There has been several posts on the academic grade pay (AGP) and entitlements in some blogs. Some questions have been raised on whether faculty will be eligible for air travel or not (see the comments section of this post).
Here is the official notification. What does this imply?
The transport allowance that one gets every month is the same for everyone who have grade pay of 5400 or above. Otherwise, lower AGP means lower entitlements when traveling on government money. If your grade pay is less than 5400, then you can not travel by air. If your grade pay is between 5400 to 8900, you are entitled to travel by economy class by air. The government has not notified what happens if your grade pay is between 8900 and 10,000 because the grade pay of 9500 was specially created for associate professors in IITs. If your grade is above 10,000, you are entitled to travel by air in business class. Regarding other things you might miss out is that if you draw more than 10,000 grade pay, you are entitled to A/C taxi; otherwise, you have to travel in an non-A/C taxi.
30 comments:
Dear Prof. Giridhar,
Recently, I have been offered assistant prof. postion in one of the IITs with three increments (pre-revised scale: 12000-420-..). As I'm new to the pay scale teriminology, I'm not able to understand and calculate my take home salary. Can you pls. briefly tell me how do I compute my take home salary. Your response will definetely help and useful, not only for me, but, to many people like me who are going to join IITs. Thanks in advance.
Look at
http://giridharmadras.blogspot.com/2009/03/pay-scales-in-iisc.html
Dear Prof. Giridhar,
Thank you very much for very quick response.
According to some blogs (including yours) and material on Internet, assistant prof. will be offered minimum of 37400 in PB-4. That means my pre-tax salary will be (considering 3 increments):
Basic (37400+3*420+8000 = 46660) + DA (0.22*37400 = 8228) + HRA (0.30 * [46660+8228] = 16466) + TA (3200+0.15*8228 = 4434) + Academic Alloance (1500) + Telephone (1500) = 78788.
Can you correct me if I'm wrong with my understanding in related terminology or calculations.
To calculate the take home. Can you pls. through some light on what are the usal deductions and taxes?
Thanks in advance.
Best
CVS
Dear Prof. Giridhar,
In addition I heard from some people that there will not be any pension scheme in 6th pay. Does it mean that there will not be any retirement benefits?
I'm really sorry for asking too many silly questions, but, I want to clearly understand what are the benefits before I accept the offer.
Thank you once again.
Best regards
Anonymous, your questions are not silly. I've the exact same questions too (or maybe we're both silly). I also calculated the final salary just like you did -- except I don't know if the basic salary will be 30,000 or 37,400 (I don't think there's any official confirmation on assistant professors starting in PB-4). But I would also appreciate Prof. Giridhar's responses to your questions (he has already helped me in this blog).
-- NP
To add to my previous comment, the following is from an article in today's Indian Express:
"Also, regular Assistant Professors appointed will automatically move to Pay Band 4 (Rs 37,400-67,000) with AGP of Rs 9,500 per month after three years of teaching without having to go through a selection process as is done in the UGC system, sources said."
Apparently we'll have to wait for three years to get the 37,400 package?
Good news is that there won't be any lecturer position.
Of course none of this is official yet, so we'll have to wait and see what the final notification is like.
Source: http://www.indianexpress.com/news/lecturer-on-contract-system-in-iits-may-go/514848/
-- NP
Dear NP,
Thanks for joining in the discussion. Can you tell me how you calculated? Is there anything wrong in the following calculations/assumptions:
Basic (37400+3*420+8000 = 46660) + DA (0.22*37400 = 8228) + HRA (0.30 * [46660+8228] = 16466) + TA (3200+0.15*8228 = 4434) + Academic Alloance (1500) + Telephone (1500) = 78788.
May be I should use 30000 in place of 37400?
Thanks
It will be speculative and premature for me to comment on the basic that will be assigned to an assistant professor. While it is likely that the AP will be moved to PB-4 after three years, it is not clear what the requirement of AP recruitment is. The current notifications mentions that 3 years experience is required.
I believe that AP below 3 years experience will be placed with 30,000 as basic while AP with more than 3 years experience will be placed at 37,000. However, all this is speculative and the official notification will come at the end of the month.
Regarding taxes, the slabs will be changed significantly in 2011. Further, taxes in India depend on your *savings* in PPF/NSC etc. So, I can comment on your pre-tax income and not on your post-tax income. For more details, see
http://getahead.rediff.com/slide-show/2009/aug/18/slide-show-1-money-how-will-the-new-tax-code-impact-your-tax-outgo.htm
Regarding the pension scheme, I have written it as a separate post in this blog. Please look for it.
Regarding your calculations, I think DA is calculated from basic+GP. Also, academic allowance and telephone allowance was as suggested by mehta committee/ugc. What has been approved is not clear. Regarding telephone, IISc pays Rs. 1000 now and many IITs pay Rs. 750, I think.
