Pay hike burden to make a dent in development plans
29 Nov 2008,
LUCKNOW: The welfare of 16 lakh government employees
and teachers has virtually negated the development interest of the 17 crore population of
Uttar Pradesh. This is because the hefty financial burden, caused by their pay-hike under the Sixth Pay Commission report, has forced the government to slash the state's annual plan size fixed at Rs 35,000 crore for the current financial year.
If sources within the finance department are to be believed, then a plan outlay of Rs 1,115 crore for the year of 2008-09 would be curtailed. This is a part of various measures planned to meet the financial obligations on account
of pay-hikes.
This is beside the order already issued to freeze Rs 900 crore deposited with the Public Ledger Account (PLA) before March 31, 2007. The PLA amount is a fund that could not be utilised on earmarked schemes by departments concerned within a financial year ending on March 31 every year. Reasons could be varied for this. But in any case, the fund is carried over for the next year and utilised as per needs. However, after its freeze, it would be no longer available for development purpose. This means many schemes would either be put off or delayed for their execution.
The pay-hike decision has virtually sent the state exchequer bleeding under a hefty financial burden of Rs 18,336 crore. Since it comes as a popular measure to keep state employees happy ahead of the Lok Sabha poll, the government has chosen to rely on soft options for its fund management. While so far no new taxes have been imposed, the government has gone in for dovetailing of available resources.
This way, the government has already raised Rs 2,015 crore from the cut in the plan size. But still there is a yawning gap, as it needs an additional equal amount to meet its financial obligation. But then the financial officials put it that the liability would be spread mainly for the next financial year, as this financial year has only four more months to go.
What makes the situation difficult is the shortfall in the revenue collection, which is earmarked at Rs 33,813 crore during the current financial year. By the end of October, the total tax recovery stood at Rs 15,000 crore as against that of a target set for Rs 16,000 crore revenue. The collection though the major source of the VAT regime dipped to Rs 8,883 crore as against the target of Rs 9,712 crore and the land revenue tax touched a shortfall of 10% till October.
The recovery through stamp and registration fee, however, has shown an increase of 2.5 per cent by collecting Rs 3,005 crore as against the target of Rs 2,506 crore for the above period. This also holds true about the excise department, which has collected 2,567 crore as against the target of Rs 2,480 crore.
The depletion of its own resources would increase the state's dependence on its share in the Central taxes that stands at well over Rs 33,000 crore and the Central grants-in aid of about Rs 12,000 crore. This may lead to a fiscal deficit and in case it increases more than 3% of the state's GDP, then there will be a severe financial crisis
.
Sunday, November 30, 2008
Haryana to implement sixth pay commission
Haryana to implement sixth pay commission sclaes from Jan 2006
Punjab Newsline Network
Saturday, 29 November 2008
CHANDIGARH: The Haryana Chief Minister Bhupinder Singh Hooda today said that the revised pay scales according to the recommendations of sixth pay commission to all State Government employees would be implemented from January 2006. The State Government had already made a provision of Rs. 1500 crore in the annual budget
this financial year.
The Chief Minister while replying the questions of Media Persons at Rohtak said that a committee had been formed under the Chairmanship of Haryana Chief Secretary to look into the matter and to decide the revised pay scales as per the recommendations of sixth pay commission.
He said that the committee had received about 225 suggestions from different departments about the revision in the pay scales. For the transparency in the fixation of pay scales the committee had given personal hearing to all the request and suggestions. He assured that the new pay scales would be satisfactory and justifiable to each and every category of employees.
Hooda said that "employees are the back bone of the administration set up and the present Congress Government is well-wisher of the employees". He said that almost all the retrenched employees by the previous Government had been merged in the various departments by this Government only. They had also been given relaxation to appear again in the departmental examinations.
He said that keeping in view the interest of the employees the Government had made the ex-gratia scheme more effective for their dependents. This scheme would provide financial security besides giving social security to the employees.
Punjab Newsline Network
Saturday, 29 November 2008
CHANDIGARH: The Haryana Chief Minister Bhupinder Singh Hooda today said that the revised pay scales according to the recommendations of sixth pay commission to all State Government employees would be implemented from January 2006. The State Government had already made a provision of Rs. 1500 crore in the annual budget
this financial year.
