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Tuesday, June 30, 2015

Govt mulls increasing eligibility limit of bonus

Central Government is considering to increase the eligibility limit of bonus from 10000 to 21000.

According to media source, the Central is going to give a green signal to the much awaited decision to raise eligibility limit of bonus from Rs.10000 to 21000. And the calculation ceiling also hike from Rs.3,500 to Rs.7,000

The payment of Bonus (Amendment) ordinance 2007 according to which section 12 of the payment of Bonus Act 1965 had been amended raising the ceiling for calculation purpose from salary of 2500/- P.M. to Rs.3500/-P.M. w.e.f. 01.04.2006. And also amended the Payment of Bonus Act, 1965 to raise the eligibility limit for payment of bonus from the salary or wage of Rs. 3500/- per month to Rs. 10000/- per month.

Monday, June 29, 2015

Indian Railways, Army among world's biggest employers: Study

NEW DELHI: Two Indian organizations — Army and Railways — are among the world's biggest employers, together employing a whopping 2.7 million people, said a report. 

The  Indian Railways is the 8th largest employer in the world with 1.4 million staff and first highest employer in India.

Immediately after Indian Railways the Indian Armed Forces with 1.3 million people the second highest employer in Indiain world ranking  the 9th rank 

India Post with 4.66 lakh employess is in the third highest employer in India.

TCS is in fourth highest employer in India.

SBI in fifth  highest employer in India.  

According to a research published by the World Economic Forum, the US Department of Defense is the world's biggest employer which claims over 3.2 million employees on its roster. 

Second is People's Liberation Army (the Chinese military) with 2.3 million, and in third is the US supermarket giant Walmart with 2.1 million workers, the report said, adding that "...175,000 of Walmart's staff work for UK supermarket chain, Asda". 

McDonald's is the 4th biggest employer with 1.9 million employees, however, as the majority of its restaurants are franchises, this figure falls to 4,20,000 when they are excluded, the report said. 

UK's National Health Service was ranked at the 5th place, with 1.7 million employees, followed by state-run China National Petroleum Corporation with 1.6 million. 

Another Chinese company, the State Grid Corporation of China was ranked 7th with 1.5 million. 

ನವದೆಹಲಿ: ಜಗತ್ತಿನಲ್ಲಿ ಅತೀ ಹೆಚ್ಚು ಉದ್ಯೋಗವಕಾಶಗಳನ್ನು ಕಲ್ಪಿಸುವ ಇಲಾಖೆಗಳ ಪಟ್ಟಿಯಲ್ಲಿ ಭಾರತೀಯ ಸೇನೆ ಮತ್ತು ಭಾರತೀಯ ರೇಲ್ವೆ ಸ್ಥಾನ ಗಿಟ್ಟಿಸಿಕೊಂಡಿದೆ. ಈ ಎರಡೂ ಇಲಾಖೆಗಳು 27 ಲಕ್ಷ ಜನರಿಗೆ ಉದ್ಯೋಗವನ್ನು ಕಲ್ಪಿಸುತ್ತಿದ್ದು, ಜಗತ್ತಿನ ಉದ್ಯೋಗ ಕಲ್ಪಿಸುವ ಇಲಾಖೆಗಳ ಪಟ್ಟಿಯಲ್ಲಿ ಸ್ಥಾನ ಪಡೆದುಕೊಂಡಿವೆ. ವರ್ಲ್ಡ್ ಇಕಾನಮಿಕ್ ಫಾರಂ ಪ್ರಕಟಿಸಿದ ಅಧ್ಯಯನ ವರದಿಯೊಂದರಲ್ಲಿ ಈ ವಿಷಯ ಉಲ್ಲೇಖವಾಗಿದೆ.

