13

PAY AND ALLOWANCES

I.

Pay Scales

It has been decided to revise the existing

pay scales for the employees of the Federation
(excluding Industrial Units) w.e.f. 1.1.2004 as
follows: Designation
Peon, Chowkidar Gr.I
Peon / Chowkidar /
Sweeper
Grading Attendant
Mech. Helper, Jamadar /
Daftry
Clerk-cum-Typist /Jr.
Field Rep.
Driver Gr.I /R.O.-I /
Jr.Mech. Jr.Auctioneer /
Munim-I / Maint.Attdt. /
Steno Typist / Jr.Asstt. /
Jr. A/c. Asstt. /
Tel.Operator / Proof
Reader / Plant
Operator / Sr. Despatch
Rider / Sr. Electrician /
Field Rep.
Asstt. / Accounts / Audit
Asstt. /
MODEO / Steno / Sr.
Field Rep.
Chargeman
Sr. Asstt. /PA /Sr.
MODEO / AuctioneerII /Munim-III / Sr.
Maintenance Atten.
/RO-III/Hindi Translator/
Driver-III / Jr. Accountant
/Supervisor-cumForeman /
Overseer (Civil)
AM-II /*AM-II
(Accounts)/PS /
Sr. Stat. Asstt. / Sr.
Driver /Junior
Programmer / Jr.SSE /
Jr.Engineer /
Incharge Quality Control
/
Sr. Hindi Translator
Asstt. Manager /
*AM(Accounts) / EDPO /
Programmer / S.E. /
Asstt. Engineer /
Sales-cum-ServiceEngineer
Dy. Manager /
*Dy.M(Accounts) / Civil
Engineer
Manager / Sr.C.E.
General Manager
Executive Director
Additional M.D.
Managing Director

Existing Pay
Scale

Revised Pay Scale

850-15-1000-201100
900-20-1140-251715

3850-60-4450-805650
4000-100-5000-1256875

930-25-1480-301900
1025-25-1150-301600-35-1950

4050-150-5550-1758175
4350-200-6350-2258600

1110-30-1260-401460-50-2210

4600-250-7100-2759850

1430-40-1550-501650-60-1950-752550

5500-275-8250-37512000

1550-50-1700-601880-75-2255100-2955
1640-90-2180100-3380

5850-350-9350-37513100

1900-100-2300120-2780-1404180

7000-450-11500550-17000

6100-400-10100425-14350

2325-125-2950150-3700-1755100

8700-600--20700

3340-190-5620

11700-650-24700

*Designations changed vide OO No.28 dated

25.1.05.
2.
The broad principles adopted for such
revision are as under:
a) Five elements of pay i.e. Basic, Dearness
Pay, Adhoc Allowance, Incidental Allowance
and Interim Relief have been clubbed
together and the minimum of the revised
Pay scales has begun at the nearest higher
fifty rupees of the amount arrived at after
clubbing the above mentioned five
components of pay. For example in the
case of Peon, the figure after clubbing these
five elements comes to Rs.3818/-.Therefore,
the pay scale of a Peon has started at
Rs.3850/- and so on.
b) The slab of increment has been appropriately
fixed to protect the raise that an employee
got on increment in the old scale at present.
c)

A minimum of 20 years span in each scale

has been kept to ensure that no stagnation
crops up at any stage at least for next five
years.

3. The fixation of pay in the new scale shall

be done by clubbing together the Basic pay,
Dearness Pay, Interim Relief, Incidental
Allowance and Adhoc Allowance presently
drawn by the individual employee and his/her
basic pay shall be fixed at the stage equal
thereto, if there happens to be one or at the
next higher stage in the scale to that amount.
4.
Consequent upon the revision of pay
scales, the entitlement of employees with regard
to travelling / daily allowance, leave travel
concession, city compensatory allowance,
overtime allowance, local conveyance, various
advances like conveyance advance/house
1

4300-200-6700
4700-220-7340
5000-240-7880
5500-270-8740
6500-270-9740

13050-700-27050
13650-750-28650
14200-800-30200
15450-850-32450
17250-900-35250

building advance etc. shall be correspondingly

changed to ensure that they remain the same as
under the pre-revised scales. Thus, there will be
no upward revision in these entitlements due to
revision of pay scales.
5. House Rent Allowance @ 30% shall be
admissible to employees on the revised basic
pay.
6.
The amount of Dearness Allowance
admissible to the employees as on 31.12.2003
shall stand frozen at 59% and shall not be
taken into account for the purpose of
calculation of other allowances.
It has been decided by the
Executive Committee in their meeting
held on 7.3.2006 to revise the formula
for grant of Fixed DA to the employees
under the revised pay scales. As per
this decision, the fixed DA shall now
have a direct relation with the basic
pay of employees and shall be
admissible
at
the
following
percentages
at
different
stages
mentioned below:S.
Basic Pay
No.
1.
2.

Up to Rs.4500/Rs.4501/- to
Rs.6500/Rs.6501/- to
Rs.7000/Rs.7001/- to
Rs.10000/Rs.10001/- to
Rs.20000/Above Rs.20000/-

3.
4.
5.
6.

Percentage
of
Fixed DA
23%
25%
27%
29%
31%
33%

However, if there is a drop in the

total emoluments of any employee due
to re-fixation of FDA formula as stated
above, the same shall be protected by
grant of personal pay in the monthly
2

salary bill, which shall be adjusted

against increases in FDA by virtue of
grant of future increments.
This order came into force w.ef.
1.4.2006.
(Ref OO NO.36 dated 31.3.2006)
7. However, Dearness Allowance announced
by the Government of India w.e.f. 01.01.2004
shall be admissible to the employees of the
Federation as Additional Dearness Allowance,
to be computed on the revised basic pay.
8. The increment due to the employees from
01.01.2004 onwards shall be granted on the
revised pay scales.
9. The above orders come into force w.e.f.
01.01.2004.
(Ref. O.O. No. 11 dated
19.08.2004)
II.

