Sunday, June 7, 2015

Bonus: Modi government to raise the salary threshold from Rs.10,000 to 15,000, ceiling limit from Rs. 3500 to 4500

Bonus: Modi government to raise the salary threshold from Rs.10,000 to 15,000, ceiling limit from Rs. 3500 to 4500

In bonus to workers, cap on salary set to be raised: Financial Express News

Several lakhs of workers in the organised sector will benefit as the Narendra Modi government is set to raise the salary threshold for mandatory bonus for workers from Rs 10,000 a month at present to Rs 15,000 and the minimum bounty from an annual Rs 3,500 now to Rs 4,500. The proposal, agreed to by employers’ associations at a recent meeting of an inter-ministerial group, would require Parliament’s approval as the Payments of Bonus Act, 1965, requires to be amended for this purpose.

While the minimum bonus is a legal liability on the firms concerned, whether or not they make a profits, these firms are also required to pay the workers a higher bonus if their “allocable surplus” exceeds the amount payable as minimum bonus, subject to a cap (20%) of the salaries.
If the new proposal takes affect, the maximum bonus payable by profit-making ventures would be close to Rs 11,000 as against Rs 8,400 now.
minimum+salary+for+bonus+minimum+annual+bonusThe salary ceiling for mandatory bonus eligibility was last fixed in 2007 and made effective retrospectively from April 1, 2006. While industry associations demanded exempting sick units from the requirement of paying bonus, trade unions have pitched for removal of the ceilings as “profits are not capped”, official sources said. The unions also asked for extending the benefit to workers under the Industrial Disputes Act, they added.
The revision of the bonus eligibility and the amounts is being done by factoring in the relevant price increases, the gauge used being the consumer price index-industrial workers or CPI(IW). This index stayed in the range of 6.4-12% since 2008. After hitting as high as 12% in 2010, CPI(IW) has maintained a roller-coaster ride — it eased to 8.9% in 2011 before rising to 10.9% in 2013 and dropping again to 6.4% in 2014. In the current calendar year, it has slowed almost consistently from 7.2% in January to 5.8% in April.
annual+change+in+consumer+prince+indexAn estimate is two-thirds of the 6 crore organised sector workforce in the country are eligible for the mandatory bonus given their salary levels. Analysts, however, say that actual number of beneficiaries could be less as many units practically circumvent the norm.
Under Section 10 of Payments of Bonus Act, “every employer (as defined in the Act) shall be bound to pay to every employee in respect of every accounting year, a minimum bonus which shall be 8.33% of the salary or wage earned by the employee during the accounting year”. All factories and establishments employing 20 or more persons are expected to pay the bonus compulsorily, provided the worker has worked in the establishment for at least 30 days. Employees in Life Insurance Corporation, seamen, dock workers and university employees are outside the Act’s ambit.
Although the country witnessed high inflation between 2009 and 2014, the move to raise the bonus amounts comes at a time inflation has come down (consumer price inflation is now below 5%). Consumer confidence is yet to be restored to the pre-2008-09 levels, while in recent months rural income growth has slowed.

Read at: Financial Express

Working women to get better living facilities: Dr Jitendra Singh

Working women to get better living facilities: Dr Jitendra Singh
 Press Information Bureau
Government of India
Ministry for Development of North-East Region
06-June-2015 18:57 IST
Working women to get better living facilities: Dr Jitendra Singh

Government is planning several initiatives to ensure that working women in the national capital get better living facilities so that they can perform to the best of their potential and contribute to the best of their ability in the process of nation building.

