State Bank of India
11:58
Awaiting For Enhancement Of the Gratuity Ceiling From Rs 10/-Lacs to Rs 20/-Lacs:AISBOF
Awaiting For Enhancement Of the Gratuity Ceiling From Rs 10/-Lacs to Rs 20/-Lacs:AISBOF
Source:AISBOF
Showing posts with label seventh pay commission. Show all posts
Showing posts with label seventh pay commission. Show all posts
Sunday, 24 September 2017
Monday, 27 February 2017
withdrawal of amount
11:02
Bank Employees will also get this benefit when Gratuity Amendment Happens
Bank Employees will also get this benefit when Gratuity Amendment Happens
Gratuity payment ceiling to double to Rs20 lakh
New Delhi: The central government Thursday agreed to allow millions of organised sector employees to withdraw up to Rs20 lakh from their gratuity corpus, double the amount permitted now.
Currently, even if a worker accumulates more than Rs10 lakh as gratuity contribution, he or she is allowed to withdraw only Rs10 lakh.
The agreement came following a meeting between the labour ministry and representatives from states, employees and employers on Thursday.
“All the stakeholders—states, Centre, unions and the industry representatives were on the same page to enhance the gratuity ceiling from Rs10 lakh to Rs20 lakh,” a labour ministry spokesperson said after the meeting.
This follows the 7th Pay Commission report allowing government employees to withdraw up to Rs 20 lakh gratuity, which left out a significantly bigger number of private sector employees. The labour ministry will now bring a formal amendment to the Payment of Gratuity Act to implement the change.
All companies and establishments deploying 10 or more workers comes under the Gratuity Act. Gratuity is calculated as: Last drawn salary × 15/26 × number of years of service. Salary means basic pay plus dearness allowance; 15/26 means 15 working days’ pay of the 26 days of pay.
“It was logical that we extend the ceiling to Rs20 lakh and the labour ministry did not have any objection today,” said Virjesh Upadhyay, general secretary of the Bharatiya Mazdoor Sangh, a trade union affiliated to the Bharatiya Janata Party.
D.L. Sachdeva, national secretary of the All India Trade Union Congress (AITUC) who attended the meeting, said that besides the ceiling hike, labour minister Bandaru Dattatreya agreed to “consider reducing the five years’ gratuity payment rule”.
Currently, an employee with at least five years of continuous service is eligible to get gratuity, which forms part of the overall salary package of an employee, but not paid monthly.
Source:Indian Bank Kumar
Thursday, 9 February 2017
seventh pay commission
08:37
Bank employees under the Central government payroll will get Dearness Allowance (DA) as per the recommendations of the Seventh Pay Commission.
Bank employees under the Central government payroll will get Dearness Allowance (DA) as per the recommendations of the Seventh Pay Commission.
The order to this effect was issued on February 1 which stated that employees will be paid the DA for the months of February, March and April 2017.
Bank employees under the Central government payroll will get Dearness Allowance (DA) as per the recommendations of the Seventh Pay Commission.
The order to this effect was issued on February 1 which stated that employees will be paid the DA for the months of February, March and April 2017.
The order brings much cheer to employees who were otherwise disappointed with Finance Minister Arun Jaitley for not saying a single word on the Seventh Pay Commission in his Budget speech.
- On the basis of the Consumer Price Index (CPI) announced by the government, the DA payable to bank employees for February-April will be 46.9 per cent of the pay.
- In another development, the government has started releasing the Seventh Pay Commission arrears to defence pensioners. The amount released and the number of pensioners to be benefitted from this are still being calculated.
- The information was shared by Union Minister of State for Defence Subhash Bhamre in a written reply to AIADMK MP M Vasanthi in Lok Sabha recently.
- Among autonomous bodies, the Bureau of Indian Standards (BIS) will start getting revised salary as per the Seventh Pay Commission's recommendations. BIS falls under the aegis of the Ministry of Consumer Affairs. Ram Vilas Paswan, who is in-charge of the ministry, approved the revised salary for BIS employees.
- Much to the disappointment of Central government employees, the Finance Minister did not mention them in his Budget speech on February 1. However, employees are hopeful that there will be some announcement at the start of the new financial year in April.
- Several state governments have made announcements on implementing the recommendations of the Seventh Pay Commission. Poll-bound Uttarakhand was among the first to implement the recommendations from January 1.
- The Seventh Pay Commission recommended a 14.27 per cent hike in basic pay--the lowest in 70 years. The previous Sixth Pay commission had recommended a 20 per cent hike, which the government doubled while implementing it in 2008.
