However, the scale without mentioning the allowances and other benefits is misleading. Please note the new sixth pay commission pay has not yet been fixed for faculty in IIT/IISc but it can be assured that it will not be less than that of UGC. Based on the document provided by IIT-M for pay fixation and by UGC, here are the details that a professor in IISc actually earns,
Basic + Grade Pay : 57,000 (52,000 for associate professor; 38,000 for assistant professor)
Dearness allowance (DA) as on 1 March 2009 (22%) : 11,000
House Rent Allowance, HRA (30% of B+GP+DA): 22,000
Travelling Allowance (TA): 3,200 + 15% of DA
Academic Allowance : 1,500
Telephone : 1,500
All the above are provided without submission of bills. HRA will be paid to employees who do not stay in quarters provided by IISc/IIT. It does not matter whether the employee is actually staying in an own house or paying rent. The travelling allowance will be paid to all employees even if they stay in the quarters.
The total of the above comes to around 90,000 for a professor and 60,000 for an assistant professor. 10% of the basic + GP is contributed by the institute and 10% is deducted from the salary for future retirement benefits. Thus, the pretax income is around 85000 and 55000 for a professor and assistant professor, respectively. The Dearness allowance increases based on inflation and increases by 6-7 percent every year. In addition, there is an increment of 3 percent every year.
In addition, they are benefits that are provided only if it is claimed. This includes children education allowance, subsidy for single girl child, Leave travel concession for the whole family every year,medical benefits to the family, travel money for attending conferences etc. If one counts all this, the cost to the institution (CTC) is around Rs. 15 lakhs per year for each professor. In addition, one can get fellowships that vary from Rs 60,000 to Rs 6 lakhs per year from DST/DBT, depending on the fellowships. In addition, if one is a fellow of two academies or has won the Bhatnagar award, one would get Rs. 1.8 lakh per year till retirement. Roughly 30% of the teaching faculty in IISc get these.
The amount obtained by consultancy also varies from faculty to faculty with some faculty getting close to Rs 20 lakhs per year. For consultancy, the faculty receives 60% of the amount while the institute takes 40% as overheads. This may be revised in the sixth pay commission.
Further, each faculty is given vacation for three months every year where he/she can travel/work anywhere and earn whatever money.
It is best to stick with CTC for comparison. One becomes a professor after 10-12 years after joining with a postdoc. This translates to 12-14 years after obtaining a Ph.D. How does this compare to pay scales in the rest of the government and industry?
Currently, professors are in the S-29 scale of 18,400- . After 10 years as professor, one can become a professor of eminence at the S-31 scale of 22,400-. Above that is the director scale (S-33) of 26,000 (fixed), which is equivalent to the secretary scale. This is the highest scale in IIT/IISc. Above this, there is only scale in the government, which is the cabinet secretary scale (S-34) of 30,000. This is the scale that a director general of CSIR, DST/DBT secretary (all technical positions) gets and is the highest in the government. Thus, a regular professor in IIT/IISc is three scales below the highest scale offered in the government.
In IITs (unlike the US), the salary for a professor in humanities or sciences or engineering is the same. This makes comparison of pay scales to industry difficult because the pay differential between these branches of study is considerable in industry. Based on this, I presume the CTC for a doctorate after 14 years of service would be around Rs. 25-30 lakhs per annum.
There is one more component that I should mention. The retirement age for all purposes is now 70. However, if I retire (hopefully !) from IISc in 2019 after 20 years of service at the age of 50, I will get pension for the rest of my life at 50% of the basic that I get at 2019. The pension will increase with increase in DA. Of course, this will not be applicable if one works in a private industry.
For the current employees of IIT/IISc: Arrears and the pay fixation in the new pay scale can be calculated from this document made by Dr. Ramesh of IIT-M. I know him when both of us were involved in GATE administration and software development. I can vouch for the thoroughness and correctness of his software !