13.

INCENTIVES/HONORARIUMS

I. SB COMMISSION & INCENTIVES

1. Revision of rate of commission payable to SAS and MPKBY Agents and discontinuance of commission to PPF Agents with effect
from 1.12.2011.
The undersigned is directed to convey the following decisions of the Min of Finance (DEA) which shall be effective from 1st
Day of December, 2011:-
(i) There shall be no commission payable on PPF Deposits made on or after 1.12.2011
(ii) The revised rates of commission payable to SAS and MPKBY Agents with effect from deposits made on or after 1.12.2011
shall be as follows:-

Category of Agent Name of Scheme Rate of Commission

MPKBY Recurring Deposit 4%
SAS 1 Year Time Deposit 0.5%
2 Year Time Deposit 0.5%
3 Year Time Deposit 0.5%
5 Year Time Deposit 0.5%
Monthly Income Account Scheme 0.5%
5 Year NSC (VIII-issue) 0.5%
10 Year NSC (IX-issue) 0.5%
Sr. Citizen Savings Scheme NIL

2. It is requested that this may be circulated to all post offices for information and necessary guidance
3. This issues with the approval of Secretary Posts.
(DG(P) No.113-01/2011-SB dated 24.11.2011)

2. Commission paid to authorised agents

1. 1 year TD w.e.f. 10-12-87 - 0.5% (DG No. 48.6/87-SB, dt. 12-11-87)

2. 2 & 3 years TD - 1%
3. 5 years TD - 2½%
4. 7 years, NSC II Issue - 2½% (Discontinued w.e.f. 1-10-88)
5. 6 years VI & VII Issue - 2% (Sales stopped w.e.f. 1-4-89)
6. 5 years NDB - 2½%
7. 10 years SSC - 2% (Stopped from 1-4-89)
8. Monthly Income Scheme
(19-10-87) - 1% (Dte. No. 97/5/87/SB, dt. 28-10-87)
9. Kisan Vikas Patras (1-4-88) - 1% (C.O. No. SB/44-1/87, dt. 11-5-88)
10. NSC 6 yrs. VIII issue (8-5-89) - 1% (Dte. 61-22/89-SI, dt. 12-6-89
(Not permissible on institutional investment vide C.S. No. 132/89-90)

Commission paid to ED SPM/ BPM

1. 1 year TD : 0.5% w.e.f. 1-3-89 (DG No. 48-2/88-SB, dt. 21-2-89)

2. 2 years& 3 years TD : 1% (DG's Lr. No. 48-19/77-SB, dt. 23-2-77
3. 5 year TD : 2%
4. 7 years NSC II Issue : 2% Sales stopped from 1-10-88
5. 6 year NSC VI & VII : 2% Sales stopped from 1-4-87
6. 5 year NDB : 2%
7. 10 year SSC : 2% Sales stopped
8. PO SB (BPM) : On net accretion of not less than Rs. 500, exclusive of interest and excluding deposits of March but
including withdrawals of March
2. Incentive 2% of the sale of stamps/stationery upto Rs. 30/- to each customer.

3. Admissibility of commission on deposits in POTD accounts of GDSBPMs.

The undersigned is directed to say that after issue of SB order No. 29/2011 dated 24.11.2011, this office has been receiving
number of reference on admissibility of commission on deposits in POTD account to GDSBPMs. In this regards, it is clarified that
there is no change in the commission structure for GDSBPMs circulated vide this office letter No. 48-2/88-SB dated 21.02.1989. The
rate of commission to be paid to GDSBPMs on opening of new 1/2/3/5 year TD accounts subject to the condition that accounts are
opened directly at EDBO and not through any authorized agent are given below:-
Sl. No. Type of Accounts Rate of commission
1. 1 year Time Deposit 0.5%
2. 2/3 year Time Deposit 1%
3. 5 year Time Deposit 2%

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2. It is also reiterated that no commission is payable on TD re-deposits made under Rule 6(3) of POTD Rules 1981 with retrospective
date.
3. This may kindly brought to the notice of all post offices.
4. This issues with the approval of DDG (FS).
(DG (P) No.107-02/2010-SB dated 03.05.2013)

4. Commission for Saving Bank work to BPMs:

1. Deposits made in March will be ignored. But withdrawals in March will be taken into account.
2. The deposits made in AO/HO will not be taken into account. But withdrawals made in AO/HO will be taken into account.
(DG (P&T) No. 46-2/81-SB, dated 17.10.1983)
5. Commission paid to PR SS :
1. 1 year TD : Nil
2. 2 & 3 year TD : 1%
3. CTD/RD : 2½%
4. 5 year TD : 2½%
5. 6 year NSC VIII issue : 0.5% (w.e.f. 8-5-89)
(DG (P) No. 44-1/81-SB dated 16.10.1989)

6. Incentives to Postal Staff for dealing in IVP's:

a) Sales w.e.f. 1-7-87
1. Counter Clerk - Re. 1/- per IVP issued at the counter subject to Rs. 500/- P.M.
2. Supervisor - Re. 1/- for 5 IVPs - ceiling Rs. 250/- P.M.
3. Group D - Re. 0.05 per IVP-
(DG (P) No. 61-31/90-SB, dated06.06.1990)
b) IVP Discharge w.e.f. 19-11-91
1. Counter Clerk (HOs &SOs) - Rs. 2/- per IVP discharged.
2. Supervisor (whether work of Counter Clerk) or SPM as the case may be Rs. 0.40 for IVP discharged
3. Group D - Rs. 0-10 per IVP discharged ceiling both to PAs &Supervisor - Rs. 1000/-
(DG (P) No. 61-37/87-SB, dated04.10.1991)

Ceiling is per individual and not per counter or per office.

(DG (P) No. 61-37/87-SB (Pt.) dated 28.09.1992)

7. Incentive for sale of Postage stamps:

Incentive scheme for sale of postage stamps and Postal stationery at the counter by Departmental Stamp Vendor/ED
Stamp Vendor introduced vide DG's No. 48-1/87-PMR dt. 10-12-87. Entire sales through Franking Machine also qualify for incentive
calculations vide DG's No. 48-1/87-PMP dt 3-5-89. Sales exceeding Rs.30/- at a time will not qualify.
Note: There is no revision to these rates and the payment becomes obsolete.

II.MONTHLY INCOME SCHEME INCENTIVE

8. Monthly Income Scheme A/c.

a) Opening of Account :
1 Supervisor - 0-50 per A/c.
2. Asst. - 1-00 per A/c.
(DG (P) No. 95-4/86-SB dated. 02.07.1987)
3. Ledger Clerk - 0-50 per A/c.
(DG (P) No. 95-4/86-SB dated 14.7.1987 & 23.03.1988)
b) Payment :
1. Supervisor - 0-50 per A/c. Overall ceiling Rs. 250/- p.m.
2. Counter Clerk - 1-00 per A/c. Overall ceiling Rs. 500/- p.m.
3. Ledger Clerk - 0-50 per A/c. Overall ceiling Rs. 250/- p.m.
(DG (P) No. 95/4/86-SB, dated 14.07.1987)

Note: In case both the Monthly payment scheme and the IVP scheme are handled at the same counter, the overall ceiling mentioned
above will apply to both the schemes counted together.
(DG (P) No. 95/4/86-SB, dated 14.07.1987)

9. Monthly Income Scheme incentive

It has been reported to the D.G. that there are some doubts about payability of MIS incentive. Vide letter No. 95-4/86-SB
dated 14.07.87, it was intimated that MIS incentive would be payable till the time, additional staff that may be justified, is not
sanctioned. The contents of letter No. 97-4/87-SB dated 2.3.93 are also basically the same; but the letter appears to have been
incorrectly interpreted. Vide this letter it has been again pointed out to the Circles that MIS incentive is not payable in POs where
additional justified staff for POSB work has been provided. It is not payable also in those POs where no additional staff justification
was found after taking into account the work generated by MIS.
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2. MIS incentive has not been withdrawn. The letter No. 97-4/87-SB dated 2.3.1993 does not put any bar on payment of
incentive in those POs where additional justified staff, taking into account the work relating to MIS, has not been provided.

3. Norms for MIS, introduced on 15th August 1987, were circulated by us vide letter No. 97-4/87-SB dated 5.10.88 and also
vide letter No. 4-8/98-PE.I dated 8.11.89. Additional posts were sanctioned vide Establishment Order No. 4-15/88-PE.I dated 30.4.90.
These were based on staff requirements received from the Circles up to 31.8.89.
(DG (P) No. 97-4/87-SB dated 16.03.1993)

10. Monthly Income Scheme- incentive

Reference is invited to this office letter No. 95-4/86-SB dated 14-7-87 on the above mentioned subject and
instructions/clarifications issued in this regard from time to time, the last one issued vide letter No. 97-A/87-SB dated 8-9-93
conveyed that MIS incentive is to be paid in those post offices where additional justified staff, taking into account the work relating
to MIS; has not been provided.

2. An item submitted by staff side in the Departmental Council relating to payment of MIS incentive where the work hours
are in exceed of staff hours, though a full hand may not be justified, has been under consideration of the Department for some time.

3. It has now been decided to grant MIS incentive for excess MIS work in those post offices also where the collective work
hours of MIS and SB exceed the staff hours.

4. These orders will come into force w.e.f. the date of issue of orders. Other clarification governing the grant of incentive
would remain the same.

