nCOMPENSATION AND BENEFITS
OBJECTIVE
SNGPL has lots of expectations from its employees, so they provide them with lots of compensations and benefits, which make them more efficient.
LIST OF COMPENSATIONS AND BENEFITS PROVIDED BY SNGPL * Group Life insurance * Medical benefits * Profit bonus * Annual increment * Promotion in upper grades * Gratuity Provident fund facility * Pension Facility * Educational scholarships * Loans * Uniform for workers * Leaves
GROUP LIFE INSURANCE * INSURANCE POLICY a) The SNGPL provides group life cover to employees. Premium is paid by the organization. The HR department is responsible for coordinating settlement proceedings and providing assistance to an employee in lieu of any claim filed under the scheme. b) This benefit becomes effective from the date of becoming the member of the group insurance scheme. On confirmation, employee is required to nominate names of beneficiaries who would be entitled to receive payments in event of his/her death. c) Payment is made only in case of in-service death of an employee. Death after retirement would not entitle the surviving spouse or family members, as the case may be, to any benefits. One time lump sum payment is made equal to the sum assured. * INSURANCE PROCEDURE Head of HR function * Receive written consent from the employee for becoming member of the life insurance scheme. * Coordinate with the employee intending to avail group insurance facility to fill out and sign the insurance documents. * Receive the signed insurance application form stating the name of persons nominated by the applicant as beneficiaries. Head of HR function * Receive written consent from the employee for becoming member of the life insurance scheme. * Coordinate with the employee intending to avail group insurance facility to fill out and sign the insurance documents. * Receive the signed insurance application form stating the name of persons nominated by the applicant as beneficiaries. * In case of death on duty coordinate with the Insurance Company for the payment of claim to the beneficiaries nominated by the employee. * In case of disability arrange the payment of the insurance claim, as per the insurance coverage, to the concerned employee.

MEDICAL BENEFITS * SNGPL provides medical cover for all employees and their beneficiaries, which includes self, spouse, dependent children, parents, and sons with age limit 21 years under its medical/hospitalization insurance scheme. * The scheme provides comprehensive coverage for outpatient and inpatient medical requirements including maternity and critical diseases, and the reimbursement limits vary according to the management and non-management grade.

PROFIT BONUS
SNGPL awards profit bonus to executives on completing a task. The amount of bonus depends on the type of task assigned.

ANNUAL INCREMENT
Annual salary increment is effectively linked to the performance of the employee. A certain amount of salary increment is given across the board to all employees to enable them to cope with national inflationary trends. However, additional increments are awarded in recognition of an individual’s effectiveness; accomplishment, competence and superior performance in his/her job assignment and serve as an incentive for greater achievement.

PROMOTION IN UPPER GRADES
In addition to basic criteria of specific academic/professional qualification, an employee should also have superior ratings in the following areas in order to be considered as eligible for promotion: * job knowledge * communication skills * leadership qualities * interpersonal skills * adherence to policies and procedures * financial discipline GRATUITY PROVIDENT FUND A contributory Gratuity Provident Fund scheme is maintained where monthly contribution to the Provident Fund is made by deducting a specified amount from the employee’s salary and equal contribution is made by the employer as per the terms and conditions of the scheme. Accumulated balance (contribution and profit accrued thereon) in the Gratuity Provident Fund account of an outgoing/retiring employee is payable to the leaving employee or to beneficiaries nominated by the employee in case of his/her death. The employee would not be entitled to get the contribution from the corporation and profits accrued thereon in case his services are terminated due to misconduct. An Employee is entitled for provident fund from the date of joining. If any employee has been with SNGPL for 5 years he/she is given an additional amount in Gratuity Provident fund. PENSION FACILITY Pension facility is provided to all retired employees of SNGPL. Another condition for enjoying pension facility is that the person has been the employee of SNGPL for at least 10 years. There is a specific percentage for pension specified at SNGPL. EDUCATIONAL SCHOLARSHIPS
The children of employees (non-executives) are given educational scholarships up to Rs.1500 per month and Rs.30000 per year is the standardized maximum amount given to an employee’s child for getting admission in an institute.

