Monday, 26 September 2016
- Sources close to Finance Ministry told that the initial installment of DA to central government employees on the revised pay structure w.e.f 1.7.2016 is under consideration.
- There is a confusion about percentage of D.A. payable from 1st July 2016 to Central Govt. employee and pensioners. There may be a hike of 2 to 3 percentage point, which is to be announced very soon, probably in this week.
- Meanwhile Govt asked the Pay Research Unit to calculate exact financial implication for every percentage of D.A. increase, which is a routine matter.
Government decides to shift the issue date of the Sovereign Gold Bonds 2016-17 Series-II from September 23, 2016 to September 30, 2016
Press Information Bureau
Government of India
Ministry of Finance
Government of India
Ministry of Finance
23-September-2016 11:32 IST
Government decides to shift the issue date of the Sovereign Gold Bonds 2016-17 Series-II from September 23, 2016 to September 30, 2016 in view of large number of applications being received by banks and post offices
The Government of India in consultation with the Reserve Bank of India(RBI), had notified the issuance of Sovereign Gold Bonds, 2016-17 Series II vide Notification F.No.4(7)-W&M/2016 dated August 29, 2016. The tranche was open for subscription from September 01, 2016 to September 09, 2016. The bonds were to be issued on September 23, 2016.
Large number of applications have been received by banks and post offices. To enable smooth uploading of applications into RBI’s E- Kuber system, particularly by the post offices, it has since been decided to shift the issue date of the Sovereign Gold Bonds from 23rd September,2016 to 30th September, 2016.
Press Information Bureau
Government of India
Ministry of Labour & Employment
Government of India
Ministry of Labour & Employment
24-September-2016 10:35 IST
Understanding Minimum Wages and Bonus
A minimum wage is the lowest remuneration that employers may legally pay to workers or it is the price floor below which workers may not sell their labour.
The concept of minimum wages first evolved with reference to remuneration of workers in those industries where the level of wages was substantially low as compared to the wages for similar types of labour in other industries. As far back as 1928, the International Labour Conference of International Labour Organization, at Geneva, adopted a draft convention on minimum wages requiring the member countries to create and maintain a machinery whereby minimum rates of wages can be fixed for workers employed in industries in which no arrangements exist for the effective regulation of wages and where wages are exceptionally low. Also, at the Preparatory Asian Regional Labour Conference of International Labour Organisation held at New Delhi in 1947 and then at the 3rdsession of the Asian Regional Labour Conference, it was approved that every effort should be made to improve wage standards in industries and occupations in Asian Countries, where they are still low. Thus, the need of a legislation for fixation of minimum wages in India received an impetus after World War II, on account of the necessity of protecting the interest of demobilized personnel seeking employment in industries.
The justification for statutory fixation of minimum wage is obvious. Such provisions which exist in more advanced countries are even necessary in India, where workers’ organizations are yet poorly developed and the workers’ bargaining power is consequently poor.
To provide for machinery for fixing and revision of minimum wages a draft Bill was prepared and discussed at the 7th session of the Indian Labour Conference in November, 1945. Thereupon the Minimum Wages Bill was introduced in the Central Legislative Assembly. The Minimum Wages Bill having been passed by the Legislature received the assent on 15th March, 1948. It came on the Statute Book as the Minimum Wages Act, 1948.
The Act provides for fixation by the appropriate Governments of minimum wages for employments covered by Schedule to the Act. The Central Government is the appropriate Government in respect of 45 scheduled employments in the Central Sphere. The minimum wages fixed for Central sphere are applicable to the scheduled employments in the establishments under the authority of Central Government, railway administrations, mines, oil-fields, major ports or any corporation established by a Central Act. Employments other than the scheduled employment for Central Sphere come under the purview of the State Government and accordingly State Government wages are applicable in such employments. The minimum wages for Central Sphere are revised from time to time based on the increase in Consumer Price Index effective from April and October.
According to Section 3(1)(b) of the Minimum Wages Act, 1948, “the appropriate government shall review at such intervals, as it may think fit, such intervals not exceeding five years, the minimum rates of wages so fixed and revise the minimum rates if necessary.
The norms recommended by the Indian Labour Conference, in 1957, fox fixing the minimum wages are: (a) consumption units for one wage earner; (b) minimum food requirements of 2700 calories per average Indian adult; (c) clothing requirements of 72 yards per annum per family; (d) rent corresponding to the minimum area provided for under Government’s Industrial Housing Scheme; and (e) fuel, lighting and other miscellaneous items of expenditure to constitute 20% of the total minimum wage.
In 1991, the Hon’ble Supreme Court delivered a historic judgement and directed that children’s education, medical requirement, minimum recreation including festivals/ceremonies, provision for old age, marriage etc. should further constitute 25% of the minimum wage and be used as a guide in fixation of minimum wage.
