employee as per hisFher entitlement under 2ra!eling Allowance Rules "or undergoing medical treatment o" himFhersel" or members o" hisFher "amily "rom the place o" posting to the re"erred place% ?owe!er, 1-)o'11-o='/ o4 C+')-7'0 '02 M'0'5)05 D)-,*.o- will be re#uired "or all such !isits "or outstation treatment% M,2)*'/ A//o9'0*, $a4imum $inimum A7o80. 1B///FC .///FC


E71/o6,, S.'., I0(8-'0*, S*+,7,

2he employees whose earning is below Rs%1////FC per month can opt "or ESI (*+,7,, according to T+, E71/o6,,I( S.'., I0(8-'0*, A*. o4 1D4$% nder @SI scheme the contribution "rom employee side will be M 1%EBI and "rom the employer side it will be M A%EBI% Co0.-):8.)o0 P,-)o2 1st September to >1st $arch 1st April to >/th September B,0,4). P,-)o2 1st Guly to >1st ,ecember 1st Ganuary to >/th Gune

2hus bene"it period starts > months a"ter the contribution period is o!er% It means the employee will get the sic'ness bene"it and maternity bene"it

only during bene"it period% 2hus, an employee gets these bene"its only a"ter joining employment and paying contribution% ESI o44,-( :,0,4).( (8*+ '(: $edical :ene"it Sic'ness :ene"it $aternity :ene"it ,isablement :ene"it @tc%

L,'=, T-'=,/ Co0*,(()o0

2he o:>,*. o4 .+)( -8/, is to grant, as a wel"are measure, tra!el concession to the employees o" the 9orporation and their "amilies o0*, )0 ' :/o*; o4 .9o 6,'-( "or journeys to their ?ome 2own, or to Any <ther Place in India% 2he )ea!e 2ra!el 9oncession shall be admissible to an employee and his "amily% 2he ,0.)-, *o(. o" the "are "rom the ?ead#uarters to his ?ome 2own and !ice !ersa irrespecti!e o" the distance in!ol!ed shall be 1')2 :6 .+, *o71'06%


E0*'(+7,0. o4 LTC .o .+, ,3.,0. o4 #5M o" the cash !alue "or the entitled class "or the distance o" 1B// 7ms each way will be entitled "or sel", spouse and two dependant children only once in a bloc' o"
A)-JAC R'>2+'0)J T'3) A)-J II AC R'>2+'0)

1$5GG '02 ':o=, 1!GGG-1$5GG







25G 2GG 15G DG #5




A*.8'/ A*.8'/

$!GG- 1!GGG

D1GG- o4 C'.,5o-6 !$5G-D1GG

J AC III II AC 3 E71/o6,, R'>2+'0) II AC J 1(. */'(( IJ IIIAC Rs%B,B//FC and J S+'.':2)

1!GA**o77o2'.)o0 5GG 4GG 12G #5 !G 35G 2$G 2GG $G

!55G-$!GG 4G2G-!55G


#5 !G 45

,rawing a pay o" 415G-!$5G abo!e = =I B,/o9 4G2G 415G

A9 - 2ier 25G

II clas(

,rawing a pay o" below Rs%B,B//FC "our years%

Sleeper 9lass

B'()* P'6 O44)*,-( Wo-;7,0



D.A R'.,( P. *).6 O.+,*).6

Ho.,/ C+'-5,( P. *).6 O.+,*).6


Mo2, '02 C/'(( o4 A**o77o2'.)o0 A=')/':/,

T-'=,//)05 A//o9'0*,
A2='0*, 1GGM #5M 1GGM

8or $embers o" the :oard & &eneral $anager actual boarding & lodging e4penses will be paid% D.A R'.,(

D.A R'.,( )ess than D hours Abo!e D hours less 1- hours Abo!e 1- hours

A//o9,2 A7o80. -/I B/I 1//I

In accordance with the Payment o" :onus *Amendment+ <rdinance -//E, the competent authority has appro!ed "or payment o" bonus M .%>>I o" salary or Rs% 1//FC whiche!er is higher% 2he abo!e payment shall not be made to those employees whose salary e4ceed Rs% 1////FC per month% 8or the purpose o" 9alculation o" bonus M .%>>I the ma4imum salary shall be ta'en at Rs% >B//FC per month% Bo08( )( :,)05 5)=,0 o0/6 .o .+, 9o-;,-(.

