The committee, headed by IIT Madras Director Prof M S Ananth, comprises six members, including two from the IIT Faculty Federation. It is expected to submit its report by December 15, an IIT Director said.
The committee will study the existing PRIS in Indian Space Research Organisation where the scientists are rewarded with 20 to 50 per cent of their basic salary per month as incentive for their performance at organisation, department and individual levels.
"We hope the committee to submit its report before December 15. It will take into account the performance of teachers in terms of research work and publications and suggest a suitable incentive scheme," the director said.
The IITs have also set up a separate committee to suggest criteria for promotion of professor to senior grade. This committee comprises of deputy directors of four IITs besides representatives from the faculty.
The recommendation of this committee will form the basis on which a professor will move from Rs 10,500 academic grade pay to Rs 12,000 academic grade pay.
The IIT Faculty Federation, which accepted the new pay structure from this month, has expressed displeasure over certain provisions in the package. It has opposed the 40 per cent cap on promotion of professors to the senior grade.
The federation met Human Resource Development Minister Kapil Sibal last month who had assured them that the norms could be relaxed for exceptional cases and that the government would start the PRIS to encourage teachers who are performing well.
Sibal had asked the IIT directors to prepare the details of PRIS.
The IIT faculty has been saying that the provision for contractual appointment at entry level will not attract young people to join the faculty.
The PRIS scheme is expected to attract young talents to the IITs.