Archives- News Updates On August

PIL against salary hike of MLAs dismissed by HC

The salary hike and allotment of land for constructing houses given to the legislators of Tamil Nadu by the Government was challenged by a social activist Traffic Ramasamy by filing a Public Interest Litigation (PIL) petition in Madras High Court. But this petition was dismissed by the High Court as the Bench comprising of two judges said that the salary hike given to the MLAs was in the permissible limit.

Source:www.indlawnews.com, August 31, 2009. “Madras HC dismisses petition on salary hike of legislators”

Tea workers to get a rise in bonus

Terai and Dooars have around 165 tea estates comprising of a workforce of about 1.75 lakh. Due to good profits in the last financial year, the workers will get a hike in bonus of over 4 percent according to the mutual agreement reached between the employers and labour trade unions. U.B. Das, the principal adviser of the Indian Tea Planters’ Association said that this hike will encourage the workers to continue to work hard in the future.

Source:www.telegraphindia.com, August 31, 2009. “Bonus hike for Dooars tea workers”

Indian Inc trying hard to retain their talents

Talent management has become a key factor for Indian Inc nowadays. Firms are trying hard to retain their efficient and responsible talented workforce. They are providing them with various benefits such as extra bonuses, stress-buster programmes, extended holidays, etc. Last year due to economic slowdown salary cut was practiced but in this first quarter companies HR departments are planning various responsibilities to keep hold of their talent.

Source:economictimes.indiatimes.com, August 31, 2009. “Firms doling out surprise bonuses to retain talent”

Lecturers in Tamil Nadu get a salary hike

Happiness seeped into the life of teachers, lecturers and professors of government colleges, government aided colleges and universities on 29th August when a heavy salary hike was announced by the chief minister of Tamil Nadu. This wage revision was implemented due to the UGC recommendation to the state government. This will cover around 20000 faculties all together and will increase the expenditure of state government by Rs. 557.49 crore. The newly appointed professors would be paid Rs 26,352 as compared to their existing salary of Rs 19,680; for professors pay would be revised to Rs 62,085.

Source:timesofindia.indiatimes.com, August 30, 2009. “TN announces big hike in salaries of lecturers”

Medical college faculty of Kerala soon getting salary hike

The Health Minister of Kerala P.K. Sreemathy while addressing a function at the Government Medical College Hospital, Thissur proposed that the faculty in government colleges will get a rise in salary soon. She stated that the doctors will be able to serve people better if they are paid well - since last 13 years there has been no revision in the salaries of doctors of medical colleges. Also she added that government will provide support for the research activities.

Source:www.hindu.com, August 30, 2009. “Pay hike for medical faculty soon”

NREGA wage to stabilize at Rs. 100

Centre government has decided to fix the NREGA wages at Rs. 100 for the full term of the UPA government. The job guarantee scheme launched by UPA government has promised to provide the job guarantee of 100 days to every rural employee. The state government will hike the wage arbitrarily by their means and will have to inform the centre government about it.

Source:timesofindia.indiatimes.com, August 29, 2009. “Govt to cap NREGA wage at Rs 100 for its entire term”

AP Police staff getting salary rise

The Chief Minister of Andra Pradesh Y. S. Rajasekhara Reddy at meeting announced that the salary of the staff working in CID, AP Police Academy, Intelligence Bureau and Police Training Centres will be raised by 30 percent. This hike will be effective from 31st August and they will be provided with better job oriented training too. He also emphasized on the youth of remote areas to wean them away from the influence of naxalities.

Source:beta.thehindu.com, August 29, 2009. “30 per cent salary hike for AP police”

Next income tax limit to increase to Rs. 2.25 lakh and above

With the newly proposed Direct Tax Code Finance Ministry is likely to increase the exemption limit of income tax from Rs. 1.6 lakh to Rs. 2.25 lakh. The new Direct Tax code will include the perquisites with the salary, which will surely exceed the exemption limit provided. This scheme is expected to come in effect from 2011-12. The exemption limit for women will also increase. This inevitably will help the employees to save more.

Source:www.indianexpress.com, August 28, 2009. “I-T may kick in only at annual salary Rs 2.25 lakh and above”

Companies offering leave to both parent employees

Central government has recently increased the child adoption leave from 135 days to 180 days. Even fathers will now be entitled to these leaves. Earlier the employees were given leave for the birth of biological child only, but now the trend is changing and parents are also given leave for proper caring and raising the adopted child. Women employees used to get the maternity leave for the birth of the child, but now the Indian companies have started providing the facility of paternity leave to male employees too.

