Bank Employees Retirement Gratuity ceiling Hikes to Rs. 20 Lakhs

Improvements in Gratuity under Gratuity Act

Our units are aware that Gratuity is one of the important retirement benefits for the bank employees and officers. In all Banks ( except SBI ), Gratuity is paid as per formula under BPS/OSR or under the Gratuity Act whichever is higher. (In SBI, Gratuity is payable under the Act only).

While there is no ceiling for Gratuity under BPS/OSR, under the Act, there is a ceiling which is at present Rs. 10 lacs. (from 25-5-2010). When an employee or officer retires from the Bank, his/her Gratuity entitlement would be calculated both under the Act and under BPS/OSR and the higher of the two will be paid.

For example, a senior substaff/Daftary retiring after 40 years’ service would be eligible for ( approx.) Rs. 5 lacs under BPS and Rs. 8 lacs under the Act and hence would be paid Rs. 8 lacs as Gratuity.

A senior Clerk/Special Asst. would be eligible for Rs. 9.50 lacs under the BPS and Rs. 10 lacs under the Act and hence would be paid Rs. 10 lacs.

A senior General Manager of a Bank retiring after 40 years’ service would be eligible for Rs. 17 lacs under the OSR and Rs. 10 lacs under the Act and hence would be paid Rs. 17 lacs.

Due to continued inflationary trend and erosion in value of rupee, AITUC and all other Central Trade Unions have been demanding improvement/removal of ceiling under the Gratuity Act. Due to their effort, the ceiling was increased from Rs. 1 lac to Rs. 2.50 lacs, and then to Rs. 3.50 lacs and to Rs. 10 lacs in May, 2010. They have been demanding for removal of ceiling on Gratuity under the Act.

AITUC and Central Trade Unions have been pursuing this issue for the last more than 4 years through various programmes and struggles.

Thus AIBEA and AIBOA have been part and parcel of all these programmes and strikes on the 12 Points Charter of Demands of the Central Trade unions which includes the demand for improvement in Gratuity Act.

AITUC and Central Trade Unions have been following up these demands with the Government and as a result, recently on 23-2-2017, the Central Government called for a Tripartite meeting on the issue of revising the ceiling on Gratuity. From AITUC, its Secretary, Com D L Sachdev participated and put forth the following suggestions.

1. While there should be no ceiling for Gratuity, as an interim measure, Government’s proposal to increase in ceiling of Rs. 20 lacs can be accepted.
2. The revised ceiling should be made effective from January, 2016.
3. Minimum service of 5 years for eligibility for Gratuity to be removed.
4. Gratuity to be paid at 30 days wage per year instead of 15 days wage as atpresent.
5. All factories/establishments to be covered by the Act irrespective of number of workers.

All these matters have to be finally cleared by the Labour Ministry and then by Finance Ministry and then to be brought to the Parliament for amendment to the Gratuity Act.

Units are aware that improvement in Gratuity Act has been one of the demands of our strike on 28-2-2017. We are in touch with the AITUC and will keep our units informed of any further development in this regard.

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I-T dept to bring one crore new people under tax net this fiscal

The income tax department has launched an ambitious drive to bring under its net 10 million new taxpayers, after the government recently asked the official to achieve the target within the current financial year. As part of the government’s initiative to broaden the base, the Central Board of Direct Taxes (CBDT), apex policy making body, this week activated all field formations of the department to achieve the goal.

The order issued by CBDT has laid down region-wise targets. Maharashtra’s second largest urban centre Pune, leads the list with the target of about 1,014,000 new assessees, north-western states of Jammu & Kashmir, Himachal Pradesh, Punjab and Haryana about 9,30,000 new assessees, and the newly bifurcated states of Andhra Pradesh and Telangana will have to contribute 7,93,000 new taxpayers. Similarly, Gujarat region has been given a target of getting 7,86,000 taxpayers, Tamil Nadu 7,64,000, West Bengal and Sikkim 6,91,000, and Mumbai region 6,23,000 assessees. The target for the national capital has been set at 5,32,000 new assessees.

The department has  18 regions for purposes of collection of revenue under the major heads of I-T, wealth tax, and advance tax for large entities like corporates. The board has also communicated that it should adopt a multi-pronged strategy to achieve this ‘not-so-easy’ target by holding meetings with trade associations and professional bodies and obtaining data on under-reporting assesses through technical and human intelligence. The strategy in this regard was mooted and formally launched in May this year when CBDT told the department about the government’s desire to have at least 25,00,000 new assessees each month from across the country.