5. This is with the concurrence of Fin. Advice vide the Dy. No. 3561 dated 27-12-95.
(SB order No. 1/96, dated 05.01.1996)

11. Grant of incentive for MIS work

The undersigned is directed to say that item on "stopping of payment of incentive for MIS work on the plea of provision of
time factor and sanctioned strength of the branch" was taken up in the meeting of JCM held on 1.6.2006. It is clarified that orders of
Directorate issued vide letter No. 61-15/86-SB dated 17.09.87 on the subject are still current and circles can give incentive as per
Directorate clarification issued vide Letter No. 97-4/87-SB dated 16.3.1993.
(DG (P) No.113-1/2003-SB(Pt.) dated 20.04.2007)

12. Sanction of incentive connection with MIS work

The undersigned is directed to say that the matter has been examined and it is clarified that in this office letter no. 97-
4/87-SB dated 16.03.1993, it has been clarified that incentive for MIS work has not been withdrawn but it may be sanctioned only in
those post offices where additional justified staff has not been provided after including the MIS norms in the establishment review.
As regards confusion over the monthly ceiling of the incentive, it is clarified that this ceiling pertains to an individual and
not per counter. This is for your kind information.
(DG (P) NO. 113-1/2003-SB(Pt.) dated 07.01.2008)

III. SPEED POST INCENTIVE

13. Speed Post incentive

(1) (i) Incentive of Rs. 0.50 is payable for each Speed Post article booked where no separate booking counter is provided for
speed post work.
(ii) Incentive of Rs. 0.75 per article booked over & above the threshold specified where separate post has been sanctioned for
speed post work.
(iii) Incentive to postman -- Rs. 0.50 per article delivered in addition to his other normal duties.
[DG (P) No. 43-17/90 dated 16.11.1990]
(2) (i) In respect of articles booked under special journal, maximum limit of incentive payable is Rs. 5/- per customer.
(ii) Incentive for pick up articles from for customers premises Re. 0/50 per article subject to a maximum of Rs. 5/- per customer.
(iii) Where separate posts have been sanctioned for delivery of speed post articles, incentive at the rate of 50 paise per article is
payable provided the number of articles returned undelivered due to the reasons other than those of customer premises closed or
refused by the addressee is Nil.
[DG (P) No. 43-17/90-D dated 24.12.1990]
(3) Incentive is admissible for all Speed Post Money Orders paid.
[DG (P) No. 43-7/88-D dated 25.04.1991]
(4) In case of return is more than 2%, no incentive is payable to Postman. For return upto 2%, incentive at the rate of 50 paise
per article can also be paid after test check of some of the cases to confirm if the reason for non delivery given by the Postman was
correct.
[DG (P) No. 43-17/90-D dated 03.05.1991]

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(5) No incentive is admissible to other staff employed in sorting and dispatch of speed post articles / bags.
[DG (P) No. 43-17/89-D dated 19.06.1991]

14. Payment of Incentive to the operative staff for speed post operations

1. Incentive of Rs.0.50 is payable for each Speed Post article booked where no separate booking counter is provided for Speed Post
work. (Directorate No. 43-17/90-dated 16.11.90)

2. Incentive of Rs.0.75 per article booked over and above the threshold specified for the staff, where separate post has been
sanctioned for Speed Post work. (Directorate No. 43-17/90-D dated 16.11.90). For determining threshold, the traffic figure of 15% of
the average daily figure will be added with average daily traffic figure calculated with reference to monthly averages of the whole
previous calendar year. (Para No. 3 of Directorate letter No. 43-17/90-D dated 24.12.1990).
3. In case of articles booked under special journal, maximum limit of incentive payable is Rs.5/- per customer. (Directorate letter no.
43-17/90- D dated 24.12.1990).
4. Incentive for pick up of Speed Post articles from the premises of customer is Re.0.50 per article subject to a maximum amount of
Rs.5/- per customer's premises. (Directorate letter No. 43-17/90-D dated 24.12.1990).
5. Incentive of Rs.0.50 is payable for each Speed Post article delivered by the Postman in addition to his other normal duties.
(Directorate No. 4317/90-D dated 16.11.90).
6. For stations, where separate posts have been sanctioned for delivery of Speed Post articles, incentive at the rate of 50 paise per
article is payable provided the number of articles returned undelivered due to the reasons other than those of customer premises
closed or refused by the addressee is Nil. (Directorate letter No. 43-17/90-D dated 24.12.1990). In case the return is more than 2%,
no incentive is payable. For return upto 2% incentive at the rate of 50 paise per article can also be paid after test check of some of
the cases to confirm if the reason for non delivery given by the Postman was correct (Directorate letter No. 43-17/90-D dated
03.05.1991).
7. In case of bulk addresses, where delivery of speed post articles is made with special delivery list as for Regd. Articles, all the
articles invoiced in one special delivery list should be treated as one speed post article for payment of incentive. (Circle level
decision).
8. No incentive is admissible to other staff employed in sorting and dispatch of speed post articles/bags. (Directorate letter No. 43-
17/89-D dated 19.06.1991).
9. Incentive under speed post is admissible at all articles booked under National speed post work, State Speed post network and all
Speed Post Money orders paid. (Directorate letter no. 43-7/88-D dated 25.04.1991)

15.Clarification on Speed Post Incentive Scheme

Clarifications have been sought from a few Circles from time to time on various aspects of Speed Post Incentive Scheme.
The issues have been examined and clarifications along with issues are given below.

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 Sl. Issue Clarification
No.
1. Whether payment of incentive There is no threshold fixed for pick up
to the pickup staff has any as fixed in case of booking of Speed
bearing upon some threshold Post articles at the stations where
i.e. whether incentive to Speed Post booking is managed by
pickup staff may be given for exclusive staff. However a limit of 5/-
articles beyond certain per customer exists for pick up.
threshold as in case of Further pick up facility is subject to
booking or irrespective of condition of minimum three articles
threshold (West Bengal per customer at a time as per BD Dte.
Circle) letter No. 43-36/90-D dated
01.10.1990.
2. As date entry of BNPL There is no provision of incentive
articles is to be one in payable for data entry of BNPL
National SPCs/State SPCs articles in speed net as at the time of
for speed net whether inception of the scheme this activity
incentive can be considered was not exiting and even at the time
for the staff who attend the of introduction of speed net no such
date entry of BNPL articles provision was made.
(Kerala Circle)
3. Whether incentive can be There is no provision of incentive for
considered for date entry of data entry of Speed Post articles.
any type of articles (Kerala
Circle)
4. Whether incentive scheme Incentive scheme was introduced
will continue for various with the aim of increasing
Speed Post work after productivity, ensuing quality of
introduction of Adhoc norms service and increasing quality of
issued vide Dte. letter no. 9- service and increasing traffic
2/91-WS-1 dated 01.01.2003 significantly. There is no connection
(Uttaranchal Circle) at present ‘between incentive’ and
establishment norms’.

2. These clarification may be brought to notice of all concerned for strict adherence in future.
(DG (P) No. 57-01/2005-BDDdated 17.06.2005)

16. Compilation of instructions on incentive scheme for pick up, booking and delivery of Speed Post
It has come to notice that instructions issued by BD Dte from time on incentive scheme for pick up booking and delivery of
Speed Post are not being followed properly by the field units.

2. Instructions on incentive scheme issued from time to time are compiled as below for reiteration.

2.2 Incentive scheme for stations where no separate posts have been sanctioned for Speed Post (Directorate letter no. 43-79/90-D
dated 16.11.90).
(a) An incentive @ 50 paise per article will be paid to the officials detailed to pick up Speed Post articles from the premises of
customers either on daily basis or specified days subject to a maximum amount of Rs.5/- per customer's premises.
(b) An incentive @50 paise per articles will be paid to the official who is detailed to book Speed Post articles in such centers
where no separate counter has been provided for booking of Speed post articles and such officials are asked to book Speed Post
articles in addition to their normal allotted counter duties.
(c) An incentive @ 50 paise per article correctly delivered in time will be paid to the official entrusted for delivery of Speed
Post articles along with other articles allotted as per their normal duties/workload.

2.3 Incentive scheme for stations where separate posts have been sanctioned for Speed Post (Directorate letter no. 43-17/90-D
dated 24.12.90).
(a) The officials deployed for picking up of Speed Post articles from the customer's premises will be paid @ 50 paise per article
collected promptly subject to maximum of Rs.5/- per customer's premises visited.
(b) The officials deployed for booking of Speed Post articles at the counters will be paid an incentive money @ 75 paise per
article, booked over and above the threshold level specified for the stations. In case of articles booked under special journal
maximum limit of incentive money will be Rs.5/- per customer.
(c) For determining threshold, the traffic figure of 15% of the average daily figure will be added with average daily traffic figure
calculated with reference to monthly averages of the whole previous calendar year.
(d) The officials deployed for delivery of speed Post articles will be paid @ 50 paise per article delivered correctly and
promptly, provided number of articles returned undelivered due to reasons other than those of customers premises being closed ' or
'refused by the customer' is 'NIL'. If the number of articles returned as undelivered due to the reasons other than those mentioned
above exceeds 25 of the total number of articles assigned for delivery to individual Postman, no incentive will be paid to such

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officials. If the number of articles delivered is more than 98% but less than 100% of the articles give for delivery, the officials will be
paid @ 25 paise per article. The percentage will be calculated on monthly basis and fraction less than one should be ignored in
determining percentage of efficiency.

2.4 As per BD Dte letter No. 58-14/2002-BDD dated 23.12.2002 "The instructions contained in para 2.3 of 43-17/99-D dated
24.12.1990 (as reiterated in sub para (b) below para 2.3 above) is applicable for payment of incentive to the officials handling BNPL
articles".

2.5 Besides, queries of circles clarified from time to time vide dated letter No. 43-17/89-D dated 29.09.92 and No. 43-17/89-D dated
19.06.91 are also relevant.