The Chief Minister while replying the questions of Media Persons at Rohtak said that a committee had been formed under the Chairmanship of Haryana Chief Secretary to look into the matter and to decide the revised pay scales as per the recommendations of sixth pay commission.
He said that the committee had received about 225 suggestions from different departments about the revision in the pay scales. For the transparency in the fixation of pay scales the committee had given personal hearing to all the request and suggestions. He assured that the new pay scales would be satisfactory and justifiable to each and every category of employees.
Hooda said that "employees are the back bone of the administration set up and the present Congress Government is well-wisher of the employees". He said that almost all the retrenched employees by the previous Government had been merged in the various departments by this Government only. They had also been given relaxation to appear again in the departmental examinations.
He said that keeping in view the interest of the employees the Government had made the ex-gratia scheme more effective for their dependents. This scheme would provide financial security besides giving social security to the employees.
Monday, November 10, 2008
NEWS 6TH PAY COMMISSION
Government has proposed to raise income tax exemption limit for gratuity funds to Rs 10 lakh from the present Rs 3.5 lakh for both government and private sector employees consequent on implementation of sixth pay commission report which fixed the maxium limit of gratuity that payable to Central Government employees at Rs.10 lakhs against the earlier limit of Rs. 3.5 lakhs.
The industry and trade unions have supported the government proposal to raise the tax exemption limit for gratuity funds to Rs 10 lakh from the present Rs 3.5 lakh for both government and private sector employees.
The Federation for Indian Chambers of Commerce and Industry (Ficci), for instance, wants it to be implemented as early as possible.
“The increase in tax exemption limit translates into increase in entitlement of the employee in most cases,” a Ficci spokesperson said. Many employees who were eligible for more than Rs 3.5 lakh were not getting it so far. This will change with the change in the ceiling, Ficci said.
In a communication to trade unions and employers in October, the Union labour ministry had asked for views on whether the ceiling should be raised to Rs 10 lakh. Three weeks time was given to the stakeholders for submitting their responses.
An Assocham official said the organisation had written to its members that it was in favour of the increase. The companies had responded positively to it, the trade body said.
Labour Secretary Sudha Pillai said that the ministry was yet to take a view on the matter. “We will take a stand depending on the response of the employees and employers groups,” she said.
The ministry’s move follows the Sixth Pay Commission recommendation to extend the limit for central government employees. Officials said the ministry seeks to bring parity between the government and private sector employees.
Trade unions have already sent their assent to the proposal. Hind Mazdoor Sabha national secretary R A Mittal said: “We got the letter from the ministry in October and we replied promptly that we are in favour of it.”
“Why would trade unions oppose it,” he asked.
CITU national secretary W R Varadarajan said that the union had always been demanding raising of the exemption ceiling. “We have supported the move,” he said.
The Payment of Gratuity Act, 1972, applies to factories and other establishments employing 10 or more persons. On completion of five years service, the employees are entitled to payment of gratuity at the rate of 15-day wages for every completed year of service or part of it in excess of six months subject to a maximum of Rs 3.5 lakh, the law says. However, the gratuity is considered an income and the employee who receives it is liable to pay taxes on it. However, gratuity up to Rs 3.5 lakh is exempt from tax under the provisions of Section 10(10) of the Income Tax Act, 1961.
Employers also enjoy tax exemption under the Income Tax Act on any sum paid by way of contribution towards an approved gratuity fund. Till now the payment could not exceed Rs 3.5 lakh.
Ficci said this move would not benefit the employers by way of a source of parking more funds in a tax exempt source. “It has to be paid to the employee. Even if the employee leaves without completing five years, the use of the money has to be accounted for,” said an official.
“Though under the Gratuity Act, gratuity funds were supposed to be set up by companies, not all have done it and gratuity is paid out of the general account. Therefore, there is no tax exemption unless the sum is shown as having been paid as gratuity,” he said.