- The National Joint Action Committee (NJAC) wants the minimum wage to be raised to Rs 26,000 as against the Rs 18,000 suggested by the commission.
- The Pay Commission also recommended doing away with 53 of the 196 allowances besides moderation in several others. The recommendations cover nearly 50 lakh central government employees and 58 lakh pensioners.
Source:IndiaToday
Tuesday, 2 August 2016
seventh pay commission
07:27
7th Pay Commission: SBI unveils cheaper home loans for beneficiaries
7th Pay Commission: SBI unveils cheaper home loans for beneficiaries
Under the new SBI scheme, individuals with pensionable service will be offered home loans tailored to their specific needs.
To attract the beneficiaries of 7th Pay Commission, SBI has launched cheaper home loan schemes for defence and other government employees with installment tenure extending up to 75 years of age. It will offer two new home loan products ‘SBI Privilege Home Loan’ for government employees and ‘SBI Shaurya Home Loan’ for defence personnel without any processing fee.
“Under the new schemes, employees of central/state governments, defense forces, public sector banks, public sector enterprises of central government and other individuals with pensionable service will be offered home loans tailored to their specific needs,” State Bank of India (SBI) said in a statement. The bank said the tailor-made products will help customers purchase a spacious or luxurious home without stretching their post-retirement finances.
The new product includes extending the repayment term till the borrower turns 75 years from the existing 70 years, and also a full waiver of processing fees, it said. There will be a lower EMI burden post retirement and 0.05 per cent concession over the home loan interest. “Benefit of lower interest rate as a concession of 5 bps (0.05 per cent) over the home loan card interest rate is available wherever check-off facility is extended by the government under tie-up arrangement with the bank,” SBI said.
Among others, customers of other banks or financial institutions will have an option to switch over their home loan outstanding balance to SBI. “The launch of ‘SBI Privilege Home Loan’ and ‘SBI Shaurya Home Loan’ products is timed with the notification of 7th Pay Commission recommendations. Surplus income can thus be utilised by government employees and defense personnel towards purchase of new/better house,” SBI said.
Source:Indian Express
Thursday, 14 January 2016
seventh pay commission
09:22
Budget must re-energise tax reform
Budget must re-energise tax reform
In order to expand the tax base, it is necessary to ensure that more transactions are scrutinised
As the finance ministry's consultations continue for the Union Budget, it must realise that sticking to the path of fiscal consolidation and reform is vitally necessary. And achieving that goal depends on re-energising government revenue.
The biggest and most important change to the revenue side, of course, is not dependent on the Budget itself: It is the Goods and Services Tax, or GST, which has become a casualty of political deadlock. Finance Minister Arun Jaitley has indicated that he will bank on the support of the regional political parties to help him pass the GST legislation. Whether or not the GST Constitution amendment is passed in the Budget session, two things are clear: It will eventually be passed, since all parties accept it in principle, and that tax reform extends beyond the GST and cannot wait for it.
On the direct taxes front, for example, the finance minister in this year's Budget speech made the important and progressive announcement that the corporation tax rate would be reduced gradually by five percentage points to 25 per cent over the next four years, and that this would be accompanied by the closing off of the various exemptions that lead to companies paying less than the current 30 per cent. Unfortunately, that process was not begun this year, but it will presumably begin in the coming one.
There is an urgent need for a road map for reducing the tax rates, accompanied as it should be with a timeline for phasing out exemptions. What is vitally important is that the reduction of exemptions go hand in hand with the reduction in the tax rate. Sequencing is important, otherwise, corporate lobbies will build up to retain exemptions even as the tax rate reduces. The political economy, as well as the economics, of the decision makes it of paramount importance that big loopholes allowing many companies to pay little or no tax are closed at the same time as the rate reduction process starts.
Discussion on personal income taxes also focuses on exemptions. Suggestions have been floated that the income exemption limit be raised for taxpayers, perhaps to as much as Rs 5 lakh a year. There is little justification for this at this point in time. It is true that demand is weak at the moment. But, demand stimuli equivalent to tax cuts are in any case on their way - from the granting of the one rank, one pension demand, for example, and from the recommendations of the Seventh Central Pay Commission.
On the other hand, it is an important goal of the government that the direct taxes base should not be allowed to shrink; after all, too few Indians pay direct taxes. Raising the exemption limit will in any case be regressive, since it will benefit those in the highest income brackets as well. If a pro-middle class step is considered politically feasible, then the reduction of the lowest tax rate should be considered - though the current tax rates have the virtue of simplicity and wide acceptance. It is important, in order to expand the tax base, to also ensure that more transactions are scrutinised, by making the use of PAN numbers compulsory. Recent relaxations in this requirement in some transactions were ill-advised.
