Revision of Scales of Pay and Allowances in respect of Non-Executives (Workmen) of AAI w.e.f. 01.01.2017

Revision of Scales of Pay and Allowances in respect of Non-Executives (Workmen) of AAI w.e.f. 01.01.2017


No.A.60011/40/2017-HRPC/ 98
Date: 22nd February, 2019
The Regional Executive Director
Airports Authority of India
Northern Western/Eastern/Southern/North-East Region
The Executive Director,
Airports Authority of India
RC&DU/FIU, New Delhi
The Airport Director
Airports Authority of India
Kolkata/Chennai Airport
The Director,
Indian Aviation Academy,
New Delhi
The Principal,
Civil AviatiOn Training College (CATC).
Bamrauli, Allahabad
The General Manager,
Airports Authority of India
CRSD/E&M Workshop
New Delhi


Sub: Revision of Scales of Pay and Allowances in respect of Non-Executives (Workmen) of AAI w.e.f. 01.01.2017

The Management of Airports Authority. of India (AAI) is pleased to announce the revision in pay scales for non-executives (workmen) of AAI w..e.f. 01.01.2017 consequent upon signing of Memorandum of Settlement (MoS) between the AAI Management and the Airports Authority Employees Union (Recognized Union) and confirmity of Ministry of Civil Aviation bide Letter No. AV-24015/6/2016-AAI-MOCA Dated: 19th February, 2019.
2. Accordingly, pay-scales, DA, perks & allowances, etc. in respect of non-executives (workmen) of AAI stands revised w.e.f. 01.01.2017 as under:

(i) All the regular Non-Executives of AA1 who were on the rolls of AAI is on 01.01.2017 and continue to be on the rolls of AAI and those joining, thereafter.
(ii) The employees who have left the services of the organization on or after 01.01.2017 due to resignation, retirement or death will be paid arrears on account of wage revision upto the date they were in service.
(iii) The benefit of wage revision will, however, not be allowed to employees from the date they have ceased to be in the services of the organization on the following grounds:
    a) Dismissal/ removalb) Left service without acceptance of resignation


The existing scales of pay of Non-Executives are revised w.e.f, 01.01.2017 the revised scales will be effective for a period of 10 years.


The revised scales of pay shall be for 10 years w.e.f, 01.01.2017 as follows:

Sl. No. Level Existing Pav Scales effective 01.01.2007 Revised Pay Scales effective 07.01.2017
1. NE-1 10200-23000 25000 – 74500
2. NE-2 11000-24500 27000 – 80500
3. NE-3 11500-26000 28000 -85000
4. NE-4 12500 – 28500 31000 – 92000
5. NE-5 13400 – 30500 33000-99000
6. NE-6 14500 – 33500 36000 – 110000
7. NE-7 15000-35500 37000 – 115000
8. NE-8 16000 – 38900 39000 – 120000
9. NE-9 17000 – 39500  39500 – 138000
10 NE-10 18500 – 40000  40000 – 139000

6. FITMENT BENEFIT(i) A uniform full fitment benefit of 15% shall be provided to all the Non-Executives on Basic Pay (including admissible stagnation increments) as on 31.12.2016 and IDA @ 119.5% as applicable on 01.01.2017.

(ii) Methodology for Pay Fixation

The following fitment methodology shall be implemented to arrive at the revised basic pay as on 01.01.2017:

(Revised Basic Pay as on 01.01.2017)
Basic Pay + Stagnation increment(s) as on 31.12.2016 (Personal Pay not to be included) + Industrial dearness Allowance (IDA) @ (119.5% as applicable on 01.01.2017 + 15% of  (A + B) Aggregate amount rounded off to the  next Rs. 10/-

*In case revised Basic Pay as on 01.01.2017 so arrived is less than the minimum of the revised pay scale. pay will be fixed al the minimum of the revised pay scale.

(iii) The workmen who had joined AAI on or after 01.01.2017 shall be placed in the revised pay scales from the date of their joining. Such workmen will not be eligible tor the
fitment benefit under pay revision.

(iv) Subsequent to implementation of pay revision, the profitability will be reviewed after every 3 years and if the profitability falls in such a way that the earlier pay revision now entails impact of more than 20% of average PBT of last 3 years, the PLP/allowances will have to be reduced to bring down the impact.


The rate of annual increment and promotional increment will be 3% of revised basic pay and the resultant amount will be rounded off to the next 10 rupees. The date of increment will be 1 of April effective from the year 2017-18.

8. STAGNATION INCREMENTIn case of reaching the end point of pay scale, a non- executive would be allowed to draw stagnation increment, one after every (wo years upto a maximum of three such increments provided the non-executive gets a performance rating of “Good or above.