ವರದಿಗಳ ಪ್ರಕಾರ 14 ಲಕ್ಷ ಜನರಿಗೆ ಉದ್ಯೋಗ ಕಲ್ಪಿಸುವ ಭಾರತೀಯ ರೇಲ್ವೆ 8ನೇ ಸ್ಥಾನ ಪಡೆದುಕೊಂಡಿದೆ. ಅದೇ ವೇಳೆ ಭಾರತೀಯ ಸೇನೆಯಲ್ಲಿ 13 ಲಕ್ಷ ಮಂದಿ ಕೆಲಸ ಮಾಡುತ್ತಿದ್ದಾರೆ. 32 ಲಕ್ಷ ನೌಕರರನ್ನು ಹೊಂದಿರುವ ಅಮೆರಿಕದ ರಕ್ಷಣಾ ಇಲಾಖೆ 32 ಲಕ್ಷ ಜನರಿಗೆ ಉದ್ಯೋಗ ಕಲ್ಪಿಸುವ ಮೂಲಕ ಪಟ್ಟಿಯಲ್ಲಿ ಮೊದಲ ಸ್ಥಾನ ಗಿಟ್ಟಿಸಿಕೊಂಡಿದೆ. 23 ಲಕ್ಷ ಜನರಿಗೆ ಉದ್ಯೋಗ ಕಲ್ಪಿಸಿರುವ ಚೀನಾ ಸೇನೆ ಎರಡನೇ ಸ್ಥಾನದಲ್ಲಿದೆ.

ಅಮೆರಿಕದ ಸೂಪರ್ ಮಾರ್ಕೆಟ್ ಶೃಂಖಲೆಯಾದ ವಾಲ್‌ಮಾರ್ಟ್ 21 ಲಕ್ಷ ನೌಕರರನ್ನು ಹೊಂದಿದ್ದು ಮೂರನೇ ಸ್ಥಾನದಲ್ಲಿದೆ. ನಾಲ್ಕನೇ ಸ್ಥಾನದಲ್ಲಿ ಮೆಕ್‌ಡೊನಾಲ್ಡ್, ಐದನೇ ಸ್ಥಾನದಲ್ಲಿ ಯು ಕೆ ನ್ಯಾಷನಲ್ ಹೆಲ್ತ್ ಸರ್ವೀಸ್ ಹಾಗು 6 ಮತ್ತು 7 ನೇ ಸ್ಥಾನವನ್ನು ಅಮೆರಿಕ ಹಾಗು ಚೀನಾದ ಎರಡು ವಾಣಿಜ್ಯ ಕಂಪನಿಗಳು ಗಿಟ್ಟಿಸಿಕೊಂಡಿವೆ

Thursday, June 25, 2015

7th CPC Notification

Further to the memoranda received from a variety of Organisations, Federations, Groups representing civil employees in the Government of India as also from the Defence Services, the Commission has had fruitful and wide ranging discussions on relevant issues with all stakeholders. Such interactions have now been concluded. Valuable inputs have been received and the work of compilation and finalization of the report is underway, so that the Commission completes its task in the time frame given to it. Accordingly, any future requests for meeting with the Commission will not be entertained.

The 7th CPC is expected to submit its report by 1st September 2015.


Tuesday, June 16, 2015

Minimum Wage and Fitment Formula.

The Staff Side (JCM) has calculated minimum wage as on 1st Jan 2014 as per the Dr. Aykroyd formula as Rs 26,000/- taking into following prices.

The 7th CPC also would adopt Dr. Aykroyd formula for the computation of the minimum wage and thereafter the fitment formula is calculated.

Fitment formula = Minimum wage / Rs 7000   

The Staff Side (JCM) has calculated the fitment formula of 3.72  that is  Rs 26000/ Rs 7000 as on 1st Jan 2014.

 The 7th CPC has hinted that the date of effect of the 7th CPC shall be from 1st Jan 2016.  In this context the minimum wage and fitment formula, should be as follows.

