The Union Cabinet is likely to consider tomorrow a draft amendment bill which seeks to double the ceiling of tax-free gratuity to Rs 20 lakh under the Payment of Gratuity Act.

Besides, the bill seeks to enable the central government to change the ceiling for tax free gratuity after factoring in rise in income levels by an executive order bypassing Parliament route to amend the law.

“The bill to amend the Payment of Gratuity Act is likely to be considered and approved by the Union Cabinet in its meeting scheduled tomorrow,” a source said.

After the amendment in the Act, formal sector workers would be eligible for up to Rs 20 lakh tax-free gratuity. Last month, the central trade unions had agreed on the proposal in a tripartite consultation with the Labour Ministry.

However, the unions had demanded the removal of conditions asking to have at least 10 employees in an establishment and minimum five years of service for payment of gratuity.

At present, as per the Payment of Gratuity Act, an employee is required to do minimum service of five years to become eligible for gratuity amount. Moreover, the Act applies to those establishments where the number of employees is not less than 10.

Trade unions had demanded that the amended provision regarding maximum amount should be made effective from January 1, 2016, as done in the case of central government employees.

Besides that rate of 15 days wages for each completed year of service be raised to 30 days wages, the unions had said during the tripartite meeting.

The proposed amendment to the Payment of Gratuity Act as circulated by the government only deals with enhancing the ceiling of maximum amount under Section 4(3) of the Act from Rs 10 lakh to Rs 20 lakh.

The proposed amendment is being brought to bring the maximum ceiling amount to Rs 20 lakh in line with the 7th Central Pay Commission’s recommendations as accepted by the government.

The relevant amendment for central government employees was notified on July 25, 2016 and the enhanced amount ceiling was made effective from January 1, 2016.

The unions were of the view that the delay of eight months for employees covered under the Payment of Gratuity Act should not result in adversely affecting the interest of the concerned employees.

The employers as well as state representatives had also agreed to the proposal of raising the amount of gratuity to Rs 20 lakh in the tripartite meeting held last month.

Source: Money Control

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New Delhi, June 17: There is a good news for central government employees who have been ardently waiting for the implementation of 7th Pay Commission. According to a Dainik Jagran report, “The Cabinet Secretary met the PMO officials on Wednesday and apprised them about the secretaries panel’s recommendations on the salary and allowances hike recommended for central government employees.

The secretaries panel reviewing the 7th pay commission’s recommendations have submitted its report to the Finance Ministry. The Finance Ministry will prepare a note and present it before the Cabinet in the next 15 days.” Whereas according to a India.com report, “The 13-member Committee of Secretaries headed by the Cabinet Secretary Pradeep Kumar Sinha is likely to submit its final report on the recommendations proposed by the 7th Pay Commission on June 18. After panel submits its report, Cabinet is expected to give the green signal for implementation of the revised recommendations. However the government is planning to implement the recommendation made by the 7th Pay Commission regarding the salary hike of government employees from August 1.” According to latest reports, Government staff will get their six months arrears in one installment in the month of October. It is being said that Government will implement Seventh Pay Commission most likely from July. Employees will get increased payout in their July salary and it will be credited in their account on August 1. The recommendations when implemented would have bearing on remuneration of 47 lakh central government employees and 52 lakh pensioners. Subject to acceptance by the government, the recommendations will take effect from January 1, 2016.

OneIndia News

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The Seventh Pay Commission be implemented anytime now but before that everyone wants their demands to be met in regards with the allowances and wages. If reports are to be believed then, the doctors working in government hospitals in Delhi may go on strike if the Modi government does not meet their demands in connection with the seventh pay commission.

Government is deciding our pay scale, and does not even bother to listen to our demands. They do not even give us appropriate representation in the committee. While no doctor likes to go on strike, we will do exactly so if the existing recommendations of the 7th Pay commission are given a go ahead,” Dr Pankaj Solanki, President, Federation of resident doctors association (FORDA) was quoted as saying in a ZeeNews report.

The report further adds, “FORDA is a body of 15000 resident doctors in the capital, and have said that government doctors from other organisations and states have shown their inclination towards the strike opposing the recommendations of the seventh pay commission.” Doctors have said that either their demands be met by the end of or they will go on an indefinite strike. Earlier, the central government employees had also said that they are planning to strike work on July 11 so that they get higher wages and allowances under the 7th Pay Commission.