When it comes to service taxes, this is perhaps the government's last opportunity to get service taxpayers ready for the advent of the GST. In other words, the rate should be raised to closer to the expected revenue-neutral rate after the introduction of the GST, in order to cushion the immediate inflationary impact of the GST's adoption. The negative list of those exempted from paying service tax must be pruned, so that the benefits of universalisation of the GST are not lost.
Finally, a clear statement about the end of "tax terrorism" and excessive demands for tax on transfer pricing transactions must be in the Budget, to reassure investors that India is turning more business-friendly.
Source :BusinessStandard
Monday, 11 January 2016
seventh pay commission
21:22
New pay commission, new hopes for central govt employees
New pay commission, new hopes for central govt employees
New Delhi: After long wait, the new pay commission report has been submitted to Finance Minister Arun Jaitley on November 19, which has increased new hopes among the central government employees that their pay will soon rise.
Finance Minister Arun Jaitley said, Seventh Pay Commission award bill Rs 1,02,000 crore can be afforded.
A commendable initiative , the new Seventh Pay Commission award is timely and necessary for the 48 lakh central government employees and 52 lakh pensioners including dependents.
Government jobs in India have been less rewarding in terms of pay and perks. Apart from a sense of job security and perceived power, most of the employees have to struggle to make ends meet with the cost of living going up every year.
The central government is facing a shortage of around 7.3 lakh staff, the motive behind this move is to achieve a reduction of 10 percent in staff strength in five years, according to report of the Seventh Central Pay Commission.
So, Central government employees need to do more works so as to fill up the shortage of staff with their works, accordingly, they deserve a good pay raise.
However, since the submission of the the Seventh Pay Commission report, discussions hovered around its impact on a number of areas including inflation, budgetary allocation, efficiency of public services.
Economists have explained adequately why there will be no inflationary pressure on the economy due to injection of pay hike amount in next next budget and the Finance Minister Arun Jaitley said, Seventh Pay Commission award bill Rs 1,02,000 crore can be afforded.
The World Bank report also forecasts India will continue to be the bright spot of the global economy and is projected to grow at a robust 7.8% in fiscal 2016-17, more than a percentage point higher than China, despite pressure on the budget from a salary hike for central government employees and payment of One Rank One Pension. (OROP) .
The pay hike on the Seventh Central Pay Commission recommendations is only a nominal amount compared to the total consumption and total national income of the country.
Many analysts are harking back to the experience of earlier pay commission awards to judge the impact this time.
Such comparisons need great care. The earlier Sixth Pay Commission’s recommendations were implemented in August 2008, with a retrospective effective date of January 1, 2006, which gave almost Rs 18,000 crore in the form of arrears to the central government employees.
The last salary hike in 2008 was much higher at 40 per cent, against 23.5 per cent this time.
Moreover, the last award included pay arrears for almost two years, putting far more cash in the hands of government servants but this pay commission award will be included pay arrears only four to six months.
However, the price hike of goods and services by unscrupulous people, particularly in sectors such as vehicles, urban households and housing, during the period of post-salary increase is common in the country.
The implementation of the Seventh Pay Commission’s recommendations is also expected to increase consumer demand. It is estimated that the consumption boost to the economy could be as high as Rs 55,350 crore, and would have a positive impact on sales for the sector.
The Seventh Pay Commission award with modification of higher pay will hopefully attract central government employees to live with dignity and the quality of service delivery in central government offices is expected to improve which will in turn contribute to higher productivity and growth for the nation.
Tuesday, 29 December 2015
seventh pay commission
23:24
Govt to increase maternity leave in private sector to 26 weeks
Govt to increase maternity leave in private sector to 26 weeks
The union government is set to increase the maternity leave for women employed in private firms from the existing 12 weeks to 26 weeks.
Women and Child Development Minister Maneka Gandhi Monday said the Ministry of Labour has agreed to increase maternity leave to six-and-a-half months. “We had written to the Labour Ministry asking that the maternity leave be extended taking into account the six months of breastfeeding that is required post childbirth. The Labour Ministry has agreed to increase it to six-and-a-half months,” said Maneka.
The Ministry of Labour is expected to amend the Maternity Benefit Act, 1961, which presently entitles women to 12 weeks of maternity benefit whereby employers are liable to pay full wages for the period of leave.
Officials of the WCD Ministry said they will push for extending the leave to eight months, or 32 weeks, for women employed in both private and government sectors.
