How Much Does An ECGC PO Make? Salaries and Benefits
By Indeed Editorial Team
Updated 1 September 2022
Published 11 October 2021
The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.
Governments across the world set up financial institutions to protect exporters from credit risks and non-payment by importers. The Export Credit Guarantee Corporation Limited (ECGC) is a public sector undertaking in India that guarantees credit insurance cover to exporters. A probationary officer (PO) is an entry-level post in ECGC. This article examines what ECGC is, the role of an ECGC PO, how much does an ECGC PO make and the benefits and allowances they enjoy.
Who Is An ECGC PO?
Probationary Officer (PO) is an entry-level post in ECGC. The employee strength of ECGC is less than 1000. The annual job vacancies are usually under 100. An ECGC PO is a lucrative post for people looking to pursue careers in the banking and financial sector. It is a post with attractive salaries, perks, benefits and the possibility of foreign travel after gaining work experience.
What Does ECGC Do?
The ECGC is a financial services institution under the Ministry of Commerce, Government of India. The Reserve Bank of India governs it along with other government representatives. With the main goal of export promotion, ECGC offers many services, such as providing credit insurance coverage to Indian exporters who may encounter problems while collecting payments from the buyers. The ECGC also offers credit insurance cover to banks and other credit institutions so that they can extend adequate credit facilities to exporters.
How Much Does An ECGC PO Make?
How much does an ECGC PO make is in accordance with the 7th pay commission recommendations. The average basic pay of an ECGC PO is ₹32,795 per month. Along with salary, an ECGC PO is also eligible for allowances that are given to central government employees.
What Is The Maximum Basic Pay Of An ECGC PO?
To understand the maximum basic pay an ECGC PO is eligible for, it is important to decipher their pay scale. An ECGC PO's basic pay is ₹32,795 per month for the first 14 years with a yearly increment of ₹1,610. The second part of the pay scale implies that the ECGC PO's basic pay is ₹55,335 per month for the next four years with a yearly increment of ₹1,745. The final amount in the pay scale is ₹62,315 per month. This denotes that an ECGC PO's maximum basic pay limit is ₹62,315 per month.
What Are The Allowances Of An ECGC PO?
Though it is an entry-level role, the ECGC POs are eligible for various allowances and perks. Many allowances are common allowances given by the central government. Some allowances are specific allowances that may not be included in monthly payments. The allowances that the ECGC POs are eligible for include:
House rent allowance (HRA)
House lease reimbursement
City compensatory allowance (CCA)
Mobile bill reimbursement
Mobile handset allowance
How Are The Allowances Of An ECGC PO Calculated?
The ECGC pays allowances over and above an ECGC PO's basic pay. While the ECGC pays some allowances every month, they pay some as and when necessary. For example, while house rent allowance can be a monthly payment, POs receive a furniture allowance once every five years. Here is a description of how the ECGC calculates allowances for an ECGC PO:
Dearness allowance: The ECGC calculates dearness allowance at 46.9% to 75% of the basic pay; the amount could vary depending on a PO's job location.
House rent allowance: The ECGC calculates HRA at 7% to 10% of the basic pay.
City compensatory allowance: The ECGC calculates CCA at 3% to 4% of the basic pay; the amount could vary depending on a PO's job location.
Transport allowance: The transport allowance of an ECGC PO is fixed at ₹1,330 per month.
What Are The Perks Of An ECGC PO?
Apart from salary and allowances, the ECGC provides attractive perks to its POs. Like allowances, some perks are regular and can be part of their monthly salary. The ECGC PO can avail of other perks as and when required. An ECGC PO's perks include:
Meal coupons amounting to ₹205 per working day
Household help expense reimbursement of ₹1,000 per month
Entertainment expense reimbursement of ₹800 per month
Mobile bill reimbursement of ₹400 per month
Newspaper reimbursement of ₹200 per month
Cash medical benefit of ₹13,300 per year
Office bag reimbursement for ₹3,000 every three years
Furniture allowance of ₹87,500 and GST every five years
Earned leave encashment of 30 days every two years
What Are The Other Benefits Of An ECGC PO?
