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Wednesday, 23 December 2015

Bonus calculation ceiling revised from April 2014 – Arrears of bonus likely!

Bonus calculation ceiling revised from April 2014 – Arrears of bonus likely!

LS passes Bonus Bill; benefits to accrue from April 2014

Bonus-calculation-ceiling-revised-from-April-2014


The Lok Sabha on Tuesday passed a bill allowing doubling of wage ceiling for calculating bonus to Rs 7,000 per month for factory workers with establishments with 20 or more workers, with the benefits being applicable retrospectively from April 2014.

The Payment of Bonus (Amendment) Bill, 2015, was passed by a voice vote, with some members objecting to the raising of eligibility limit for payment of bonus from a salary of Rs 10,000 per month to Rs 21,000.
Replying to a debate on the legislation, Labour Minister Bandaru Dattatreya said the Government has ensured that the interest of workers are protected and there is no infringement on their justifys.

“Because of Bihar Elections this bill got delayed… The Prime Minister spoke to me and asked why should the benefits of this Act should accrue to workers from 2015. It should be made available from the April 2014,” he said while moving an official amendment to the Bill.

The official amendment provides that the benefits of the Act would be deemed to have come into force on April 1, 2014, instead of April 1, 2015.

Dattatreya said the Ministry has held 21 tripartite meetings with all central trade unions while arriving at a decision.

The Bill provides for enhancing monthly bonus calculation ceiling to Rs 7,000 per month from the existing Rs 3,500.

It also seeks to enhance the eligibility limit for payment of bonus from Rs 10,000 per month to Rs 21,000 per month.

“The Government’s paramount intention is to safeguard the interest of workers… There is no infringement of workers’ justifys and whatever the government does will be in the interest of workers,” Dattatreya said.
After the bill was passed, Deputy Speaker M Thambidurai, who was in the Chair, said the government should be congratulated for bringing the measure as also for effecting the benefits retrospectively.

Source: DDI News
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Government expenditure on CG employees and actual impact on government finances

Government expenditure on CG employees and actual impact on government finances
Comrades,
There are various reports in the media about the impact of the 7th CPC recommendations on the common man and the government resources at large, the reports suggest that additional amount of Rs one lakh crores of public money has been spent for implementation of the 7th CPC recommendations for 35 lakhs central Government employees, Perhaps the strongest criticism of Pay Commission awards is that they play havoc with government finances and also state government demand support to implement the 7th CPC recommendations. At the aggregate level, these concerns are somewhat exaggerated and which is totally wrong.

Let us examine the 7th CPC report vide para no 3.65 and 3.66 and the website of Government of India Ministry of Finance Department of Expenditure Pay Research Unit for Brochure on Pay and Allowances of Central Government Civilian Employees visit website : http://finmin.nic.in/pru/BROCHURE/PayAllowance2013-14E.pdf

7th-cpc-GDP

The 7th CPC report para number 3.65 and 3.66

3.65 The total expenditure on pay and allowances for civil personnel of Central Government in the recent years is brought out in Table 9.

Table 9: Expenditure on Pay and Allowances

7th-cpc-pay-allowance


The Commission has obtained details of expenditure from each ministry/department for up to FY 2012-13. Of the total expenditure on pay and allowances of Rs 1,29,599 crore for the financial year 2012-13.

3.66 The expenditure per capita on pay and allowances for Civil Central Government personnel for FY 2012-13 was Rs 3.92 lakh per annum i.e Rs 32666/- per month.

Add 35% DA for the period 1/4/2013 to 1/1/2016 average salary of Civil Central Government personnel as on 1/1/2016 at 125% DA which works around Rs 37500/- per month (Rs 4.50 lakhs per annum ) without 7th CPC recommendations . ie Rs 1.57,000 crores

Add average 16% wage increase due to 7th CPC which works out to Rs 43500/- per month Rs 5.22 lakhs per annum) with 7th CPC implementation .