LOANS
UNIFORM FOR WORKERS
Free uniform is provided to subordinates like peon, attendants, guards, etc.

LEAVES
The following types of leaves can be availed by employees of SNGPL. 1. Sick Leave 2. Casual Leave 3. Maternity Leave 4. Special Leaves 5. Hajj leave 6. Study leave 7. IDDAT leave 8. Privilege leave 9. Minorities leave

1. SICK LEAVE
Sick leave is granted for 30 days per year, in which 2 days leave is without medical certificate and of that rest of the days is with medical certificate.

2. CASUAL LEAVE
Casual leave is for 18 days per year (maximum 6 days leave) no accumulation is allowed.

3. MATERNITY LEAVE
Any female employee is granted maternity leave for 3 months for which a medical certificate is required (maximum for six maternities a year).

4. SPECIAL LEAVE
It is the expansion of sick leave. If the subordinate is not physically fit after normal 30 days leave, his leaves of 3 years will be accumulated to 90 days leave. If an employee doesn’t recover his health then special 90 days leave is granted to him. Even then if he is unable to work, a medical board of company grants him a further 90 days leave (three hundred leaves in accumulation).

5. HAJJ LEAVE
Employees get this opportunity only once the tenure of service. 55 employees are sent to Hajj each year.

6. STUDY LEAVE
Employees can get a leave for 3 months so that they can study abroad.

7. IDDAT LEAVE
Female employees get 2 months leave on the death of their husbands (God forbade).

8. PRIVILEGE LEAVE
Employees get 30 days per year (minimum 5 days leave is allowed)

9. MINORITIES LEAVE
Minorities are allowed to enjoy a 2 days leave on Christmas and Easter every year.

Pay plans, allowances and service benefits

In sui northern gas pipeline limited (SNGPL) there are two statutory notifications under which according to which pay plans and service benefits are offered 1. The gazette of Pakistan, Islamabad, Monday, November 1, 1976 2. SNGPL settlement on October 5, 2009 (this settlement is revised regularly)
Classification of workers
Workers are classified as:- * Permanent * Probationers * Badlis * Temporary * Apprentices
Permanent
A permanent worker is a workman who has been engaged on work of permanent nature likely to last more than nine months and has completed a period of three months probation.
Probationers
It is a worker who is provisionally employed to fill a permanent vacancy ina post and has not completed three months service therein. If a permanent employee is employed as a probationer in a higher post he may, at any time during the probationary period of three months be revised to his old post
Badlis
A worker who is appointed in the post of a permanent/ temporary workman or probationer, who is temporarily absent.
Temporary
A worker who ha been engaged for work which is of an essentially temporary nature likely to be finished within a period not exceeding nine months.
Apprentices
An apprentice means a person undergoing training through the system of apprenticeship.
Payment of wages * All wages due to an employee shall be paid on a pay day to be notified through information posted at the notice board * In case of termination of service the wages earned by the employees shall be paid within 2 working days of the termination.