Pay Fixation

The Rule 19 (2) of the Staf

Regulations which deals with the
fixation of pay of employees on
promotion has been modified
and may be read as under: Whenever any employee
holding
a
post
in
a
substantive, temporary or
officiating
capacity
is
promoted / appointed in a
substantive, temporary or
officiating
capacity
to
another post carrying duties
and
responsibilities
of
greater importance than
those attached to the post
held by him, his initial pay
in the time scale of the

higher post shall be fixed at

the stage next above the
pay notionally arrived at by
increasing
his
pay
in
respect of the lower post by
one increment at the stage
at which such pay has
accrued.
Provided
that
where an employee is,
immediately
before
his
promotion or appointment to a
higher post drawing pay at the
maximum of the time scale of the
lower post, his initial pay in the
time scale of the higher post shall
be fixed at the stage next above
the pay notionally arrived at by
increasing his pay in respect of
the lower post by an amount
equal to the last increment in the
time scale of lower post.
This amendment
force w.e.f. 01.11.1982.

comes

into

(Ref. O.O. 21, dated 14.11.1983)

III.

Special Pay Admissibility

Special pay shall be taken into

consideration for calculation of all
allowances including bonus but not for
ad-hoc allowance. Deduction towards
PF should also be made. For
calculation of HRA and CCA this pay
shall be considered along with Basic,
DA and ADA (Up to 320 points). This
has also to be taken for determining
the pay range to derive the incide-ntal
allowance payable to employees.

(i)

shall

The quantum of allowance is

fixed on the basis of average monthly
cash handled during the cooperative
year preceding the year to which the
allowance relates. The allowance is
admissible
w.e.f.
the
date
the
employee starts handling cash.
* Average monthly
cash handled
1.
2.
/3.
4.

Cash allowance**
admissible (p.m.)

Upto Rs. 75,000/Over Rs. 75,000/- and

upto Rs. 2,00,000/Over Rs. 2,00,000/- and
upto Rs. 5,00,000/Over Rs. 5,00,000/-

Rs.
Rs.

180/270/-

Rs.

360/-

Rs.

450/-

(Ref.
HO/AD/12/5/74-75
dated
07.11.1974 as amended vide O.O. No.
HO/FA/A(3)/ 82-83, dated 09.02.1983)
** Ref. OO No.15 dated 16.9.2004.
Proposal for grant of special pay
in respect of the employees for
handling cash may be sent in the
enclosed prescribed proforma.
* Revised w.e.f. 02.10.1988 vide O.O. No. 37
dated 21.09.1990.
# Enhanced from Rs. 30/- to Rs. 65/- p.m. w.e.f.
02.10.1988
vide
O.O.
No.
08, dated
18.04.1991.

Statement of details of cash

Disbursed during the Coop. Year
Name of Office

(Ref. HO/AC/15/(1)/78-79 dated

29.05.1979)
Following allowances
treated as special pay :

cash handled refers only to payment

made (in cash) excluding payments by
cheques/drafts. This also excludes all
receipts.

be

Cash Allowance

Cash allowance is admissible to

the employees of the Federation who
handle
cash.
The
quantum
of
allowance varies according to the
amount of cash handled. The term

Sl. Month
No.
1.
April
2.
May
3.
June
4.
July
5.
August
6.
September
7.
October
8.
November
9.
December

Amount of cash
disbursed (Rs.)

10.
11.
12.

January
February
March
_____________
Total Rs.
_____________

Average cash disbursed

Per month Rs. ______________________
Also certified that the above
details of cash do not include
payments made by cheques, drafts as
also
all
receipts,
during
the
cooperative year
Acctt./AAO
Head

Regional/Branch Manager

Sectional

(Ref:HO/AD/12/5/A/87-88 dated
09.11.1987)
(ii) Telex Allowance
The employees of the Federation
other than Telex operator who are
operating Telex Machines in Bombay,
Delhi,
Madras,
Calcutta
and
Ahmedabad (and Jamnagar) offices are
granted a special pay of Rs. 235* p.m. #
w.e.f. 15.02.1980 instead of telex
allowance.
(Ref. O.O. No. 14, dated 27.08.1980)
*Revised vide OO No.15 dated
16.9.2004.
The work of Telex operation shall
be entrusted only to the employees
equivalent to the rank of Junior
Assistants/
Assistants,
having
knowledge of telex operation.
All Regional/Branch Managers are,
therefore, requested to keep the above
decision in mind, while entrusting the
duties of telex operation to the
employees. All such proposals should
also be sent to the Head Office in time
for consideration.
(Ref. O.O. No. 04, dated 20.04.1990)

NOTE: The Special Pay for

operating Telex Machine has
been discontinued
w.e.f.
4

7.3.2006 vide Office Order

No.34 dated 24.3.2006 as
per the decision taken by
the Executive Committee in
their
meeting
held
on
7.3.2006.

(iii) Stenography Allowance

Field

Jr.

Assistants/[Assistant/Senior
Representatives

(Sr.Assistants and Assistant

Managers-II_
also
added
w.e.f. 7.3.2006 vide Office
Order No.34 dated 24.3.2006
as per decision taken by the
Executive Committee in their
meeting held on 7.3.2006.)
who know shorthand and are at times
required to do stenographic work in
addition to their own duties can be
allowed special pay at the rate of Rs.
235/-* p.m.#
This pay would be
admissible only if the duration of such
duties is more than 30 days and post
of the Stenographer/PA against which
he/she is required to perform duties is
vacant.