Pension is gi!en to the employees according to NE71/o6,, P,0()o0 S*+,7, 1DD5I% 8or e4ample, i" someone6s salary is 1A0D-%D/% 2hen there will be 1-I contribution "rom both employee and employer to the pro!ident "und scheme% 2hen .%>>I o" @mployer6s contribution will be di!erted to

NE71/o6,, P,0()o0 S*+,7, 1DD5I *i%e%, to S.'., P,0()o0 S*+,7,+ and the rest amount will go to the .-8(.. $.33M )( *'/*8/'.,2 o0 .+, '7o80. o4 R( !55GFC

Wages earned 1A0D-%D/ @mployee 1E0D @mployer 1E0D RP89 BA1 2rust 1-BB

In A)I$9< the retirement age o" employees are D/ years% A"ter retirement the employees get !arious bene"its% 2hey are as "ollows(C &ratuity Amount @arned )ea!e *not more than >//+ Pro!ident 8und Amount Salary o" last month

2a4 is being deducted according to Fo-7 No. 1!%

@!ery ,71/o6,, *other than an apprentice+ irrespecti!e o" his wages is entitled to recei!e &ratuity a"ter he has rendered *o0.)08o8( (,-=)*, 4o7o-, .+'0 5 6,'-( o- 7o-, , according to T+, P'67,0. o4 G-'.8).6 A*. 1D#2% &ratuity Payable

1% Payable at the time o" termination o" his ser!ices% -% <n Superannuation% >% <n resignation% A% <n death or disablement due to accident or disease% B% <n Retrenchment% 9ondition o" /B year continuous ser!ice is not necessary i" ser!ice is terminated due to death or disablement%

C'/*8/'.)o0 o4 G-'.8).6
:asic Pay N Special Pay N ,%A 4 no% o" years 4 1B -A Wor'ing ,ays

M'3)787 G-'.8).6
2he ma4imum amount o" gratuity payable should not e4ceed Rs >,B/,/// in any case%

P-o=)2,0. F802
2he P P-o=)2,0. F802I aims to pro!ide social security and to help employees increase sa!ings, which will bene"it wor'ers a"ter they retire, or their "amily members a"ter their death% T+, E71/o6,,(O P-o=)2,0. F802 9'( ,(.':/)(+,2 :6 '0 A*. )0 1D52. 2he amount o" an @mployeePs Pro!ident 8und is calculated as 12 1,*,0. o" his wages, *o0.-):8.,2 :6 :o.+ .+, ,71/o6,- '02 .+,

,71/o6,,% 2he employeePs contribution must be deducted "rom his earnings%

P-o=)2,0. F802 B,0,4).( A Pro!ident 8und gi!es bene"it to both employee and employer%

B,0,4). 4o- E71/o6,-( @mployers can use the bene"its o" a pro!ident "und to attract and retain !aluable sta""% @mployees are moti!ated to wor' longer term "or the 9ompany% It helps employers create li#uidity% B,0,4). 4o- E71/o6,,( It is a secure sa!ings plan% Pro!ident "unds "ollow a low ris' in!estment strategy% 2he "unds are managed by :ang'o' :an'6s pro"essional "und management team%


D'.' A0'/6()( '02 I0.,-1-,.'.)o0

1. Are you satis"ied with your wor' or post on which you are wor'ingQ

<pinion Hes ;o

2otal out o" A/ -. 1-

I Result E/ >/


I04,-,0*,: According to this "igure E/I o" the employees are satis"ied with their e4isting post while >/I o" the employees are not satis"ied%