The increase in prices between 1st Jan 2014 to 1st July 2015 is 18% as the DA as on 1st Jan 2014 was 100% and likely DA as on 1st July 2015 is 118%, In actual terms the retail prices have increased by over 25%. Even considering the 18% hike in prices from 1st Jan 2014 to 1st July 2015 and adding 7 % likely hike in prices for the period 1st July 2015 to Jan 2016 it works out to 25% hike in minimum wage. 

Minimum wage calculated by the Staff Side (JCM) using Dr. Aykroyd formula as on 1st Jan 2014 was Rs 26,000/-

Adding 25% hike in prices between 1st Jan 2014 to 1st Jan 2016,   the minimum wage should be Rs 32,000/- and accordingly the fitment formula should work out to 4.5 times.

If we calculate the minimum wage as on 1/1/2016 using the Dr. Aykroyd formula taking into account the current retail prices in Bangalore. It works out Rs 27,000/- and fitment formula as 3.85.

There are many rumors on the fitment formula and minimum wage, actually the 7th CPC has made only a draft and they will calculate the actual fitment formula and minimum wage only next month taking into the account the prices as on 1st July 2015 and adding weight age for the period 1st July 2015 to Jan 2016 and work out the fitment formula and minimum wage.

If any fitment formula less than 3.85 and minimum wage of Rs 27,000/- it will be denial of right wages for CG employees.  

  During the 6th CPC the Staff Side (JCM) has calculated minimum wage as on 1st Jan 2006  as per the Dr. Aykroyd formula as Rs 10,000/-, where as the 6th CPC had provide the minimum wage as Rs 7000/- and  the 6th CPC had fixed fitment formula of 1.86. Most of the pay commissions have accpeted  70% of the staff side demand. We sincerely hope this 7th Central Pay Commission  will also calculate the right wages and fitment formula for the Central Government Employees.  

Monday, June 15, 2015

Centre to survey spending patterns of working class

In a bid to understand the spending patterns and living conditions of working class, the Centre has decided to conduct a survey of workers’ family income and expenditure.

The survey, which will be conducted by the National Sample Survey Organisation, a Government of India body, will be used to finalise consumer price index (CPI) numbers for the working class. The CPI is the base for deciding dearness allowances (DA) of the working class.

“The Working Class Family Income and Exemption Survey-2015 will cover workers engaged in seven organised sectors of employment-registered factories, mines, plantations, ports & docks, public motor transport undertakings, electricity generating and distributing establishments, and railways,” an official from NSSO told Deccan Herald.

The survey will be conducted in 88 centres spreading across 28 states and union territories including Delhi, Karnataka, Andhra Pradesh and Uttar Pradesh. The survey will be conducted in eight places in Karnataka — Bengaluru, Belagavi, Chikkamagaluru, Davangere-Harihar, Hubballi-Dharwad, Kodagu, Mysuru and Mangaluru.

With the last such survey conducted around 15 years back in 1999-2000, the fresh survey required following a lot of changes in spending patters and lifestyles of workers in the past one-and-half decade, said the official.

The results of the survey will be utilisd for the purpose of revising the consumer price index numbers compiled by the Labour Bureau, said the official, adding that it will also show the light of living conditions of the working class. The surveyor will ask questions to a working class family about its living conditions, including spending on food, clothes, entertainment, health and education.


Friday, June 12, 2015

Date of effect of 7th CPC should be from 1/1/2015.