Source:timesofindia.indiatimes.com, August 28, 2009. “Tech cos adopt baby-friendly policies”

Despite the slowdown, real estate big bosses paid high

From the last quarter of the year 2008, the economic slowdown banged the market in India. In this period, salary cut was a usual phenomenon. But the higher official in the real estate sector received salary higher than what they used to get in last year. This salary hike was from 2-10 times than compared to earlier years. This rise was irrespective of the fall in the income of the organizations sales.

Source:economictimes.indiatimes.com, August 26, 2009. “Realty bosses took 10 times pay hike as sales, profits plunged”

Salary hike for employees by NACIL postponed

National Aviation Company of India (NACIL) is the country’s biggest airline company by fleet size, which was formed by merging of Air India and Indian Airlines last year. NACIL had proposed to increase the salary of executive cabin crew and pilots. But now the committee of secretaries (CoS) has postponed their proposal due to cost-cutting plans. They are planning to have a discussion with the unions and association which will boil down to a solution with a sympathetic approach.

Source:economictimes.indiatimes.com, August 25, 2009. “NACIL defers plans to hike salary”

NREGP: diverting workers from industrial sector

National Rural Employment Guarantee Programme is launched by UPA government for the benefit of rural workers to gain 100 days of guaranteed employment to every adult worker. This scheme provides them with a fixed employment and a good wage. Resultantly, the workers of small and medium enterprises have left their job and returning back to villages. This is leading to high shortage of labour force which in turn is damaging to their productivity.

Source:www.business-standard.com, August 25, 2009. “Workers return to villages”

Retail sector: revival in the recruitment drive

With the festive season coming in shortly, the retail market is likely to revive back. The biggest retailer Future group is planning to hire 4000 personnel for front line jobs. In any retail establishment, 80% of the staff is front line staff. Chief executive officer of an international HR service provider (Ma Foi) has said that the demand has increased by 20%. Also, the companies have started providing training to their current to match up with the demand.

Source:economictimes.indiatimes.com, August 25, 2009. “Retailers plan front-end hiring soon”

Indian employees not prepared for their retirement

A survey conducted by Canara HSBC Oriental Bank of Commerce Life Insurance Company amongst 15 countries found that 42% Indians have planned their retirement. However, 58% who have not planned their retirement are not even aware of it. Formal pension scheme covers only 13% of the country’s employees. Majority of Indians being youth, the country is at advantage if it can make them aware about having a planned retirement.

Source:www.financialexpress.com, August 25, 2009. “Majority unprepared for retirement: survey”

NREGA beneficiaries to get medical smart card

Around 40 lakh beneficiaries of NREGA and their family members will get a biometric smart card for free healthcare and insurance cover for serious ailment. This is to extend the benefits of Rashtriya Swasthya Beema Yogna. For this benefit, the premium amount will be paid in the ratio of 75:25 between the Centre and states whereas the workers will have to pay a registration fee of Rs. 30. This smart card will provide them facility of cashless transaction up to Rs. 30,000 for any medical treatment.

Source:www.dnaindia.com, August 25, 2009. “Now, health on NREGA card”

Surat’s Lawyers on strike from 24^th August

Surat District Bar Association (SDBA) had announced to go on indefinite strike from 24th August, 2009 to show their protest against the delay in the transfer of district & sessions judge RP Dholaria. SDBA, earlier in July, had announced two days strike in July for removal of judge Dholaria, followed by a postponement of their strike due to a meeting with High Court officials. But now due to failure in acceptance of their demand, they have no other option left.

Source:www.dnaindia.com, August 25, 2009. “Lawyers in Surat on indefinite strike”

PFRDA likely to launch new pension-cum-saving scheme

Pension Fund Regulatory and Development Authority is likely to introduce a new pension-cum-savings scheme by this year-end. In this scheme, the essential feature is that the pension fund will be of saving account nature and the customer who is in the need of money can withdraw the deposited amount. This scheme will be called as Tier II account, for which the person should have an earlier account in Tier I. This scheme will bring liquidity, but the amount withdrawn will be taxable.

Source:economictimes.indiatimes.com, August 24, 2009. “New pension-cum-savings scheme by year end: PFRDA”

Minimum wages for labourers hiked in Maharashtra

The Maharashtra Government has decided to increase the minimum wages of labourers under the National Rural Employment Guarantee Scheme (NREGS) by making an amendment in the Minimum Wages Act, 1948. The hike ensures that those manual labourers, currently receiving Rs.66 per day, will now get Rs.100 and those, receiving Rs.72, will be now paid Rs.120 by the government. The minimum wages for labourers working on mechanized farm equipment have been hiked from Rs.145 to Rs.160. Below average monsoons and the assembly elections, due in the next two months, have influenced the state government’s decision for a hike in wages.