But WCD officials said the Labour Ministry has expressed reservations about increasing the maternity leave any further as they perceive that doing so will adversely affect the employability of women.
“The Labour Ministry has decided on six-and-a-half months following meetings with various stakeholders. We, however, feel that eight months of maternity leave — for women in government as well as private sectors — is required. We will move a note to the Cabinet Secretariat in this regard. Six months of exclusive breastfeeding is very important to combat malnutrition, diarrhoea and other diseases in infants and to lower infant mortality rate,” said a WCD official.
The International Labour Organisation recommends a minimum standard maternity leave of 14 weeks or more, though it encourages member states to increase it to at least 18 weeks. At 26 weeks, India is set to join the league of 42 countries where maternity leave exceeds 18 weeks. It, however, falls behind several East European, Central Asian and Scandinavian countries, which have the most generous national legislation for paid maternity leave.
Women employed in government jobs in India get a six-month maternity leave as per the Central Civil Service (Leave) Rules 1972. The last circular in this regard was issued in 2008, when it was increased from four-and-a-half months. If the WCD Ministry’s recommendations to the Cabinet Secretariat are accepted, the Department of Personal & Training will have to issue orders to enhance it to eight months.
Moreover, women government employees are allowed to take childcare leave of up to two years in phases at any point till their child turns 18 years old. The Seventh Pay Commission recently recommended that only the first 365 days of leave should be granted with full pay, while the remaining 365 can be availed at 80 per cent of the salary. But Maneka recently petitioned Finance Minister Arun Jaitley against the proposal, terming it a regressive step at a time when women are trying to become more economically independent.
“Women in India need longer maternity leave in absence of any support in parenting from men. It should not be seen as a deduction in labour hours but as a long-term investment from the future economic point of view. This is in addition to the fact that women need long maternity leave to recuperate and invest in child care,” said Ranjana Kumari, director of the Centre for Social Research.
She added that a recent analysis of the Maternity Benefit Act by CSR for the National Commission of Women showed that discrimination against pregnant women was widely prevalent in the corporate sector in the country.
Source:Indian Express
Tuesday, 1 December 2015
seventh pay commission
11:27
RBI to Announce Bi-monthly Monetary Policy Review Today
RBI to Announce Bi-monthly Monetary Policy Review Today
MUMBAI: The Reserve Bank of India (RBI) will announce its fifth Bi-monthly Monetary Policy Statement for 2015-16 at 11AM in here on Tuesday.
According to reports, the central bank is not likely to propose any further rate cuts ahead of the US Federal Reserve's policy review due mid-December.
Analysts say that RBI should exhibit its preparedness to face financial market volatility arising out of US Federal Reserve policy review.
The central bank is also mindful of the inflationary impact of a falling rupee, which has already hit a two-year low against the dollar recently.
Along with considering are the upcoming Federal Reserve’s meeting, the central bank will also have to take into account the impact of the 7th Pay Commission recommendations.
Federal Reserve meeting will be held on December 15-16 to take a call on interest rates.
Source:The New IndianExpress
Source:The New IndianExpress
Saturday, 21 November 2015
seventh pay commission
15:52
Seventh Pay Commission Report-AISBOF CIRCULAR
AISBOF CIRCULAR NO.124 dated 20.11.2015
************************************************************
TO ALL OUR AFFILIATES/MEMBERS:
7TH PAY COMMISSION REPORT SUBMITTED
BONANZA FOR THE CIVIL SERVANTS
SUBSTANTIAL IMPROVEMENTS IN SUPERANNUATION
PAY SCALE RANGE MINIMUM ` 18,000/- MAXIMUM ` 2,50,000/-
As expected the Pay Commission headed by Justice A.K. Mathur has submitted a comprehensive 7th Pay Commission report to the Government of India recommending very substantial improvements in all aspects of the salary scales and allowances in respect of the Civil servants as well as the Pensioners in the Government. The revision to the Government servants is expected to cost more than ` 1.02 lakh crore to the exchequer. The Commission has recommended a hike of 16% in pay and 63% in allowances. The Pensioners are expected to get an increase in their pension to the extent of 24% thus providing a hefty increase in the pension received by the Pensioners and Family Pensioners of the Government.
2. The 7th Pay Commission will benefit over 47 lac employees and over 52 lac Pensioners and family Pensioners all over the country. The Pay commission has also recommended for the introduction of one rank and one pension in respect of the civil servants which includes the para-military as well as the railway retirees. The Pay Commission has also recommended for automatic up-dating of pension when the dearness allowance payable increases by 50% of the basic pay.