3. These provisions may be brought to notice of all concerned for strict observance and adherence. Any variance of these
instructions in future should be viewed seriously.
(DG (P) No. 57-01/2005-BDD dated 17.06.2005)

17. Abnormal Delay in payment of Speed Post Delivery Incentive Bills-Case of Delhi Circle
Please find enclosed a copy of letter No.P-IV/CHQ/05-SP/2011 dated 06.06.2011, received from General Secretary, All India
Postal Employees Union Postmen & SE/Group 'D' on the above mentioned subject.
2. A perusal of the aforesaid letter would reveal that payment of speed post-delivery incentive is being delayed due to:
a) Undue time being taken in preparation of the bills;
b) Undue delay in processing of the bills; and
c) Non-availability of funds.
3. It is not for the first time that this issue has been taken up by the Staff Side and our enquiries on previous occasions
revealed that adequate funds are being placed at the disposal of the Circle Office towards payment of Speed Post Incentive /OTA etc.
In fact most of the delay is being caused due to delay in preparation/processing of the bills, as a result of which employees are
suffering. It may please be appreciated that undue delay in payment of incentives discourages the employees in performance of their
duties which ultimately tells upon the efficiency of the postal services. In the light of the above, it is requested to pay immediate
attention in the matter and ensure payment of incentives due to the employees without any further delay.
Copy to all heads of circle for similar action.
(DG (P) No.16/56/2011-SR dated 07.07.2011)

18. Incentive scheme for delivery of letters carrying Aadhar number of the residents.
Department of Posts (DoP) has signed a Memorandum of Understanding (MoU) with Unique Identification Authority of
India (UIDAI) on 30 April, 2010 wherein the DoP agreed to offer postal and mail services to UIDAI on the various terms and conditions
laid down in the MoU.
2. The Standard Operating Procedure for Printing, Booking, Transmission & Delivery of letters carrying Aadhar number of the
residents has already been circulated to all concerned vide BD&M Directorate letter no. 51-58/2010-BD&MD dated 06.06.2011
3. It has now been allowed to give incentive to the postmen @ Re. 0.50 per letter which are delivered in a timely manner i.e.
within 14 days from the date of booking in case of Departmental Delivery Offices & within 17 days from the date of booking in case
of Branch Post offices or within 7 days from the first attempt of delivery whichever is later subject to the condition that the delivery
information in respect of all such articles be uploaded on Speed Net.
4. Before the payment of incentive to any postman, the sanctioning authority shall satisfy himself that the concerned
postman had been prompt in delivery of letters for which the incentive is being paid and there was no un-necessary delay at the part
of postman in delivering such letters.
5. The terms & condition as in the case of normal Speed Post articles would be applicable.
(No.18-46/2011-BD&MDdated 30.05.2012)

IV. HONORARIUM

19. Honorarium payable under FR 46 (b) further guidelines to restrict payment of honorarium
The undersigned is directed to say that the Fifth Central Pay Commission in its report has recommended that honorarium
should be paid only when the employees are entrusted with the duties of purely occasional nature and under no circumstances
should any honorarium be paid for performing any function that are legitimately part of one's defined duties and responsibilities.
2. In terms of the provision of FR 46 (b), the Central Government may grant or permit a Government servant to receive an
honorarium as remuneration for work performed which is occasional or intermittent in character and either so laborious or of such
special merit as to justify a special reward. Except when special reasons which should be recorded in writing, exist for a departure
from this provision, sanction to the grant or acceptance of an honorarium should not be given unless the work has been undertaken
with the prior consent of the Central Government and its amount has been settled in advance.
3. Guidelines for payment of honorarium under FR 46(b) have already been laid down inter alia vide this Department's OM No.
17011/9/85-Estt. (AL) dated 23.12.1985 and OM No. 17020/1/91-Estt (AL), dated 18.11.1991. It has also been clarified that no
honorarium should be granted for temporary increase in work. It has however come to the notice of the Department of Personnel &
Training that Honorarium is being paid in a routine manner by various Ministries/Departments for regular items of work Such
payments of honorarium is against of FR 46(b) as well as the recommendations of Fifth Central Pay Commission.

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4. The recommendation of the Fifth Central Pay Commission has been accepted by Government and it has been decided that in
addition to the items of work for which payment of honorarium is already prohibited under instructions issued by the Ministry of
Finance and this Department from time to time. Ministries/Departments should not grant honorarium for the items of work of
routine nature which from part of the duties and responsibilities of a Government servant. An illustrative list of such items of work is
enclosed (Annexure). It has also been decided that approval of the Finance Adviser should also be taken in cases in which the total
amount of honorarium payable to an individual in a financial year exceeds Rs.2500/-
5. It is also clarified that the amount of Rs.5000/-, Rs. 2500/- payable in each case by the Ministries/Departments under the powers
delegated to them vide this Department's O.M. No. 17011/9/85-Est (AL) dated 23.12.1985, refers to the total amount of honorarium,
whether recurring or non-recurring, that may be paid to an individual in a financial year.
6. These orders will be effective from 17.07.1998
(DOPT. No. 17011/3/97-Estt (Allowances) dated 17.07.1998 & DG (P) No. 23-108/98-PE-I dated 13.08.1998)
Annexure - Illustrative of Items for which honorarium should not be paid
1. Compilation of demand for grants and preparation of Budget estimates (Except Budget work of the Budget division of
Department of Economic Affairs).
2. Dealing with Parliament questions.
3. Convening of DPCs for confirmation, promotion etc.
4. Incentive to personal staff of Ministers or to other officers and staff for meritorious work such as working for long hours.
5. Condemnation and disposal of unserviceable office stores.
6. Work relating to the issue of award for printing contract
7. Closing of Annual GPF Accounts/Preparation of GPF statements (Except in the Indian Audit and Accounts Department where
these items of work have not been taken into account while fixing staff norms).
8. Calculation of Income tax.
9. Work relating to the reviewing weeding and transfer for old records.
10. Preparation of bills for payment of bonus
11. Preparation of Annual reports
12. Preparation of bill for DA arrears
13. Preparation/Typing of list of files to be sent to departments Record room/National Archives and similar other types work.
14. Stock verification of stationery stores.
15. Supervising the job of vacating the stores and arranging segregation.
16. Opening new pay bill ledgers.
17. Taking old photocopies of various documents.
18. Special work in arbitration work
19. Work relating to confidential reports.
20. Work relating to preparation of CGHS cards
21. Normal work relating to the Hindi translation
22. Performing work relating to clearance drives.
23. Exemplary work of commendable nature and devotion to duty.
Work connected with celebration eg: anniversaries of setting up Autonomous Bodies/Organisation etc. under
Ministries/Departments.

20. Guidelines for grant of honorarium to be strictly followed

Instances have come to the notice of this Dept. where payment of honorarium exceeding Rs. 5,000/- has been made during
a year on the plea that the limit of Rs. 5000/- is applicable to each item of work separately. It is clarified that the total amount of
honorarium payable to a Govt. servant during a financial year is limited to Rs. 5000/- under the power delegated to the
Ministries/Departments/C&AG of India and to Rs. 2500/- under the powers of Heads of Departments. These limits cannot be
exceeded in any case by treating different items of work or same item of work performed at different times of the year as separate
for the purpose of calculating the entitlement of honorarium.
(DOPT OM No. 21011/26/96-Estt (Allowances) dated 20.01.1997)

21. Honorarium for opening new pay bill register in accounts branch
It has been decided in consultation with Internal Finance to enhance the existing rate of honorarium for opening of new
Pay Bill register (Form TR 22(a) from 0.90 paisa to Rs. 1.25 per page from the financial year 1990-91.
(DG (P) No. 12 (I) /82-PA/Admn.II/233 dated 03.07.1989)

22. Grant of honorarium for translation from regional language to English/Hindi & vice-versa.
In partial modification of this Department's O.M. No. 17013/3/86-Estt. (Allowance) dated 31st March, 1994 on the captioned
subject, the President is pleased to decide that the rates of honorarium payable, subject to the ceiling of Rs. 5000/- per annum in
each case for translation from regional languages to English/Hindi & vice-versa, will, hereafter be Rs. 120/- per thousand words of
Ordinary Material and Rs. 130/- per thousand words of Technical Material (Including Codes/Manuals, etc.,)
In so far as persons serving in the India Audit & Account Department are concerned, this issues with the concurrence of the
Comptroller & Auditor General of India.
These orders will be effective from the date of issue
This issues with the approval of Ministry of Finance, Department of Expenditure vide their I.D. No. 14 (2)/ 2011-E-II (B) dated
10.03.2011.
(DOPT OM No. 17011/04/2011-Estt. (Allowances) dated 01.04.2011)

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23. Revision of honorarium for guest faculty in PSCI/PTCs/Zonal Training Centers.
Kindly refer to this office letter No. 1-73/2009-Trg dated 01.01.2010 wherein honorarium payable to guest faculty at Postal
Staff College India, Postal Training Centers and Zonal Training Centers was revised with effect from 01.01.2010.
2. The Corrigendum about upper annual ceiling limit on honorarium payable to guest faculty at Postal Staff College India,
Postal Training Centers and Zonal Training Centers is issued as follows:
Add serial 1(d) below serial 1(c) of Postal Directorate Memo No 1-73/2009-Trg dated 01.01.2010.
"(d) The present instructions under F.R 46-B, which provide for an annual ceiling of Rs 5000/- for honorarium to Government
employees, stands amended for in-service guest faculty to provide for a ceiling of upto 30 days or 60 sessions in a year, whichever is
lower."
3. This issues with the concurrence of Integrated Finance Wing vide Dairy No 131/FA/11/CS dated 1.11.2011.
(DG (P) No. 1-73/2009-Trg. dated 01.11.2011)

24. Revision of honorarium for guest faculty in PSCI/PTCs/Zonal Training Centers.

Approval of the competent authority is hereby conveyed for grant of honorarium payable to guest faculty to Postal Staff
College India, Ghaziabad/Postal Training Centers/Zonal Training centers with effect from 01.01.2010.
(a) An honorarium of Rs. 500/- (Rs. Five hundred only) per session of 75 minutes duration may be paid to serving officers.
(b) For non-serving offices, an honorarium of Rs. 1000/- (Rs. One thousand only) per session of 75 minutes duration may be
paid.
(c) When experts/eminent resource persons are invited as guest faculty, the remuneration, fees or honorarium upto the
amount of Rs. 4000/- (Rs. Four thousand only) per session of 75 minutes duration may be paid, if there are reasons that justify such
payment, which should be duly recorded in writing by the Head of the Training institution.
The expenditure on this account is debitable to the major head 3201-Postal Services-02-003-01-Training-Professional
Services and should be met from out of the sanctioned budget grants under Plan/Non-plan heads.
This issues with the concurrence of Finance Advice branch vide their diary dt. 02.12.2009
(DG (P) No. 1-73/2009-Trg. dated 01.11.2011)