Unclaimed wages Any wages due but not paid will be notified under rule 7 sub rule (e), shall be paid on an application to account officer.
Advances against wages This is no allowed usually except in following circumstances * Up to a maximum one month’s wages on religious or festival holidays * For each completed calendar month of leave period to persons proceeding on privilege leave.
Deduction of income tax Under clause (f and g) there is deduction of certain percentage of salary for * Provident fund * Relief funds * Income tax payable
Increase in basic pay
It is agreed in principle settlement (from July 1, 2007 to june30, 2009) that basic pay will increase in the following manners * By 8% from 1.7.2007 * By another 20% from 1.7.2008
Increase in wages
It is promised that the wage will increase with the certain percentage annually. Pay scale and rate of increase for each grade is given in following table Revised pay scale Grades | Existing pay scale | Revised pay scale | 1 | 1387*106-19178108-3645 | 1491*126-2121*128-4169 | 2 | 14968110-20468112-3950 | 1632*130-2282*132-4526 | 3 | 1612*12-2172*115-40 12-G*115-4932 | 1737*132-2397*135-4557-G*135-5637 | 4 | 1749*120-2349*125-3849-G*125-4849 | 1849*145-2574*150-4374-G*150-5574 | 5 | 2215*160-3175*165-5155-G*165-6640 | 2435*185-3545*190-6015-3.25%-7523 | 6 | 3320*165-4145*170-5845-G*170-7545 | 35308190-4480*195-6040-3.25%-7801 | 7 | 4117*180-5557*185-6482-G*185-9257 | 4407*205-6457-3.25%-8892 |

Employee’s categorization according to grades
There are seven grades. The pay scale varies as grade changed, there is following distribution of employees according to each grade
Grade 1 Asstt. Printer Cook Peon Mali Tea boy Sweeper

Grade 2
Bearer
Driver
Patwari
Helper
Grade 3 Denter Electrician Mason Pipe fitter Painter Plumber Plant operator Tracer
Grade 4 Auto electrician Engine fitter Draftsman Gas control computist Imam Masjid Record keeper Typist Station operator
Telecom technician
Grade 5 Boiler attendant Meter reader Compressor operator
Welder
Grade 6 Chart reader Row supervisor Stenographer Punch card operator Sales representative
Grade 7 Radio controller Supervisor Bridge Head draftsman Supervisor Sales Inspector
Supervisor Instruments
Senior stenographers Supervisor distribution
Supervisor engine/plant
Boiler attendant
Instrument mechanic
Meter mechanic
Overseer

Allowances and service benefits
Uniforms
In view of company’s resolve for strict compliance of health, safety and environment requirements and also to ensure proper image of the company through employees having a direct interface with the public/consumers, the pattern, design and the type of uniform/protective clothing will be strictly in accordance with the requirement/ recommendations formulated by higher consultants/ specialists as adopted by the management.
Leave/holidays
Leave is not a right but a privilege and requests are considered and met with due regards for service requirements. But there are two basic requirements * Combination of two kinds of leave is not allowed except sick leave. * Permission for leave must be obtained in writing in advance.
Female leaves A female Muslim worker in case of becoming widow shall be allowed 60 days leave with pay during her Iddat period. Any leave in excess of this period is without pay.
Leave fare assistance In full and final settlement of this demand, it is agreed that the present rate of leave fare assistance (L.F.A) will be as follow Revised Leave fare assistance schedule Grades | Existing (Rs) | Revised (Rs) | 1 to 3 | 4200 | 4940 | 4 | 4300 | 5240 | 5 to 6 | 4800 | 5940 | 7 | 4900 | 6340 |

Medical The company provides medical treatment to its employees and his family members through the services of registered medical practitioners appointed as company doctors.
When the medical officer considers a person to be fit for duty though he may have prescribed medicines for him he must continue to attend the work.
Insurance scheme Life of every employee is insured against death and injury for the duration of his employment with the company. The premium for insurance is paid by company which is deducted from their salary.

Workmen’s compensation An employee receiving injury from an accident arising out of and in the course of his employment is entitled to compensate in accordance with the provisions of Workmen’s compensation act (1923). The disability caused by injury will be assessed by the company doctor or the civil surgeon. The amount of compensation varies for permanent, partial and temporary disablements. Amount of compensation increase with the increase in severity of injury.
Furniture
Following basic furniture must be provided by the company to every employee * Ceiling fan * Center table * Two easy chairs * Stationary items
Housing allowance
House rent allowance is 87%, which shall be computed and paid on basic salary, if that person in not availing the opportunity of house allotted by company. PERFORMA FOR HOUSE ALLOTMENT Allotment of HouseI-------------------------------------registration no---------------------------------------------------------------------Token no-----------------------------------------------------------have been given permission to occupy quarter no-------------------------- room no----------------------------------free of rent, hereby, undertaken--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Witness signature of Allottee1------------------------ -----------------------------2---------------------- Registration no------------- Dated---------------------- |