Total Expenditure for 35 lakhs for Civil Central Government personnel for FY 2016-17 is around Rs 1,83,000 crores In respect of pensions expenditure for 55 lakhs pensioners amount is around Rs 81,000/ crores as on 1/1/2016. which is against the revenue receipts of Rs 19 lakh crores. The percentage of revenue receipt and wages is just around 13 % of the total revenue is spent on the wages and pension for the Central Government personnel. In fact it is just at 1.3 % of the GDP.

This clearly shows that that the increase in impact for the government of India finances is just below additional Rs 25,000/- crores not additional Rs 1,00,000/- crores as per the media reports.

The 7th CPC recommendations’ impact need not give jitters to the government because the rise in government wages will amount to only 0.4 per cent of GDP.

One more aspect is that technically, the recommendations of a Central Pay Commission are only for Central Government employees and States are not bound to follow suit. Indeed, up to the 1980s, States constituted their own Pay Commissions and prescribed their own pay scales, based upon their fiscal capacity.

Let us not be carried over by the media or press reports, hence we should educate each and every employee for struggle and so that a decent wage hike is achieved.

Comradely yours
(P.S.Prasad)
General Secretary
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Eligibility criteria of a school for Reimbursement of Children Education Allowance – Clarification issued by CGDA

Eligibility criteria of a school for Reimbursement of Children Education Allowance – Clarification issued by CGDA

Office Of The Controller General Of Defence Accounts
Ulan Satar Road, Palam, Delhi Cantt – 110010
No. AT/IV/4909/Vol VII
Dt:-18.12.2015
To,
All PCsDA/CsDA
PCoA (FyS) Kolkata

SUB: Clarification on Reimbursement of Children Education Allowance
 
REF: This HQrs letter No. AT/IV/4909/Vol V dated 22nd May 2014

The matter regarding admissibility of CEA in r/o of the children studying in Pre-primary schools run by Army welfare Education Society (AWES) was referred to MoD by Hqrs office.

2. MoD D (Pay/Services) has stated that criteria of eligibility of a school is clearly mentioned in para 3 of DOPT O.M. No. 21011/03/2008-Estt (A) dated 23rd November, 2009 which reads “Recognized school/institution in this regard means Govt. school or any education institution whether in receipt of Govt. aid or nor, recognized by the Central or State Govt. or Union territory administration or by University or a recognized educational authority having jurisdiction over the area where the institution is situate.” The MoD D (Pay/Services) has further stated that it is for the concerned beneficiaries to obtain the necessary details from the school regarding its recognition by the concerned authorities and submit them to the paying authorities alongwith the claim for reimbursement.

3. The subject claim may be regulated accordingly.
This issues with approval of JT.CGDA(AT-I)
sd/-
Sr. Accounts Officer (AT-IV)
Authority : www.cgda.nic.in
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Ratio of minimum and maximum pay in 7th Pay Commission

Ratio of minimum and maximum pay in 7th Pay Commission

The pay scale of officers of Secretary level has been recommended Rs 2,25,000/- and minimum pay has been recommended Rs18,000/-. The 7th CPC ratio is 1:12.5

The ratio of minimum and maximum pay (Secretary level, not Cabinet Secretary) was 1:10.66 in 4th CPC. Further it was 1:10.19 in 5th CPC and 1:11.42 in 6th CPC. 7th CPC has extended it to 1:12.5 whereas it had been recommended in previous Pay Commissions the ratio of minimum and maximum pay should not exceed 1:8. The pay scale of officers of Secretary level has been recommended Rs 2,25,000/- and minimum pay has been recommended Rs18,000/-.

Ratio of maximum salary drawn by the Secretary to Government of India to minimum salary drawn by the lowest functionary in the government. The  below table brings out the trend in pay structure in the government of India over the years:

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Cabinet approves release of an additional instalment of DA to Central Government employees and DR to Pensioners, due from 1.1.2019

Cabinet approves release of an additional instalment of DA to Central Government employees and DR to Pensioners, due from 1.1.2019   ...

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