Source : Business Standard
The industry and trade unions have supported the government proposal to raise the tax exemption limit for gratuity funds to Rs 10 lakh from the present Rs 3.5 lakh for both government and private sector employees.
The Federation for Indian Chambers of Commerce and Industry (Ficci), for instance, wants it to be implemented as early as possible.
“The increase in tax exemption limit translates into increase in entitlement of the employee in most cases,” a Ficci spokesperson said. Many employees who were eligible for more than Rs 3.5 lakh were not getting it so far. This will change with the change in the ceiling, Ficci said.
In a communication to trade unions and employers in October, the Union labour ministry had asked for views on whether the ceiling should be raised to Rs 10 lakh. Three weeks time was given to the stakeholders for submitting their responses.
An Assocham official said the organisation had written to its members that it was in favour of the increase. The companies had responded positively to it, the trade body said.
Labour Secretary Sudha Pillai said that the ministry was yet to take a view on the matter. “We will take a stand depending on the response of the employees and employers groups,” she said.
The ministry’s move follows the Sixth Pay Commission recommendation to extend the limit for central government employees. Officials said the ministry seeks to bring parity between the government and private sector employees.
Trade unions have already sent their assent to the proposal. Hind Mazdoor Sabha national secretary R A Mittal said: “We got the letter from the ministry in October and we replied promptly that we are in favour of it.”
“Why would trade unions oppose it,” he asked.
CITU national secretary W R Varadarajan said that the union had always been demanding raising of the exemption ceiling. “We have supported the move,” he said.
The Payment of Gratuity Act, 1972, applies to factories and other establishments employing 10 or more persons. On completion of five years service, the employees are entitled to payment of gratuity at the rate of 15-day wages for every completed year of service or part of it in excess of six months subject to a maximum of Rs 3.5 lakh, the law says. However, the gratuity is considered an income and the employee who receives it is liable to pay taxes on it. However, gratuity up to Rs 3.5 lakh is exempt from tax under the provisions of Section 10(10) of the Income Tax Act, 1961.
Employers also enjoy tax exemption under the Income Tax Act on any sum paid by way of contribution towards an approved gratuity fund. Till now the payment could not exceed Rs 3.5 lakh.
Ficci said this move would not benefit the employers by way of a source of parking more funds in a tax exempt source. “It has to be paid to the employee. Even if the employee leaves without completing five years, the use of the money has to be accounted for,” said an official.
“Though under the Gratuity Act, gratuity funds were supposed to be set up by companies, not all have done it and gratuity is paid out of the general account. Therefore, there is no tax exemption unless the sum is shown as having been paid as gratuity,” he said.
Source : Business Standard
Thursday, November 6, 2008
Teachers not Happy with 70% increase in Pay?
Teachers not Happy with 70% increase in Pay?
Various teachers’ organisations have expressed resentment over the UGC-Pay Review Committee’s recommendations, saying the report has fallen short of
their expectations as it has several “anomalies”.
The Delhi University Teachers’ Association has said major demand of teachers for higher pay scale to lecturers so as to attract talent to the university system has not been accepted.
“The demand for introduction of professorship/professor’s grade in all colleges to retain talent has not been considered by the committee headed by Prof G K Chadha,” it said.
DUTA representatives on Monday met UGC Chairman Sukhadeo Thorat to air their grievances, its president Aditya Narayan Mishra said.
Democratic Teachers’ Front, a teachers’ organisation in Delhi University, said the recommendations of the Pay Review Committee with regard to pay scales and service conditions failed to reflect its objective of making the teaching profession more attractive.
It said the UGC had earlier suggested 25 per cent higher entry pay for teachers in comparison to the Group A services and three promotions for all teachers so that teachers could have parity with Group A services in terms of career earnings.
The college teachers have been explicitly downgraded by the recommendations which denied them promotion till professor’s grade, it claimed. The DTF demanded a review of the report.
Delhi University Principal’s Association, which had asked for senior principals’ scale for those principals who have already completed eight to 10 years of service, said the committee has remained silent on the issue.
The Committee has recommended “Sabatical Leave” for college teachers but has not mentioned about “principals” categorically, it said.