The Act envisages appointment of an Advisory Board, by the appropriate Government, for the purpose of advising the appropriate Government in the matter of fixing and revising minimum rates of wages.
The Central Government revises the wages in the scheduled employments from time to time in accordance with the provisions of the Minimum Wages Act, 1948. Draft Notifications for all the Scheduled Employments in the Central Sphere were issued on 1st September, 2016 simultaneously, in fact for the first time. The basic rate of minimum wages for an unskilled worker in the scheduled employment other than agriculture has been proposed at Rs.350 in Area ‘C’ from the current minimum wage (basic wage + variable dearness allowance) of Rs.246 resulting in an increase of about 42%. The basic rate of minimum wages for an unskilled worker in the scheduled employment “agriculture” has been proposed at Rs.300 in Area ‘C’ from the current minimum wage (basic wage + variable dearness allowance) of Rs.211 resulting in an increase of about 42%.
The proposed revision in the rates of basic minimum wages would indeed provide much needed solace to the labour fraternity.
Bonus payment is an extra payment given for doing one's job well also known as performance-related pay or pay for performance.
The practice of paying bonus in India appears to have originated during First World War when certain textile mills granted 10% of wages as war bonus to their workers in 1917. In certain cases of industrial disputes demand for payment of bonus was also included. In 1950, the Full Bench of the Labour Appellate Tribunal evolved a formula for determination of bonus. A plea was made to raise that formula in 1959. At the second and third meetings of the eighteenth Session of Standing Labour Committee (G.O.I) held in New Delhi in March/ April 1960, it was agreed that a Commission be appointed to go into the question of bonus and evolve suitable norms. A Tripartite Commission was set up by the Government of India to consider in a comprehensive manner, the question of payment of bonus based on profits to employees employed in establishments and to make recommendations to the Government. The Government of India accepted the recommendations of the Commission subject to certain modifications. To implement these recommendations the Payment of Bonus Act, 1965 was enacted, which came into force on 25-9-1965.
The objective of the Payment of Bonus Act, 1965 is to provide for the payment of bonus to the persons employed in certain establishments on the basis of profits or on the basis of production or productivity and for matter connected therewith.
It applies to (i) Every Factory; and (ii) Every other establishment in which 20 or more persons are employed on any day during an accounting year subject to the exemptions under section 32. Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year. While the minimum bonus is 8.33% of the salary or wage earned by the employee during the accounting year, the maximum bonus is 20% of such salary or wage.
Two ceilings are available under the said Act generally known as eligibility limit and calculation ceiling respectively. Clause 13 of Section 2 of Payment of Bonus Act, 1965 defines an employee based on salary or wage per mensem. This is usually taken as the “eligibility limit” for computation of bonus. Similarly, Section 12 of the Payment of Bonus Act, 1965 provides for calculation of bonus of an employee based on salary or wage per mensem. This is known as “calculation ceiling”.
The two ceilings are revised from time to time to keep pace with the price rise and increase in the salary structure. At present, the calculation ceiling has been enhanced to Rs.7000 or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher and the eligibility limit has been enhanced to Rs.21,000/-.
Due to this revision, additional 55 lakh workers would be benefited. This would indeed, be a good gesture on the part of the Government towards the labour fraternity.
*Author is Minister of State (Independent Charge) Labour and Employment, Government of India
Payment of Allowances in Revised pay may satisfy the Government Staff
It is believed that Payment of Allowances in Revised pay may at least satisfy the Government Staff, despite the fact that the Pay Hike is not sufficient.7th CPC Allowances
Bapus are annoyed about the inordinate delay in announcing Allowances. Talks are doing rounds that the government is deliberately playing the delaying tactics to make the CG Staff to accept the decisions of Allowance Committee.
Central Staff upset with Pay Hike
Already the Central Government Staff are very much upset with Pay Hike recommended for next Ten Long years. They in fact are not happy about the Arrears paid to them. Though the Govt has defended that the Pay Revision arrears will not be as high as in previous Pay Commission, because Arrears for couple of years had been paid in previous Pay Commission. But this time Pay Revision took place within seven months from the due date. So obviously the Pay Revision Arrears will be lesser than previous Pay Commission.
Though a Committee was formed to review the Minimum Pay and Fitment Factor, it is believed that it was wrapped up already. But the federations are Optimistic. They expect somehow the Committee will help them to pacify the Govt Servants on this particular issue.
But nonpayment of Allowances in revised Pay will certainly axe the feel good factor in Central Government Offices. They are started losing patience over it and expect the government to announce it soon. Because the take home pay after pay revision is unbelievably very low comparing to the previous Pay commission. The Central government should not reduce the rate of Allowances and it should be implemented with effect from 1.1.2016
The Sources Close to the Ministry of finance informed that there is proposal to Pay 1% DA from July as an interim Measure.It is said that the Central Government has not yet decided about the DA rates in Revised Pay scale.