Giridhar
dont show your professory while predicting salary of IIXs asstt. prof.... it is obvious that this salary will be more than that of ugc guys (37400+9000) and hence most probably will be 37400+9500(AGP) after 3 years of service... and by the way why dont u give links of several prestigious newspaper such as Indian Express, TOI, HT, etc. giving the same figure.
@anon above: please have a spine surgically inserted since you seem to lack one. Care to mention your name, since you are talking to Prof. Madras from a high horse?
He is doing everything possible to help people out with his blog. All you can do is to make a few spineless comments about what he should do? Why don't you start your own blog with the newspaper links you mentioned. It seems to me that most of your time is spent in figuring out what the salary should be. Make a better use of your time and write a blog. Or, see your surgeon for a spine transplant.
Bharat
Bharat
i am sure that u gonna get some reward by your dear prof. for scolding his critics.. keep it up buddy.. most of the indian students r like u and forget very fast their profs once they get whtever they want from him (good grades and evaluation reports).
Thank you for your reply, Professor Giridhar.
CVS, regarding your calculations, I suggest using 30000 as the basic pay for now (better underestimate the salary and be pleasantly surprised if you get more). As things stand now, we'll (hopefully) get 37,400 after three years.
Also, I'm not sure about adding the three increments. The pre-revised pay scales had that concept, I don't know if there are any "increments" in the sixth pay commission -- the whole band has 30,000 listed as the basic salary. Maybe Professor Giridhar may shed some light on this? And if there are increments, then has there been no change in the amount (still 420 per increment for AP?)
Here are my calculations using a basic pay of 30000 and no increments (please let me know if you spot a mistake):
Basic 30000
AGP 8000
DA = 0.22 * (30000 + 8000) = 8360
HRA = 0.3 * (30000 + 8000 + 8360) = 13908
TA = 3200 + 0.15 * (8360) = 4454
AA 1500
Phone 1500
Total 67722
Total without HRA 53814
(You may also add CPF to the above total -- IIT contributes 8.25% of the basic salary. You won't get this in hand every month -- in fact an equal amount will be deducted from your monthly salary, but it's your money nonetheless. CPF (contributed by IIT) = 0.0825 * 30000 = 2475.)
So after figuring in the CPF:
Net amount you'll make every month will be 53814 + 2475 = 56289.
Take home salary after CPF deduction will be 53814 - 2475 = 51339.
Please take all of the above with a punch of salt -- my calculations are based on what I've read on this blog and on a few news websites, but my interpretation of the information could be wrong.
-- NP
@anon: I am not Prof. Madras's student,
in fact I am not even in his field. I live abroad and have an offer from an IIT for a faculty position. His posts have been very useful to me and his approach to life in general. Hence the frustration at mudslinging towards him.
Since you seem to be from the same brigade, let me tell you that respect is something that you show others, but you show it because you have self-respect. If you see an ulterior motive in respect, there is something wrong with you.
Admit this to yourself and move on buddy.
Bharat
Bharat
here in india, particularly in IITs, self respect or self esteem has no meaning.. if u r from pure science stream, then u will have to teach first year classes of around 250 students just after joining (thanks to OBC reservation and mentoring of upcoming IITs).. such big classes r given to young faculties by the professors for whom u have lot of respect.. u will see these self styled gods taking only electives which hardly have 10 students.
when 250 kids sitting in big seminar hall will start hooting, u will either have to be humiliated for 1 hour or run away from hall.
Anon: Please do not hurl abuses. I did not cite the newspaper reports because each of them is speculative. According to you and other news paper reports, it is 9500 as AGP for AP but that is the grade pay for an associate professor in IIT. Till, all this is clear, it is better not to speculate. After all, the notification is expected by the end of the month.
Regarding teaching of classes, I teach a core course and an elective. My elective has 40 students in the class. We do not have an UG program. If you do not like professors, do not take it out on me.
Dear NP,
Regarding your calculations, it is not clear as to academic allowance and telephone charges at the level mentioned have been approved or will it depend on IIT/IISc. Also, increments in the new scale will be 3% every year. However, if you have been offered 3 increments in the old scale, they may be merged and you may be placed at 30,000. See the fitment table based on the current notification.
Thanks
Giridhar
Thanks NP and Prof. Giridhar,
In deed this blog is definetely useful.
I think there are always people like @Anony@ who really disturb the people who are willing to help people like me. As Bharat said, pls. start your own bolg and try to give the correct information to attract people.
I guess this is not the right place for @Anony" to comment.
Best regards
CVS
Dear NP,
I have found the following information in one of the comments on this blog. This information is taken from Telegraph (1st Sep) by the blogger.
"The HRD ministry has decided that salaries for assistant professors will now start at Rs 37,400 a month, in a higher pay range — called pay band 4.
The academic grade pay — a rank-based increment — for assistant professors will remain at Rs 8,000 a month, as notified earlier this month."