(1) The workmen who were on the rolls of AAI as on 01.01.2017 will be paid service weightage amount at the following rates for every completed year of service:

Completed years of Service as on 31.12.2016 Rate (INR/PM) per completed year of service
Upto 15 years Rs. 70/-
16 to 20 Years Rs. 80/-
21 to 25 Years Rs. 85/-
Above 25 years Rs. 90/-

(ii) For reckoning the Years of service, completed service of 6 months and above as on 31.12.2016 will be rounded off to one year and less than six months will be ignored.

(iii) Employees who have not completed 06 months of service as on 31.12.2016 are not eligible for service weightage.

(iv) The amount will be kept as separate element of pay and will not count for any consequential. whatsoever.

(v) The element of pay shall be discontinued on promotion’ appointment to executive category

10. PAYMENT OF DEARNESS ALLOWANCE(1) 100% DA neutralization will be adopted for all the non-executives. DA w.e.f 01.01.2017 shall become zero with link point of AIL India Consumer Price Index (AICPI) 2001 = 100 which is 277.33 (Average of AICPI for the months of Sept, Oct and Nov 2016) as on 01.01.2017. The periodicity of adjustment shall be once in three months as per the existing practice. The quarterly DA payable from 01.01.2017 shall be as under:

Effective Date Rate of DA (in percentage)
01.01.2017 0
01.04.2017 -1.1
01.07.2017 -0.2
01.10.2017 2.2
01.01.2018 3.4
01.04.2018 3.5
01.07.2018 3.8
01.10.2018 7.3
01.01.2019 8.8


(1) The House Rent Allowance shall be payable as per DPE order for the Public Sector Enterprises applicable to IDA pattern undertakings. As per the order of DPF, following rates of HRA will be payable:

Classification of Cities Rate of HRA (percentage of basic pay)
X-Class (Population of 50 Lakh and above) 24% of Basic Pay
Y-Class (Population of 5 Lakh to 50 Lakh) 16% of Basic Pay
Z-Class (Population below 5 Lakh) 8% of Basic Pay

(i) HRA will be payable on the basis of Revised Basic Pay drawn in the revised scale of pay w.e.f. 10.01.2018.

(iii) The rates of HRA will be revised to 27%, 18% & 9% for X, Y and Z class cities respectively when IDA crosses 25% and further revised to 30%, 20% and 10% when IDA crosses 50%.

(iv) For those residing in Authority’s staff quarters/accommodation, the recovery towards licence fee shall be as per CHRM Circular No. 08/2018 issued vide File No.: A.60011/17/2017/HRPC/76 Dated: 09.03.2018 and as modificd/revised by Competent Authority from time to time.


(i) The effective date of revision of perks & allowances will be from 01.01.2017.

(ii) ‘Cafeteria Approach’ shall be adopted for payment of perks & allowances admissible under different categories to the maximum of 35% of Basic Pay as under:**

Sl. No. Perks % of Basic Pay
1. Conveyance/ Transport Allowance 1- 4%
2. Vehicle Maintenance Allowance 1- 4%
3. Washing Allowance/ Uniform Maintenance Allowance 3-5%
4. Education Allowance (maximum 2 children) 3%
5. Hostel Expenditure Allowance (maximum 2 children) 2-3%
6. HRD/Professional Updation Allowance 3-8%
7. Reimbursement of Upkeeping Charges of House 1-4%
8. Reimbursement of Electricity and Water Charges 2-4%
9. Domestic Helper 1-3%
10. Canteen Allowance or Meal Vouchers 1-4%
11. Membership of Professional Bodies 1-2%
12. Leave Travel Concession (LTC) 4-8%
13. Other Allowances (Maximum) 5-15%

** Any subsequent modification made by the DPE will be applicable in terms of its guidelines.

(iii) Payment made on account of perks for the period starting from 01.01.2017 shall be adjusted/ recovered against arrears payable.

(iv) The recurring cost incurred on running and maintaining of infrastructure facilities like hospitals, colleges. schools, etc. would be outside the ceiling of 35% of Basic Pay.

(v) As regards company owned accommodation provided to non-executives, AAI would bear the income tax liability on the “non-monetary perquisite of which 50% shall be loaded within the ceiling of 35% of Basic Pay on perks and allowances.

(vi) The festival allowance already paid w.e.f. 01.01.2017 shall also be adjusted out of arrears payable due to discontinuation of festival allowance w.c.f. 01.01.2017.

13. REIMBURSEMENT OF MOBILE HANDSETReimbursement of an amount of INR 5,000/- will be provided to NE-8 to NE-10 Non-Executives for purchase of Mobile Handset once in every 3 years starting from block ycar 01.04.2019.