                   The fixation of minimum wage as on 1/1/2015 is the ideal one and the date of effect should only be from 1/1/2015 due to following reasons. 
 The INDIA METEOROLOGICAL DEPARTMENT had predicted 88% rainfall for the year 2014 and for 2015 it is estimated at 93%. The country had reported the Monsoon (rainfall) deficit of 12% last year.  This will impact production of food grains and there will be a price rise of essential commodities especially food articles. Irrespective of whether the monsoon is normal or deficient, food prices are expected to rise in the coming months. With the India Meteorological Department predicting a poor monsoon for the second consecutive year, production could be hit again. 
 Already the Consumer Price Index inflation for May, also released at the same time, rose to 5 per cent, in line with expectations. However, it was at 4.87 per cent in April. There is once again a upward trend .
 Due to adverse weather conditions during the 2014-15 crop season, foodgrain production is estimated to drop 5.3%
In 2013-14, India’s total food grain production was 265.57 tonnes. The Third Advance Estimates for 2014-15 show a sharp decline in production because of deficient rainfall last year.
 The output is set to fall to 257.07 tonnes from 265.57 tonnes.
Total production of rice in the country is estimated at 103.04 MT which is lower by 3.61 MT than the last year's record production of 106.65 million tons and the wheat production is expected to decline only marginally  from 95.85 million tons (MT) in 2013-14 to 95.76 million tons (MT) in 2014-15.
 "Production of pulses is estimated at 18.43 million tons which is lower by 1.35 MT than the last year's production. With decrease of 2.92 million tons over the last year's production level, total production of oilseeds in the country is estimated at 29.83 million tons", said the second estimate of the agriculture ministry for the year 2014-15.
Data compiled by the Ministry  of Agriculture show that the prices of pulses had shown a sharp increase in the past few months.
On January 1, the maximum daily retail price of tur dal was Rs. 88 a kg. On April 1, it had reached Rs. 100 and on  June 12th , it had reached Rs. 120.
 Similarly, price of urad dal rose from Rs. 90 to Rs. 103 and eventually touched Rs. 123 on 12th June. Pulses are already selling at Rs. 120 to 130 a kg in retail market. 
Hence the prices of  food articles will increase in next few months , since the 7th CPC is expected to fix wages as on 1/1/2016,  what ever the 7th CPC calculation of average price rise of  last  years will not hold good as abnormal prices rise is expected . Hence the only solution is to have wage revision taking into the current prices and accordingly the date of effect of 7th CPC should be from the date of prices are take into account for calculation of minimum wage and fitment formula not from 1/1/2016.  So that the wages are revised as on actual  retail price rise.  
Comradely yours
General Secretary

Thursday, June 11, 2015

High Level Railway Restructuring Committee,

Bibek Debroy Committee Report 

Report of the Committee for Mobilization of Resources for Major Railway Projects and Restructuring of Railway Ministry and Railway Board

The report, accessed  makes the existence of an independent, quasi-judicial Railway Regulatory Authority of India a prerequisite in five years for reforms like un-bundling and restructuring of Railways.The Rail Budget as we know it, should cease to exist after that, it says.

“Once the changes of the first five years are implemented, including the resolution of the social costs issue, the Railway Budget should be phased out,” the report says adding that the government should take the entire burden of social cost borne by Railways by way of subsidy.

Separation of railway track construction, train operations, and rolling-stock production units under different entities to enable open access can happen only after after that, it says. The Dedicated Freight Corridor Corporation Limited (DFCCL), the report recommends, should be made autonomous and separated from Indian Railways so that it gives non-discriminatory access to both Indian Railways and private operators. Operators should be able to pay directly to DFCCL without having to interact with Railways. 

As the tone of the interim report on the subject of private entry was criticised by unions and the bureaucracy, the final report is more cautious. “It needs to be understood that this Committee does not recommend privatization of Indian Railways,” it says, adding, “It does, however endorse private entry… with the provison of an independent regulator. This Committee prefers use of the word liberalization and not privatization or deregulation, as both the latter are apt to misinterpretation.” - 

Brief of the meeting held on 09.06.2015 between NC/JCM(Staff Side) and 7th CPC

No.NC/JCM/7th CPC/2015 Dated: June 9, 2015
All Constituents of
NC/JCM(Staff Side),
Dear Comrades,
Sub: Brief of the meeting held on 09.06.2015 between NC/JCM(Staff Side) and 7th CPC