This was stated here today by Union Minister of State (Independent Charge) for Development of North Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances, Pensions, Atomic Energy and Space, Dr Jitendra Singh during his visit to the Jasola Working Women’s Hostel near Sarita Vihar/Apollo Hospital Metro Station, which has been set up by Ministry of Development of North East Region (DoNER) in collaboration with Ministry of Women & Child Development. The hostel is specifically meant for working women from North Eastern Region although working women from other parts of the country are also offered accommodation depending upon vacancy. This is one of the few residential hostels of its kind in Delhi which is meant exclusively for working women.
Dr Jitendra Singh, accompanied by Secretary (DoNER) Shri Vijay Kumar, Joint Secretary Shri V.B.Pathak and caretakers of the hostel, went around the premises and interacted with the inmates, who were extremely thrilled and enthusiastic at the rare opportunity to have the Union Minister visiting their hostel to inquire about them. He visited each and every block of the premises including the dining hall, common room and the residential blocks.
Dr Jitendra Singh issued on-the-spot instructions to increase the number of “single occupancy” living rooms and provide air conditioned facility wherever demanded by the inmates. He also noticed that in certain portions of the building wifi internet facility was not up to the mark and issued instructions for installation of signal boosters.
To make the place more secure and to ensure free movement of working women even at late night hours, Dr Jitendra Singh directed the officials of the Ministry to take up with civic/electrical authorities the issue of maintaining uninterrupted power supply to the streetlights on the road linking the premises to the nearby metro station. He also directed that an in-house transport facility by way of a van or mini-bus may be arranged for the inmates to travel to and from the metro station.
During informal interaction with the inmates, some of the working women came out with suggestions like setting up a badminton court in the premises and a small auditorium to conduct socializing and cultural activities. Dr Jitendra Singh said these are some of the long term plans for which the Ministry will soon prepare a draft paper.

***
PIB

One Rank One Pension: Meeting of Military veterans with Parrikar inconclusive, threaten to go on hunger strike

One Rank One Pension: Meeting of Military veterans with Parrikar inconclusive, threaten to go on hunger strike
The talks between ex-servicemen and Defence Minister Manohar Parrikar over the One Rank One Pension scheme failed today after which the retired defence personnel decided to go ahead with their planned rally on June 14 followed by a relay hunger strike to protest the long delay in implementation of the scheme.
“Though Defence Minister Manohar Parrikar understood our problem and argument, he did not give any date for the implementation of the OROP and hence we are going ahead with our agitation,” Maj Gen Satbir Singh, chairman of Indian Ex-Servicemen Movement (IESM) told PTI.
He twice led a delegation of ex-servicemen today at meetings with Parrikar and Army chief Gen Dalbir Singh Suhag.

Singh said he has complete faith in Prime Minister Narendra Modi and hoped that the OROP will be implemented soon.
The ex-servicemen group has also written a letter to Modi seeking his intervention to meet their long-pending demand.
At a conclave of the retired defence personnel today, it was decided that they will call off their proposed agitation if the Minister gave a deadline of July 15 for the implementation of the OROP.

Read at Financial Express


PM Modi is committed to 'one rank one pension' scheme: Defence expert

New Delhi: Defence expert Lieutenant General (retired) Raj Kadyan on Saturday said the one-rank, one-pension (OROP) scheme which has been long pending would be resolved soon.
"The Prime Minister is committed, we have no doubt it will come. Now, it is stuck because somebody is trying to play around with the definition which we had worked out after careful thought. It was very simple, only two parameters were to be taken into account, rank and total service," Lieutenant General (retired) Kadyan said.
"If you inject anything else which will be neither fair nor will it be easy to implement. So, we are going to sit with the people who have worked it out. Let us see how it is resolved. I have great confidence that we will be able to resolve it," he added. [Read at Zee News]

Investment guidelines for NPS Schemes (Applicable to Scheme CG, Scheme SG, Corporate CG and NPS Lite schemes of NPS and Atal Pension Yojana) w.e.f, 10th June, 2015

Investment guidelines for NPS Schemes (Applicable to Scheme CG, Scheme SG, Corporate CG and NPS Lite schemes of NPS and Atal Pension Yojana) w.e.f, 10th June, 2015.