14. OVER TIME COMPENSATION (OTC)(i) The rate of Over Time Compensation ts revised as follows:

Sl. No. Level Rate of OTC (in INR)
1. NE-1 to NE-3 180 per hour
2. NE-4 to NE-7 200 per hour
3. NE-8 to NE-8 220 per hour

(ii) The above rates will be applicable from 01.04.2019.

(iii) Existing Non-executives drawing Executive scale on placement, Will be treated as non-executives only and will get benefits as applicable to non-executives including OTC. Accordingly. operational staff will perform 48 hours duty.

(iv) The other terms and conditions as stipulated in CHRM Circular No. A.27016-1/99-IR&PP Dated: 01.03.99; CHRM Circular No. A.27016/1/99-TR-PP Dated: 05.04.2004 and CHRM Circular No, 40/2012 issued vide file No: A-60011/61/2012 LRPC Dated: 31.10.2012 will remain the same unless modified ‘revised by competent authority from time to time.

15. SHIFT DUTY COMPENSATION (SDC)(i) The rate of Shift Duty Compensation for Night Shift will be as follows:

Sl. No. Revised Basic Pay Rate of SDC (in INR)
1. 25000 – 31000 150 per night shift
2. 31001-39000 200 per night shift
3. 39001 – 45000 270 per night shift
4. 45001 and above 360 per night shift

(ii) The other terms and conditions as stipulated in CHRM Circular No. Pers/SC/17/73-VoL.V Dated: 07.10.2005. CHRM Circular No. A-60011/67/2010/PP Dated: 26.10.2010, CHRM Circular No.21/2011 issued vide File No: A-60011/17:2011/PP Dated: 11.05.2011 and CHRM Circular No. 30/2011 issued vide File No: A-60011/67/2010/PP Dated: 01.06.2011 will remain the same unless modified/revised by competent authority from time to time.

16. ALLOWANCE FOR PERFORMING DUTY ON NATIONAL HOLIDAYAll Non-Executives performing Roaster Duty on National Holidays will be eligible for 1.5 times of (Basic Pay + DA) in lieu of OTC for that day. All other terms & conditions of CHRM Circular No. 32/2017 issued vide file No: A.60011/43/2017/HRPC/406 Dated: 23.10.2017 will remain same unless modified by competent authority from time to time

17. TRAINING KIT Reimbursement of Training Kit to Fire Officials for Training at FTC/ FSTC will be allowed subject to a ceiling of INR 2000/- during training period.

18. LOCATION BASED COMPENSATORY ALLOWANCE(i) For serving in North-East States and Ladakh Region

Areas Covered
Percentage of of Basie Pay
Assam, Meghalaya, Manipur, Nagaland, Tripura, Arunachal Pradesh, Mizoram and Sikkim 10% of Basie Pay
Ladakh Region 10% of Basie Pay

(ii) For serving in Island Territories of Andaman & Nicobar (A&N) Islands and Lakshadweep:

Areas Covered Percentage of Basic Pay
Areas around Capital Towns (Port Blair in A&N Islands, Kavaratti, and Agatth in Lakshadweep) 10% of Basie Pay
Difficult Areas (North and Middle Andaman, South Andaman excluding Port) Blair, entire Lakshadweep except Kavaratti, Agatti andMinicoy) 16% of Basie Pay
More Difficult Areas (Little Andaman. Nicobar group of Islands, Narcondam Islands, East Islands and Minicoy) 20% of Basie Pay

(iii) Special allowance: For serving in the Difficult and Far Flung Areas:
Areas Covered Percentage of Basic Pay
Part “A” (Areas covered under Annexure- I of D/o Expenditure OM No. 3/1/2017-EII(B) Dated: 19.07.2017 8% of Basie Pay
Part “B” (Areas covered under Annexure-II of D/o Expenditure OM No. 3/1/2017-EII(B) Dated: 19.07.2017 6% of Basie Pay
Part “C” (Areas covered under Annexure-Ill of D/o Expenditure OM No. 3/1/2017-EII(B) Dated: 19.07.2017 4% of Basie Pay
Part “D”(Areas covered under Annexure-IV of D/o Expenditure OM No. 3/1/2017-EII(B) Dated: 19.07.2017 3% of Basie Pay

In the event of a place falling in more than one category i.e. (i), (ii) and (iii) mentioned above, in that case only the higher rate of allowance will be admissible.


The existing non-refundable amount of INR 25,000/- is enhanced to INR 40.000/- and will be released to the family of deceased employee as immediate monetary relief. All other terms and conditions of CHRM Circular No. A.60011/25/2010-PP Dated: 18.07.2012 will remain same unless modified/revised by Competent Authority from time to time. The revised amount will be effective from 12.01.2019.

The existing loans and advances are under revision and will be taken up separately. Till then, the existing provisions will prevail.