3. The HRA has been reduced taking into account the increase in the basic pay on account of the revision. The HRA rates are 24%, 16% and 8% of the new basic pay for class X, Y and Z cities. One of the major recommendations of the Pay Commission has been abolition of Grade Pay and the same has now been merged with the scales as expected during the last occasion. The Grade Pay was made eligible on the earlier occasion to all the benefits and allowances and hence it was a natural thing that was expected of the Pay commission during the current report.
4. The Civil servants at the higher grades would get almost 300% jump in their basic pay since the maximum pay has now been fixed at 2,50,000/- The percentage of increment has been retained at 3%. The number of allowances have been reduced either by merger of allowance or by introduction of new allowances in the name of rationalization of salary structure.
5. The Pay Commission has recommended enhancement of the Gratuity Payable under gratuity act from ` 10 lac to ` 20 lacs which is quite substantial increase apart from the improvement in the pension benefits.
6. There is a substantial increase for Central Govt. Employees Group Insurance Scheme, monthly deduction and insurance amount, with proposal for introduction of a Health Insurance Scheme for employees and pensioners.
7. The Government has taken immediate steps to set up a secretariat for the implementation headed by the Expenditure Secretary and the Honorable Finance Minister has declared that the implementation of the 7th Pay Commission Report will ensured without further delay.
8. The recommendations of the Pay Commission are effective from 1.1.2016. The 6th pay commission was effective from 1.1.2006 and the Government is expected to accept the recommendations at an early date and announce the payment of the revised salaries to the civil servants at the earliest.
9. The 7th Pay Commission when implemented is bound to create lot of hopes and aspirations amongst the other sections of the employees including the employees in the financial sector with particular reference to the superannuation benefits that have been extended to the Government Pensioners in the country. The Pay Commission recommendations are bound to impact and influence our future negotiations as far as the 11th Bipartite Salary Revision is concerned which is hardly 2 years ahead.
10. We are awaiting for the full text of the report and note to provide the details for our members in due course.
With warm greetings,
With greetings,
Y.SUDARSHAN
GENERAL SECRETARY
Source:.https://www.facebook.com/BankingUpdates/posts/543745702449111
Thursday, 19 November 2015
seventh pay commission
21:24
Key highlights of 7th Pay Commission report
Key highlights of 7th Pay Commission report
7th pay commission report Highlights:
- Minimum pay is 18,000/-
- Grade Pay System abolished
- fitment formula will be 2.57. So using present basic pay, 7th CPC pay can be calculated by multiplying the same with 2.57 factor.
- Increase in Military service Pay increased to 16,500
- 3% annual increment
- 52 allowances abolished
- 16% increase in pay
- 23.55% increase overall salary when taking in to increase in allowances also
- 24% increase in Pension
- In a bonanza for central government employees, the Seventh Pay Commission on Thursday submitted its final report to Finance Minister Arun Jaitley recommending a 22-23 percent jump in their salary and allowances.
The Pay Commission headed by Justice A K Mathur has suggested a 15 percent increase over the basic salary plus DA for the central government staff. An increase in allowances like HRA has also been recommended.
The total increase will be 23.55 percent of the gross salary (basic plus DA plus allowances). The pay commission has also proposed a status quo on the retirement age of central government employees. Retirement age for central government employees is 60 years now.
The recommendations of the 7th Pay Commission are scheduled to take effect from January 1, 2016.
Besides Chairman, other members of the commission are Vivek Rae, a retired IAS officer of 1978 batch, and Rathin Roy, an economist. Meena Agarwal is secretary of the commission.
The central government constitutes the pay commission every 10 years to revise the pay scale of its employees and often these are adopted by states after some modifications.
The Commission was set up by the UPA government in February 2014 to revise remuneration of about 48 lakh central government employees and 55 lakh pensioners.
The Union Cabinet had extended the term of the panel in August by four months, till December. The 6th Pay Commission was implemented with effect from January 1, 2006.
Source:govemployees
Source:govemployees
Tuesday, 15 September 2015
seventh pay commission
20:49
Now central govt staff seek OROP in 7th pay commission
Now central govt staff seek OROP in 7th pay commission
The joint consultative machinery for all Central Government staff has demanded that one rank one pension be implemented for all current and future pensioners.
The demand is to implement it in the Seventh Pay Commission.
The move comes shortly after the Government decided to implement OROP for defence personnel.
OROP already exists for the judges of the Supreme Court, High Court and CAG, the letter stated, written by Shiva Gopal Mishra, Secretary, joint consultative machinery, Central Government Employees.
The letter has been written to the Seventh Pay Commission Chairman Justice Ashok Kumar Mathur.
Source :Banking Updates.