25. Grant of Honorarium for setting Question papers, valuation & conducting Limited Departmental competitive Examinations -
Revision of Rates reg.
I am directed to invite a kind reference to this office letter no.18-4/96-DE dt.2-7-1996 wherein the rates of Honorarium in
connection with conducting of Limited Departmental competitive Examinations, was communicated.
2. The Issue of revision of rates of Honorarium for setting up of Question Papers, valuation of answer scripts etc and
conducting of Limited Departmental Competitive Examinations has been under consideration in the Directorate for quite some time.
The President is now pleased to decide in supersession of this office letter no 18-4/96-DE dt. 2-7-1996 that the rates of Honorarium
for the following items of work for conducting Limited Departmental Competitive Examinations will be as shown here under:

SI. No. Activity Present Rates adopted. Revised Rate

1. Setting of Question paper Rs. 280 Rs. 1000 per paper
(a) for Gr. B Posts
(b) for Gr. C and other De-centralized Rs. 210 Rs. 1000 per paper.
Examinations.
2. Preparation of Key 25% of the Rate for 25% of Rs. 1000
setting.
3. Evaluation of Answer scripts Rs. 25 Per Answer
Gr. A & other Gr.B Posts 7-00 Script.
IP & JAO Examination 5-60
De- Centralized Examinations 4.20
4. Supervision for conducting Limited Rs. 30 Per Session and Rs. 400 per session and
Departmental Competitive Examinations Rs. 50 Per day. Rs. 600 per day.
5. Invigilators Appointed in Limited Rs.20 per session and Rs. 250 per session and
Departmental Competitive Examinations Rs. 30 per day. Rs. 350 per day.
6. Clerical staff brought on Duty Rs. 25 per day. Rs. 150 per session and
Rs. 250 per day.
7. Gr. D (MTS) Assistance Rs. 15 per day. Rs. 150 per session and
Rs. 200 per day.
3. The Provisions of FR-11 and FR-46 should be kept in view while sanctioning Honorarium and Payment of Honorarium is subject
to annual ceiling provided in Scheduled of Financial Powers & DFRs.
4. The additional Expenditure on account of Revision of Rates has to be met within the allocated funds provided under respective
Heads of Account.
5. The Revised rates of Honorarium for setting Question papers and evaluation of answer books will apply in case of all the Limited
Departmental Competitive Examinations held on or after 26/4/2012.
6. This issues with the concurrence of Integrated Finance Wing vide their Diary No. 118/FA12-CS dt. 26-4-2012.
(DG (P) No.25-20/2008 PE-1 dated 17.04.2012)

8
26. Grant of Honorarium to the officials entrusted with the fixation of time related continuity allowance (TRCA) and payments of
arrears to GraminDakSevaks consequent on implementation of Recommendations of one-man committee.
I am directed to refer to this office letter of even No. dated: 21.12.2009 regarding rates of Honorarium for fixation of pay in
revised scales consequent on implementation of recommendations of 6th Central Pay Commission was communicated.
2. The demand of Staff Side for extension of the Honorarium rates to those officials entrusted with fixation of time related
continuity allowance (TRCA) and payment of arrears to GraminDakSevaks was engaging the attention of the Department for quite
some time past. Now, the Competent Authority in consultation with Integrated Finance Wing has allowance (TRCA) and payment of
arrears to GraminDakSevaks consequent on implementation of recommendations of One-man Committee and in pursuance of the
order no. 6-1/2008-PE. II, Dated: 9.10.2009. The Rates of Honorarium applicable are as under :

(i) Fixation of Time Related Continuity Allowance (TRCA).

A Fixation of Time Related Continuity Allowance (TRCA) as on Rs. 5 for each Gramin Dak Sevak
1.1.2006 by the OA of Divisional office.
B Checking of fixation sheet by the Asst. Supdt. of Post Rs. 2 for each Gramin dak Sevak
offices/Inspector posts as the case may be.

(ii) Drawal of Arrears :

A Drawal of arrears of Time Related Continuity Allowance (TRCA) Rs. 1 for entry for each Gramin
and entry in the original bill Dak Sevak for each month.
B Checking of drawal of Arrears and entry in the original bill by the Rs. 1 for each Gramin Dak Sevak
supervisors in the HO/HRO
(iii) Post check of the drawal by Pre-Check unit Rs. 2 per case.

3. The Honorarium is applicable to such cases where the fixation of Time Related Continuity Allowance (TRCA) has been
found to be certified as correct by the Postal Accounts offices. The Honorarium shall not be applicable, where the fixation of Time
Related Continuity Allowance (TRCA) was done irregularly and paid erroneously.
4. The prescribed ceiling on grant of Honorarium has to be kept in view while payment of Honorarium and on no account
should it exceed the prescribed ceiling.
5. The expenditure for payment of Honorarium has to be met within the Budget Grant provided for the year.
6. This issues with the concurrence of Integrated Finance Wing vide their diary no. 188/FA/10/CS dated : 25.08.2010.
(DG (P) No. 42-1/2008-PAP dated 26.08.2010)

27. Honorarium for officials entrusted with the work of drawal of arrears of pension while implementing the recommendations of
the 6th CPC-regarding
I am directed to intimate that the grant of honorarium for drawal of arrears of pension while implementing the
recommendations of the 6th Central Pay Commission has been under consideration of the Postal Directorate. Now, it has been
arrears of pension while implementing the recommendations of 6th CPC at the rates indicated below:
For drawal of Pension Arrears
(i) Rs 1/- per month for drawal of pension arrears and entry in all relevant records.
2. It may be ensured that the prescribed ceiling of the honorarium to be sanctioned by the Competent Authority does not exceed
the rates mentioned above.
3. Contents of this letter may be brought to the notice off all concerned.
4. This issues with the concurrence of Finance Advice (Postal) vide their diary No. 166/FA/2011-CS dated29-11-2011.
(DG (P) No. 42-1/2011-PAP dated 12.12.2011)

28. Honorarium for officials entrusted with the work of fixation of pay in revised pay scales recommended by the 6th Central Pay
Commission - regarding

I am directed to say that the question of revision of rates of Honorarium for fixation of pay in the revised pay scales
recommended by the 6th CPC and also for drawal of arrears thereof has been under consideration of the Postal Directorate. Now,it
has been decided to grant honorarium to the officials entrusted with the work at the rates indicated below: -

Fixation of Pay:
(a) Preparation of the fixation sheet and for making entries in Services Book - Rs.5 per case.
(b) Checking of the fixation sheet - Rs.2 per case

Drawal of Arrears:
(a) Rs.1/- per month for drawal of arrears and entry in the Pay Bill Registers and original bills.
(b) Checking of the drawal - Rs.2 per case.
(c) Post-check of drawal by the pre check unit - Rs.2 per case

2. It may be ensured that the prescribed ceiling of the honorarium to be sanctioned by the competent authority does not exceed the
rates mentioned above.

9
3. The contents of this letter may be brought to the notice of all concerned.
4. It is requested that amount incurred on this account may be intimated to the Directorate through DAPs.
5. This issues with the concurrence of Finance Advice (Postal) vide their Diary No. 278/FA/09/CS dated 16.12.2009
(DG (P) No. 42-1/2008-PAP dated 21.12.2009)
29. FAQ on Honorarium

Honorarium
Sl. No. Frequently asked Questions Answer
1. Upto what amount the Head of The Ministries/Departments can grant honorarium upto 5000/- per
Department can grant annum per employee and the Head of Department can grant
honorarium? honorarium upto 2500/- per annum per employee. O.M. No.
1711/9/85-Estt. (Allowance) dated 23.12.1985 refer.
2. What are the rates of honorarium The rates for translation from regional language to English/Hindi and
for translation work form regional vice-versa is 120/- per thousand words of Ordinary Material and 130/-
language to English/ Hindi and per thousand words of Technical Material (including Codes/Manuals
vice versa? etc.). This is subject to a maximum of 5000/- per annum in each case,
whether recurring or non-recurring. O.M. No., 17011/04/2011-Est..
AL.) dated 1.4.2011 refers.
(DOPT OM No. 21011/08/2013 – Estt (AL) dated 25.03.2013)

30. Grant of Honorarium to Inquiry Officers (IO)/Presenting Officers (PO).

The undersigned is directed to refer to this Department's OM of even number dated 31-07-2012 laying down the rates of
honorarium payable to Inquiry Officer/ Presenting Officer for holding departmental proceedings.
2. It has been brought to the notice of this Department that the condition mentioned in para 2.1 of the said OM, was in conflict
with the provisions of FR 46 B which limits the maximum amount payable as honorarium to an individual in a financial year to Rs.
5,000/- creating confusion whether the same was within the delegated powers of the Ministry.
3. The matter has been considered and it is clarified that the honorarium payable to IO/Presenting Officer for conducting inquiry
in departmental. Proceedings would be outside the purview of the general delegation under FR46B.
4. This issues with the concurrence of Department of Expenditure vide their I.D. No. 14/4/2009-E.II(B) dated 16-05-2014.
(DOPT No. 142/15/2010-AVD.I dated 23.06.2014)

31. Revision of rates of honorarium to Inquiry Officers (serving part time/retired) and Presenting Officers.
The undersigned is directed to refer to this Directorate's letter No. 17-120-/94-ED &Trg dated 29-01-1996 followed by OM
No. C-32016-03-2005-VP dated 23-08-2005 under which rates of honorarium payable to Inquiry officers (serving part time/retired)
and Presenting officers were laid down in connection with disciplinary proceedings against the GraminDakSevaks (earlier called Extra
Departmental Agents) and to say that existing rates of honorarium to the Inquiry officers (serving part time/retired) and Presenting
officers have been reviewed.
2. As result of the review, it has been decided in consultation with Integrated Finance advice that the competent authority
may consider sanction of honorarium to inquiry officers (serving part time/retired) and presenting officers subject to a minimum of
Rs. 3000/- and a maximum of Rs. 6000/- in each case depending upon the quantum and nature of work involved, complexity of the
case, time taken for completion of the inquiry, etc. and the decision of the competent authority disbursing the honorarium will be
final.
3. It is further clarified that the honorarium payable to IO/PO for conducting inquiry in departmental proceedings against GDS
would be outside the purview of te general delegation under FR 46B.
4. These orders will take effect from the date of issue.
This issues with the concurrence of the Integrated Finance Wing vide Diary No. 331/FA/ 2015-CS II dated 29-12-2014.
(DG (P) No. 17-9/2013-GDS (Pt) dated 29.12.2014)