The payment of PLP to Non-Executives will be as follows:

(i) PLP will be paid on actual basic salary, 

(ii) The calculation of PLP shall be in-line with payment oF PRP to Executives as per DPE guidelines. 

(iii) The cut-off factors and kitty factors shall be in-line with that of executives as per DPE guidelines. 

(iv) The MOU & team ratings shall be in-line with executives as per DPE guidelines. 

(v) The percentage eligibility of PLP wrt. individual performance (PMS) shall be as under:

a) Outstanding : 95%
b) Very Good : 80%
c) Good & Average : 70% 0
d) Below Average : 40%
e) Adverse : NIL

(vi) The grade wise percentage ceiling for payment of PLP shall be as under:

a) NE -8. NE -9 & NE-9(SG) – 40%
b) NE -4 to NE-7 – 39%
c) NE-1 to NE -3 – 38%

(vii) The other terms & conditions’ methodology as per the Memorandum of Settlement signed between the Union and the Management on 26th October, 2016 will remain the same unless modified by the Competent Authority from time to time.


(i) AAI shall contribute upto 30% of Basic Pay plus DA towards Provident Fund (PF), Gratuity. Post-Superannuation Medical Benefits (PRMB) and Pension of their employees.
(ii) The existing requirement of supcrannuation and of minimum of 15 years of service in the CPS has been dispensed with for pension.
(iii) The existing post-retirement Medical Benefits will continue to be linked to requirement of superannuation and minimum of 15 years of continuous service.
Payment of Gratuity will be governed by DPE Guidelines and income tax exemptions wort Gratuity will be as per Income Tax Act, 1961. The enhanced rate of Gratuity amount from INR 10 Lakhs to INR 20 Lakhs will be made applicable w.e.t. 01.01.2017.

24. ‘TA/DA
The TA/DA provisions are under revision and will be taken up separately, Till then, the existing provisions will prevail.

The Medical Policy is under revision and will be taken up separately. Till then, the existing provisions will prevail.

(i) Recoveries towards Income Tax. Professional Tax, etc. or any other statutory recoveries would be effected as per the relevant statutory provisions. Exemptions if any, under the Income Tax Act. 1961 shall be dealt by individual as per Income Tax laws.

(i) The pay fixation of employees will be done in consultation with local Finance Department. The payment of arrears will be subject to ratification of the pay fixation by the Finance Department concerned.

27. PAYMENT OF ARREARSThe pay revision w.e.f, 01.01.2017 shall be implemented and arrears will be paid after adjustment of other dues, if any.


(1) Manpower optimization

    a) In order to improve productivity and also to make the organization cost-effective. it Is agreed to optimize utilization of manpower by extending responsibilities with multi-skilling and by redeploying manpower.b) It is agreed that safety issues are given top priority.
    c) Manpower will be rationalized depending upon requirement.

(ii) Management and Union Agree

    a) The union shall promote punctuality & attendance of employees.b) To jointly pursue and promote industrial peace and harmony.
    c) Accept all lawful orders involving transfer of employees and their job rotation.d) To improve utilization of human resources in AAL,
    e) To cooperate in maintaining discipline at all levels.f) To resolve all disputes and problems mutually by peaceful and constitutional means.
    g) To support in achieving the mission of AAI.h) Union will help in creating a sense of belongingness and pride in the orzanization.

(i) All payment/recoveries arising out of the implantation of revised pay scales shall be made simultaneously.

(iii) Existing Non-executives drawing Executive scale on placement, will be treated as non-executives only and will get benefits as applicable to non-executives including Over Time Compensation (OTC). As such, perks and benefits at par with executives stands withdrawn with immediate effect.

(iv) If anv non-executive has already availed benefits applicable to executives’ like HBA, ete. then, these will be personal to them and furthermore no benefits will be granted.

(v) The effect of basic pay due to HPL/EOL/eave without pay availed will be suitably adjusted while computing the arrears of pay & allowances as admissible.

(vi) During IIPL. proportionate allowances under cafeteria (i.e. half) would be payable. Similarly, during EOL/Leave without pay, no allowances will be payable.

(vii) These who have entered the regular service on or after 01.01.2017 will be entitled to perks & allowances from the date of their joining service and may be paid appropriately on pro-rata basis.

(viii) The Memorandum of Settlement (MoS) with the Recognized Union is in full and final and Union will not raise any demand during the operation of wage period on matters covered under this settlement,

(ix) Payment/ recoveries of all other allowances, benefits, ete. will be continued to be made on the basis of existing rules. terms & conditions.

30. ANOMALYAny anomaly arising out of the wage revision in the revised structure. the same will be referred to the Anomaly Committee constituted for the purpose at CHQ for redressal.

All issues arising out of implementation of this Office Order, which require interpretation’ clarification will be referred to the Corporate Headquarters for decision.

Anuj Aggarwal
Member, HR

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