Source:www.paisawaisa.com, August 24, 2009. “Maharashtra hikes minimum wage before polls”

EMIs a headache for employees in the current slowdown

The current economic slowdown has impacted people with loans in their balance sheet as it has become hard to manage EMIs with the salary cuts. This financial pressure causes decrease in productivity and high attrition rate for organizations. So, companies are now planning to guide their employees and help them prepare themselves for tough times in the future.

Source:www.indianexpress.com, August 24, 2009. “Rescuing the EMI-burdened employee”

High growth envisaged for IT and BPO sectors in Gujarat

After a slowdown of around 6 months, the IT sector is revving up in Gujarat. According to experts, many job opportunities is likely to come up in the BPO industry in this financial year. The president of Gujarat Electronics and Software Industries Association (GESIA) Nirav Shah said that the BPO sector is likely to hire 1500-2000 persons in this year.

Source:www.indianexpress.com, August 24, 2009. “IT sector gaining momentum, creating more jobs in BPO segment: Experts”

IIT-IIM faculty not satisfied by pay hike

The pay hike approved by the Union Cabinet on 7th August has failed to pacify the professors of valued institutes like IIMs, IITs and NITs. Against this, professors’ of IITs had gone on a casual leave on 22nd August as a token of protest. They feel that the pay rise is still not satisfactory as the salary which they demanded has not been approved. For further discussion on this issue, directors of IITs are planning to have meeting on 23rd August to plan further steps.

Source:www.business-standard.com, August 22, 2009. “IIT faculty take casual leave to protest against snipped pay hike”

Domestic servants likely to be covered under minimum wages act in orissa

A proposal has been made by the labour and employment department in Orissa to cover domestic servants under the minimum wages act. After this, domestic servants will be considered under the unskilled workers category thus benefitting around 2 lakh of them. With this, working hours and minimum wages will be fixed for domestic workers and they will also be eligible to get a day’s holiday per week.

Source:www.business-standard.com, August 20, 2009. “Minimum wages for domestic help on anvil”

Not both the spouses will be able to avail HRA

As per a new judgment passed by Delhi High Court on 18th August 2009, the government employees who are residing with their spouse in a government accommodation will not be entitled to get House Rent Allowance (HRA) from government. This judgment was passed in the wake of a case by a government employee Rajni Devi challenging the Centre’s order.

Source:timesofindia.indiatimes.com, August 19, 2009. “No HRA if spouse allotted govt accommodation”

Hiring activity in July up by 1.3%

After a great slowdown in hiring activity in the last quarter, a sign of revival was seen in July as hiring activity shot up by 1.3%, revealed a survey by Naukri.com. This rise in hiring activity was seen in all the sectors around the country except Bangalore, Chennai and Pune. This continuous increase in hiring activity in the coming months will help the country to overcome the rising unemployment.

Source:www.financialexpress.com, August 19, 2009. “India Inc’s hiring up 1.3% in July: Naukri”

States to increase police force numbers by 1.5 lakh

The Chief Ministers’ conference headed by Prime Minister Manmohan Singh on the issue of internal security was held on 18th August. It transpired that by March 31, 2010, states should recruit at least 1.5 lakh personnel in police forces and commence their training. Also it was discussed to extend the scheme of modernization of police forces by another 5-10 years while taking stock of the present situation.

Source:Economics Times, August 18, 2009. “Fill up vacancies in state police forces at the earliest, CMs told” Page No. 2

Indian law firms show their competence globally

As per the global survey conducted by Dealogic, Indian law firms are generating the largest number of project finance and public private partnership deals, valued around $ 31.9 billion in the first half of 2009. This shows that Indian law firms are making their place in global markets and have increased their deal values to about 158% in this year. With the required skills and intelligence, the export of legal services has brought them at par with their global counterparts.

Source:Economics Times, August 18, 2009. “Big deals help Indian law firms enter the global league”

BSNL workers on a 2 day strike from 19th August

In Delhi, around 150,000 BSNL workers have gone on a 2 day strike from 19th August 2009. The union is demanding for an increase in fitment which has been fixed by the government to 78.2 percent. V.A.N Nambooderi, general secretary of BSNL union, said that the management has offered 30% wage revision to workers, but 60-70% rise to higher officials. The workers are also demanding the management to reduce the period of wage revision to 5 years.

