Saturday, July 28, 2018

Wages of contractual employees

Wages of daily wagers, casual workers, temporary workers, ad-hoc appointees, contractual employees etc

Wages of contractual employees

The Central and the State Government departments and agencies, on the basis of manpower requirement therein, engage various sets of workmen other than permanent employees viz. daily wagers, casual workers, temporary workers, ad-hoc appointees, contractual employees etc which are engaged by an establishment directly or through contractors. The wages, terms & conditions of service and the period of engagement of such workers in an establishment varies from establishment to establishment. Data in this regard is not centrally maintained.

The principle of "equal pay for equal work" was examined by the Hon'ble Supreme Court in the civil appeal number 213 of 2013. The issue before the Hon'ble Supreme Court was that:

"…..whether temporarily engaged employees (daily-wage employees, ad- appointees, employees appointed on casual basis, contractual employees and the like), are entitled to minimum of the regular pay-scale, alongwith dearness allowance (as revised from time to time) on account of their performing the same duties, which are discharged by those engaged on regular basis, against sanctioned posts…."

The Hon'ble Supreme Court held that:
"….There can be no doubt, that the principle of ‘equal pay for equal work' would be applicable to all the concerned temporary employees, so as to vest in them the right to claim wages, at par with the minimum of the pay-scale of regularly engaged Government employees, holding the same post…."
It is mandatory for the employer/principal employer to comply with the various statutory provisions/Court Orders/Government Instructions including instructions on wage related issues of various categories of employees and apply the principle laid down by the Hon'ble Supreme Court regarding "equal pay for equal work" while paying wages to its workers/labourers.

The instructions regarding equal pay admissible to casual workers already exists in terms of Department of Personnel & Training (DoPT) O.M. No. 49014/2/86 Estt. (c) dated 07.06.1988.
In so far as the contract labour is concerned, the Contract Labour (Regulation & Abolition) Central Rules, 1971 provides for wage parity as stipulated in rule 25(2)(v)(a) which is reproduced below:
"in cases where the workmen employed by the contractor perform the same or similar kind of work as the workmen directly employed by the principal employer of the establishment, the wage rates, holidays, hours of work and other conditions of service of the workmen of the contractor shall be the same as applicable to the workmen directly employed by the principal employer of the establishment on the same or similar kind of work….."

In order to ensure compliance of labour laws and in this regard, there is separate enforcement machinery available in the Central and the State Sphere to which an aggrieved worker can approach for redressal of its grievances.

In the Central sphere there is a well-established Central Industrial Relations Machinery (CIRM) having country-wide network of Dy. Chief Labour Commissioners (Central) and Regional Labour Commissioners (Central) under the control of the Chief Labour Commissioner (Central) for enforcement of labour laws and redressal of grievances/settlement of claims arising out of labour disputes.

The above statement was submitted by the Ministry of Labour and Employment in Rajya Sabha in reply of undermentioned question:-
ANSWERED ON-25.07.2018

Wages of contractual employees

83 . Shri Sanjay Raut
(a) whether it is a fact that there are lakhs of contractual employees working in Government Departments and agencies who are getting lesser wages than permanent employees;
(b) if so, Government''s respose thereto;
(c) whether Supreme Court in its judgement, in the year 2016, has ordered that temporary workers are entitled to get wages at par with permanent employees;
(d) if so, Government''s reaction thereto; and
(e) whether the Ministry of Law and Justice has advised the various Ministries and Departments to abide by the SC judgement?



(a) to (e): A Statement is laid on the Table of the House.
(a) to (e):
- as above -


CGHS: Sealed Rate Quotation supply

CGHS: Sealed Rate Quotation supply


Government of India
0/o the Additional Director
CGHS Medical store Depot
DIZ Area, Sec. II, Udyan Marg, Gole Market
New Delhi 110001
Date: 26-07-2018

Subject: Sealed Rate Quotation for Anti-Cancer Drugs and other Restricted Drugs. Regarding.

Sealed Rate Quotations are invited from Manufacturer/Importer of Anti-Cancer and other restricted Drugs for supply to CGHS for its beneficiaries on case to case basis for a period of 6 months, extendable by another 6 months or till the finalization of tender by MSO whichever is earlier. The list of the 27 (Twenty Seven) drugs/items is placed at Annexure A.