(Sr.Assistants and Assistant

Managers-II_
also
added
w.e.f. 7.3.2006 vide Office
Order No.34 dated 24.3.2006
as per decision taken by the
Executive Committee in their
meeting held on 7.3.2006.)
The Branch Manager/immediate
officers should recommend such cases
for special pay only if there is sufficient
justification
for
the
same.
Recommendation for the past periods
shall not be taken into account.
(Ref. O.O. No. HO/AD/P-403/77-78
dated 02.09.1977 read with O.O. No.
47 dated 02.05.1981).
*Revised vide OO No.15 dated
16.9.2004.

(iv)

Special
Pay
Accounts work

for

performing

It has been decided that Junior

Assistant and Field Representative who
possess accounts qualifications and
are required to do accounts work in the
absence of accounts personnel in a
Division/ branch will be eligible for
grant of a special pay of Rs. 235/-* per
month. This pay would, however, be
admissible only if the dura-tion of such
duties is more than a month.
Specific cases may be referred to
Head Office for sanction.
This order takes efect from
16.12.1985.
(Ref. O.O. No. 42, dated 14.01.1986)
Revised vide OO No.15 dated
16.9.2004.
--------------------------------------------------------# [Added w.e.f. 27.09.1985 vide O.O. No. 32,
dated 14.10.1985]
**[Increased from Rs. 40/- to Rs. 60/- w.e.f.
01.03.1986 vide
O.O.
No.
59, dated
26.02.1986]

(v) Special pay for

duplicating machine

operating

It has been decided to revise the

special pay from Rs. 65/- to Rs. 235/p.m.#
for
operating
duplicating
machine by the Peons, in the absence
of a regular Roeno Operator. This order
comes into force with immediate
efect.
(Ref. O.O. 49 dated 26.03.1987)
Ref.OO No.15 dt.16.9.2004.

NOTE: The Special Pay for

operating
Duplicating
Machine
has
been
discontinued w.e.f. 7.3.2006
vide Office Order No.34
dated 24.3.2006 as per the
decision
taken
by
the
Executive Committee in their
meeting held on 7.3.2006.

(vi) Special pay for Peons/Chowkidars/working as Drivers

The Peons/Chowkidars working as
Drivers of three wheeler scooter will
henceforth be paid special pay of Rs.
215/- per month instead of special
allowance of Rs.40/- per month in
addition to their own grade pay.
These orders come into force
w.e.f. 01.03.1976
(Ref. HO/AD/1-43 dated 27.02.1976)
Ref.OO No.15 dated 16.9.2004
(vii) Special pay for operating FAX
Machine
It
has
been
decided
that
employees who operate FAX Machine
in addition to their normal duties will
be granted a special pay of Rs. 235/per month. This pay would be
admissible only if the duration is of 30
days or more. This allowance will be
treated as pay for computing other
allowances etc. This order comes into
force with immediate efect.
Ref.OONo.15 dated 16.9.2004.

(Fax Allowance has been

discontinued w.e.f. 1.9.2005
as per decision of EC dated
3.8.2005. OO No.15 dated
8.9.2005 has been issued in
this regard.)
IV.

Special Allowance

This is not the pay and hence

does not carry any other allowances.
Normally this type of allowance is
being paid as fixed amount or in some
cases at some fixed percentage on
Basic Pay. No deduction towards
Provident Fund is to be made on this.
(i)

Special
Allowance
to
Chowkidars
(Night
Watchmen)

The normal duty hours for night

watchmen are 8 hours but under the
(shop and establishment) Act this can
be spread over to 10 hours daily for
5

which an allowance of Rs. 60/-** per

month will be paid. For remaining
hours of duty overtime allowance as
per rules shall be admissible.
(Ref.HO/AD/8/19/77-78
01.05.1978)

dated

(ii)

Dual Charge Allowance

(a)

Dual charge allowance will be

admissible to an employee for
performing duties of another
employee of equivalent or higher
post in addition to ones own
normal duties. This allowance will
be admissible for a period not
less than 30 days and for not
more than 6 months, In cases
where dual charge allowance has
to be paid for period exceeding 6
months approval of the Executive
Committee shall be necessary.

(b)

(c)

(d)

(e)

(f)

work in the absence of a

particular employee, it would be
specifically entrusted to someone
else in the exigencies of office
work as it may not be feasible to
appoint a new person for short
duration. In such cases, however,
prior approval from HO may
invariably be obtained.

Dual charge allowance will be

admissible equivalent to 10%* of
the basic pay when an employee
performs the duties of a higher
post in addition to his own normal
duties.

(Ref. HO/AD/5/66/78-79 dated 31.07.1978 as

amended by O.O. of even number dated
23.10.1978, 05.02.1979 and 24.02.1979)
* [Revised w.e.f. 02.10.1988 vide O.O. No. 20,
dated 10.08.1990

(iii)

Hardship Allowance

1.
It
has
been
decided
that
hereinafter Hardship Allowance may be
sanctioned only in cases, where the
following conditions are complied with
by an employee (including officers) of
the Federation working in its diferent
locations other than industrial Units:
(i)

Where employee is not paid

Overtime Allowance.

(ii)

Where duty time begins 3

hours before the normal
working hours, i.e. 9.30 a.m.

Dual charge allowance will be

admissible equivalent to 5%* of
the Basic Pay when an employee
performs the duties of an
equivalent post in addition to his
own normal duties.
The employees who are entitled
to draw the overtime allowance
will have the option to claim
either OTA or the dual charge
allowance, as only one allowance
out of the two will be admissible
at a time. Option once exercised
shall be final.
The dual charge allowance shall
neither be treated as special pay
nor
shall
carry
any
other
additional
allowance
thereon
whatsoever.
The underlying idea for grant of
allowance is that whenever a
situation arises where it becomes
difficult to carry on the normal

or
Where the job begins at the
normal working hours but
lasts quite late in the
evening, i.e. till 9.00 p.m. or
after and the assignment
involves duties outside the
office regularly.
(iii)

Where the work is of a

regular
nature
involving
reporting/ leaving time as
indicated in para 2 above
for a minimum period of 2
months continuously.