A meeting of National Council JCM Staff Side with 7th Pay Commission was held on 09.06.2015 at New Delhi. It was last meeting of 7th Pay Commission with JCM. JCM had already submitted memorandum regarding common issues of Central Government Employees to 7th CPC on 30th June, 2015. JCM submitted memorandum in two parts. Part one deals with Pay, allowances, advances, facilities, benefits et., Part II is concerning retirement benefits, viz Gratuity, Pension, Medical facilities etc.
Today delegation of NC JCM Staff side went for final deliberations regarding issues of central government employees and pensioners with 7th CPC.
Detailed discussion was held on the following points:-
1. Principles of Wage Determination: Staff Side insisted that 7th CPC should adopt the need based minimum wage formula at the minimum level;the intrinsic value of the assigned job at the intermediary level; the necessity to keep the relativity both at horizontal and vertical level and the need to provide a reasonable salary for the top bureaucrats, taking into account the perks, privileges, benefits, allowances and concessions that go with the posts. 7th Pay Commission gave positive response on this.
2. Minimum Wage & Ratio of Minimum and Maximum Pay:- JCM urged that the Need-Based Minimum Wage concept to compute pay at the minimum level may be adopted. Pay Commission should take into account the outside rates to determine the pay package at senior levels of bureaucracy but maintain the ratio between the minimum and maximum at 1 : 8 (MTS to Secretary to Govt. of India). Staff Side insisted that minimum pay at lowest level of Group C staff should be Rs. 26000. 7th Pay Commission gave positive assurance on this.
3. Proposed Pay Structure and Rate of Increment:- Staff side demanded open- ended pay scales to ensure that no employee stagnates without increment. We have suggested only 14 Pay scales. Minimum of which is Rs. 26000 and Maximum Rs. 78000 for Group C employees. We suggested that the multiplication factor (26000/7000 = 3.7) may be applied uniformly in all the cases to arrive at the revised pay in the new scales of pay.We also suggested that the benefit on promotion, therefore, should be: two increments in the feeder cadre. 7th CPC agreed to act positively on this.
4. Career Progression: Grant five promotions in the service career:- The three time bound scheme of MACP instead of improving the situation has been found less beneficial and has therefore not gone to address the inherent problem of demotivation that has crept in due to the high level of stagnation.The discontent amongst the employees in the matter is of high magnitude today. The VII CPC therefore, should recommend that the cadre reviews are undertaken wherever not done to ensure five hierarchical promotions to all employees in their career on the pattern obtaining for Group A Officers. 7th Pay Commission assured to act positively on this.
5. Bonus:-Presently the PLB and adhoc bonus are calculated on the deemed provision that one’s total emoluments is only Rs. 3500/-. This is an absolutely irrational stipulation and must be removed. We request that the Commission to recommend to the Government to remove the said stipulation and grant the bonus on the basis of the actual emolument of the employee. 7th pay commission agreed to recommend our demand with positive note.
6. New Pension Scheme:-We requested VII CPC to review and recommend the scarping of NPS in the light of the observations made by Hon’ble supreme court that pension is a fundamental right. We also insisted that compulsory imposition of NPS on employees has made it discriminatory and recommendation for scrapping NPS and the PFRDA Act may be made. 7th Pay Commission was very much sympathetic.
7. Pension and other Retirement Benefits:-Staff side demanded that the amount of pension must be enough to enable a pensioner to live free from want with decency, independence, and self-respect and at a standard equivalent at the pre-retirement level. We also urged pay commission to examine the principles which should govern the structure of Pension and other retirement benefits, including revision of pension and granting parity between past and future pensioners. 7th CPC assured positive approach towards pensioners.
8. Parity in pay scales – We demanded that, where recruitment rules, training etc. are same, they should be brought into one singular grade/pay scale. Giving example of parity to Stenographers with the Ministry and Subordinate Offices. Similarly, in other common categories like Rajbhasha, Paramedical Staff etc.
9. Insurance Scheme was discussed(earlier also) in detail. It was told by the Pay Commission that something substantial should be done in this regard; and also to consider the issue of enhanced gratuity, for which 7th CPC was seen willing to consider the same.
10. Educational Assistance – we have demanded for Educational Assistance for two children, instead of two eldest children, and also to pay the same for Post Graduate and Professional Courses. Pay Commission has agreed to consider it up to Graduation level.