The ECGC offers its POs other benefits such as pension schemes, mediclaim facilities and insurance cover. Some of the benefits that an ECGC PO can avail of include:
A defined contribution pension scheme where the ECGC contributes 10% of combined basic pay and dearness allowance towards a pension fund
Group insurance of ₹50 lakhs
Group savings linked insurance of ₹8 lakhs
GTS insurance of ₹10 lakhs
Mediclaim coverage for the POs and their dependents up to ₹40 lakhs
Leave travel concession of ₹4,500 per 1000 km for onward and return journey along with 2nd AC fare for their family every two years
Leave travel concession once a year for the ECGC POs to travel to their hometown
Productivity-linked lump-sum incentive (PLLI) is a bonus offered to employees of banking and financial services
Payment of income tax up to ₹30,000 for the taxable allowances and perks of ECGC POs
What Are The Deductions Made In An ECGC PO's Salary?
The standard deduction from an ECGC PO's salary is similar to that of central government employees, including the provident fund, pension and income tax. The ECGC deducts 10% of a PO's basic pay for the provident fund. 10% of basic pay and dearness allowance goes toward the pension scheme. The amount of income tax deducted depends on different tax slabs.
What Is The In-Hand Salary Of An ECGC PO?
Once you know the three components of an ECGC PO salary (basic pay, allowances and deductions), you can calculate the in-hand salary of an ECGC PO. The amount may vary based on each PO's basic pay, specific allowances and deductions. The average in-hand salary of an ECGC PO can be a minimum of ₹53,029 per month.
What Is The Salary Paid To An ECGC PO During Training?
If selected, an ECGC PO receives a salary of ₹38,500 per month during training. This figure increases after the training period is completed. The ECGC PO also receives meal coupons amounting to ₹150 per working day per month.
What Is The Scope Of Promotion For An ECGC PO?
An ECGC PO is an entry-level position for those interested in making a career in the banking or financial sector. The ECGC POs can expect their promotion in about three to five years. They go through an interview and a test for promotion from pay scale 1 to pay scale 2 and 3. The interview is the only criteria for promotion to scales 4 and 5. The normal career progression for an ECGC PO is:
Executive officer - Scale 1
Assistant manager - Scale 2
Manager - Scale 3
Senior manager - Scale 4
Assistant general manager - Scale 5
Related: What Is the Role of a Manager?
What Are The Duties Of An ECGC PO?
Since the ECGC is a credit insurance provider for exporters, the ECGC POs constantly interact with exporters to assess the risks involved in trade operations. They are trained for export risk underwriting. They constantly interact with banks, exporters and foreign buyers to track payment statuses. Their primary duty is to ensure that exporters get payment from foreign buyers on time.
What Is The Minimum Qualification To Become An ECGC PO?
The ECGC may publish the number of vacancies for specialised qualifications and generalist qualifications as "requirements". If they cannot fill the required vacancies with specialist candidates, they fill the vacancies with generalist candidates. Here is the list of specialist educational qualifications as listed by the ECGC:
Cost and works accountant
Chartered financial analyst
Bachelor of Law
Master of Law
B.Tech or B.E in computer science or information technology
Master of Economics
Master of Commerce
How Can I Apply For The Post Of ECGC PO?
If you are between the ages of 21 and 30 and have a bachelor's degree in any of the branches mentioned above, you can apply for the post of an ECGC PO on the ECGC website. Once the ECGC accepts your application, you complete a two-stage selection process - a written examination followed by an interview. Once you clear both the rounds and verify your documents, the ECGC declares the result. If you are selected, the ECGC informs you through email. You can also check its website for regular updates regarding the application process.
Salary figures reflect data listed on Indeed Salaries at time of writing. Salaries may vary depending on the hiring organisation and a candidate's experience, academic background and location.
Please note that none of the companies, institutions or organisations mentioned in this article are associated with Indeed.
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