Sources close to Finance Ministry told that the initial installment of DA to central government employees on the revised pay structure w.e.f 1.7.2016 is under consideration. Mean time there is a proposal to pay the DA from July 2016 at the rate of 1% to all CG Staffs. It will be a shocking news for CG Staff, since they are already expecting 2 to 3% DA from July 2016.
PRU is asked to submit Financial Implication of 1% DA
But the fact is the Department of Expenditure has directed the PRU of the Finance Ministry to furnish the details of additional Financial Implications for 1% increase of DA with effect from 1.7.2016 on the revised Pay Structure.
Further the Pay Research Unit has been requested to furnish financial implications for the Period of July 2016 to February 2017 on account of granting 1% DA from July 2016 to all central government employees including Armed Forces and UT Employees.
According to the above information, it is believed that announcement of 1% DA for July installment may be made any time soon.
Saturday, 24 September 2016
Thursday, 22 September 2016
New Delhi: The central government is likely to announce fatter allowances under the 7th Pay Commission recommendations for its 4.8 million employees, in a bid to ease the inflationary pressure, Finance Ministry official sources said.
In fact, it’s the only hike in basic pay is not helpful for maintaining central government employees’ living standard, Finance Ministry sources told The Sen Times on Tuesday.
“The basic salaries of government employees has been increased on the recommendations of 7th Pay Commission, which are giving them some financial comfort,” they said and added, a step they had hoped might be taken next month, when government will announce the fatter allowances.
Sources in the Prime Minister’s Office (PMO) said a formal announcement on fatter allowances will be made soon.
The Finance Ministry official sources confirmed the Finance Minister Arun Jaitley is likely to approve the proposal of committee on allowances headed by Finance Secretary Ashok Lavasa which will stick to the 7th Pay Commission’s recommendations on allowances like glue and the fatter allowances will be implemented with prospective effect.
The committee on allowances, which was set up in July this year on the direction of the cabinet, is looking into the provision of allowances other than dearness allowance under the 7th Pay Commission recommendations as the pay commission had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances.
“The central government employees now get a little hike in basic pay, the overall hike percentage in basic pay 14.28 while according to the 7th pay commission recommendation, allowances contribute 63 percent hike, which was recommended a substantial improvement.” sources said.
“With the current basic pay hike and steep inflation, it is not possible for employees to make ends meet. It is also impossible to sustain with their current basic pay without hike in allowances. Inflation has climbed steadily over the past few years, which the fatter allowances will help to compensate.
Accordingly, the fatter allowances will hopefully attract the employees to live with dignity and the committee on allowances is likely submit its report in this week, which will be forwarded to the cabinet in October ,” assured the officials.
Press Information Bureau
Government of India
Ministry of Finance
Government of India
Ministry of Finance
21-September-2016 15:59 IST
Cabinet approves merger of rail budget with general budget;
advancement of budget presentation and merger of plan and non-plan classification in budget and accounts
The Union Cabinet has approved the proposals of Ministry of Finance on certain landmark budgetary reforms relating to (i) the merger of Railway budget with the General budget, (ii) the advancement of the date of Budget presentation from the last day of February to the 1st of February and (iii) the merger of the Plan and the Non-Plan classification in the Budget and Accounts. All these changes will be put into effect simultaneously from the Budget 2017-18.
Merger of Railway Budget with the General Budget:
The arrangements for merger of Railway budget with the General budget have been approved by the Cabinet with the following administrative and financial arrangements-
(i) The Railways will continue to maintain its distinct entity -as a departmentally run commercial undertaking as at present;
(ii) Railways will retain their functional autonomy and delegation of financial powers etc. as per the existing guidelines;
(iii)The existing financial arrangements will continue wherein Railways will meet all their revenue expenditure, including ordinary working expenses, pay and allowances and pensions etc. from their revenue receipts;
(iv)The Capital at charge of the Railways estimated at Rs.2.27 lakh crore on which annual dividend is paid by the Railways will be wiped off. Consequently, there will be no dividend liability for Railways from 2017-18 and Ministry of Railways will get Gross Budgetary support. This will also save Railways from the liability of payment of approximately Rs.9,700 crore annual dividend to the Government of India;
The presentation of separate Railway budget started in the year 1924, and has continued after independence as a convention rather than under Constitutional provisions.
The merger would help in the following ways:
· The presentation of a unified budget will bring the affairs of the Railways to centre stage and present a holistic picture of the financial position of the Government.
· The merger is also expected to reduce the procedural requirements and instead bring into focus, the aspects of delivery and good governance.