(iv)

Where the employee is also

supposed to attend to the
job assigned to him even on
Sundays and other holidays,
in addition to the above
requirements as indicated in
para 2.

(v)

Where the duration of duty

hours exceeds 10 hours per
day.

2.
The Hardship Allowance will not
be taken into consideration for benefits
of Provident Fund, Bonus, Gratuity or
any other such benefits.
3.
The Hardship Allowance shall be
drawn only for the period for which all
the above conditions are complied with
and not thereafter or before.
4.
This allowance shall not be
admissible, irrespective of hours of
duty, while on tour, where the
employee is governed by the TA/DA
Rules of the Federation.
5.
The
amount
of
Hardship
Allowance shall be decided only by the
sanctioning authority in each case on
merits considering nature of the duties
and duration thereof.
6.
The Hardship Allowance shall not
be paid until it has been approved by
the sanctioning authority.
7.
The old
reopened.

cases

shall

not

be

8.
This order comes into force with
efect from the date of issue of this
order.
(Ref.
(iii)

HO/AD/5/145/78-79
29.08.1978)
Special
Allowance
RM(WZ)/BM, Bombay

dated

order

takes

efect

to

from

(Ref. O.O. No. 28 dated 13.10.1989 and

O.O. No. 47 dated 12.12.1990)
V.

Dearness Allowance

VI.

House Rent Allowance

(i)

House Rent Allowance will be

paid to the employees of the
Federation at the rate of 30% of
basic pay plus dearness pay
irrespective of place of posting
and without production of rent
receipt.

(ii)

Income Tax Liability, if any on

account of HRA shall be borne by
the employee.

(iii)

HRA will not be admissible to

those employee who occupy
accommodation provided by the
Federation. In such cases rent up
to 10% of basic shall be borne by
the employees themselves.

(iv)

The payment on account of HRA

will be rounded of to the nearest
10 paise.
(Ref.
HO/AD/5/6/73-74
dated
15.06.1974 as amended by O.O. No. 47
dated 20.04.1982 and O.O. No.03
dated 24.8.1998)
VII. City Compensatory Allowance
(CCA)
(i)

It has been decided to allow a

special allowance of Rs. 650/- and Rs.
550/- per month (lumpsum) with the
post of RM (WZ) and BM, Bombay
respectively.
This
15.9.89.

The dearness allowance to the

employees of the Federation will be
payable at same rates as notified by
the Central Government for its
employees.

Payment on account of CCA is to

be made at the rates prescribed
by the Central Govt. for its
employee and the payment will
be rounded of to nearest 10
paise.

(ii) Consequent upon revision of City

Compensatory
Allowance,
by
Government of India it has been
decided by the Competent Authority
that CCA will be admissible to the
employees of the NAFED on the
following
revised
rates
and
classification of cities: Pay Range**
cities

Amount of CCA in Class of

(Basic pay)

(Rs. Per month)

_______________________________
A-1
A
B-1
B-2

Below Rs. 4100/-

90/-

65/-

45/- 25/-

Rs.4101/- to Rs.5699/-125/-

95/-

65/- 35/-

(Ref. O.O. No. 31 dated 23.3.2005 )

IX. Assam
Allowance

Rs.5700/- to Rs.7249/-200/- 150/- 100/- 65/Rs.7250/- & above

300/- 240/- 180/- 120/-

**Revised vide
23.08.2004

OO

No.13

dated

REVISED CLASSIFICATION OF CITIES FOR

PAYMENT OF CCA TO THE EMPLOYEES OF
NAFED ON THE PATTERN OF CENTRAL
GOVERNMENTS CLASSIFICATION IS AS
UNDER :
Name of the A-1
State/Union
Territory

B-1

Andhra
Pradesh

Hyderabad.

Assam

Bihar

Patna

Chandigarh

Chattisgarh

Rs. 750/- p.m. &

above

Guwahati

Chandigarh

Delhi

Gujarat

Ahme- Rajkot
dabad

(Ref.HO/AD/5/15/77-78 dated
03.11.1977)

Raipur
-

X.

Jammu &
Kashmir

Srinagar
Jammu

Jharkhand

Ranchi

Kerala

Madhya
Pradesh

Maharashtra

Mumbai Pune

Orissa
Bhuvneshwar

Indore

Rajasthan

Jaipur

Tamilnadu

Chennai

Punjab

West Bengal

Kozhikode
(Calicut)

Nashik

Ludhiana

[Sl. Pay range*

No.
month

Lucknow

Kolkata -

Kanpur
-

Composite Hill Compensatory

Allow-ance for Shimla and
Srinagar staff.

It has been decided to grant

composite hill compensatory allowance
in lieu of existing hill compensatory
allowance, Winter Allowance and CCA
to the employees posted at Shimla and
Srinagar Branches of the Federation,
subject to the fulfillment of other
conditions
for
grant
of
Hill
Compensatory
Allowance
at
the
following rates : -

Kochi

Uttar Pradesh -

Amount by which
pay falls short of
Rs. 759/- p.m.

Rate of allowance

Below Rs. 750/- p.m. 3.5% of pay subject

to
a
Maximum
of Rs. 10/- p.m.

Delhi

Bangalore

This is not the city compensatory

allowance. This allowance is admissible
to employees of the Federation posted
at Guwahati Branch at the following
rates w.e.f. 01.11.1973 until further
order:
Pay range

B-2

Karnataka

Compensatory

Rate of Composite
H.C.A.(Rs.) per

1. Below Rs. 3910/2. Rs3910/- & above but

below Rs. 5775/3. Rs. 5775/- & above but
below Rs7300/4. Rs. 7300/- and above

50/70/120/150/-

The employees whose entitlement

for
drawl
of
composite
hill
compensatory allowance is reduced
from the existing admissible amount,
as a sequel to revision of pay scales,
shall continue to draw composite hill
compensatory allowance as per the
existing entitlement until they reach
the
next
higher
salary
range
prescribed for the purpose. In other
words, this means that there would not
be any reduction in the amount of
composite hill compensatory allowance
presently drawn by any employee as a
result of revision of pay scale.]
*

[Revised w.e.f. 02.10.1988 vide O.O.