I tried to use this information in my above calculations. However, I agree with you that this has not been approved by the cabinet and also no notification is released.
BTW, what are actual numbers for PB-1 to PB-4? What are different AGPs?
Thanks
CVS
Dear CVS,
It does not mention what the qualifications for the AP are. According to the current notification, it requires 3 years experience. Therefore, as I wrote earlier, it may be that AP with less than 3 years experience may be placed at 30,000 and those with more than 3 years experience may be placed at 37,400. Please note that these 3 years does not include time taken during the ph.d/m.s.
Regarding what is PB-1 etc, you can read all the documents at
http://www.che.iitb.ac.in/online/1bcjusn8
download the files, CPC ..
Also, in calculations, please remember 30% for HRA and the traveling allowance are for A-1 cities (Bombay, delhi, Bangalore, Hyderabad, calcutta etc.) and not for kanpur, kharagpur etc. Of course, if you stay in the accommodation provided by the Institute, HRA is moot.
According to the sixth pay commission, you will get travelling allowance even if you stay on campus. Currently, we do not.
Thanks
Giridhar
Thanks
Giridhar
Dear Prof. Giridhar,
Now I got a complete idea about the expected salary. Thank you once again for your time and clarifications.
Best regards
CVS
Here are the corrections to the entry level pay example.
Basic 30000(ok, assumed)
AGP 8000(ok, assumed)
DA = 0.22 * (30000 + 8000) = 8360
(ok; DA is now increased to 27% with effect from July 1, 2009, so it will become 10260)
HRA = 0.3 * (30000 + 8000 + 8360) = 13908
(this is not correct; HRA is calculated on pay + grade pay only, not including DA; so in this example, HRA = 30% of 38000 = 11400)
TA = 3200 + 0.15 * (8360) = 4454
(this is not correct; TA = Transport Allowance, not Travel Allowance, is 3200+DA thereon, so it will be 3200*1.27 from July 2009 or 4064)
Sriram,
What does "3200+DA thereon" mean? I saw that you wrote that as 3200*1.27. Sorry, I am not well versed in Govt. terminology and would appreciate some explanation of this equivalence.
regards
Bharat
DA is currently 27% (from July 1, 2009), so 3200 + DA thereon means 3200 + 27% of 3200 or 1.27*3200 = 4064.
Dear IITM Sriram,
Your calculations contradict those given in http://giridharmadras.blogspot.com/2009/03/pay-scales-in-iisc.html
So which is correct: Prof. Madras's salary calculation or yours?
Thanks for your help with this
The calculations by Sriram are correct. HRA calculations should not include DA.
Bharat, the DA is 27%, hence the 1.27 multiple for calculating the TA.
Thank you IITM Sriram. Just for the sake of completeness, can you please clear a couple of minor points as well:
1. DA used by Prof. Giridhar is 22%, DA used by IITM Sriram is 27%.
2. Prof. Giridhar mentions that one gets TA even if they live on-campus. It's nice if this is true, but I just want to double check with you. Why do we get paid TA if we living at a walking distance from the department?
-- NP
When I wrote the blog, the DA was 22%. It has been recently increased to 27%.
TA is paid even if you live on campus. This is a new clause effective sixth pay commission.
Sriram can confirm.
Thanks Ram and Prof. Madras.
One more question:
I had seen a blog response in one of the posts that Senior faculty at IISc do not like new entrants taking up too many consultancy projects. I was wondering if approval from Senior faculty is required before a consultancy project is taken up? Once an external party approaches a faculty member for a consultancy project, what sort of approval process is followed?
Also, can one negotiate the revenue sharing percentage with the institute during the hiring negotiations? Or, is the institutes share (30%) fixed for everyone?
Thanks
Bharat
Giridhar
dont make guys like Bharat to dream with open eyes.. u should tell them reality that without a mentor in the form of a professor, they cant even survive, then what to say about doing research and consultancy.
There are several comments on the pay for new assistant professor. Based on the current notification the pay is as follows: (Note that any increments offered are moot at this point of time.)
Basic: 30000+8000=38000
Baisc+DA: 1.27*Basic=48260
HRA (for Bengaluru, Mumbai, Delhi, Madras): 0.3*Basic=11400
Transport allowance (again for above cities): 1.27*3200=4064
Total:48260+11400+4064=63724
Deductions:
PF: 0.0825*basic=3125
Tax (Max)=10180
Take Home:50419
Please also note that you can reduce your tax deductions by increasing your savings etc. There may be telephone allowance (1500)which I have not included because there is no clarity on that right now. Children allowance upto 1000 per child for upto two children (on submission of bills) is also not included.
If you reside in IIT provided accomodation substract HRA resulting in (minimum) take home pay of 39019 in abovementioned cities.
"Children allowance upto 1000 per child for upto two children (on submission of bills)"
What are these allowance and what kind of bills can be submitted to avail this?
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