Pension Fund Regulatory
& Development Authority
1st Floor, ICADR Building,
Plot No. 6, Vasant Kunj
Institutional Area, Phase-I,
New Delhi – 110070
 
CIRCULAR
PFRDA/2015/16/PFM/7
Date: 03rd June, 2015
Sub: Investment guidelines for NPS Schemes (Applicable to Scheme CG, Scheme SG, Corporate CG and NPS Lite schemes of NPS and Atal Pension Yojana) w.e.f, 10th June, 2015.
Category
Investment Pattern
Percentage amount to be invested
(i)
Government Securities and Related Investments
(a) Government Securities,
(b) Other Securities {‘Securities’ as defined in section 2(h) of the Securities Contracts (Regulation) Act, 1956} the principal whereof and interest whereon is fully and unconditionally guaranteed by the Central Government or any State Government.
The portfolio invested under this sub-category of securities shall not be in excess of 10% of the total portfolio of the G-Sec in the concerned NPS Scheme of the pension fund at any point of time.
(c) Units of Mutual Funds set up as dedicated funds for investment in Govt. securities and regulated by the Securities and Exchange Board of India:
Provided that the portfolio invested in such mutual funds shall not be more than 5% of the of the G-Sec in the concerned NPS Scheme of the pension fund at any point of time and fresh investments made in them shall not exceed 5% of the fresh accretions in the year.
Upto 50%
(ii)
Debt Instruments and Related Investments
(a) Listed (or proposed to be listed in case of fresh issue) debt securities issued by bodies corporate, including banks and public financial institutions (Public Financial Institutions’ as defined under Section 2 of the Companies Act, 2013), which have a minimum residual maturity period of three years from the date of investment.
(b) Basel III Tier-1 bonds issued by scheduled commercial banks under RBI Guidelines:
Provided that in case of initial offering of the bonds the investment shall be made only in such Tier-I bonds which are proposed to be listed.
Provided further that investment shall be made in such bonds of a scheduled commercial bank from the secondary market only if such Tier I bonds are listed.
Total portfolio invested in this sub-category, at any time, shall not be more than 2% of the total portfolio of the fund.
No investment in this sub-category in initial offerings shall exceed 20% of the initial offering. Further, at any point of time, the aggregate value of Tier I bonds of any particular bank held by the fund shall not exceed 20% of such bonds issued by that Bank
(c) Rupee Bonds having an outstanding maturity of at least 3 years issued by institutions of the International Bank for Reconstruction and Development, International Finance Corporation and Asian Development Bank.
(d) Term Deposit receipts of not less than one year duration issued by scheduled commercial banks, which satisfy the following conditions on the basis of published annual report(s) for the most recent years, as required to have been published by them under law:
(i) having declared profit in the immediately preceding three financial years;
(ii) maintaining a minimum Capital to Risk Weighted Assets Ratio of 9%, or mandated by prevailing RBI norms, whichever is higher;
(iii) having net non-performing assets of not more than 4% of the net advances;
(iv) having a minimum net worth of not less than Rs. 200 crores. (e) Units of Debt Mutual Funds as regulated by Securities and Exchange Board of India:
(f) The following infrastructure related debt instruments:
(i) Listed (or proposed to be listed in case of fresh issue) debt securities issued by body corporates engaged mainly in the business of development or operation and maintenance of infrastructure, or development, construction or finance of low cost housing.
Further, this category shall also include securities issued by Indian Railways or any of the body corporates in which it has majority shareholding.
This category shall also include securities issued by any Authority of the Government which is not a body corporate and· has been formed mainly with the purpose of promoting development of infrastructure.
It is further clarified that any structural obligation undertaken or letter of comfort issued by the Central Government, Indian Railways or any Authority of the Central Government, for any security issued by a body corporate engaged in the business of infrastructure, which notwithstanding the terms in the letter of comfort or the obligation undertaken, fails to enable its inclusion as security covered under category (i) (b) above, shall be treated as an eligible security under this sub-category.
(ii) Infrastructure and affordable housing Bonds issued by any scheduled commercial bank, which meets the conditions specified in (ii)(d) above.
(iii) Listed (or proposed to be listed in case of fresh issue) securities issued by Infrastructure debt funds operating as a Non-Banking Financial Company and regulated by Reserve Bank of India.
(iv) Listed (or proposed to be listed in case of fresh issue) units issued by Infrastructure Debt Funds operating as a Mutual Fund and regulated by Securities and Exchange Board of India.