No. 9 dated 24.05.1990.]
Revised
vide
OO
No.15
dated
16.9.2004.
2. The pay for the purpose of these
orders will include, in addition to the
basic pay in the existing scale,
Dearness Allowance appropriate to
that pay admissible under orders in
existence on 31st December, 1985.
3. The payment of composite H.C.A.
to the eligible employees will be made
w.e.f. 12.10.1987 after adjusting the
amount paid to them as H.C.A. and
CCA wherever applicable.
(Ref. O.O. No. 15, dated 20.07.1989)
XI. Ad hoc Allowance (Merged
with basic pay vide office order
No.11 dated 19.8.2004)
(i)
This allowance is admissible at
the rate of 10% of basic pay plus
Dearness Allowance to the employees
of the Federation who are in the
regular scale of pay without any
restriction on maximum amount w.e.f.
01.07.1977.
(ii) The amount of adhoc allowance
paid to the employees shall not be
treated as pay for any other purpose
such as computing of DA, Incidental
Allowance, Telex Allowance, Cash
Handling Allowance and for any other
allowance related to salary.

(iii) This
allowance
has
been
sanctioned strictly on adhoc basis and
shall not form part of the service
condition of the employees.
(Ref. O.O. No. 16 & 17 dated
17.09.1980)
XII. Incidental Allowance(Merged
with basic pay vide office order
No.11 dated 19.8.2004)
The Board of Directors in its
meeting held on 28.10.1997 have
approved the following enhanced rates
of Incidental Allowance for employees
of the level of General Manager and
below as under: Sl.
No.
1.
2.
3.
4.

5/-)

Pay Range

Rates of Incidental
Allowance (Rs.)

Upto Rs. 1650/Rs. 1651/- to Rs. 3229/Rs. 3230/- to Rs. 4539/Rs. 4540/- and above

375/500/555/630/-

p.m.
p.m.
p.m.
p.m.

(figures have been rounded

of to the next higher Rs.

The above orders will come into

force w.e.f. 28.10.1997. All other terms
and conditions governing the grant of
Incidental Allowance shall remain
unchanged.
(Ref. O.O. No. 11, dated 20.11.1997)
XIII. Washing Allowance
The washing allowance will be
admissible to employees who have
been provided with uniform at the rate
of Rs. 100/-* p.m. No washing
allowance shall be paid during regular
leave
other than casual leave
exceeding 15 days.

XIV. Children Education Allowance

In pursuance of resolution No. 16
(viii) of the meeting of the Executive
Committee held on 25.11.1986, it has
been decided to grant Children
Education Allowance to employees of
9

the Federation at the rate of Rs. 200/- **

per dependent child per month subject
to a maximum of Rs. 400/-** covering
any two children. The other terms and
conditions governing grant of Children
Education Allowance are indicated
below: 1.
All employees in the regular
service of the Federation will be
eligible for this allowance.
* Amended vide O.O. No. 02 dated 24.4.97 and
effective w.e.f. 01.04.97.

Where both husband and wife are in

the service of the Federation, the
allowance will be admissible to one of
them only. In case where either
husband or wife is in State/Central
Government service, the allowance
be admissible to the employees
furnishing a declaration that
Children Education Allowance has
been claimed by him/ her from
State/Central Government.

will
on
the
not
the

2.
The allowance will be admissible
in respect of Children of employees
between the age group of four and
twenty one years studying in Prep. to
12th class and further higher education
in a recognised school / Institution. It
shall commence from the month
following that in which the child attains
the age of four and shall cease at the
end of academic year in which the
child attains the age of 21 years.*
*

Note : The Children Education

Allowance Rules of the Federation,
inter-alia, provide that the allowance
will be admissible in respect of children
of employees between the age group
of four and twenty one* year studying
in Prep. to 12th class and further
higher education. Doubts have been
raised whether this allowance is
admissible to a child who is studying in
Nursery/Lower KG/Upper KG or KG
class. The matter has been examined
and it is clarified that if a child has
attained the age of 4 years and is
studying in any of the preparatory
class i.e. Nursery, Lower KG, Upper KG,
KG, Prep. etc. the Children Education

10

Allowance will be admissible in respect

of him/her.
*

(Ref. O.O. No. 24, dated 25.02.1993)

3.
This allowance will not be
admissible in respect of a child for
more than two academic years in the
same class. When a child is withdrawn
from a school for admission to another
school during the same month, the
allowance will be admissible for one
month only.
4.
This allowance will cover all
expenses relating to education of the
child i.e. tuition fee, science fee,
library fee, books etc.
5.
This allowance will not be
admissible to the children of the
deceased,
retired
or
discharged
employees of the Federation. However,
if an employee of the Federation dies
in the middle of the academic year,
the allowance will be admissible till the
end of the academic year.
6.
The allowance will be admissible
during the period of the vacations in
the schools.
7.
The allowance will be admissible
to employees on production of the
original receipts(s) of the concerned
school(s) of their child/children for
payment of fees in the beginning of
academic session every year alongwith
declaration in the revised form at
Annexure-I. In case, it is not possible to
produce the original receipt for
payment of fees for any reason, such
employees may produce a certificate
in the enclosed proforma (Annexure-II)
from the Head of the school of their
child/children in the beginning of
academic session every year for
claiming
the
Children
Education
Allowance. After scrutiny of these
documents, sanction for grant of
Children Education Allowance will be
issued.
8.
The concerned Accounts Officer
in Head Office who deals with the paybills is authorised to pass payment of
Children
Education
Allowance
in