32. Grant of honorarium to MTS/Group ‘D’ officials when appointed to work as Despatch Rider/Scooter Driver/Staff Car Driver for
short period in the absence of Despatch Rider/Scooter Driver/Staff Car Driver – Revision of rates –
Reference is invited to this Department’s O.M. No.17016/6/87-Estt.(Allow) dated 25th February, 1988, on the captioned subject and
to revise the rates of honorarium with immediate effect as under:

1. MTS/Group ‘D’ officials when appointed to work as Rs. 10/- per day.
Despatch Rider/Scooter Driver
2. MTS/Group ‘D’ officials/Despatch Rider/Scooter Driver Rs. 20/- per day
When appointed to work as Staff Car Drivers
2. The amount of honorarium shall be subject to the ceiling as envisaged in FR 46(b) and instructions issued by this
department from time to time.
3. In so far as persons working in the Indian Audit and Accounts Departments are concerned, these orders issue in
consultation with Comptroller and Auditor General of India.
(DOPT No. 17011/01/2011-Estt.(AL) dated 17.04.2013)

33. Grant of Honorarium to Inquiry Officers (IO)/Presenting Officers (PO) – Consolidated instructions regarding
10
 The undersigned is directed to say that the Department of Personnel and Training have issued instructions vide NO
1344/99-AVD-I dated 29th June 2001 and 7th April 2003 on the subject of honorarium to the Inquiry Officers and Presenting Officers
covering the aspects of rates of honorarium, appointment of retired officers as Inquiry Officer, terms and conditions for payment of
honorarium etc from time to time. The rates of honorarium payable to IO/PO were last revised vide this Department’s OM No
142/20/2008-AVD-I dated 27th July 2009.
2. A Committee of Experts set up to review the procedure of Disciplinary /Vigilance inquiries and to recommend measures for
their expeditious disposal under the chairmanship of P.C Hota, former Chairman of UPSC in May 2010 had made a series of
recommendations in July 2010 including the rates of honorarium. The detailed recommendation of the expert committee is available
on the website of this Department. It can be accessed through the Link.
http://persmin.nic.in/DOPT/Publication/CommitteeReport/HotaCommitteeReport/HotaCommitteeReport.pdf. The Committee had
made specific recommendations as regards the rates of honorarium to IO/PO. The Recommendations of the Committee on the
proposed increases in Honorarium relating to IO/PO are contained in paras 37, 42-44 of the report of the Committee.
3. The recommendations of the Expert Committee on the aspect of revision of rates of honorarium along with some other
related measures were examined in the Department and was placed before the Group of Ministers on Corruption, set up for
examining measures, including legislative and administrative, to tackle corruption and improve transparency. The Group of Ministers
while considering the Terms of Reference also considered the recommendations of the HOTA Committee and recommended that the
remuneration of the IOs and POs may be fixed, keeping in mind the recommendations of the HOTA Committee. These
recommendations of the GOM have been accepted by the Government.
4. It has therefore been decided to revise the existing rates of honorarium payable to IO/PO in line with the
recommendations of the Expert Committee. The revised rates of Honorarium and other allowances payable to IO both serving and
retired officers and PO(serving) and the terms and conditions governing the same is indicated in Annexure-I to this OM. The rates of
Honorarium stated therein are ceilings and the concerned Ministry/Department where the misconduct was committed may decide
the exact quantum of honorarium to be paid keeping in mind the volume of work involved in specific cases and the terms and
conditions indicated in the Annexure-1.

5. The revised structure of rates of honorarium and allowances as indicated in Annexure-I are intended to be made applicable to
Departmental Proceedings including inquiry proceedings undertaken by the Committee on Sexual Harassment, by
Ministries/Department in respect of officials/officers serving under different cadres of services under their administrative control.
However, in case a cadre of service or organisations such as autonomous bodies have a separate set of rules and instructions for
regulating honorarium to IO/PO in existence they may choose to continue with their own set of instructions. Fully or partially funded
autonomous bodies may retain their own provisions so long as they are not more beneficial than what has been proposed in this
OM.

6. This orders will take effect from the date of issue of this OM and will also apply to all inquiries in progress.

7. The services of serving officers may be used as IP and PO to the extent possible in the conduct of departmental inquiries. However,
Central Vigilance Commission has been requested to create and maintain a panel of retired officers/officials willing to serve as IO for
conducting departmental inquiries and for this purpose also design a procedure for inviting applications from the retired
Government Servants to be followed by the Ministries and Departments. Till such time such a panel of retired officers become
available from CVC, the concerned ministries/departments may, where it is not possible to use the services of a serving officer as
Inquiry Officer for conducting departmental inquiries, use the services of officers who have retired from Ministries/Departments, for
conducting such departmental inquiries.

8. This issues with the concurrence of Ministry of Finance, Department of Expenditure vide their UO no. 14(4)2009-E-II (B) dated
26.03.2012 and 05.06.2012.
(DOPT OM No.142/15/2010-AVD-I dated 31.07.2012)
Annexure-I
Revised Rates of Honorarium and other allowances payable to Inquiry Officer and Presenting Officers in Departmental
Proceedings and Terms and conditions of grant of honorarium.

1. The revised rates of honorarium payable in cases of departmental proceedings will be regulated within the range of rates
indicated in the table below:

Particulars/Details Range of Rate per case Recommended by the

Committee and Accepted by the Government (Rs. Per
case)
1(a) 1(b) Minimum (a) Maximum (b)
Honorarium i) IO (serving – Pt time) i) 5000 10000
ii) IO (retired) ii) 15000 75000
iii) PO (serving – Pt time) iii) 5000 10000
Transport i) IO (retired) i) 15000 40000
Allowance
Secretariat i) IO (retired) i) 30000 per case if no assistance is provided by
Assistant department.

11
2. The grant of Honorarium in the case of serving Government servants who are appointed as part time Inquiry Officer/Presenting
Officer and retired Governments appointed as Inquiry Officers will be subject to the following conditions: -
(i) The honorarium will normally be regulated under the financial powers delegated to the Ministries/Departments and taking into
account the quantum of work involved in individual disciplinary cases.
(ii) In the case where serving officers are appointed as IO/PO, the controlling department or the administrative department should
make all efforts to relieve the IO/PO of his normal duties to enable him/her to complete the proceedings expeditiously.
(iii) Before the payment is received by Inquiry Officer/Presenting Officer, whether serving or retired, it will be the responsibility of
the IO/PO to ensure that
a. All case records and inquiry report (two ink signed copies) properly documented and arranged is handed over to the
Disciplinary Authority by the Inquiry Officer/Presenting Officer.
b. The report returns findings on each of the Article of Charge which has been enquired into and should specifically deal and
address each of the procedural objections, if any, raised by the charged officers as per the extant rules and instructions.
c. In deciding the exact quantum of honorarium within the indicated range in the table above, the quantum and nature of
work involved, rank of the Inquiry Officer, the complexity of the case, time taken for completion of the inquiry etc. will
have to be kept in view and the decision in this regard of the department disbursing the honorarium will be final. It may
particularly be ensured that the full amount of honorarium pre decided to be paid as per the slab is not paid if the inquiry
has not been completed within a period of six months. If there is a delay in completion of the inquiry which is not due to
non-cooperation of the charged officer or due to stay orders etc. the honorarium should be reduced by 50%
(iv) The number of disciplinary cases may be restricted to 10 cases in a year, with not more than 2 cases at a time for serving
Government servants and 20 cases with not more than 4 cases at a time for retired Government servants.
3. In addition to the terms and conditions indicated in para 2 above, the retired government servants appointed as IO shall
maintain strict secrecy in relation to the documents he/she receives or information/data collected by him/her in connection with the
Inquiry and utilize the same only for the purpose of Inquiry in the case entrusted to him/her. No such documents/information or
data are to be divulged to any one during the Inquiry or after presentation of the Inquiry Report. The I.O. entrusted with the Inquiries
will be required to furnish an undertaking to maintain strict secrecy and confidentiality of all records/documents/proceedings etc.

V. INCENTIVE STRUCTURE FOR NREGS WORK

34. Incentive structure for NREGS work

Revised Incentive Structure to Post Office staff involved in MGNREGS related work - regarding.
This is regarding the revised incentive structure payable to post office staff involved in MGNREGS related work. In this connection
it is intimated that the incentive structure was issued to Circles vide RB division's letter of even no. dated 18-01-2010
2. For MGNREGS transactions, incentive to post office staff will be paid for the following three activities of MGNREGS work. The
details of which are as follows:
(i) Incentive for opening of MGNREGS accounts
(ii) Incentive at BO/SO level making MGNREGS payments
(iii) Incentive at back office level for making ledger entries
3. The following rates of incentive have been approved for post office staff performing MGNREGS work
(i) Incentive for opening new MGNREGS account:
(a) At the rate of Rs. 0.50 per new account payable to GDS BPM
(b) At the rate of Rs. 0.40 per new account to PA in SO/HO and Rs. 0.10 per new account to supervisor in SO/HO.
(c) At the rate of Rs. 0.30 per new account to ledger assistant and Rs. 0.10 per new account to ledger supervisor in the account office.
(ii) Incentive at BO/SO level making MGNREGS payments: No threshold limit is fixed for payment of incentive under
MGNREGS. Incentive will be paid on each and every transaction.