· Consequent to the merger, the appropriations for Railways will form part of the main Appropriation Bill.
Advancement of the Budget presentation:
The Cabinet has also approved, in principle, another reform relating to budgetary process, for advancement of the date of Budget presentation from the last day of February to a suitable date. The exact date of presentation of Budget for 2017-18 would be decided keeping in view the date of assembly elections to be held in States.
This would help in following ways:
· The advancement of budget presentation by a month and completion of Budget related legislative business before 31st March would pave the way for early completion of Budget cycle and enable Ministries and Departments to ensure better planning and execution of schemes from the beginning of the financial year and utilization of the full working seasons including the first quarter.
· This will also preclude the need for seeking appropriation through 'Vote on Account' and enable implementation of the legislative changes in tax; laws for new taxation measures from the beginning of the financial year.
Merger of Plan and Non Plan classification in Budget and Accounts:
The third proposal approved by the Cabinet relates to the merger of Plan and Non Plan classification in Budget and Accounts from 2017-18, with continuance of earmarking of funds for Scheduled Castes Sub-Plan/Tribal Sub-Plan. Similarly, the allocations for North Eastern States will also continue.
This would help in resolving the following issues:
· The Plan/Non-Plan bifurcation of expenditure has led to a fragmented view of resource allocation to various schemes, making it difficult not only to ascertain cost of delivering a service but also to link outlays to outcomes.
· The bias in favour of Plan expenditure by Centre as well as the State Governments has led to a neglect of essential expenditures on maintenance of assets and other establishment related expenditures for providing essential social services.
· The merger of plan and non-plan in the budget is expected to provide appropriate budgetary framework having focus on the revenue, and capital expenditure.
DA from July 2016 in 7th pay Commission is 2% or 3% is yet to be confirmed
It seems that the DA from July 2016 in 7th Pay Commission is not yet finalized by Central Government. There is confusion persists on the rate of Dearness Allowance to be paid from 1st July 2016 in revised Pay . The AICPIN average for the year 2015 to be taken as Base Index for calculation of DA in 7th CPC as the DA has been neutralized to arrive the revised Pay.
The actual AICPIN Average for 2015 is 261.33. As per this AICPIN average, the DA to be paid at the rate of 2% from July 2016 in 7th CPC . But the NCJCM has contended that it should be paid at the rate of 3%.
The NCJCM staff side said that as per the practice of fraction is being ignored, 0.75 is ignored from actual DA 125.75 as on 1st January 2016. Since the 125% DA was merged to revise the 7th CPC pay, Accordingly, the AICPIN average of 2015 has to be revised to 260.46 from 261.33 to arrive the exact rate of DA of 125% .
It is obvious that the NCJCM Staff Sides claim has sufficient merits to be considered favorably by the Government. In that case, the DA to be paid from July 2016 will be 3%.
The NCJCM Staff Side should be appreciated for this timely intervention and effort.
The central Government need to take decision in this regard soon, as it has been passed third week of September. Usually the announcement of DA for July every year will be made in the first or second week of September.
Tuesday, 20 September 2016
Monday, 19 September 2016
Postal Dept to recruit 55,000 gramin dak sevaks
Hyderabad, September 16:
The Departments of Posts plans to recruit around 55,000 Grameen Dak Sevaks through online mode in November, B.V Sudhakar, Secretary, Department of Posts, said.
Addressing a Press Conference here on Friday, Sudhakar informed that the software required for online recruitment is at the testing stage and the online method will ensure transparency in this recruitment.
In order to address the grievances of the postal customers, the National Service Call Centre - 1924 - was launched on September 12, 2016. Customers can call from any network to this number and they will be given a unique 11-digit ticket ID to check the status of their complaint. Nearly 98 per cent grievances and complaints were resolved, he said in a statement.
Post Payment Bank
Explaining about the Post Payment Bank, he said the focus will be on Government to customer services by providing services like Direct Benefits Transfer, which could also be helpful in the financial inclusion. There will be no lending to the customers and deposits can be made up to Rs 1 lakh.
Total 650 branches of post payment bank will be set up by May 2017 and nearly one lakh employees will work on this set up, he added.
Sudhakar also informed to harness solar power, 4000 Postal buildings across country will utilize solar power in the coming days. To start with Postal Department headquarters at New Delhi will install Solar Power panels which can save up to Rs 17 lakh of monthly power bill.
The business across Postal services registered growth with 3.8% growth in unregistered postal traffic, 6% in registered posts, 7.3% in Speed Post, 6.8% in savings banks mobilization and 25% growth in Philately, during 2015-16 as against 2014-15, he said.
Postal Department achieved business of Rs 14, 900 crore as against planned target of Rs 14, 600 crore, he added.
Source : http://www.thehindubusinessline.com