REVISION OF RATES OF INCENTIVE BONUS OF SSE IN WORKSHOPS & PRODUCTION UNITS - AS PER BASIC PAY GRANTED TO THEM ON FINANCIAL UP-GRADATION UNDER MACP

INDIAN RAILWAYS TECHNICAL SUPERVISORS ASSOCIATION
(Estd. 1965, Regd. No.1329, website http://www.irtsa.net )
No. IRTSA/ Memo/RB/Incentive - SSE/ 9-11 Dated: 23-4-2010
Member Mechanical,
Railway Board,
New Delhi
Dear Sir,

Subject :-   REVISION OF RATES OF INCENTIVE BONUS OF SSE IN WORKSHOPS & PRODUCTION UNITS - AS PER BASIC PAY GRANTED TO THEM ON FINANCIAL UP-GRADATION UNDER MACP

Reference :-   Railway Boarder letter No.2008/M(W)/814/38, Dated 29.10.2009, 23.02.2010 and 27.7.2010 on the  subject Revision of hourly rates of incentive bonus and bonus factor of workshops and PUs.

1.    We seek your kind intervention in respect of needless confusion created on account of  Railway Board’s Clarification dated 27.7.2010 on revision of hourly rates of incentive  bonus and bonus factor.


2.    As per Board’s letter No. 99/M(Prod.)814/35 dated 22.5.2000 and 16.03.2004, SSEs (Senior  Section Engineers) supervising the staff working on the shop floor are entitled for payment  of incentive bonus at the rate of 15% of the basic pay.


3. After the implementation of SCPC recommendations Railway Boarder through it’s letter  No.2008/M(W)/814/38, Dated 29.10.2009 granted incentive bonus at the rate of 15% of  revised basic pay w.e.f. 1.12.2009. Board also further clarified in its letter even no. dated  23.02.2010 that, Incentive payment should be decided on the basis of the post/designation  held by the employee and the hourly rate/bonus factor corresponding to that  post/designation.

4.    Para 16 of annexure of MACPS order (RBE N0.101/2009, dated 10.06.2009) states that, on  grant of financial up-gradation under the scheme, there shall be no change in the  designation, classification or higher status.


5.    However, financial and certain other benefits which are linked to the pay drawn by an  employee such as HBA, allotment of Government accommodation shall be permitted. At  no place it was stated that the basic pay being granted on financial up-gradation should be  treated as officiating pay. For all purposes including retirement benefits except that of  status, basic pay granted on financial up-gradation is being treated as regular pay.


6.    But, board in it’s second clarification on 27.7.2010 (on incentive bonus) advised an  impracticable practice of granting incentive at flat rate of 15% of the substantive basic pay  of the regular post held by SSE and not the basic pay granted to them on financial upgradation under MACP. This is completely discriminatory and impracticable, since pay  granted on financial up-gradation is not officiating pay.


7.    Basic pay/Grade Pay drawn before the financial up-gradation cannot also be taken as  substantive pay. This violates the basic sprit of MACPS recommendations that the benefits


M. Shanmugam, Central President,
# 4, Sixth Street, TVS Nagar, Chennai- 600050.
Email- cpirtsa@yahoo.com
Mob: 09443140817

Harchandan Singh, General Secretary, C.Hq.
32, Phase 6, Mohali, Chandigarh-160055.
Email-gsirts@yahoo.com
(Ph:0172-2228306, 9316131598) 2

linked to basic pay shall be permitted in the pay granted on financial up-gradation due to
MACPS.

8. Hence it is requested that the second clarification issued by Railway Board on 27.7.2010
may please be withdrawn.


Yours faithfully,
(Harchandan Singh),
General Secretary, IRTSA


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