Sl. No. Office Designation Rate of incentive

1. EDBO GDS BPM Rs.1.50 per MGNREGS payment
Other GDS (if available and performing Rs.0.20 per MGNREGS payment
MGNREGS work)
2. SOs/Hos Official doing operative work of MGNREGS Rs. 1.30 per MGNREGS payment
Official supervising operative work of Rs. 0.20 per MGNREGS payment
MGNREGS, if any.
Group D/Packer/GDS packer (performing Rs.0.20 per MGNREGS payment
MGNREGS work)
(iii) Incentive at back office level for making ledger entries

Sl. No. Office Designation Rate of incentive

1. SO Ledger PA Rs. 0.10 per MGNREGS deposit
Rs. 0.10 per MGNREGS withdrawal
Supervisor Rs. 0.05 per MGNREGS deposit
2. HO Ledger PA Rs. 0.10 per MGNREGS deposit
Rs. 0.10 per MGNREGS withdrawal
Supervisor Rs. 0.05 per MGNREGS deposit
Rs. 0.05 per MGNREGS withdrawal

12
 The incentive would be paid only when it is ensured that all the ledger entries are completed in respect of MGNREGS
accounts.
4. Ceiling on payment of incentive : With regard to monthly ceiling of incentive to be paid to GDS employee, it has been decided that
monthly ceiling for payment of incentive will be the upper limit of TRCA+DA paid to GDS to maintain uniformity. In respect of
Departmental officials working in Sub-Office and Head Post Offices, the existing Dept. of Personnel &Trg. / Govt. of
India/Departmental instructions on the payment of incentive and annual ceiling would apply.
5. Operational Procedure for making incentive payment
In order to make the operational procedure for claiming of MGNREGS incentive simple, it has been approved that the
responsibility for payment of incentive to Gramin Dak Sevak will be vested with SPMs (of account SO) and in respect of officials of
SOs to Head Post Masters (of account HO). Incentive will be claimed on monthly basis along with a voucher on the dates of
occurrence of MGNREGS payments/opening of MGNREGS accounts. In order to restrict the incentive to the TRCA, an incentive
register will be maintained at Sub-Office level and HO level. Detailed operational procedure for claiming incentive for MGNREGS
payments at BO and SO level and for back office operations is being outlined as under :
i) The Muster Roll along with names of the beneficiaries is received in the BO from the State Government and the BPM has to
effect payment of withdrawals to the beneficiaries. The BPM has to maintain separate SB journal for MGNREGS payments and should
send a list of MGNREGS payments effected on a particular day to the Account Office along with the copy of the Muster Roll and
Withdrawal Forms (Passed warrants) indicating the amount. The BPM will prepare a voucher for claiming the incentive for the
MGNREGS transactions for himself and the other Gramin Dak Sevaks in the BO on monthly basis to the Account Office. The Account
Office in turn will verify the payments with reference to BO Daily Accounts and separate journal maintained at SO/HO levels and
authorize the payment of incentive and return the voucher to the BO duly authorizing payment. Money paid voucher (ACG-17) will
be used for this purpose. On payment, the voucher will be sent to HO by charging the expenditure under bills paid. The HO will
account the vouchers after due classification under the relevant Head of Account.
ii) SPMs will maintain a Register, like to the Register of commission paid to BPMs in respect of SB/TD and savings Certificate
indicating the payment of incentive to the GDS BO-wise and GDS name wise for applying ceiling criteria and will ensure that the
incentive does not exceed the upper limit to TRCA+DA payable to each GDS in a month.
iii) In respect of MGNREGS payments taking place at the Sub-Office, the SPM will prepare a voucher for payment of incentive for
transactions occurring at his SO only and submit the voucher to the HO for checking and authorizing the payment. Here also, the
same procedure outlined above will be adopted. Head Post Office will maintain a register for payment of incentive to ensure that
payment of incentive to particular department officials (Including Gr. D) and GDS official does not exceed the prescribed ceiling.
iv) The SPMs will be responsible for monthly payment of incentive for the BOs and the Head Postmasters will be responsible for the
incentive payment in respect of the Sub-Offices. The SPM should obtain incentive vouchers subsequently from BPMs, who failed to
send it along with BO Daily Account.
v) Procedure for payment of incentive for back office operations - Incentive will be paid at back office level for making ledger entries.
The incentive for the Sub-Post Offices for NREGS transactions will be authorized by the Head Post Master (HPM) after due
verification with reference to records. In respect of back office work at HPO, the APM SB or Dy PM SB in charge of SB Branch have to
prepare a incentive claim and send to the Divisional Office with due certification of Head Post Master (HPM) on the aspect of
completion of ledger Posting. The Divisional Office will authorize incentive payment for back office level transactions at HO subject to
the annual ceiling. It will also watch expenditure on incentive in Divisions, so that it remains within the availability of fund.
vi) This letter issues with the concurrence of IS& FA (P) and approval of Secretary (Posts).
(DG (P) No. 01-14/2009-RB dated 03.07.2013)

VI. INCENTIVES FOR MISC WORKS

35. Payment of incentive for seeding of Aadhar Numbers in POSB accounts held by the beneficiaries of MGNREGA/Other Social
Security Benefits Schemes-reg.
It has been observed that the progress achieved in seeding Aadhar numbers by Circles is very slow and it was suggested by Circles
that an element of incentive would give fillip to our ongoing strategy to complete the task within the time frame fixed by GOI i.e. 31-
3-2017.

2. Competent Authority has examined the case in consultation with IFW and decided that an incentive at the rate of Rs.1/- may be
paid to the staff for Seeding Aadhar numbers and obtain consent of beneficiaries of MGNREGA and other Social Security Pension

Accounts. The expenditure incurred on this account may be met from the amount allotted under MGNREGA Administrative Cost for
the year 2016-17 and further requirement of funds if any, may be projected in future. This issue with the approval of Secretary
(Posts).
(DG (P) No. 10-59/2013-RB dated 08.02.2017)

36. Payment of incentive to postal staff engaged for issuing railway reservation tickets under PRS scheme
This is regarding payment of incentive to the postal staff engaged for issuance of railway reservation tickets under PRS scheme.
It has been decided by the Department that incentive to the postal staff will be paid at the following rates:
a) Incentive for Booking Assistant at PRS counter Rs. 3/- per ticket.
b) Incentive for supervisor at PRS counter Rs. 1/- per tickets
It would also entail that such work would be performed over and above the normal duties given to them officially and also
that no additional establishment would be asked for nor OTA demanded on that basis.
(DG(P) No. 71-03/2005-BD&MD/Vol-II dated12.05.2008)
13
37. Clarification on incentive to GDS officials
Certain Circles have raised a query whether GDS Officials (other than GDS BPM/SPM) are eligible to get incentives for
procurement of RPLI business and if so at what rate.

2. The issue has been examined in this Directorate. In this context, I would like to draw your attention to Para 10 of the original
Gazette Notification dated 15.03.1995 on RPLI Scheme. GDS BPMs and GDS SPMs (besides that Departmental SPMs in rural areas)
were authorized to work as Agents for procurement of Insurance business under the Rural PLI Scheme in their respective jurisdiction
in that Notification.

3. Subsequently, Para 10 of the original Notification dated 15.03.1995 was modified vide this Directorate order No. 5-1/94-LI dated
23.02.1996 and EDDAs/EDMCs and Postmen serving in rural areas were also authorized to procure RPLI business as Agents in their
respective areas. Therefore the commission rate as applicable to the GDS BPMs/GDS SPMs were automatically extended to all to the
categories of GDS staff authorized to work as Agent in rural areas viz. GDS MDs/GDS MCs/GDS packer/GDS TMs etc. and Village
Postman. All categories of GDS staff are also authorized to procure PLI business and incentive at the rate prescribed for RPLI shall be
payable. This may be brought to the notice of all concerned.
(PLI Directorate D.O No.35-15/78-LI (Pt) dated 13.11.2007)

38. Provision for incentive to postal staff out of commission earned under business packages
A proposal regarding payment of incentive to Postal staff for carrying out the work under business packages, out of
commission earned under such business packages has been received from some circles.
While approving the proposal for booking of railway tickets under PRS Scheme, Secretary (Posts) has observed that the
Department has greatly expanded the scope and number of business partnerships with a variety of organizations ranging from
Government to private and at the same time has also introduced a number of new services/products of its own. A clear enunciation
of policy, therefore, is called for at this juncture, so that the pattern of compensation for the additional work which the staff at
various levels is being required to do, may be understood by all concerned and there may be no further confusion or proliferation of
views in the matter. Given the largely temporary nature of partnerships and tie-ups with outside organizations/agencies which
involve occasional work it would not be in the Department's long term interests to link the additional workload to norms and
standards for sanction of additional staff because that would saddle up permanently with additional establishment (or at least
justification for additional establishment which would then give rise to demand for OTA), whereas the work itself may cease to be
required after a period of time. While it is possible that the additional work on behalf of outside agencies would mostly come to
precisely those offices who are already over-burdened with work. This is because of their location/nature of work, business profile
etc. It would of course be necessary to identify the offices with spare capacity and make adjustments locally through regular review
of establishment (which is an ongoing exercise), the most practicable and workable method of compensating the worker for
additional item of work would be to part with the portion of commission or fee paid to the Department by the user organizations.
This would clearly imply that such work would be performed over and above the normal duties given to them officially and also that
no additional establishment would be asked for no OTA demanded on that basis.

In the light of the above, the undersigned has been advised to communicate that the staff performing additional work,
which are not taken into account for arriving at the establishment required for that office, may be compensated up to 25% of the
additional revenue earned from such business tie-ups.
Above guidelines may be kept in view while finalizing business packages.
(DG (P) No.16-16/2007-08/BD&MD/P.II dated 13.12.2007)

39. Incentive to the staff performing International Money Transfer Service (IMTS) transaction in the Post Offices - reg.
The Department has been offering international Money Transfer Service (IMTS) in association with Western Union (since
2001) and with Money Gram (since 2011). After attaining peak in 2008-09, the revenue from the IMTS is continuously declining and a
steep fall has been noticed this year. There has been decrease of 36.54% this year up to November, 2014 when compared with the
revenue up to November, 2013.
2. At present, the IMTS service is available in 9943 locations are still dormant. This needs to be addressed. India is the largest
recipient of remittances all over the world and the remittance business has continuously seen a positive growth in India. The revenue
share of our partners is also continuously growing whereas the revenue share of Department of posts is not only decreasing but has
seen steep fall.
3. To stop this declining trend in IMTS business and to regain our share of revenue we need to motivate staff. The Competent
Authority has decided that an incentive of Rs 25/- per transaction shall be given to the staff engaged in doing IMTS transactions, in
addition to the work assigned to them as per the Distribution of work (DoW) Memo. This incentive shall be given for doing the
transaction of both, WUMT as well as of Money Gram. This incentive is being given on experimental basis till 31st March, 2015. The
growth in business shall be reviewed fortnightly in the Directorate. The matter shall be taken up for further extension of the
incentive only if a considerable growth in the revenue is observed. The eligibility of incentive shall be with prospective effect.
4. The customer care will remain of paramount importance for providing this service. The customer of this service will
continue to be the MOST FAVORED CUSTOMER and shall be treated courteously. However, any expenditure, if incurred to offer
tea/coffee/cold drinks etc. to the customer or any other expenditure in this regard will have to be managed out of this incentive. No
other incentive/expenditure shall be admissible for providing this service and/ or for entertaining customers except than what has
been provided for in para '3' above.