Professors’ posts have been created in colleges having post-graduate teaching in respective subjects. Similar provisions should be made for colleges offering honours programmes, its president S K Garg said.
Indian National Teacher Congress has said teachers have been denied the third promotion in colleges in the form of professorship/professor’s grade as demanded since the last 20 years.
The committee’s chairperson Rashmi Bhardwaj will meet HRD Minister Arjun Singh to apprise him the anomalies in the pay structure.
Meanwhile, the UGC members on Tuesday started a two-day meeting to discuss the recommendations. UGC will submit the report to the government by Thursday after its consideration.
The UGC-Pay Review Committee, which submitted its report to the UGC on Friday, has recommended a whopping over 70 per cent pay hike with additional allowances and new positions to academicians.
As per the recommendations, at the entry level, a faculty member will join as an assistant professor, not as a lecturer as earlier, and his new pay band will be between Rs 15,600 to Rs 39,100. The teacher at the entry level will be entitled for a grade pay of Rs 6,600. At present, a lecturer’s pay scale is between Rs 8,000 to Rs 13,500.
A teacher will be entitled for annual increment of three per cent of the basic salary with compounding effect. Certain teachers with good performance record can get four per cent annual increment.
Similarly, the committee has recommended a new band pay between Rs 37,400 to Rs 67,000 for professor against the existing scale of Rs 16,400 to Rs 22,400.
Various teachers’ organisations have expressed resentment over the UGC-Pay Review Committee’s recommendations, saying the report has fallen short of
their expectations as it has several “anomalies”.
The Delhi University Teachers’ Association has said major demand of teachers for higher pay scale to lecturers so as to attract talent to the university system has not been accepted.
“The demand for introduction of professorship/professor’s grade in all colleges to retain talent has not been considered by the committee headed by Prof G K Chadha,” it said.
DUTA representatives on Monday met UGC Chairman Sukhadeo Thorat to air their grievances, its president Aditya Narayan Mishra said.
Democratic Teachers’ Front, a teachers’ organisation in Delhi University, said the recommendations of the Pay Review Committee with regard to pay scales and service conditions failed to reflect its objective of making the teaching profession more attractive.
It said the UGC had earlier suggested 25 per cent higher entry pay for teachers in comparison to the Group A services and three promotions for all teachers so that teachers could have parity with Group A services in terms of career earnings.
The college teachers have been explicitly downgraded by the recommendations which denied them promotion till professor’s grade, it claimed. The DTF demanded a review of the report.
Delhi University Principal’s Association, which had asked for senior principals’ scale for those principals who have already completed eight to 10 years of service, said the committee has remained silent on the issue.
The Committee has recommended “Sabatical Leave” for college teachers but has not mentioned about “principals” categorically, it said.
Professors’ posts have been created in colleges having post-graduate teaching in respective subjects. Similar provisions should be made for colleges offering honours programmes, its president S K Garg said.
Indian National Teacher Congress has said teachers have been denied the third promotion in colleges in the form of professorship/professor’s grade as demanded since the last 20 years.
The committee’s chairperson Rashmi Bhardwaj will meet HRD Minister Arjun Singh to apprise him the anomalies in the pay structure.
Meanwhile, the UGC members on Tuesday started a two-day meeting to discuss the recommendations. UGC will submit the report to the government by Thursday after its consideration.
The UGC-Pay Review Committee, which submitted its report to the UGC on Friday, has recommended a whopping over 70 per cent pay hike with additional allowances and new positions to academicians.
As per the recommendations, at the entry level, a faculty member will join as an assistant professor, not as a lecturer as earlier, and his new pay band will be between Rs 15,600 to Rs 39,100. The teacher at the entry level will be entitled for a grade pay of Rs 6,600. At present, a lecturer’s pay scale is between Rs 8,000 to Rs 13,500.
A teacher will be entitled for annual increment of three per cent of the basic salary with compounding effect. Certain teachers with good performance record can get four per cent annual increment.
Similarly, the committee has recommended a new band pay between Rs 37,400 to Rs 67,000 for professor against the existing scale of Rs 16,400 to Rs 22,400.
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