The central government employees lead by the National Council (Staff Side) Joint Consultative Machinery have also said that they will not accept unilateral decision on salary hikes under the seventh Pay Commission and would like to have more say in the way their monthly salaries and allowances are shaped up by the Empowered Committee of Secretaries.

Via OneIndia News

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The workers of the country are all set for the two days’ General Strike on February 20–21, 2013 called by the 11 Central Trade Unions for the first time after independence.

This is the fifteenth joint countrywide General Strike after the inception of the neoliberal policies. The strike has been called jointly by the Centre of Indian Trade Unions (CITU), All India Trade Union Congress (AITUC), Bhartiya Majdoor Sangh (BMS), Indian National Trade Union Congress (INTUC), Hind Mazdoor Sabha (HMS), All India United Trade Union Centre (AIUTUC) and other trade unions.

The independent federations of workers and employees too have joined the protest. More than 10 crores of workers are expected to participate in the General Strike.

The major demands raised by the trade unions in this strike are:

Price Rise

The trade unions have demanded concrete measures to arrest the spiralling prices, universalisation of the public distribution system and a complete ban on speculation and futures trading in the commodity market. They have categorically and unambiguously rejected the spurious arguments put forth by the government that prices were going up because of the increase in the Minimum Support Price to farmers and because people were consuming more.

In stead of taking effective measures to curtail price rise, the government has been taking policy measures that fuel price rise like deregulation of petrol and partial deregulation of diesel prices, electricity tariffs, reduction in fertiliser subsidy, reduction of subsidised cooking gas cylinders etc. It is taking measures that endanger food security.

Minimum Wages

Another important demand raised by the trade unions is the amendment to the Minimum Wages Act to ensure universal coverage by the Minimum Wages Act, irrespective of the schedules as per the recommendation of the 44th session of Indian Labour Conference and fixing of the statutory minimum wage at not less than Rs 10,000 per month.

Under the neoliberal regime, the share of wages in net value added has registered a sharp decline from 30% in late eighties to a mere 9.5% in 2009 while the share of profits has increased from 15% to 55% during the same period. Many sectors are not covered under the Minimum Wages Act. In addition, the Government of India and several state governments are resorting to the dubious method of employing millions of workers, large number of them women, calling them ‘social workers’, ‘activists’, ‘volunteers’, ‘friends’, ‘guests’ etc in the various ‘schemes’/ ‘programmes’ being implemented through their departments, just to deny them minimum wages and other benefits.

Universal social security for the unorganised sector workers

94% of the workforce in our country in the unorganised sector does not have any social security despite contributing more than 60% of the country’s GDP.

Most of the schemes made applicable to the unorganised workers under the Unorganised Workers’ Social Security Act, 2008 are meant only for BPL category excluding majority of the unorganised sector workers due to the ridiculous income criteria fixed by the Planning Commission. No measures have been taken to ensure universal coverage of the Act and to guarantee floor level social security benefits within a specific time frame. The ‘Swavalamban’ scheme, is nothing but a crude attempt to utilise the hard earned money of the unorganised workers to boost up the share market and the profits of the foreign financial companies.

Against disinvestment

The central trade unions have strongly countered the government’s arguments in support of disinvestment – of expanding people’s ownership, mobilising resources for modernisation and for social sector expenditure as fraudulent. Disinvestment leads to cornering of public wealth by private corporates including multinational corporations, and private mutual funds.

Today, the PSUs have huge reserves and surpluses and are all carrying on their modernisation projects with their own resources besides contributing huge amounts to the exchequer by way of dividends and taxes.

The argument of mobilising resources for social security expenditure only indicates the government’s intention to abandon its responsibility to provide social security to its citizens. Disinvestment is nothing but an attempt to hand over huge national assets and natural resources to private corporates.

Employment

Employment protection is one of the major demands of the general strike. The huge tax concessions worth more than Rs 5 lakh crores to the corporates and the big business on an average every year during the last more than 5 years, have helped these corporates to tide over their crisis but have not resulted in employment generation.

According to the National Sample Survey (66th round) data, the annual rate of employment growth decelerated from 2.7% in 2000–05 to 0.8% in 2005-10. Growth of non-agricultural employment declined from 4.65% to 2.53% during the same period despite the high GDP growth of above 8%.

FDI in retail, displacement of lakhs of tribals, fishers and peasants from their land in the name of development are compounding the problem of unemployment.

Effective implementation of labour laws, equal wages and benefits to contract workers and stopping rampant contractorisation, pension for all etc are the other demands raised by the trade unions in this strike, which has evoked massive response from all sections of workers in the country.

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