Conveyance allowance Now it is increased from 34% to 35% of the basic salary
Free gas facility A permanent worker will be allowed free gas facility at his home town provided their gas network exist in the area where free gas facility is required. Such an employee will however, not be entitled to any other compensation in case of non availability of piped gas facility.
Electricity allowance It is increased from 13% to 15% of the basic salary.
Entertainment allowance This allowance is Rs 200 per month since 01.01.2009.
Education allowance Each year total 50 scholarships are given to the eligible children’s of employees. It is only allowed if they are studying in an institution which is duly recognized by the higher education (H.E.C).
Haj
It is agreed that 50 workers shall be allowed to perform Haj annually on expense of company.
Loans
* Annually 350 loans for house building are issued to employees * Motorcycle loans issued are approximately 250 per year.
These loans are returned in installments as per balance months of service left in case of each employee concerned.
Blood relations quota Union agreement 1985-87 clause 3d provide the guide lines about the quota that a person can appoint one person (son, brother, daughter etc) but they should be from blood relations. In case of death of that person his wife can also be appointed on his behalf.
Pension/gratuity
It is mutually agreed that * 2.5%authorizeddeduction is allowed on monthly salary to add into this fund * 33 years of service shall be counted for calculating it
Early retirement Employees having 20 years service with 55 years age will be eligible to apply for early retirement. Pension/ gratuity are as per rules for actual number of years served by him in the company.
Retirement increment Employees who retire from service upon superannuation after completing six months in a calendar year i.e. between July1to December 31 will be given one increment as retirement increment. But those who retire between January 1 to June 30 will not be entitled to it.
Benazir stock options Recently employees has been given stock options in accordance to Benazir program. These stock options are given on the basis of seniority and time spent in the company.

COMPENSATION SYSTEM
Compensation systems are basically developed to reward employees behavior so that they are lead to accomplish organizations overall goals and objectives. As we went through the companies compensation system and found the company uses the following systems for compensation of their employees: * Performance based rewarding * Extrinsic rewards. * Union based (CBA).

Performance Based
As already discussed that the organization tracks and recognizes the well performers, they are rewarded in the same way according to their performance in there department and are highlighted amongst the others in the department so that they can also strive to become a well performer. The employees are awarded. Company used performance based compensation system in which it provides monetary rewards to its employees.
Extrinsic rewards:
Company rewards its employees through extrinsic rewarding system which include: * Pay roll increments * Bonuses * Provident fund * Bonds * Stock owner ship
This compensation system is for officers and subordinates.

Rewarding for labor class:
Company provides compensations to the labor class through: * Over time payment * Commissions
Mostly company compensate the blue collars through union based system or Collective Barraging Agent.
As we went through with the compensation system, we found that another system prevailing in the organization was through the union which is working, managing and participating in many affairs of the organization. Certain employees were availing the compensation benefits through the influence of the Union of the organization. The person who had a close type of relationship with the union can easily avail the opportunity of the compensation.
This caused a big problem though as the well performers when found the medium or low performers to be getting the same benefits, incentives & rewards similar to them they get demotivated. The person who is recommended by the union becomes entitled to compensations and benefits.
PROMOTIONS
In SNGPL employees are promoted on the basis of their overall performance in the required fields. The officers of grade 1-3 are promoted on the basis of their yearly performance and till grade-3 officers are promoted in the same manner. But after grade-3 it is mandatory for the officers to clear gas control test to get promotion in grade-4.
At executive level not only the yearly performance is considered but also further trainings are put into consideration of other fields.
At labor level promotions are given on the learned skill level. And after necessary training they are promoted to the positions of pipe line supervisor, patrol team head on site, head technician etc.