respect of employees who fulfil the

requirement enjoined vide Office Order
No. 29, dated 15.01.1987.
9.
In respect of employees posted in
Regional and Branch Offices, the
concerned Regional/ Branch Managers
are similarly authorised.
10. A certificate about the date of
birth of the wards of the employees
from the employee concerned shall be
sufficient to meet the eligibility
requirement in this regard.
11. The payment on account of
Children Education Allowance may be
made through the monthly pay bills to
facilitate calculation of income-tax as
this allowance is taxable.
All employees may, therefore,
submit their claims for payment of
Children Education Allowance to the
concerned Accounts Officer or the
Regional/Branch Offices, as the case
may be.
12. Production of original receipt for
payment of School fees or School
certificate during the middle of each
academic year by the employees has
been dispensed with, excepting in
cases of transfer of children from one
School to the other.
13. Employees whose children are
studying in unrecognised schools will
also be eligible for reimbursement of
Children Education Allowance.
Annexure-I
The Managing Director,
National Agricultural Cooperative
Marketing Federation of India Ltd.,
No. 1, Sidhartha Enclave, Ashram
Chowk,
New Delhi 110014
Sub: Application
for
reimbursement of
Children Education Allowance
I certify that my child/children in
respect of whom Children Education
Allowance is claimed is/are wholly

dependent upon me and is/are

studying in the school(s) and class(es)
as under : Name of
which
Child

Date of
birth

School in which
studying

Class in
studying

2.
I
also
certify
that
my
wife/husband is not in NAFED/Govt.
service and that no allowance has
been claimed by her/him from
Government/NAFED
(strike
out
whichever is not applicable).
3.
I enclose original receipt No,
dated issued by the School
authorities toward payment of fees of
my above mentioned child/children for
April, 19..
4.
No bill/receipt is being issued by
the school authorities. I am, therefore,
enclosing a certificate from school of
my above mentioned child/children in
the prescribed proforma.
5.
The amount of Rs. . for children
education allowance admissible vide
Office Order No. 29 dated 15.01.1987
may please be paid to me.
Signature
Name of the employee..
Designation.
Section.
Dated..
Office
..
Ref.
Ref.
Ref.
Ref.

O.O.No.29
O.O.No.02
O.O.No.47
O.O.No.30

dated
dated
dated
dated

15.1.1987
24.4.1997
6.3.1987
18.11.1987

Annexure-II

.. School
(Name of the Institution & Address)

11

Certified
that
Shri/Miss
..
Son/daughter
of
Shri/Mrs...
Is a student of .. class since

(date
from
which
continuously
studying in the same class). He/She
has paid tuition fees at the rate of Rs.
. per month for the period from
. to .
Dated ..

by the Central Govt. for its employees,

from time to time. Consequent upon
revision of the pay scale for its
employees on the recommendation of
the
Vth
Pay
Commis-sion,
neutralising/merging the DA as on
01.01.1996, Govt. of India have
announced revised rates of DA
efective from 01.07.96, and 01.01.97
@ 4% each and @ 5% w.e.f. 01.07.97.
Board of Directors, in their meeting
held on 20th October, 1997 decided
that the DA on the pattern of the rates
applicable to the Central Govt.
Employees may be given to NAFED
employees, as indicated below:

Principal/Headmaster/
Headmistress
(Office Stamp)

The DA on the rates applicable as on

01.01.96 on the current basic pay
(w.e.f. 01.07.97 and so on) as indicated
hereunder may be treated as Dearness
Pay for calculating/releasing DA to
NAFED employees w.e.f. 01.07.97

Reimbursement
of
Children
Education
Allowance preferring of claims
Instance have come to notice
that the employees are preferring their
claims for reimbursement of Children
Education Allow-ance, in respect of
their wards, much after the expiry of a
particular academic year. This is not
proper. It has, therefore, been decided
that the employees should normally
prefer their claims for Children
Education
Allowance
under
the
existing orders in the beginning of the
academic session. In case it is not
possible to do so, due to certain
cogent reasons, the claims may be
submitted later during the session but
before the close of the particular
session. The claims of employees for
Children Education Allowance received
after the close of the particular
academic
session
will
not
be
entertained in future.
(Ref. O.O. No. 39, dated 18.12.1987)

The revised DA shall be payable @13%

on existing basic pay plus Dearness
Pay to be worked out as per above
formula w.e.f. 01.07.97 Subsequent
installments of DA as and when
released by the Govt. of India shall be
payable to NAFED employees on the
rates announced by the Govt. of India
from time to time.
Formula for working Dearness Pay for
purpose of allowing payment of
Dearness Allowance @ 13% w.e.f.
01.07.97.
Sl.

No.

Pay range

1. Basic pay upto

Rs. 3500/- p.m.

DA payable as on
1.1.96 for calculating
Dearness Pay (DP)
148% of pay

2. Basic pay above

111% of pay subject
to
Rs. 3500/- p.m. & upto a minimum of
Rs. 6000/- p.m.
Rs.
5180/p.m.

XV. Dearness Pay (Merged with

basic pay vide office order No.11
dated 19.8.2004)

3. Basic pay above

Rs. 6000/- p.m.
of

According to the Rules of NAFED,

DA to the employees of the Federation
will be payable at same rate as notified

The Dearness Allowance will continue

to
be
a
distinct
element
of

12

96% of pay subject to

a minimum
Rs. 6660/- p.m.

remuneration and will not be treated

as pay.
The payment on account of Dearness
Allowance involving fractions of 50
paise and above may be rounded of to
the next higher rupee and fractions of
less than 50 paise may be ignored.
(Ref. O.O. No. 12, dated 20.11.1997)
XVI.