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5. The matter has been taken up with Postal Finance & Accounts (PAF) wing for allotment of a relevant head in which this
incentive shall be charged and the same shall be conveyed subsequently.
This issues with the concurrence of JS&FA and approval of Secretary (Posts).
(DG (P) No. 95-28/2012-FS dated 24.12.2014)

VII. PLI / RPLI Incentives

40. Revised incentive structure of PLI/RPLI

The matter regarding putting in place an appropriate marketing (sales) and incentive structure for PLI and RPLI has been
receiving attention in the Department for quite some time.

2. Considering the need for professionalism in selling policies and ensuring better after sales service, the matter was
discussed during Heads of Circles Conference held from 20th May 2016 to 22nd May 2016 at Hyderabad and thereafter examined by
the Postal Services Board in detail.

3. In light of the decisions taken by the Postal Services Board in its 6th meeting for 2016 held on 06.07.2016, the orders for
revised Marketing (Sales) structure for PLI/RPLI were issued vide this Office OM of even no dated 10.08.2016.

4. In keeping with the new Marketing (Sales) structure, the incentive Payable to PLI sales force has now been revised keeping
the following objectives under consideration:

(i) Make the incentive structure for PLI sales force into a Group Incentive.

(ii) Make the PLI incentive structure based on premium income, as against the existing norm of the incentive based on sum
assured.

(iii) Make the PLI incentive structure such that medium to long-term policies are more attractive from sales perspective.

5. Accordingly, the revised incentive structure for PLI sales force is as follows:
5.1 Incentive for PLI Sales Force other than Army Postal Service:
5.1.1 Procurement incentive
a) Policies other than Anticipated Endowment Assurance (i.e. WLA, CWLA, EA, Children policy and YugalSuraksha):

Premium paying term Incentive Structure

Up to and equal to 15 years 4% of first year premium income
More than 15 years but less than or equal to 25 years 10% of first year premium income
More than 25 years 20% of first year premium income

b) Anticipated Endowment Assurance policies:

Premium paying term Incentive Structure

less than or equal to 15 years 5% of first year premium income
with term beyond 15 years 7% of first year premium income

5.1.2 Renewal incentive:

2% of renewal premium in respect of cash PLI policies of all types to all categories of PLI sales force.

5.1.3 Incentive for Group Leaders:

Group Leader will be paid 7% of the group incentive i.e. 7% of the total incentive for procurement and renewal payable to
the sales force assigned to him/her. Thus, incentive for Group Leader will not be in addition to the incentive payable to the sales
force but a part of it.

5.2 For PLI Sales Force other than Army Postal Service:
APS sales force will be entitled to incentive for procurement only. The rate of incentive will be 50% of incentive rates
applicable for other categories of sales force as mentioned at para 2.1.1 above.

6. The incentive structure for RPLI remains unchanged as under:

(i) 10% of first year premium income towards the RPLI policies procured by sales force.
(ii) 2.5% of renewal premium income in respect of RPLI policies procured on or after 01.10.2009.

In addition, Sub-Divisional Heads (IPO/ASPO) shall get 10% of procurement incentive payable to GDS under her/his
jurisdiction, on account of verification of RPLI proposals.

7. The revised incentive structure shall come into force from 01.04.2017.
(DG (P) No. 28-06/2014-LI dated 03.05.2017)

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41. Timely payment of incentives
I hope you liked the three days interactive session with Secretary (Posts), Member(Tech) and officers of the PLI Directorate
at Madurai and Kodaicanal. I thank you all for the useful interaction during the course of these 3 days. At the same time I would like
to take this opportunity to remind ourselves of some of the important targets/deadlines we had set upon ourselves to ensure that
the PLI/RPLI excel not only in terms of business performance, but also in terms of improvement in after-sales service. Some of the
important decisions are indicated below for your ready reference:-
(i) Feeding all pending proposals and issue of policy documents-The target date is 31.10.10.
(ii) Achievement of business target-The focus is on premium income in case of PLI and on both premium income and number
of policies in case of RPLI (because of certain commitment made on numbers on RPLI policies in the RFD Documents). Kindly recall
that we had decided to reimburse at least Rs. 500 cr. to the Department of Posts from the POIF/RPOIF.
(iii) Procurement of business through Agents-At least 10% should be procured through Agents. This would require
empanelment and training and interactions with agents at your level.
(iv) Uploading of all pending schedules-This is important as we intend allowing the insurants to access the status of their ledger
postings.
(v) Claim case-No claim cases should be pending beyond norms (except RPLI death case) as on 31.10.10. In case of RPLI death
cases, the target date is 30.11.10.
(vi) Settlement of UAs-Unadjusted items not to exceed 5% of the posting made within 3 months.
(vii) Timely payment of incentives to the Agents/GDSs etc.-The incentives can be paid on monthly basis without waiting for
12 months period in case of new policies.
(PLI Dte.D.O. No. 7-04/Pt/2010-LI dated 04.10.2010)

42. Payment of Incentive to RPLI Sales Force

1. This relates to payment of incentive to RPLI sales force and has reference to PLI Dte letter No.26-2/2009-LI date 18.09.2009.
2. Reports on utilization of funds allotted under the Head 3201.03.101.09.28 (PPS) shows that out of the total allotment of Rs 33.55
Cr only a meager 7.5% of funds (Rs 2.66 Cr) have been booked till 31.08.2010 by the Circles. Secretary (Posts) has taken a serious
note of under utilization of allotted funds so far. It is observed that payment of incentive to RPLI sales force is not being made on
regular intervals i.e. on monthly/quarterly basis. Under the provisions of item 6 (ii) and (iii) of PLI Directorate letter under reference,
incentive against the RPLI business procured on or after 01.10.2009 is to be paid monthly by Divisional Head @ of 10% of first year
premium income and 2.5% of premium income subsequently.
3. Some Circles are still under the impression that incentive towards first year premium income @ 10% of premium income is
payable only after completion of a year. It is clarified that, as clearly spelt out in the letter under reference payment of incentive to
RPLI sales force at the rate of 10% of first year premium income and 2.5% of subsequent years premium income, towards the
business procured w.e.f. 01.10.2009, should be made by Divisional Head concerned. For releasing the incentive payment against first
year premium income @ 10% to RPLI Sales force, it is not necessary to wait till completion of 12 (twelve months) of currency of the
policy as is being done by some Circles, This incentive to RPLI Sales force can be paid on monthly or quarterly basis, Similarly, the
policies procured on 01.10.2009, would be completing 1st anniversary on 01.10.2010 and 2.5% of renewal premium deposited from
October, 2010 onwards against these policies is payable to RPLI sales force. This should also be payable on monthly or quarterly
basis. Towards the RPLI policies procured prior to 01.10.2009, the old incentive rate will be payable.
4. As regards implementing the system of generating incentive sanction through software, the pre-requisite of the system is the
registration/allotment of Agents ‘Code to entire Sales force viz GDS employees, Department employees, F.Os (PLI), D.O. (PLI) and
Direct Agents etc. Therefore, entire PLI/RPLI Sales force has to be allotted Agents code so as to facilitate system generated incentive
sanction in respect of each person. The detailed procedure for the same is laid down in letter No 26-2/2009-LI dated 18.09.2009 and
28-05/Mkt/2007-LI dated 06.09.2010. As on date a total of only 2997 RPLI Sales persons are registered with the system which
includes all categories of RPLI sales force apart from Direct Agents (list enclosed). Hence, all out efforts should be made to allot
Agents Code to all Sales force.
5. Till the sanction memo for incentive is generated through system, incentive to all Sales force should be made on
monthly/quarterly basis by Divisional Heads concerned.
6. It is requested to utilize the funds allotted under the Head 3201.03.101.09.28 PPS up to the fullest extent.
(PLI Directorate No. 35-18/78 (PLI) dated 06.10.2010)

43. Payment of Incentive to DO (PLI) - Revision thereof and the conditions for extension of the tenure of DO (PLI).
Ref: Earlier references on the above subject.
(i) Letter No.25-4/2002-LI dated 22.7.2004,
(ii) Letter No.25-4/2002-LI dated 18.03.2005 and
(iii) Letter No.25-4/2002-LI dated 14.11.2006.
Reference is invited to PLI Directorate's letters cited above. The incentive free business for DO (PLI) was last revised under
this office letter of even number dated 18.3.2005. The average sum assured of new business in PLI at that time i.e. in 2004-05 was
Rs.1.1 lakh. The average sum assured of new business in PLI has now more than doubled to Rs.2.24 lakhs in 2009-10. Accordingly,
the incentive free business for DO (PLI) needs to be raised at least in the same proportion. Moreover, during this period, the income
of eligible clientele has also gone up considerably on account of revision of pay etc. The matter was, therefore, considered and it has
been decided by the competent authority to increase the limit of incentive free business for DO (PLI) from Rs.4 crore to Rs.9 crore.
2. Subsequent to increase in limit of incentive free business as proposed in above para, the revised incentive structure of DO
(PLI) would be as under:

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 Upto Rs.9 Crore of Sum Assured Nil
Above Rs.9 Crore and upto Rs.11 Crore of Sum Rs.25/- per Rs. ten thousand of Sum Assured
Assured
Above Rs.11 Crore of Sum Assured Rs.20/- per Rs. ten thousand of Sum Assured

