prime minister’s shram awards’ scheme 2011.pdf · 2016. 3. 14. · india, shram shakti bhawan,...

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________________________________________________________________________________________ ©NATIONAL ACADEMY OF INDIAN PAYROLL NAIP MUMBAI OFFICE : 5TH,6TH FLOOR,CRD SAMARTH,S.V ROAD,OLD KHAR WEST,MUMBAI,400452,INDIA, PHONE:+91 9223192904 E-MAIL : [email protected] NAIP LONDON OFFICE: NAIP ,2ND FLOOR, 48 GRESHAM STREET,LONDON, EC2V 7AY, PHONE +44 7502 257777, E-MAIL : [email protected] 1 PRIME MINISTER’S SHRAM AWARDS’ SCHEME : 2011 The objective of the Prime Minister’s Shram Awards is to recognize the outstanding contributions made by workmen as defined in the Industrial Dispute Act, 1947 in organizations both in public and private sector and who have distinguished record of performance, devotion to duty of a high order, specific contribution in the field of productivity, proven innovative abilities, presence of mind and exceptional courage and also to the workmen who have made supreme sacrifice of laying down their lives in the conscientious discharge of their duties. The Awards will be presented to the workmen as defined in the Industrial Disputes Act, 1947 and employed in the Departmental Undertakings of the Central and State Governments, Central and State Public Sector Undertakings as also private sector and having minimum of 500 employees on roll and engaged in manufacturing and productive processes and whose performance is assessable. Workmen solely engaged in routine service duties would not be eligible. 1. Coverage should be given to the workers in all sectors of industry. Persons working in important Departmental/Undertakings like those under the Department of Defense Production and Supplies, Ministry of Heavy Industry and Public Enterprises etc. should be given adequate coverage. 2. Adequate representation would be given to women and handicapped workers who have made outstanding contributions in the areas specified above. 3. The organizations recommending their workmen for the “PRIME MINISTER’S SHRAM AWARDS” should satisfy themselves regarding the eligibility of the workman for this prestigious National Award and issue a certificate to that effect under the signature and seal of the Head of the Organisation/Chief Executive Officer where the workman is employed. NOMINATION - CHANNEL OF SUBMISSION:- (a) PUBLIC SECTOR The Head of the Organisation will fill up the attached nomination forms in all respects, in triplicate, and route it through the Administrative Central Ministry/respective State Government Deptt. alongwith enclosures and with their recommendation to the Under Secretary (ISH-I), Ministry of Labour and Employment, Govt. of India, Shram Shakti Bhawan, Rafi Marg, New Delhi – 110001, latest by 31st July, 2011. The nominations should be scrutinized with reference to the Scheme and the guidelines. (b) PRIVATE SECTOR The Chief Executive Officer of the organization will fill up the attached nomination forms in all respects, in triplicate, and send it to the respective Local/State Association/Chamber of Industries. After scrutiny of the nominations at local/state level, the nominations with recommendations will be forwarded through the National level of Association/Chamber, in triplicate, to the Under Secretary (ISHI),Ministry of Labour and Employment, Govt. of India, Shram Shakti Bhawan, Rafi Marg, New Delhi –110001 latest by 31st July, 2011. The nominations should be scrutinized with reference to the scheme and the guidelines. Newsletter: Date 20 th March 2011, Volume 3, Issue 2 Contents Shram Award Scheme 1- 2 & It’s details Amendments 3 Important Points 4 News & Articles 5-9 Revised wages in Delhi & Karnataka 10-12 Compliance Check up 13

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Page 1: PRIME MINISTER’S SHRAM AWARDS’ SCHEME 2011.pdf · 2016. 3. 14. · India, Shram Shakti Bhawan, Rafi Marg, New Delhi –110001 latest by 31st July, 2011. The nominations should

________________________________________________________________________________________

©NATIONAL ACADEMY OF INDIAN PAYROLL NAIP MUMBAI OFFICE : 5TH,6TH FLOOR,CRD SAMARTH,S.V ROAD,OLD KHAR WEST,MUMBAI,400452,INDIA, PHONE:+91 9223192904

E-MAIL : [email protected]

NAIP LONDON OFFICE: NAIP ,2ND FLOOR, 48 GRESHAM STREET,LONDON, EC2V 7AY, PHONE +44 7502 257777, E-MAIL : [email protected]