1. Eligibility Criteria: The eligibility criteria are as follow:-
a. The manufacturer/importer should be a holder of valid applicable licenses.
b. The manufacturer/importer should be holder of a valid WHO-GMP/GMP certific4te as per revised schedule-M of Drugs and Cosmetic Act.
c. The manufacturer/importer should not be currently blacklisted/debarred from any Govt. Organization.
d. The manufacturer/importer should have PAN Card/GST Registered.

2. Terms and Conditions:
a. The supplies shall be made on credit basis.
b. The payment shall be made on receipt of pre-receipted invoice in the name of “Additional Director (Medical Store Depot), CGHS. Gole Market, DIZ Area, Udyan Marg, New Delhi.
c. Manufacturer/Importer shall bear all taxes/GST or any other relevant tax as required under law, on aforesaid supplies.
d. No substitution/alternative drug will be accepted under any circumstance.
e. The supplies shall be covered under “Fall Clause” wherein the manufacturer/Importer will undertake that price quoted to MSD, Delhi is the lowest rate, offered to any institution (Private or Govt.) and in case there is fall in institutional price, they shall reduce the price accordingly, or if they sell or offer to sell such stores to any other party at a rate lower than the price charged they will forthwith notify such reduction.
f. Any reduction of Tax rates shall also be passed on to CGHS.
g. The shelf life of drugs supplied should not have passed more than 1/6 of the total shelf life at the time of supply of drugs. In case of imported drugs, the shelf life should not have crossed more than 1/4 of total shelf life. However on case to case basis the lower shelf life may be accepted, subject to the furnishing of an undertaking that if any quantity remains unconsumed, the same shall be replaced or cost of drug shall be refunded.
h. Supplies of drugs are to be made on next working day at MSD, CGHS, Gole Market, New Delhi & on 3rd working day at NCR CGHS Wellness centres of Ghaziabad, Faridabad, and Gurgaon & Noida or at places as decided by competent authority.
i. The drugs should be supplied with strict cold chain, if required.
j. In case the manufacturing of a drug has been stopped by the manufacturer, it will be informed well in advance, preferably three months prior.
k. The manufacturer/importer will not supply any drug, not approved by the Drug Controller of India or which has been subsequently derecognized by the Drug Controller. In case, such an instance is found out, no payment will be made for such supply and penalty will be imposed as per approval of competent authority along with legal proceeding as per rule, if applicable.
l. No Commitment to accept best or any other offer: CGHS shall be under no obligation to accept the best or any other offer received in response to this sealed rate quotation notice and shall be entitled to reject any or all the quotations including those received late or incomplete quotations without assigning any reason whatsoever. CGHS will not be obliged to meet and have discussions with any company/importer, and/or to listen to any representation. While the above procedures lay down the overall guidelines, CGHS reserves the right to select the company/importer based on other parameters at its discretion.
m. Conditional offers and non-conformity of the terms and conditions and offers not submitted as per the details, will be rejected summarily.
n. Splitting clause: CGHS reserves the right to split orders in case of same rates for same drug offered by different Manufacturer/importer.
o. Successful manufacturer/Importer whose rates are accepted will have to Supply the medicines as per “Annexure A”.
p. CGHS reserves the right to omit/remove any drug from drug list in the event the drug is available indigenously or if directed by competent authority.
q. In case of termination, CGHS has the right to extend the offer to L2 Manufacturer/Importer at Ll price.
3. EMD & PBG:
a. EMD of an amount of Rs. 50,000/-(Fifty Thousand rupees) in the form of Bank Guarantee has to be submitted along with the quotation and same shall be returned to unsuccessful manufacturer/importer.
b. The Manufacturer/importer declared successful has to submit a PBG of an amount of Rs. 5,00,000/-(Five Lakh rupees) valid for 6 months beyond expiry of Contract. EMD will be returned on receipt of Performance bank Guarantee.
4. Submission of documents: the Manufacturer/Importer shall submit the following documents:
a. Unconditional Acceptance Letter of Terms and conditions of rate enquiry.
b. EMD for an amount of Rs. 50,000/- (Fifty Thousand Rupees) in the form of Bank guarantee.
c. Fall Clause: That “We the manufacturer/Importer hereby undertake that price quoted to MSD, Delhi is the lowest rate, offered to any institution (Private or Govt). In case there is fall in institutional price, we will reduce the price accordingly, or if we sell or offer to sell such stores to any other party at a rate lower than the price charged we will forthwith notify such reduction.”
d.A self-attested copy of valid manufacturing license/import license.
e. A self-attested copy of WHO-GMP/GMP certificate as per revised scheduled- M of Drug and Cosmetic Act.
f. If supplies are to be made through an authorized distributor, then authorization letter from manufacturer/importer of drug along with relevant retail/wholesale drug license of the stockist/distributor.
g. A self - attested copy of PAN/GST registration of manufacturer/importer/authorized distributor.
h. Proprietary Article certificate, if applicable.
i. Mandate Form (Annexure B), Vendor Detail form (Annexure C).
j. Duly filled quotation in the Format provided below on the letterhead to be signed and stamped by the authorized signatory.
S.NoGeneric NameBrand NameStrengthUnit/PackMRP (Rs.)Rate offered to CGHS (Exclusive of GST)GST RateNet Rate offered to CGHS (inclusive of GST)
5. Critical Date Sheet
a. Date of Issue of Notice Inviting Quotation: 26/07/2018
b. Last date of submission: 09/08/2018, 12:00 PM
c. Date of Opening of Sealed Rate Quotations: 3:00 PM on 09/08/2018.
6. Terms & conditions of supplies:
a. Online supply order shall be placed upon the supplier, declared successful, by CGHS upon receipt of Indent from various CGHS Wellness Centres and online access shall be provided to the supplier in this regard.
b. Supply confirmation shall be provided by the supplier upon delivery of goods to CGHS MSD.
7. Penalties and other important Terms and conditional:
a. CGHS has the right to recover penalties or any other loss occurred from the submitted PBG/pending bills of Manufacturer/Importer.
b. Fall clause: In case a firm is found to be in violation of the aforementioned fall clause, recovery shall be made from the existing bills of Manufacturer/importer/Authorized Agent of manufacturer and any decision in this regard by CGHS will be final.
c. Termination clause: CGHS reserves the right to terminate the Rate Quotation, if the execution of work is unsatisfactory or the time schedule is not strictly adhered to.
d. In case of termination, CGHS has the right to extend the offer to L2 Manufacturer/Importer at L1 price.
e. Liquidated Damages: If the Manufacturer/Importer/Authorized Agent of manufacturer fails to deliver the goods within the prescribed Delivery Period, the CGHS has the right to recover liquidated damage equivalent to 0.5% per day thereof of the value of the delayed stores subject to a ceiling of 5% of value of delayed stores.
f. CGHS also reserves the right to report the Manufacturer/Importer to The State/National Drug Authorities recommending punitive action against the firm for violations of terms & conditions.
g. CGHS may, without prejudice to any other remedy for breach of Terms and Conditions of rate Enquiry, by written notice of default sent to the Manufacturer/Importer/Authorized Agent of manufacturer, terminate the Rate Enquiry in whole or part
i. If the successful Manufacturer/Importer/Authorized Agent of manufacturer fails to provide any or all ‘of the services within the period(s) specified in the Sealed Rate Enquiry
ii. If the successful Manufacturer/Importer/Authorized Agent of manufacturer fails to perform any other obligation(s) under the Terms and Conditions of Sealed rate Enquiry including not abiding by all statutory liabilities under Statutory Laws.
iii. If the Manufacturer/Importer/Authorized Agent of manufacturer, in the judgment of the CGHS has engaged in corrupt or fraudulent practices in competing for or in executing the Supply of Drugs including sub-contracting or in contravention of Code of Integrity.
h. AD (MSD), CGHS, Delhi reserves the right to cancel any or all quotations without assigning any reason.
This is issued with the approval of the competent authority.
CGHS,Medical Store Depot
New Delhi
Annexure - A
S.NoMedicine NameTypeStrength