Monday, June 8, 2015

JCM-7th CPC Meeting:

Important meeting between 7th Pay Commission and JCM to take place on 9th of June, 2015 at 11 am . Minimum Salary, Increment rate  and multiplication factor of salary in 7th CPC will be main issue in this meeting. 

Bonus Ceiling Limit

The Government has decided to raise the upper limit for the annual bonus that is being given to Central Government employees all over the country.

Payment of Bonus (Amendment) ordinance 2007 according to which section 12 of the payment of Bonus Act 1965 had been amended raising the ceiling for calculation purpose from salary of 2500/- P.M. to Rs.3500/-P.M. w.e.f. 01.04.2006. And also amended the Payment of Bonus Act, 1965 to raise the eligibility limit for payment of bonus from the salary or wage of Rs. 3500/- per month to Rs. 10000/- per month.


Wednesday, June 3, 2015

Central Trade Unions Charter of Demands Discussion

NEW DELHI - 110119
23rd May, 2015
All Central Trade Unions

This is with reference to the 10(+2) point charter of Demands submitted by Central Trade Unions to the Government on 24th June, 2014 and 15th September 2014.  In pursuance of the said demands, a meeting was held on 15th May, 2015 with the Central trade Unions, which was chaired by me alongwith Hon'ble Minister of State (IC) for Petroleum and Hon'ble Minister of State(IC) of Power.  Prior to the said meeting, a meeting was also held with all Central Trade Union along with Hon'ble Minister of State for Finance.

Consequent to the said meeting, I had met with Hon'ble prime Minister and informed him about the charter of demands and issues & concerns raised by the Trade Unions.  Hon'ble Prime Minister advised me that detailed discussions be held with all Central Trade Unions through a Committee of Ministers.  I am happy to announce that the Prime Minister Office has constituted a committee comprising of Finance Minister, Minister of State Independent Charge for Petroleum and Natural Gas an Minister of State Independent Charge for Power, Minister of State Prime Minister office and myself to address all issues raised by the Central Trade Unions.

We shall be visiting Geneva for the International Labour Conference in June and immediately after return from Geneva, we shall organize two days meeting with the Central Trade Unions to carry out threadbare discussions on each of the charter of demands given by the Unions.  

I would like to reiterate that the amendments of labour laws are taken up only after detailed deliberations and discussions with the Central Trade Unions in the Tripartite meetings and the suggestions of the Trade Unions are given due consideration.  I am enclosing a copy of the press note being released by me which indicates action taken so far on the Charter of Demands.

In view of above, I would expect your full cooperation in the Government's endeavor to achieve not only the twin objectives of transparency and accountability but also safe guard the interest of the workers.

Yours sincerely,
(Bandaru Dattatraya)

Stepping Up of Pay

A person in the Higher Administrative Grade cannot draw less remuneration or less pension than a person of the Senior Administrative Grade which grade is the Feeder Grade for the Higher Administrative Grade.  Hon'ble Patna High Court judgement:  It has to be held that the basic pension of the petitioner with effect from 01.01.2006 has to be stepped up to Rs. 38,500/- to avoid discrimination.
The text of judgement is reproduced below:-

Civil Writ Jurisdiction Case No.10757 of 2010


Monday, June 1, 2015

New Income Tax forms

The Finance Ministry on Sunday came out with a new three-page income tax return (ITR) forms, in a corrective measure after facing strong criticism from public. The new forms no longer require mandatory disclosure of foreign trips and dormant bank accounts as mandated by the previous form. The new form can be submitted till August           31 this year instead of the regular July 31 deadline.