Grant
of
Special
Compensation Allowance to
employees on par-ticipation
in
Fairs/Exhibitions

regarding
The Executive Committee in its
meeting held on 21.10.1997 has
modified the Rules relating to grant of
Special Compensation Allowance and
the rates of Special Compensation
Allowance as stipulated in office order
No. 24 dated 25.08.1994 payable to
the employees by the Federation who
actually take up the work of setting-up/
organising of Trade Fairs/Exhibitions
within/out-side
Delhi
by
working
beyond the normal working hours as
under: Sl. Duration of Exhibition/Amount of Special

No.Trade Fair in Delhi

outside
1. Upto one week
(7 days)
Rs.500/-

Compensation
Allowance
Rs.100/- per day subject
to
the
maximum
of
lump-sum.

2. 8 days to 15 days Rs. 600/- plus additional

Rs. 100/- per day subject
To the maximum of
Rs. 1000/- lump-sum.
3. 16 days to
31 days

Rs. 1100/- plus additional

Rs. 100/- per day subject
to the maximum of
Rs. 1500/- lump-sum.

The above allowance is not

admissible to those employees who
are deputed to attend the normal duty
in the Exhibition/Trade Fairs as a
Guide/Procurement and delivery of
material or for the briefing purpose
etc. during the timing of the exhibition.
The Competent Authority for grant of
Special Compensation Allowance for
the said work shall be the Managing
Director.
This order comes into force w.e.f.
21.10.1997.
(Ref. O.O. No. 16, dated 16.01.1998

13

IMPORTANT DECISIONS
A.

Provision of Bonus payable to

employees under the payment of
Bonus Act 1965 for the Cooperative
Year 1984-85

This is in continuation of our circular

of even reference dated 1 st August 1985
on the subject cited above.
2.
In view of the Ordinance issued by
the Government of India, provision of
Bonus at the rate of 8.33% for the Coop.
Year 1984-85 is to be made in respect of
employees whose salary does not exceed
Rs. 2500/- p.m. Since necessary provision
has already been made in respect of
employees drawing salary upto Rs. 1600/-,
bonus may also be provided in respect of
remaining employees eligible under the
payment of Bonus Act.
3.
For the purpose of calculation of
bonus, the meaning of salary and
employee will mean same as defined in
the circular under reference. Also an
employees shall be entitled to bonus in
the accounting year provided he has
worked in the Federation for not less than
30 days in the year.
4.
In case of employees drawing salary
more than Rs. 1600/- p.m. calculation of
bonus will be made as if the said employees
are in receipt of salary at the rate of Rs.
1600/- p.m. No bonus will however be paid
to an employee for the period for which
his/her salary exceeds Rs. 2500/- p.m.
5.
The detailed calculation of bonus in
respect of each employee of your branch
be sent to us for our record.
6.
Please disburse 8% interim bonus to
the employees out of provision made as
advised above immediately.
7.
Please ensure that entries for
payment of bonus are recorded in the
Bonus Register. Income Tax may also be
deducted while relea-sing bonus, wherever
applicable.
8.
Payment advice for this purpose may
be issued to the respective branches in

respect of employees
your office to other
*

transferred

from

O.O. No. 16 dated 16.01.1998 and O.O. No. 12

dated 20.11.1997.

locations
of
the
Federation
intimation to Head Office.

under

9.
In case of any difficulty, reference
may be made to us.
(Ref. HO/FA/21/20/85-86 dated
08.11.1985)
B.

No Special Pay during

period exceeding 10 days.

leave

In accordance with rules governing

pay and allowance of the Federation,
diferent kinds of special pay and special
allowances
are
admissible
to
the
employees for performing various types of
duties. It has come to notice that such of
the employees who have been sanctioned
special pay/special allowance continue to
draw the same even during their leave
period/ tour irrespective of the fact that
they have not been performing additional
duties during these periods, for which the
special pay/allowance was granted to
them. It has, therefore, been decided that
if an employee who is in receipt of special
pay/special allowance does not attend
office for any reason including tour, for
more
than
10
days,
his
special
pay/allowance shall be proportionately
reduced for such absence.
This order comes into force with
immediate efect.
(Ref. O.O. No. 11 dated 29.08.1986)
C.

Minimum Wages to the Casual

Employees.

1.
Further to office order dated 2.7.98,
the employees of all categories appointed
on daily wages/consolidated emoluments
in the Federation will be paid revised
wages w.e.f. 01.02.2000. as enumerated
hereunder: Sl.
No.

Categories of
Employees

I. UNSKILLED

Rate of wages w.e.f.

01.02.2000

Peons/Helper/Labourer/
day
Chowkidar/Waterman/
Gr.Attendant/Guest
Attendant/Gardner/
Sweeper/Loader/

Rs.144.00

per

Rs.3165.90/- p.m.
(Consolidated)
Un-loader etc.

II. SEMI-SKILLED
Book Binder/
Auctioneer etc.

Rs.151.00 per day

Rs.3331.90 p.m.
(Consolidated)

III. SKILLED
Driver/Electrician/
Mechanic/Carpenter
Plumber etc.

IV. Clerical & SuperviSory staf such as

LDC/Typist/Clerk/
Salesman/Jr.Auct.
Mandi Asstt. etc.