It is clarified that, barring exceptions mentioned above, for the purpose of this sub-category (f), a sector shall be treated as part of infrastructure as per Government of India’s harmonized master-list of infrastructure sub-sectors:
Provided that the investment under sub-categories (a), (b) and (f) (i) to (iv) of this category No. (ii) shall be made only in such securities which have minimum AA rating or equivalent in the applicable rating scale from at least two credit rating agencies registered with Securities and Exchange Board of India under Securities and Exchange Board of India (Credit Rating Agency) Regulation, 1999. Provided further that in case of the sub-category (f) (iii) the ratings shall relate to the Non-Banking Financial Company and for the subcategory (f) (iv) the ratings shall relate to the investment in eligible securities rated above investment grade of the scheme of the fund.
Provided further that if the securities/entities have been rated by more than two rating agencies, the two lowest of all the ratings shall be considered.
Provided further that investments under this category requiring a minimum AA rating, as specified above, shall be permissible in securities having investment grade rating below AA in case the risk of default for such securities is fully covered with Credit Default Swaps (CDSs) issued under Guidelines of the Reserve Bank of India and purchased along with the underlying securities. Purchase amount of such Swaps shall be considered to be investment made under this category.
For sub-category (c), a single rating of AA or above by a domestic or international rating agency will be acceptable.
It is clarified that debt securities covered under category (i) (b) above are excluded from this category (ii).
Upto 45%
( iii)
Short-term Debt Instruments and Related Investments 
Money market instruments:Provided that investment in commercial paper issued by body corporates shall be made only in such instruments which have minimum rating of A 1 + by at least two credit rating agencies registered with the Securities and Exchange Board of India.
Provided further that if commercial paper has been rated by more than two rating agencies, the two lowest of the ratings shall be considered.
Provided further that investment in this sub-category in Certificates of Deposit of up to one year duration issued by scheduled commercial banks, will require the bank to satisfy all conditions mentioned in category (ii) (d) above.
(b) Units of liquid mutual funds regulated by the Securities and Exchange Board of India with the condition that the average total asset under management of AMC for the most recent six month period of atleast Rs. 5000/- crores
(c) Term Deposit Receipts of up to one year duration issued by such scheduled commercial banks which satisfy all conditions mentioned in category (ii) (d) above.
Upto 5%
(iv)
Equities and Related Investments 
Shares of body corporates listed on Bombay Stock Exchange (B SE) or National Stock Exchange (NSE), which have:
(i) Market capitalization of not less than Rs. 5000 crore as on the date of investment and
(ii) Derivatives with the shares as underlying traded in either of the two stock exchanges.
(b) Units of mutual funds regulated by the Securities and Exchange Board of India, which have minimum 65% of their investment in shares of body, corporates listed on BSE or NSE.
(c) Exchange Traded Funds (ETFs)/lndex Funds regulated by the Securities and Exchange Board of India that replicate the portfolio of either BSE Sensex Index or NSE Nifty 50 Index.
(d) ETFs issued by SEBI regulated Mutual Funds constructed specifically for disinvestment of shareholding of the Government of India in body corporates.
(e) Exchange traded derivatives regulated by the Securities and Exchange Board of India having the underlying of any permissible listed stock or any of the permissible indices, with the sole purpose of hedging.
Provided that the portfolio invested in derivatives in terms of contract value shall not be in excess of 5% of the total portfolio invested in sub-categories (a) to (d) above.
Upto 15%
(v)
Asset Backed, Trust Structured and Miscellaneous Investments
(a) Commercial mortgage based Securities or Residential mortgage based securities.
(b) Units issued by Real Estate Investment Trusts regulated by the Securities and Exchange Board of India.
(c) Asset Backed Securities regulated by the Securities and Exchange Board of India.
(d) Units of Infrastructure Investment Trusts regulated by the Securities and Exchange Board of India.
Provided that investment under this category No. (v) shall only be in listed instruments or fresh issues that are proposed to be listed.
Provided further that investment under this category shall be made only in such securities which have minimum AA or equivalent rating in the applicable rating scale from at least two credit rating agencies registered by the Securities and Exchange Board of India under Securities and Exchange Board of India (Credit Rating Agency) Regulations, 1999. Provided further that in case of the sub-categories (b) and (d) the ratings shall relate to the rating of the sponsor entity floating the trust.
Provided further that if the securities/entities have been rated by more than two rating agencies, the two lowest of the ratings shall be considered.
Upto 5%
 
