PIB
NEWS ON GRATUITY CEILING INCREASE UP TO RS. 20 LAKH
Ministry of Labour & Employment
Payment
of Gratuity (Amendment) Bill, 2018 passed by Parliament
The Payment of Gratuity (Amendment) Bill, 2018 has been
passed by parliament today. The bill ensures harmony amongst employees in the
private sector and Public Sector Undertakings/Autonomous Organizations under
Government who are not covered under CCS (Pension) Rules. These employees will
be entitled to receive higher amount of gratuity at par with their counterparts
in Government sector. The bill was passed by the Rajya Sabha today and the Lok
Sabha on 15 March, 2018.
The Payment of Gratuity Act, 1972 applies to
establishments employing 10 or more persons. The main purpose for enacting this
Act is to provide social security to workman after retirement, whether
retirement is a result of superannuation, or physical disablement or impairment
of vital part of the body. Therefore, the Payment of Gratuity Act, 1972 is an
important social security legislation to wage earning population in industries,
factories and establishments.
The
present upper ceiling on gratuity amount under the Act is Rs. 10 Lakh. The
provisions for Central Government employees under Central Civil Services
(Pension) Rules, 1972 with regard to gratuity are also similar. Before
implementation of 7th Central Pay Commission, the ceiling under CCS (Pension) Rules,
1972 was Rs. 10 Lakh. However, with implementation of 7th Central Pay
Commission, in case of Government servants, the ceiling has been raised to Rs.
20 Lakhs.
Therefore,
considering the inflation and wage increase even in case of employees engaged
in private sector, this Government decided that the entitlement of gratuity
should also be revised in respect of employees who are covered under the
Payment of Gratuity Act, 1972. Accordingly, the Government initiated the
process for amendment to Payment of Gratuity Act, 1972 to increase the maximum
limit of gratuity to such amount as may be notified by the Central Government
from time to time.
In
addition, the Bill also envisages to amend the provisions relating to
calculation of continuous service for the purpose of gratuity in case of female
employees who are on maternity leave from ‘twelve weeks’ to such period as may
be notified by the Central Government from time to time.
After
enactment of the Act, the power to notify the ceiling of the amount of gratuity
under the Payment of Gratuity Act, 1972 shall stand delegated to the Central
Government so that the limit can be revised from time to time keeping in view
the increase in wage and inflation and future pay commissions.
Source: PIB
MAJOR CHANGES IN NPS – RELAXATION NORMS
Relaxation
of Norms for NPS
The Government of India has recently
made three changes in the National Pension Scheme (NPS) including withdrawal
norms. The details are as under:
Partial
withdrawal during the service: The Pension Fund Regulatory and Development
Authority (PFRDA), with an objective to meet the subscriber’s sudden financial
requirement enrolled under NPS, has liberalized norms for partial withdrawals
which also include reduction of requirement of minimum years of being enrolled
under NPS from 10 years to 3 years from the date of joining. Suitable
amendments were made through “Pension Fund Regulatory and Development Authority
(Exits and Withdrawals under the National Pension System) (First Amendment)
Regulations, 2017 and the same has been notified on 10.08.2017.
Increase
in the joining age under NPS: With an objective to allow individuals (under
NPS-All Citizen Model and Corporate Sector Model) who are in the age bracket
between 60 years and 65 years to join NPS system. Suitable amendments were made
through “Pension Fund Regulatory and Development Authority (Exits and
Withdrawals under the National Pension System) (Second Amendment) Regulations,
2017 and the same has been notified on 06.10.2017.
Exit in case of disability and incapacitation of the
subscriber: With an objective of facilitating easy exit & withdrawal in
case of disability and incapacitation of the subscriber covered under NPS,
PFRDA has made suitable amendments through “Pension Fund Regulatory and
Development Authority (Exits and Withdrawals under the National Pension System)
(Third Amendment) Regulations, 2018 and the same has been notified on
02.02.2018.
This was
stated by Shri Ship Pratap Shukla, Minister of State for Finance in a written
reply to a question in Lok Sabha today.
Source: PIB
AADHAAR IS NOT COMPULSORY TO GET PENSION
Dr. Jitendra Singh chairs 30th meeting of Standing
Committee of Voluntary Agencies
Adhaar is not mandatory to get pension: Dr Jitendra Singh
The 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 chaired the
30th meeting of the Standing Committee of Voluntary Agencies (SCOVA) here
today. The SCOVA meeting is organised by the Department of Pensions &
Pensioners’ Welfare (DoP&PW), Ministry of Personnel, Public Grievances
& Pensions and the last such meeting was held on January 12, 2017.
During
the meeting, Dr. Jitendra Singh said that the SCOVA which was first constituted
in July, 1986 would be completing 32 years this year. He said this platform has
gone a long way in addressing in a focused manner issues related to Pensioners.
He said that today’s interaction was very meaningful and stimulating, thus
reflecting on the working of DoP&PW. The Minister while assuring the
representatives of pensioners’ Associations said that it was no more mandatory
to have one’s Adhaar Card to get his/her pension.
The
Minister said that the Department of Pensions has brought out a series of OMs
to benefit the Pensioners/Family Pensioners in the last 12 months including
enhancing of minimum pension from Rs.3500/- to Rs.9000/- per month; the ceiling
of gratuity has been increased from the existing Rs.10 lakhs to Rs.20 lakhs;
the rates of ex-gratia lump sum compensation being paid to the families of
employees who die in performance of duty has been increased from existing Rs.
10-15 lakhs to Rs.25-45 lakhs. He also said that divorced daughter will be
eligible for family pension if divorce case has been filed before the death of
pensioner/family pensioner, even though the judgment has been passed after the
death of the pensioner /family pensioner.
Dr.
Jitendra Singh said that this Government has given relief to the senior
citizens and Pensioners in the Budget 2018-19 by allowing Standard Deduction of
Rs. 40,000/- per year to the Pensioners and given exemption on tax on account
of interest income from bank savings accounts has been increased to Rs. 50,000/
from Rs. 10,000/- per year. Deduction on account of health insurance premium
which was earlier allowed at maximum of Rs.30,000/- has now been increased to
Rs. 50,000/- in the case of Senior Citizens/Pensioners.
While
addressing the meeting he said that we need to put in place an
institutionalized mechanism to make good use of the knowledge, experience and
efforts of the retired employees which can help in the value addition to the
current scenario. Dr. Jitendra Singh said the retired employees are a healthy
and productive workforce for India and we need to streamline and channelize
their energies in a productive direction. We should learn from the pensioners’
experience, he added. The Minister also said that the DoP&PW should be reoriented
in such a way that pensioners become a part of nation building process.
In the
meeting, discussions were held on the action taken report of the 29th SCOVA
meeting. Further many issues related to pensioners were discussed threadbare,
such as revision of PPOs of pre-2006 pensioners, Health Insurance Scheme for
pensioners including those residing in non-CGHS area, Special “Higher” Family
Pension for widows of the war disabled invalidated out of service, Extension of
CGHS facilities to P&T pensioners, issue relating to CGHS Wellness Centre,
Dehradun etc. The Minister directed for the prompt and time bound redressal of
the grievances of the pensioners and said that we should have sympathetic
attitude towards them.
The
Secretary, DoP&PW, Shri K.V. Eapen and other senior officers of the
department were also present on the occasion. The meeting was also attended by
the member Pensioners Associations and senior officers of the important
Ministries/Departments of Government of India.
Source: PIB
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