  • Vendor Details Form

Modified Assured Career Progression Scheme (MACPS) for PBOR of Army

MoD Corrigendum: Modified Assured Career Progression Scheme (MACPS) for PBOR of Army

No. 14(1)/99-D(AG)
Government of India
Ministry of Defence
New Delhi, the 25th July 2018
The Chief of the Army Staff
New Delhi.

Subject: Modified Assured Career Progression Scheme (MACPS) for PBOR of Army.

Consequent upon the judgement of Hon’ble Supreme Court dated 08-12-2017, in the matter of Civil Appeal Diary No.3744 of 2016 (UOI Vs Shri Balbir Singh Turn & Anr), I am directed to refer to this Ministry’s letter No. 14(1)/99-D(AG) dated 30 May 2011 on the above subject and to state that the President is pleased to make the following amendment in para 5 of the aforesaid letter:

FOR : "The scheme would be operational w.e.f. 01 Sep 2008"
READ: "The scheme would be operational w.e.f. 01 Jan 2006"

2. The other terms and conditions (including eligibility), as mentioned in the MoD letter No. 14(1)/99-D(AG) dated 30 May 2011 would continue to remain the same.

3. This issues with the concurrence of the Ministry of Defence (Finance) vide their Dy. No. 1270/Addl.FA(AN)/JS dated 27-06-2018.
Yours faithfully,
(Balbir Singh)
Under Secretary to the Govt. of India
Source : Confederation

Retirement Benefits for Central Government Employees

Retirement Benefits for Central Government Employees
Retirement Benefits for Central Government Employees


The minimum eligibility period for receipt of pension is 10 years. A Central Government servant retiring in accordance with the Pension Rules is entitled to receive pension on completion of at least 10 years of qualifying service.
In the case of Family Pension the widow is eligible to receive family pension on death of her spouse after completion of one year of continuous service or even before completion of one year if the Government servant had been examined by the appropriate Medical Authority and declared fit for Government service.
W.e.f 1.1.2006, Pension is calculated with reference to emoluments (i.e.last basic pay) or average emoluments (i.e. average of the basic pay drawn during the last 10 months of the service) whichever is more beneficial. The amount of pension is 50% of the emoluments or average emoluments whichever is beneficial.
Minimum pension presently is Rs. 9000 per month. Maximum limit on pension is 50% of the highest pay in the Government of India (presently Rs. 1,25,000) per month. Pension is payable up to and including the date of death.

Commutation of Pension

A Central Government servant has an option to commute a portion of pension, not exceeding 40% of it, into a lump sum payment. No medical examination is required if the option is exercised within one year of retirement. If the option is exercised after expiry of one year, he/she will have to under-go medical examination by the specified competent authority.
Lump sum payable is calculated with reference to the Commutation Table. The monthly pension will stand reduced by the portion commuted and the commuted portion will be restored on the expiry of 15 years from the date of receipt of the commuted value of pension. Dearness Relief, however, will continue to be calculated on the basis of the original pension (i.e. without reduction of commuted portion).
The formula for arriving for commuted value of Pension (CVP) is
CVP = 40 % (X) Commutation factor* (X)12
* The commutation factor will be with reference to age next birthday on the date on which commutation becomes absolute as per the New Table annexed to the CCS (Commutation of Pension) Rules, 1981.

Death/Retirement Gratuity

Retirement Gratuity
This is payable to the retiring Government servant. A minimum of 5 years' qualifying service and eligibility to receive service gratuity/pension is essential to get this one time lump sum benefit. Retirement gratuity is calculated @ 1/4th of a months Basic Pay plus Dearness Allowance drawn on the date of retirement for each completed six monthly period of qualifying service. There is no minimum limit for the amount of gratuity. The retirement gratuity payable for qualifying service of 33 years or more is 16 times the Basic Pay plus DA, subject to a maximum of Rs. 20 lakhs.

Death Gratuity
This is a one-time lump sum benefit payable to the nominee or family member of a Government servant dying in harness. There is no stipulation in regard to any minimum length of service rendered by the deceased employee. Entitlement of death gratuity is regulated as under:

Qualifying ServiceRate
Less than one year2 times of basic pay
One year or more but less than 5 years6 times of basic pay
5 years or more but less than 11 years12 times of basic pay
11 years or more but less than 20 years20 times of basic pay
20 years or moreHalf of emoluments for every completed 6 monthly period of qualifying service subject to a maximum of 33 times of emoluments.
Maximum amount of Death Gratuity admissible is Rs. 20 lakhs w.e.f. 1.1.2016

Service Gratuity
A retiring Government servant will be entitled to receive service gratuity (and not pension) if total qualifying service is less than 10 years. Admissible amount is half months basic pay last drawn plus DA for each completed 6 monthly period of qualifying service. This one time lump sum payment is distinct from retirement gratuity and is paid over and above the retirement gratuity.

Issue of No Demand Certificate
Dues owed by the retiring employees on account of Licence Fee for Government accommodation, advances, over payment of pay and allowances are required to be assessed by the Head of Office and intimated to the Accounts Officer two months in advance of the date of retirement so that these are recovered from retirement gratuity before payment. For this purpose the Licence Fee for those in occupation of Government accommodation is taken into account up to the end of the permissible period for which accommodation can be retained after retirement under the Rules on normal rent. The recovery of Licence Fee beyond that period is the responsibility of the Directorate of Estates. If, for any reason final dues cannot be assessed on time, then 10% of gratuity is withheld from gratuity on the basis of a commutation from the Directorate of Estates in this regard.