Source:economictimes.indiatimes.com, August 18, 2009. “BSNL workers demand higher raise, to go on strike”

Minimum wages for workers in Kerala hiked

The State government of Kerala has revised the minimum wages for workers of shops and commercial establishments under Schedule I as well as employees of courier services,houseboat services under Schedule II. This rise in minimum wages – including DA - has covered workers under all grades of employment with effect from April 2009.

Source:www.expressbuzz.com, August 16, 2009. “Minimum wages of commercial establishment staff”

Power sector employees get salary raise

The power sector has seen salaries of top executives rise by about 78% during the current financial year as other sectors continue to grapple with declining jobs and pay packages. The banking and financial sector falls next in the line. This salary rise is given to motivate employees and to boost their morale, say company honchos. Some even attribute the rise to the fight for talent in view of the rapid expansion of banking services throughout the length and breadth of the country.

Source:economictimes.indiatimes.com, August 16, 2009. “Power sector takes lead in showering salary hikes”

NREGA scheme to be extended in drought-affected regions

In drought affected areas of the country, the central government is planning to enlarge the scope of NREGA (National Rural Employment Guarantee Act). Congress leader Rahul Gandhi and rural development minister C P Joshi are planning to increase the work days to more than 100 days and also include the food grain components and wage level, so that poor people don’t face drought and inflation.

Source:economictimes.indiatimes.com, August 14, 2009. “Thought for food in flagship jobs scheme”

Attendance falls in Pune cos due to the swine flu scare

The swine flu scare has brought down the attendance level of IT-BPO employees in Pune to 75-80% on an average daily. Employees and employers are scared with the spread of this disease while many companies have adopted the policy of “work from home” for their employees as a temporary measure. Many companies are hiring laptops on rent to provide employees the facility to work from home, in a bid to check the spread of the disease.

Source:www.business-standard.com, August 13, 2009. “Pune's IT, BPO cos see 20% fall in attendance”

SBI losing staff due to low pay package

State Bank of India is losing its staff day by day due to the low remuneration paid compared to private banks. As per SBI Staff Association, Bengal Circle, in 2008-09 more than 13500 employees retired and against it around 33000 employees were recruited. But around 40% of the new employees recruited quit the job due to poor pay structure. The present salary of a clerk working in a metro city is Rs. 7919 per month, which is less than a lower division clerk’s salary in government department.

Source:www.blonnet.com, August 13, 2009. “SBI staff seek hike in remuneration”

New Direct Taxes Code to raise tax burden on retirees

The new draft of direct Tax Code released by government proposes to raise the exemption limit on savings after retirement from Rs. 1 lakh to Rs. 3 lakh, while also imposing tax on all withdrawals from retirement schemes. The tax on withdrawal will be on the amount accrued after March 31, 2011. Earlier, according to existing laws, investments in public provident fund, employees’ provident fund and government provident fund was not taxable at all.

Source:timesofindia.indiatimes.com, August 13, 2009. “Retirement schemes face tax on withdrawals”

FM proposes to introduce a new tax regime

Finance Minister Pranab Mukherjee has unveiled a new direct tax code which calls for unprecedented changes in the country’s tax laws. The code proposes a flat 10% tax rate for annual incomes upto Rs. 10 lakh while slashing corporate tax rate to 25% from the current 30%. The new tax code will lead to a well regulated and free market system. Uday Ved, KPMG head of tax said that this code will rationalize the direct tax regime making it more simple.

Source:www.financialexpress.com, August 13, 2009. “New tax code calls for radical changes”

Tatas offer a helping hand in second career innings for women

Working women generally quit their jobs after getting married & in motherhood due to personal responsibilities. But later in life when they plan to come back, getting a good job after a 3-4 year break is a very difficult task as the market dynamics get completely changed. For this reason, the Tata group has started a programme for women known as Tata Second Career Internship Programme (Tata SCIP), which helps women in getting information and training and to cope up with the changes in market trend.

Source:timesofindia.indiatimes.com, August 10, 2009. “Moms get a chance to be managers again”

Shortage of PG teachers in Gujarat State Universities

Gujarat state universities will have to face a shortage of teachers for postgraduate courses in this year as there agreement with the University Grant Commission (UGC) is not yet finalized under the 11th Five Year Plan. The association of vice-chancellors has raised this issue before the government as the shortage will adversely affect many research programmes.