1

PRIME MINISTER’S SHRAM AWARDS’ SCHEME : 2011

The objective of the Prime Minister’s Shram Awards is to recognize the

outstanding contributions made by workmen as defined in the Industrial Dispute

Act, 1947 in organizations both in public and private sector and who have

distinguished record of performance, devotion to duty of a high order, specific

contribution in the field of productivity, proven innovative abilities, presence of

mind and exceptional courage and also to the workmen who have made supreme

sacrifice of laying down their lives in the conscientious discharge of their duties. The Awards will be presented to the workmen as defined in the Industrial Disputes

Act, 1947 and employed in the Departmental Undertakings of the Central and State Governments, Central and State Public

Sector Undertakings as also private sector and having minimum of 500 employees on roll and engaged in manufacturing and

productive processes and whose performance is assessable. Workmen solely engaged in routine service duties would not be

eligible.

1. Coverage should be given to the workers in all sectors of industry. Persons working in important Departmental/Undertakings

like those under the Department of Defense Production and Supplies, Ministry of Heavy Industry and Public Enterprises etc.

should be given adequate coverage.

2. Adequate representation would be given to women and handicapped workers who have made outstanding contributions in

the areas specified above.

3. The organizations recommending their workmen for the “PRIME MINISTER’S SHRAM AWARDS” should satisfy themselves

regarding the eligibility of the workman for this prestigious National Award and issue a certificate to that effect under the

signature and seal of the Head of the Organisation/Chief Executive Officer where the workman is employed.

NOMINATION - CHANNEL OF SUBMISSION:-

(a) PUBLIC SECTOR The Head of the Organisation will fill up the attached nomination forms in all respects, in

triplicate, and route it through the Administrative Central Ministry/respective State

Government Deptt. alongwith enclosures and with their recommendation to the Under

Secretary (ISH-I), Ministry of Labour and Employment, Govt. of India, Shram Shakti

Bhawan, Rafi Marg, New Delhi – 110001, latest by 31st July, 2011. The nominations

should be scrutinized with reference to the Scheme and the guidelines.

(b) PRIVATE SECTOR The Chief Executive Officer of the organization will fill up the attached nomination forms

in all respects, in triplicate, and send it to the respective Local/State Association/Chamber

of Industries. After scrutiny of the nominations at local/state level, the nominations with

recommendations will be forwarded through the National level of Association/Chamber,

in triplicate, to the Under Secretary (ISHI),Ministry of Labour and Employment, Govt. of

India, Shram Shakti Bhawan, Rafi Marg, New Delhi –110001 latest by 31st July, 2011. The

nominations should be scrutinized with reference to the scheme and the guidelines.

Newsletter: Date 20th March 2011, Volume 3, Issue 2

● ● ●

Contents Shram Award Scheme 1- 2

& It’s details

Amendments 3

Important Points 4

News & Articles 5-9

Revised wages in Delhi

& Karnataka 10-12

Compliance Check up 13

Page 2: PRIME MINISTER’S SHRAM AWARDS’ SCHEME 2011.pdf · 2016. 3. 14. · India, Shram Shakti Bhawan, Rafi Marg, New Delhi –110001 latest by 31st July, 2011. The nominations should

________________________________________________________________________________________

©NATIONAL ACADEMY OF INDIAN PAYROLL NAIP MUMBAI OFFICE : 5TH,6TH FLOOR,CRD SAMARTH,S.V ROAD,OLD KHAR WEST,MUMBAI,400452,INDIA, PHONE:+91 9223192904

E-MAIL : [email protected]

NAIP LONDON OFFICE: NAIP ,2ND FLOOR, 48 GRESHAM STREET,LONDON, EC2V 7AY, PHONE +44 7502 257777, E-MAIL : [email protected]

2

DETAILS OF AWARDS

The number of cash prizes for each are as follows :-

Sr.

No

Name of Award No. of Awards Cash Prize Criteria

1 Shram Ratna 1 Rs.2,00,000 Highest Award will be given to a worker who

has really outstanding calibre and has made

exceptional all round contribution.

2 Shram Bhushan 4 Rs.1,00,000 each Workers who have made outstanding

contribution in productivity, and also shown

innovative abilities of high order.

3 Shram Vir / Shram

Veerangana

12 Rs. 60,000 each Workers who have a continuous record

of dedicated service and has achieved high

order of productivity.