General Provident Fund and Incentives
As per General Provident fund (Central Services) Rules, 1960 all temporary Government servants after a continuous service of one year, all re-employed pensioners (Other than those eligible for admission to the Contributory Provident Fund) and all permanent Government servants are eligible to subscribe to the Fund. However, these rules are not applicable to any of the Government Servants who join service on or after 1.1.2004. A subscriber, at the time of joining the fund is required to make a nomination, in the prescribed form, conferring on one or more persons the right to receive the amount that may stand to his credit in the fund in the event of his death, before that amount has become payable or having become payable has not been paid. A subscriber shall subscribe monthly to the Fund except during the period when he is under suspension. Subscriptions to the Provident Fund are stopped 3 months prior to the date of superannuation. Rates of subscription shall not be less than 6% of subscribers emoluments are not more than his emoluments. Rate of interest varies according to notifications of the Government issued from time to time. The rules provide for drawal advances/ withdrawals from the fund for specific purposes.
The conditions for withdrawal from the fund have been liberalized and now no documentary proof is required to be furnished by the subscriber for GPF withdrawal. On retirement of a subscriber, instructions have been issued for immediate payment of final balance on retirement. No application is required to be submitted by the subscriber for final payment from the fund

Deposit Linked Insurance Scheme
Under the GPF Rules, on the death of subscriber, the person entitled to receive the amount standing to the credit of the subscriber shall be paid an additional amount equal to the average balance in the account during the 3 years immediately preceding the death of the subscriber subject to certain conditions provided in the relevant Rule. The additional amount payable under that Rule shall not exceed Rs. 60,000/-. To get this benefit, the subscriber should have put in at least 5 years service at the time of his/her death.

Contributory Provident Fund
The Contributory Provident Fund Rules (India), 1962 are applicable to every non-pensionable servant of the Government belonging to any of the services under the control of the President. A subscriber, at the time of joining the Fund is required to make a nomination in the prescribed Form conferring on one or more persons the right to receive the amount that may stand to his credit in the Fund in the event of his death, before that amount has become payable or having become payable has not been paid.
A subscriber shall subscribe monthly to the Fund when on duty or Foreign Service but not during the period of suspension. Rates of subscription shall not be less than 10% of the emoluments and not more than his emoluments. The employer's contribution at that percentage prescribed by the Government will be credited to the subscriber's account and this is 10%. The Rules provide for drawal of advances/ withdrawals from the CPF for specific purposes. As in GPF Rules, the CPF Rules also provide for Deposit Linked Insurance Scheme.

Leave Encashment

Encashment of leave is a benefit granted under the CCS (Leave) Rules and is not a pensionary benefit. Encashment of Earned Leave/Half Pay Leave standing at the credit of the retiring Government servant is admissible on the date of retirement subject to a maximum of 300 days.

Central Government Employees Group Insurance Scheme

A portion of monthly contributions paid while in service is credited in a Saving Fund, on which interest accrues. A Government servant while entering service has to apply in Form No. 4 of the above Scheme to the Head of Office, who shall issue a sanction for the payment of subscriber's accumulation in the Savings Fund segment together with interest and arrange for its disbursement, soon after retirement. Payments under this Scheme are made in accordance with the Table of Benefit (as issued by Department of Expenditure) which takes in to account interest up to the date of cessation of service. Insurance cover benefit under this Scheme is available to the family in the event of death of the subscriber.

Abolition of Contributory Pension Scheme

Not Possible to Revert Back to Old Pension Scheme
It is not possible for the government to revert back to old pension scheme - Minister replied in Parliament on 24.7.2018

Abolition of Contributory Pension Scheme
Representations have been received from various Associations of Government Employees on the problems being faced and the demand to withdraw the National Pension System (NPS).

The 7th Central Pay Commission (CPC) also in its report examined the issues related to NPS and made recommendations for addressing these issues. Pursuant thereto, it was decided to constitute a Committee of Secretaries to suggest measures for streamlining NPS. The Committee has submitted its report.

Due to rising and unsustainable pension bill and keeping in view of fiscal imperatives, it is not possible for the government to revert back to old pension scheme.

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