Source:www.indianexpress.com, August 10, 2009. “State universities may face staff crunch in PG programmes”

Salaries rise in the gems and jewellery sector amid rising demand

In the period of economic slowdown, sectors like textiles, IT/BPO and gems and jewellery had maximum job losses and around 1.65 percent workers lost their jobs in the jewellery sector alone. The recovery in the global market and rise in demand has led to a 4.68 percent increase in the workers’ salary also taking into account overtime allowances, as reported in a government survey.

Source:www.business-standard.com, August 9, 2009. “Gems, Jewellery workers see rise in wages despite layoffs”

Maharashtra power companies’ staff to get pay hike

On 8th August, 2009 a wage agreement was signed by MSEDCL managing director Ajay Mehta, MSETCL managing director Sanjay Sethi and others for the rise in salary and staff allowances for around 1 lakh employees of the Maharashtra state electricity distribution, transmission and generation companies, who will get the benefits of the increase from April 1, 2008. Employees have also agreed to work for an extra half hour daily which will help in increasing service efficiency.

Source:timesofindia.indiatimes.com, August 8, 2009. “30% salary hike for power co staff”

Pay hike for IIT, IIM faculty

More than 50 centrally funded institutions including IITs and IIMs got a pay hike for their faculty, design & scientific staff and other academic staff with retrospective effect from January 1, 2006. The Govardhan Mehta Pay Review Committee formed for pay revision had recommended the salary of associate professor to be in the Rs. 37400-Rs.67000 band with (Academic grade pay) AGP of Rs. 10000. The pay scale of assistant professors will in the band of Rs. 15600-Rs. 39100 with AGP Rs. 8000.

Source:timesofindia.indiatimes.com, August 7, 2009. “Govt. okays pay hike for IIT, IIM staff”

PIL in Madras High Court against MLA salary hike

A PIL was filed in Madras High Court against the implementation of salary hike of MLAs. This petition was filed by K.R.Ramaswamy, a social worker who gave an argument that MLAs are expected to save people and should only paid honorarium like early times. Also, MLAs already get facilitates like free accommodation and free land.

Source:www.hindu.com, August 7, 2009. “High Court seeks government’s views on plea against salary hike for MLAs”

Economic slowdown still hitting hard on Indian markets

The latest data from Labour and Employment Ministry shows that there were huge job losses amounting to tens of thousands in the country. This job loss was proved from the figure given by Employees Provident Fund Organization, which indicates the around 31.51 lakh EPF withdrawal requests were received from April to June 2009. Though employment statistics are released once in a year, the ministry has asked that it be prepared quarterly in order to take effective steps to check job losses.

Source:www.expressindia.com, August 7, 2009.“April to June: 1.7 lakh jobs lost, record PF withdrawal requests”

Bank employees’ strike paralyzing banking services

Bank employees from all over the country went on strike on 6th and 7th August to demand a salary hike. The strike was called by the United Forum of Bank Unions (UFBU) wherein around 20000 employees gathered at Azad Maidan to demonstration for a salary rise of 20%. The strike choked banking transactions in the country thus causing great public inconvenience. The chief labour commissioner has called employee union leaders for a meeting on Friday.

Source:www.financialexpress.com, August 7, 2009. “Bank staff strike hits services”

States fail to implement NREGS in letter and spirit

The National Rural Employment Guarantee Scheme (NREGS) was launched by the UPA government in February 2006 to provide 100 days of employment to all registered rural households. The scheme covered 200 districts in 2006 and 593 in 2007-08, thus benefitting a total of 4,49,40,870 households. But till 2008-09, only 14.48 percent of them could get the stated 100 days of employment. The Planning Commission puts the blame on the implementing states as it constitutes the part of their responsibility.

Source:business.rediff.com, August 6, 2009.“Few people get 100-day employment under NREGA”

Anticipating economic rebound, companies frame retention plans for employees

A survey conducted by global consultancy firm Deloitte suggests that with recovery in the world economy, talent will be harder to come by as employees scout for more and better opportunities; thus representing a major challenge for HR executives. In response, companies have begun framing attractive retention policies with around 48 percent companies in the Asia-Pacific region reporting the same.

Source:www.financialexpress.com, August 5, 2009. “Companies fear ‘resume tsunami’ to hit with recovery”

J & K docs on strike; demand rise in salaries

Doctors at border district Kupwara have come on road to protest against the government for not heeding to their demand for rise in salaries. Doctors presently get a monthly salary of Rs.8000. Ghulam Muhammad Mir, president of Doctor’s Association Kupwara has urged to the government to raise their salary. The ongoing strike has caused major inconveniences to patients in the hospitals.

Source:www.risingkashmir.com, August 1, 2009.“Docs demand hike in salaries”