2. Fresh accretions to the fund will be .invested in the permissible categories specified in this investment pattern in a manner consistent with the above specified maximum permissible percentage amounts to be invested in each such investment category, while also complying with such other restrictions as made applicable for various sub-categories of the permissible investments.
 
3. Fresh accretions to the funds shall be the sum of un-invested funds from the past and receipts like contributions to the funds, dividend/interest/commission, maturity amounts of earlier investments etc., as reduced by obligatory outgo during the financial year.
 
4. Proceeds arising out of exercise of put option, tenure or asset switch or trade of any asset before maturity can be invested in any of the permissible categories described above in the manner that at any given point of time the percentage of assets under that category should not exceed the maximum limit prescribed for that category and also should not exceed the maximum limit prescribed for the sub-categories, if any. However, asset switch because of any RBI mandated Government debt switch would not be covered under this restriction.
 
5. If for any of the instruments mentioned above the rating falls below the minimum permissible investment grade prescribed for investment in that instrument when it was purchased, as confirmed by one credit rating agency, the option of exit shall be considered and exercised, as appropriate, in a manner that is in the best interest of the subscribers.
 
6. On these guidelines coming into effect, the above prescribed investment pattern shall be achieved separately for each successive financial year through timely and appropriate planning.
 
7. The prudent investment of the funds within the prescribed pattern is the fiduciary responsibility of the Pension Funds and Trust and needs to be exercised with appropriate due diligence. The Trust and Pension Fund would accordingly be responsible for investment decisions taken to invest the funds
 
8. The Pension Funds and trust will take suitable steps to control and optimize the cost of management of the fund.
 
9. i. The trust and Pension Funds will ensure that the process of investment is accountable and transparent.
ii. It will be ensured that due diligence is carried out to assess risks associated with any particular asset before investment is made by the fund in that particular asset and also during the period over which it is held by the fund. The requirement of ratings as mandated in this notification merely intends to limit the risk associated with investments at a broad and general level. Accordingly, it should not be construed in any manner as an endorsement for investment in any asset satisfying the minimum prescribed rating or a substitute for the due diligence prescribed for being carried out by the fund
 
10. Due caution will be exercised to ensure that the same investments are not churned with a view to enhancing the fee payable. In this regard, commissions for investments in Category Ill instruments will be carefully charged, in particular.
 
11. Following restrictions/filters are being imposed for Government NPS schemes (Applicable to Government Sector, Corporate CG and NPS Lite schemes of NPS and Atal Pension Yojana) to reduce concentration risks in the NPS investment of the subscribers:
a) NPS investments have been restricted to 5% of the ‘paid up equity capital’* of all the sponsor group companies or 5% of the total AUM under Equity exposure whichever is lower, in each respective scheme and 10% in the paid up equity capital of all the non-sponsor group companies or 10% of the total AUM under Equity exposure whichever is lower, in each respective scheme.

*’Paid up share capital': Paid up share capital means market value of paid up and subscribed equity capital.

b) NPS investments have been restricted to 5% of the ‘net-worth” of all the sponsor group companies or 5% of the total AUM in debt securities (excluding Govt. securities) whichever is lower in each respective scheme and 10% of the net-worth of all the non-sponsor group companies or 10% of the total AUM in debt securities (excluding Govt. securities) whichever is lower, in each respective scheme.