Rs.163.00per day
Rs. 3589.90/- p.m.
(Consolidated)
NON MATRICULATES
Rs153.00 per day
Rs.3358.90/- p.m.
(Consolidated)
MATRICULATES/
NON-GRADUATES
Rs. 164.00 per day
Rs.3613.90/- p.m.
(Consolidated)
GRADUATE & ABOVE
Rs. 178.00 per day
Rs. 3925.90/- p.m.
(Consolidated)

The above rates of wages to daily

wages/consolidated
employees
are
inclusive of variable dearness allowance
as well as the payment of two weekly days
of rest for which no separate payment is to
be made. Further, if the daily wages
employees are asked to work on weekly
of/holidays they will be entitled to the
normal wages, provided their working
hours are same as are during the normal
working days.
(

(Ref. O.O. No. 19, dated 16.02.2001& OO

No.08 dated 17.6.2005)

2.
on

As regards casual employees working

consolidated wages/monthly fixed

wages on contract basis, they will be paid

enhanced DA @ Rs. 107/-* per month w.e.f.
01.02.1997* thus raising the total variable
Dearness Allowance to Rs. 471/-* p.m.
w.e.f. 01.02.1997. * Further, if the daily
wages employee are asked to work on the
weekly of/holidays they will be entitled to
the normal wages, provided their working
hours are same as are during the normal
working days.
(Ref. O.O. No. 13, dated 27.12.1996)
Regarding fixation of pay in the
revised pay scales it has been decided
that the existing basic pay of the
employees as on 01.10.1993 will be first
increased by the amount mentioned below
against their respective scales of pay and
it will be fixed at that stage in the revised
scale of pay, if there happens to be one
otherwise at the stage next above the
basic pay so computed: Pay Fixation Formula
Sl.
No.

Existing Scale of Pay Minimum increase

(Rs.)
in Basic

1.
2.
3.
4.
5.

700-860
750-1250
775-1359
875-1450
950-1500

6.
7.
8.
9.

1200-2040
1320-2040
1400-2600
1640-3130

Rs. 150/-

Rs. 230/-

(Ref. O.O. No. 08, dated 02.06.1994)

II.
The Board of Director in their
meeting held on 20.05.1994 have decided
to revise the existing pay scales for the
employees of the Federation (excluding
the Industrial Units) in the scale of pay of
Rs.
2000-3750
and
above
w.e.f.
02.10.1993 as follows: Sl.
No.

Existing Pay-Scales
(Rs.)

Revised Pay-Scales
(Rs.)

E.

Protection of Pay

It has been observed that number of

representations from the employees for
protection
of
special
pay
or
its
continuation
even
after
preponement/stepping
up
of
their
increments have been received, after
revision of pay scales w.e.f. 02.10.1988.
2.
It is clarified for information of all
concerned that special pay was granted to
some employees at the time of revision of
pay scales to protect the granted benefit
to them. In other words the intention of
granting special pay was that these
employees may not get less pay than their
juniors as a result of fixation of pay in the
new scales. The intention of pre-ponement
of increment to certain employees is also
the same i.e. senior persons should not
get less salary than their juniors. On the
basis of this analogy, it was decided not to
protect the special pay in the event of
preponing the date of increment to such
employees who are getting Special pay as
the protection of pay against junior
employees is to be given once only.
Further preponement of pay/increment to
the employees is considered under the
following conditions: a)

That in past junior should not have

drawn the pay more than the Senior.

b)

Both the junior and senior officers

should belong to the same cadre.

c)

The posts in which they have been

promoted or appointed should be
identical.

d)

e)

The scale of pay of the lower and

higher posts in which they are
entitled to draw pay should be
identical.
If even in the lower post, the junior
officers draws from time to time a
higher rate of pay than the senior by
virtue
of
grant
of
advance
increments, the above provisions will
not be invoked to step up the pay of
the senior officers.

3.
It has also been observed that
employees, while making representation
for protection of their pay do not visualise
the above condition and submit their
representation for pre-ponement/stepping
up of salary. It is, therefore, clasified that
no representations should be submitted if
the applicants case do not come under the
above
conditions.
Regional/Branch
Managers are also advised to please
ensure that the represe-ntation of
employees be forwarded to Head Office for
consideration only after they examine the
above factors.
(Ref. O.O. No. 06, dated 16.05.1994)
F.

Grant of Interim Relief to the

emp-loyees of the Federation
w.e.f. 1st June, 2000
(Merged
with basic pay vide office order
No.11 dated 19.8.2004)
(1)

The Board of Directors in its

meeting of 09.06.2000 approved
payment towards revision of pay
scales
in
view
of
the
recommendation made by 5th Pay
Commission to the employees of
the Federation w.e.f. 01.06.2000 as
under: Sl.
No.
(i)

Pay Scale

Amount of IR

Employees in the scale of pay

of Rs. 850-1100 and upto the
pay scales of Rs. 1900-4180

Rs. 400/per month

(ii) Employees in the scale of pay

of Rs. 2325-5100 and above

Rs. 650/per month

The above payment shall not be treated as

pay for any other benefits.
This order shall not be applicable to
the employees of the Industrial Units.
(Ref. O.O. No. 07, dated 23.06.2000)
(2)

The Executive Committee in its

meeting held on 25.05.2001 has
approved
payment
towards
Interim Relief to the employees of
the
Federation at the rates indicated below
w.e.f. 01.06.2000: Sl.
No.

Pay Scale

Amount of IR

(i)

Employees in the scale of pay

of Rs. 850-1100 and upto the
pay scales of Rs. 1900-4180

Rs.1000/per month

(ii) Employees in the scale of pay

of Rs. 2325-5100 and above

Rs.1500/per month

The above payment shall not be

treated as pay for any other benefits.
This order shall not be applicable to
the employees of the Industrial Units.
(Ref. O.O. No. 04, dated 25.05.2001)
Revision of rates of Addl.Dearness Allowance.
In partial modification of Office Order No.11
dated 19.8.2004, the rates of Addl. Dearness
Allowance admissible to the employees of the
Federation have been revised as under:Rates of Addl. DA
12%

Date from which payable

01.07.2005

2.
As specified vide Office Order No.11 dated
19.8.2004 ibid, the Dearness Allowance announced
by the Government of India w.e.f. 01.01.2004 is
admissible to the employees of the Federation as
Additional Dearness Allowance, to be computed on
the revised basic pay.
3. The Dearness Allowance will continued to be a
distinct element of remuneration and will not be
treated as pay.
4. The payment on account of Dearness Allowance
involving fractions of 50 Paise and above may be
rounded off to the next higher rupee and the fractions
of less than 50 Paise may be ignored.
(Ref. OO No.28 dated 30.1.2006)