Source: Business Standard

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Retired pensioner Central Government Employee re-appointment Procedure on Commercial basis.

Retired/Pensioner's Government Employee re-appointment on commercial basis within a year after date of retirement are required to seek permission from the Government. The Central Government Retired Employee can apply for permission to re-appointment in Form 25 of CCS(Pension) Rules which is as under:

No. 27012/3/2014-Estt (A)

Government of India

Ministry of Personnel, Public Grievances and Pensions

(Department of Personnel and Training)

North Block, New Delhi the 19th November, 2014

OFFICE MEMORANDUM

Subject: Procedure for grant of permission to the pensioners for commercial employment after retirement — revision of Form 25.

The undersigned is directed to refer to Rule 10 of CCS (Pension) Rules, 1972 and to say that retired Government servants proposing to take up commercial employment within a year of retirement are required to seek permission from the Government. They are required to apply for permission in Form 25 of CCS(Pension) Rules. Form 25 prescribed under the said rule has since been reviewed with a view to simplify the procedure. The revised Form 25 is enclosed.

2. The revised form incorporates the conditions prescribed in clauses (b) to (f) of sub-Rule 3 of Rule 10. There is now no requirement for obtaining an affidavit as prescribed in Para 2(d) of this Departments’ 0M No. 27012/5/2000-Estt.(A) dated 5th December, 2006.

3. All Ministries/Departments are requested to bring this to the notice of all concerned.

4. Formal Notification of Rules will follow.

Sd/-

(G. Jayanthi)

Director

Download Re-Appointment Application Form (Click Here)

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Superannuation, Re-employment, Pension, Provident Fund and Gratuity

Existing Scenario: Once a teacher, always a teacher is a very popular saying. However, issues relating to the age of superannuation of teachers, post-retirement benefit of Pension and terminal benefits like Provident Fund and Gratuity have always been matters of concern for them since these relate to social security available to them once they have finished their teaching careers. The Pay Review Committee during its interaction with teachers and also after scrutinizing the data made available to it through responses to its questionnaires and also through the written representations made to it noted with grave concern that there was no uniformity in the availability of such benefits to university and college teachers across the country. Even with respect to a significant issue like the age of superannuation, the span is from fifty five to sixty five with fifty eight, sixty, sixty two as terminal stages in between. Similarly, there are teachers who enjoy the benefits of post-retirement pension while others have no such support. In some institutions the provision of general provident fund is available for a section of in-service teachers while others even in the same institution are governed by the Contributory Provident Fund Scheme.

Keeping all this in mind and being aware of the fact that issues of social security will go a long way in attracting fresh talent to teaching in colleges and universities, the Pay Review Committee makes the following recommendations.

The age of Superannuation: Keeping in mind the fact that the field of higher education is currently facing an acute shortage of teachers at all levels and also being aware of the decision of the central government to expand the base of college and university education significantly throughout the country during the XI Five Year Plan which has been declared as the Plan for Education, The Pay Review Committee recommends that the age of superannuation of teachers should be 65 years throughout the country whether working in a State or Central University as also whether in a college or in a university.

The Pay Review Committee also believes that the fears expressed by certain quarters that raising the age of superannuation to sixty five years would have an adverse impact on the recruitment of young teachers at the entry level is both misconstrued and misplaced. According to the understanding of the Pay Review Committee, the demand and supply situation of teachers for higher education is such that even after this provision of sixty five years as the age of superannuation of teachers is put in place, there would still be a significant shortfall in the availability of qualified teachers. Moreover, the academic institutions will continue to derive the benefits of availability of senior academics both in teaching and research. This would indeed be a big factor towards the improvement in quality of teaching and research. The Pay Review Committee is of the considered opinion that while allowing the institutions to continue to derive the benefits of participation by senior academics in both teaching and research; it will also attract talented young academics to the profession.

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Pay Fixation in the revised pay structure whose appointed after 01st Jan. 2006.

The Pay fixation in the revised pay structure of employees, whose appointment date after 01st Jan. 2006, their Pay fixation placed as per Maharashtra Civil Services (Revised Pay) Rules-9 vide No. RPS-1209/CR/SER-09 dated 29.04.2009.


For more details see Para No. 8 of Maharashtra Civil Services (Revised Pay) Rules-09 or Click Here

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