-% Are you satis"ied with your salaryQ <pinion Hes ;o 2otal out o" A/ >. I Result ./ -/



According to this "igure ./I o" the employees are satis"ied with their salary while -/I o" the employees are not satis"ied%

3. Are you satis"ied with the wor'ing en!ironment in A)I$9<Q <pinion Hes ;o 2otal out o" A/ -B 1B I Result D-%B >E%B

I04,-,0*,: According to this "igure D-%B/I o" the employees are satis"ied with the wor'ing en!ironment while >E%B/I o" the employees are not satis"ied%

4. 9ompared to the nature o" wor' salary scale here are goodQ <pinion Hes ;o 2otal out o" A/ >B B

I Result .E%B 1-%B

I04,-,0*,: According to this "igure .E%B/I o" the employees are satis"ied with their salary which they are getting in accordance with the nature o" their job while 1-%B/I o" the employees are not satis"ied%

5. A"ter retirement the pension which you get according to E71/o6,, P,0()o0 S*+,7, 1DD5, are you satis"ied with the schemeQ <pinion Hes ;o 2otal out o" A/ 1B -B I Result >E%B D-%B


I04,-,0*,: According to this "igure >E%B/I o" the employees are satis"ied with the pension which they are getting but D-%B/I o" the employees are not satis"ied because the amount which they are getting is !ery low%

!. ,id the 9ompany gi!e you bonus any timeQ <pinion Hes ;o 2otal out o" A/ -/ -/ I Result B/ B/



According to this "igure B/I o" the employees are getting the bonus while B/I o" employees are not getting the bonus because in A)I$9< bonus is being gi!en only to the wor'ers and not to the o""icers%

#. Are you satis"ied with the "acilities which you get under @SI Act 10A.Q <pinion Hes ;o 2otal out o" A/ >/ 1/ I Result EB -B

I04,-,0*,: According to this "igure EBI o" the employees are satis"ied with the "acilities which they are getting under @SI Act 10A. while -BI o" the employees are not satis"ied with the "acilities which they are getting under @SI Act 10A.%

$. ,o the employees o" the organi5ation gets rewards and recognition in


proportion to the e4cellence o" their job per"ormanceQ <pinion Hes ;o 2otal out o" A/ -A 1D I Result D/I A/I

I04,-,0*,: According to this "igure D/I o" the employees are satis"ied with the rewards and recognition which they get in proportion to the e4cellence o" their job per"ormance while A/I o" the employees are not satis"ied% D. ,o the employees o" the 9ompany get $edical 8acilities a"ter retirement or notQ <pinion Hes ;o 2otal out o" A/ / A/ I Result / 1//


I04,-,0*,: According to this "igure all 1//I o" the employees o" A)I$9< don6t get medical "acility a"ter retirement%

1G. ,oes the 9ompany pro!ides attracti!e retirement bene"its to its employeesQ <pinion Hes ;o 2otal out o" A/ -0 11 I Result E-%B -E%B


According to this "igure E-%B/I o" the employees are satis"ied with the retirement bene"its while -E%B/I o" the employees aren6t satis"ied%



O:(,-='.)o0( While wor'ing on the project, titled Wages & Salary Administration in A)I$9<, when as'ed about the satis"action le!el o" salary, wor'ing en!ironment, retirement bene"its, "acilities under @SI Act 10A.etc% majority o" employees are satis"ied% While, when as'ed about the pension scheme, medical bene"its a"ter retirement majority o" the employees aren6t satis"ied%