3. Further, under Directorate letter of even number dated 22.07.2004, a DO (PLI) was required to procure a minimum business
every year to make him eligible to work as DO (PLI) in the next year. To procure business, DO (PLI) need to familiarize himself/herself
with business procurement techniques and also with the eligible clientele. DO (PLI) should, therefore, be appointed for a minimum
tenure. It has, therefore, been decided that a DO (PLI) will initially be appointed for a tenure of three years. DO (PLI) would be
eligible for extension of tenure in subsequent years as follows:
(a) To get extension for 4th and 5th year, the DO (PLI) should have procured average business of Rs.10 crores in first two
years.
(b) To get extension for 6th and 7th year, the DO (PLI) should have procured average business of Rs.12 crores in the 3rd and
4th year.
(c) To get extension for 8th and 9th year, the DO (PLI) should have procured average business of Rs.14 crores in 5th and 6th year.
(d) To get extension for the10th year, the DO (PLI) should have procured average business of Rs.16 crores in 7th and 8th year.
(e) For extension beyond 10 years, the DO (PLI) should procure minimum business of Rs.20crores in each year.
4. However, continuation of DO (PLI) in any year as stated in para 3 above, is subject to the condition that the DO (PLI) should
have procured business of not less than Rs.9 crores in the previous financial year. For example, a DO (PLI) may get an extension for
6th and 7th year as he procured average business of Rs.12 crores in the 3rd and 4th year. However, if at the end of the 5th year if
the DO (PLI) has procured a business of less than Rs.9 crores in the 5th year, the DO (PLI) would be terminated immediately
thereafter notwithstanding the fact that he was earlier given an extension of tenure for the 6 th& 7th year. Circles should, therefore,
evaluate the performance of the DO (PLI) within two months of the close of the previous financial year and in case, it is found that
the DO (PLI) has procured a business of less than Rs. 9 crores in the previous financial year, he should be terminated immediately
thereafter.
5. DO (PLI) procuring business exceeding Rs.25 Crores in a year would be designated as Sr. DO (PLI) and would be provided
additional facility by way of infrastructure support and training in specialized Marketing and Insurance Institutes.
6. These orders would be applicable from current financial year 2011-12.
7. This issues with the approval of the competent authority.
(DG (P) No.25-4/2002-LI dated 25.05.2011)

44. Grant of incentive/lump sum incentive to PLI marketing staff for procuring PLI business.
This is regarding grant of incentive/lump sum to PLI marketing staff for procuring PLI business and has reference your D.O
letter No. PLI/Incentive/Dlgs dated 12th May, 2011,
In this regard it is intimated that software issues pointed out in para 1 to 4 of your D.O letter has been resolved by NIC and
has been tested by DDM (PLI), Karnataka Circle.
Deduction of income tax, Cess etc. should be made in the sanction issued by the Circle Office instead of software, because
the tax rates depend on the total income of the marketing person during the whole financial year and varies for each person.
Incentive for the year 2010-11 can be settled in the year 2011-12 as the whole business procured in year 2010-11 should
become effective in the month of September, 2011. The process of grant of incentive cannot be continued for several years as
mentioned in your D.O., if any business procured be marketing person in the year 2010-11 does not become effective the marketing
person shall not be entitled to claim incentive for that business even if it becomes effective later on.
(DG (P) D.O No.6-3/2008-LI (Ktk) dated 02.06.2011)

45. Incentive to Mailoverseers for procuring RPLI Business.

This is regarding clarification on the following item proposed for discussion in the JCM.
Clarification : Rule 5(22) of Post Office Insurance Rules, 2011 defines that "marketing staff" is an official or person who is authorized
by the Postmaster-General or Head of Division to procure Postal Life Insurance and Rural Postal Life Insurance business. The
marketing staff includes IPOs, ASPOs, ASRMs, Ex.DO(PLI), PRI(P), Postmasters, Selected Postal Assistant, Postman, Retired GDS BPM,
DO(PLI), Field Officer(PLI), SPM (Rural S.O), GDS staff and also includes Direct Agents such as Anganwadi worker, MahilaMandal
worker, Ex-Serviceman, Retired school teacher, SHGs, Gram Pradhkan & Member Gram Panchayat and any other official/persons as
considered suitable by the Head of Postal Division. As such, if Mailoverseer is engaged- depending upon suitability in procuring RPLI
business/policies, he also entitled for incentive as par with other Departmental officials.
(Dte. PLI No.30-1/2010-LI dated 21.02.2012)

46.Payment of incentive to the department employees, field officers and GraminDakSevaks for procuring PLI business
It has come to the notice of this Directorate that PLI incentive payment to our sales force viz., Development Officers,
identified Departmental Employees, Field Officers and GraminDakSevaks are getting enormously delayed in almost all circles for
various reasons. Such delays demoralize our sales force in procuring new business. The issue has been examined in great detail at
this Directorate and it has been found that the main reasons for delay in payment of incentive are as follows:
(i) Head Offices are not always sending the Premium Schedules in time to the CO/RO.
(ii) Even if the Schedules are received in time, Ledgers are not updated immediately at the CO/RO and in consequence the
process or verification that a new insurant has paid first six monthly premiums, gets inadvertently delayed and till that time no
incentive is paid to the Salesman who had procured the business.
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(iii) In some cases because of the transfer of the insurant immediately after procuring a policy makes verification of first receipt
of first six premiums become extremely difficult.

2. It has been found that the lapsation rate in PLI is quite low now-a-days. This is because the insurants are coming from organized
Governmental/Semi Governmental Sector and are in general more alert and educated. They are also having steady source of salaried
income. Keeping these issues in mind, it has been decided that 90% of the incentive due to PLI Agent can immediately be released on
acceptance of a PLI proposal. Remaining 10% will be released only on verification of receipts of first six. PLI premium as envisaged in
this Directorate No.19-1/98-LI dated 14.06.2000. This order will not be applicable in case of Rural PLI.
Circles are requested to project their requirement of fund for payment of incentive accordingly. While projecting the
budgetary requirements they should keep in mind recent growth of business and delay in payment of incentive to our sales force for
procurement of PLI business should be avoided by all means.
This order issues with the concurrence of the internal finance of the PLI Directorate dated 26.12.2007.
(PLI Dte. No. 35-15/78-LI(Pt) dated 07.01.2008)

47. Mapping of Agent to & payment of incentive from HO-reg.

In order to streamline the incentive / commission payment mechanism, it has been decided that in the new system
disbursement of incentive / commission to our sales force would directly be credited in their Post Office Savings Bank Account. In
this regard an instruction vide this office letter No. 35-15/78-LI dated 17-07-2013 has already been issued to get the Savings Account
of all Sales force opened in Post Offices and keeping the information in Divisional offices.
2. Before migration of legacy data to new software there is need that all agents / sales force of PLI and RPLI are mapped to an HO
in the existing NIC system and the provision of payment of incentive to the agents/sales force are implemented in the legacy system
also. Karnataka Circle has already done this in their Circle.
3. The procedures for mapping of agent to & payment of incentive from HO have been shared by Karnataka Circle with PLI
Directorate. The same are enclosed for ready reference.
4. It is therefore, requested to map all agents/sales force of PLI and RPLI to an HO in the present software as per procedures
enclosed latest by 30-11-2013
5. A confirmation from the Circle must be sent to the following email ID by 04-12-2013.

48. Regarding payment of incentive to SDI/ASP Sub Divisions for verification of RPLI proposals.
This is regarding incentive payable to SDI/ASP for verification/ scrutiny of RPLI proposals submitted by GraminDakSewaks
and GraminDak BPM's and has reference to PLI Directorate order No. 35-15/78-LI (Vol. III) dated 19.3.96, DO NO 26-02/2003-LI dated
20.9.2007 and letter No. 26-02/2009-LI dated 18.9.2009.
2. Consequent upon issuance of revised incentive structure for PLI/RPLI sales force, some circles have raised doubts about
admissibility of incentive to SDI/ASP for verification of RPLI proposals procured by GraminDakSewaks and GraminDak BPM's. It is
clarified that SDI/ASPOs shall be paid incentive equal to 10% of the procurement commission paid to GraminDakSewaks and
GraminDak BPM's whose proposals are verified by such SDI/ASP. This will be limited to only the first year premium income
commission earned by GraminDakSewaks and GraminDak BPM's on such proposals.
3. Provisions of PLI Directorate letter No. 35-17/78-LI (Vol III) dated 19.3.96 regarding admissibility of incentive to SDI/ASP for
verification/ scrutiny of RPLI proposals have not been superseded vide this office letter No. 26-02/2009-LI dated 18.09.2009 or any
other subsequent letter.
4. Any such incentive pending for payment to SDI/ASP since the order dated 18.09.2009 may be paid to them.
5. This issues with the approval of CGM (PLI).
(PLI Dte. No.26-02/2009-LI dated 16.01.2013)

48. Calculation of Incentives, commissions etc. to sales force manually-reg.

Kindly refer to this office letter of even No. dated 16.11.2015 regarding generation of sanctions of Doctor fees, incentives,
commission of sales force whereby it was communicated to calculate and issue manual sanctions for doctor's fees and incentives to
sales force for the period prior to migration of data is 'CIS' and for post migration period no manual sanction should be issued.
2. After migration, 'CIS' is not generating sanctions of incentive to sales force due to system issues. System issues have also
resulted in collection through Meghdoot Point of Sale. Hence, there are gaps in ledger posting.
3. As now we are at end of the financial year 2015-2016 and the funds for the purpose of incentive payment are lying with the
Circles. In order to overcome the issue it is now decided to make payments of incentives, commissions to sales force by calculating
manually.
4. Proper records of such calculations and payments must be maintained in Divisional offices. It must also be ensured that when
any incentives/commission payment is made through 'CIS', the payments made on the basis of manual calculations for the same
period, if any, are deducted for 'CIS' generated sanctions.
5. This issues with the approval of competent authority.
(PLI Dte.No.29-22/2014 dated 30.03.2016)

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