#Net Worth: Net worth would comprise of Paid-up capital plus Free Reserves including Share Premium but excluding Revaluation Reserves, plus Investment Fluctuation Reserve and credit balance in Profit & Loss account, less debit balance in Profit and Loss account, Accumulated Losses and Intangible Assets.

c) Investment exposure to a single Industry has been restricted to 15% under all NPS Schemes by each Pension Fund Manager as per Level-5 of NIC classification. Investment in scheduled commercial bank FDs would be exempted from exposure to Banking Sector.

d) if the PF makes investments in Equity/Debt instruments, in addition to the investments in Index funds/ETF/Debt MF, the exposure limits under such Index funds/ETF/Debt MF should be considered for compliance of the prescribed the Industry Concentration, Sponsor/ Non Sponsor group norms. (For example, if on account of investment in Index Funds/ ETFs/Debt MFs, if any of the concentration limits are being breached than further investment should not be made in the relative Industry /Company).
12. These instructions supersede only part of Investment Guidelines for NPS Schemes Applicable to Government Sector, Corporate CG and NPS Lite schemes of NPS prescribed by PFRDA vide Circular No. PFRDA/2014/02/PFM/1 dated 29.01.2014 and will be effective from 101h June 2015.
 
13. Investment Guidelines for NPS Private Sector {applicable to E(Tier-1& II), C (Tier-I & 11) and G (Tier-I & II)} will be unchanged until further orders .
(Sumeet Kaur Kapoor)
General Manager
Source: http://pfrda.org.in/MyAuth/Admin/showimg.cshtml?ID=705

NC JCM(Staff Side) has decided to meet all standing committee members before the final Meeting with 7th Pay Commission

NC JCM(Staff Side) has decided to meet all standing committee members before the final Meeting with 7th Pay Commission

NC JCM(Staff Side) has decided to meet all the standing committee members before the final Meeting with 7th Central Pay Commission will be held on 9.6.2015. And National Anomaly Committee meeting on 12 pending NAC items also expected to be held on 9th June 2015.

MEETING WITH 7TH CPC
Shiva Gopal Mishra
Secretary
National Council (Staff Side)
Joint Consultative Machinary
For Central Government Employees
13-C. Ferozshah Road. New DelhI – 110001
E Mall :nc.jcm.np@gmail.com
No.NC/JCM/7th CPC/2015
Dated: May 30, 2015
All the Standing Committee Members
of the National Council, JCM (Staff Side)

Dear Comrades,

Sub:
Final meeting of the Standing Committee of the National Council JCM (Staff Side) with the 7th Central Pay Commission will be held in the office of the Pay Commission at Delhi on 9th June 2015 at 11.00 am, an Internal Meeting of the Staff Side,NC/JCM will be held on 8th June 2015 at 15.00 hrs. in the office of National Council(JCM), 13-C, Ferozshah Road, New Delhi.

You are requested to attend both the meetings accordingly.

A copy of the letter dated 27th May 2015, received from the office of the 7th CPC, is also enclosed herewith for your ready reference.

There is every likelihood of meeting of the National Anomalies Committee on 12 pending NAC items on 9th June, 2015 (Afternoon) with the Jt. Secretary(E) and Jt. Secretary(Pers.). As soon as we get letter to this effect, we will inform you, but you should be prepared for that too.

With fraternal greetings!
Comradely yours,
(Shiva Gopal Mishra)
Secretary(Staff Side)
NC/JCM & Convener
Source: www.auditflag.blogspot.in

Now Trending

Holidays to be observed in Central Government Offices during the year 2020

Holidays to be observed in Central Government Offices during the year 2020 CENTRAL GOVERNMENT HOLIDAY LISTS 2020 F.No.12/1/20...

Disclaimer:

All efforts have been made to ensure accuracy of the content on this blog, the same should not be construed as a statement of law or used for any legal purposes. Our blog "Central Government Staff news" accepts no responsibility in relation to the accuracy, completeness, usefulness or otherwise, of the contents. Users are advised to verify/check any information with the relevant department(s) and/or other source(s), and to obtain any appropriate professional advice before acting on the information provided in the blog.

Links to other websites that have been included on this blog are provided for public convenience only.

The blog "Central Government Staff news" is not responsible for the contents or reliability of linked websites and does not necessarily endorse the view expressed within them. We cannot guarantee the availability of such linked pages at all times.

Any suggestions write to us
centralgovernmentnews@gmail.com