F)02)05( @ Co0*/8()o0( <n the basis o" the in"ormation gathered by the means o" #uestionnaire "illed by the employees o" Personnel & Administration ,epartment, $aterial $anagement ,epartment, Production ,epartment etc% o" the <rgani5ation, the "ollowing conclusion can be drawn(C 1. $ostly employees are satis"ied with the salary which they get% 2. 9ontract wor'ers don6t get the whole compensation because they get the salary "rom the contractor% 3. 2here is no any pro!ision o" the medical bene"it a"ter retirement% 4. $ostly employees are not satis"ied with the "acilities which they get a"ter the retirement% 5. @mployees are satis"ied with the wor'ing en!ironment in the 9ompany% !. @mployees are not satis"ied with the E71/o6,,( P,0()o0 S*+,7, 1DD5. :ecause the amount which they get is !ery less% #. $ostly @mployees are satis"ied with the "acilities li'e lea!es, medical "acility etc% S855,(.)o0( @mployees should be pro!ided 7,2)*'/ 4'*)/).6 a"ter their retirement too% 1. 9ontract wor'ers should also pro!ided with some "acilities li'e medical, housing, canteen etc%

2. A)I$9< should pro!ide direct salary to the contract wor'ers, by which they get whole compensation% 3. In e!ery department one *o71/')0. :o3 should be there% So that, e!ery employee can put their complaint, which will go directly to the concerned authority% 4. In e!ery department there should be one (855,(.)o0 :o3% So that employees can gi!e their suggestion which will also be bene"icial "or the 9ompany% 5. 9ompany should pro!ide =RS% !. According to the E71/o6,,( P,0()o0 S*+,7, 1DD5 the employees are not satis"ied so ALIMCO should launch a new pension scheme% 2his will be bene"icial "or the employees a"ter retirement% #. 9orporation should pro!ide job to the dependent o" those employees who died during their ser!ice period%

Personnel $anagement ?uman Resource $anagement ?uman Resource $anagement )abour )aws ( by $emoria 9%:% ( by &upta 9%:% ( by Aswathappa 7% ( by Gain S%P%


Research $ethodology

( by 7othari 9%R%

H8,(.)o00')-, A:- I2,0.)46)05 )04o-7'.)o0 o4 .+, -,(1o02,0.:


1. ;ame o" the employee RRRRRRRRRRRRRRRRRRRRRRRRRRR R 2. ;ame o" the organi5ationC ALIMCO 3. Age group *a+ 1.C-B *c+ >DCAB 4. Se4 5. )iteracy *a+ $ale *a+ 1/th class *c+ &raduate *b+ -DC>B *d+ Abo!e AB *b+ 8emale *b+ 1-th class *d+ Postgraduate

*e+ I" other please speci"yRRRRRRRRR !. $arital Status *a+ $arried *b+ nmarried

#. ;ature o" the job per"ormed by the employee RRRRRRRRRRRRRRRRRRRRRRRRRRR R $. ,epartment RRRRRRRRRRRRRRRRRRRRRRRRRRR R



B: I04o-7'.)=, =),9( :6 .+, -,(1o02,0.: 1. Are you satis"ied with your wor' or post on which you are wor'ingQ *a+ Hes *b+ ;o

2. Are you satis"ied with your salaryQ *a+ Hes *b+ ;o

3. Are you satis"ied with the wor'ing en!ironment in A)I$9<Q *a+ Hes *b+ ;o

4. 9ompared to the nature o" wor' salary scale here are goodQ *a+ Hes *b+ ;o

5. A"ter retirement the pension which you get according to E71/o6,, P,0()o0 S*+,7, 1DD5, are you satis"ied with the schemeQ *a+ Hes *b+ ;o

!. ,id the 9ompany gi!e you bonus any timeQ


*a+ Hes

*b+ ;o

#. Are you satis"ied with the "acilities which you get under @SI Act 10A.Q *a+ Hes *b+ ;o

$. ,o the employees o" the organi5ation get rewards and recognition in proportion to the e4cellence o" their job per"ormanceQ *a+ Hes *b+ ;o

D. ,o the employees o" the 9ompany get $edical 8acilities a"ter retirement or notQ *a+ Hes *b+ ;o

1G. ,oes the 9ompany pro!ides attracti!e retirement bene"its to its employeesQ *a+ Hes 11. Any disabilities, *b+ ;o i" yes then please mention itQ