4 Shram Devi/Shram Shree 16 Rs. 40,000 each Workers who have shown extra ordinary

zeal and enthusiasm for work and have made

remarkable contribution towards productivity.

The Shram Ratna Award would be common for both the Public and Private Sectors and the remaining 32 awards would be

shared equally by both the sectors, i.e. 16 each for Public and Private Sectors. In case of awards being shared by a worker with

team and/or different teams/other individual worker, the award money would be equally shared by the total number of workers

{members of the team(s) + individual worker}. While the total number of awards in one year would be thirty three, in case

awards for any one or more categories are not being given, these can be distributed among the other lower categories. It may

not be mandatory to give all the prizes every year. Besides the cash prize, awardees would also receive a “SANAD” from the

Prime Minister. The awardees are also eligible for 75% concession in 2nd Class Rail Fare.

The nomination form giving full particulars as specified and as per instructions should reach before closing date i.e. 31st July,

2011 to the Under Secretary, Ministry of Labour and Employment, Shram Shakti Bhawan, Rafi Marg, New Delhi – 110001, along

with Crossed Demand Draft of value of Rs. 500/- drawn in favour of “Pay & Accounts Officer (MS), Ministry of Labour, New

Delhi” payable at New Delhi in respect of nominations pertaining to Public Sector. The manufacturing units employing 500 or

more workers in the Private Sector may forward their applications.

Page 3: PRIME MINISTER’S SHRAM AWARDS’ SCHEME 2011.pdf · 2016. 3. 14. · India, Shram Shakti Bhawan, Rafi Marg, New Delhi –110001 latest by 31st July, 2011. The nominations should

________________________________________________________________________________________

©NATIONAL ACADEMY OF INDIAN PAYROLL NAIP MUMBAI OFFICE : 5TH,6TH FLOOR,CRD SAMARTH,S.V ROAD,OLD KHAR WEST,MUMBAI,400452,INDIA, PHONE:+91 9223192904

E-MAIL : [email protected]

NAIP LONDON OFFICE: NAIP ,2ND FLOOR, 48 GRESHAM STREET,LONDON, EC2V 7AY, PHONE +44 7502 257777, E-MAIL : [email protected]

3

AMENDMENT OF THE APPRENTICESHIP ACT

The Government is considering to amend the Apprentices Act, 1961 in consultation with all concerned Ministries. One of the

amendments proposed relates to reserving 50 percent of direct recruitment posts for trained Trade, Graduate, Technician and

Technician(Vocational) apprentices who have been trained under the Apprentices Act, 1961 in the same establishment. Based on

the views of the concerned ministries the proposal of amendment of the Apprentices Act will be processed further.

MOVE TO AMEND FACTORIES ACT

In view of the changed industrial scenario in the country, the Government is planning to amend the Factories Act,

1948 even as the labour organisations have expressed apprehensions about the move leading to a negative direction

and making the legislation anti-worker and pro-corporate.

• An amendment proposed calls for 100 hours of overtime (OT) in a quarter from the present 50 hours per day.

• It also proposes to raise the 75 hour bar (including the first 50) in case of exigencies to 115 hours in a quarter

- maximum hours of OT an employer can extract from worker without permission.

• To allow women working in factories to do night shifts, which is prohibited at present.

• The amendments, if approved, could be brought in the budget session.

Reacting to Prime Minister Manmohan Singh's decision to constitute a high-powered committee, All India Trade

Union Congress (AITUC) general secretary Gurudas Dasgupta said the Government's move is meant to further

liberalise the market and make it more investment-friendly and profitable for industrialists. It would be anti-worker,

he said, adding even the existing Act is not being properly enforced.

Tapan Sen, general secretary of the Centre for Indian Trade Unions (CITU), said his organisation is examining a 36-

page document with the 40 proposed amendments that the panel, headed by Narendra Jhadav, who is member of

both the Planning Commission and National Advisory Council, has given to the labour organisations to elicit their

views. It will give its reaction after studying them in detail during the next meeting scheduled on February 10.

Page 4: PRIME MINISTER’S SHRAM AWARDS’ SCHEME 2011.pdf · 2016. 3. 14. · India, Shram Shakti Bhawan, Rafi Marg, New Delhi –110001 latest by 31st July, 2011. The nominations should

________________________________________________________________________________________

©NATIONAL ACADEMY OF INDIAN PAYROLL NAIP MUMBAI OFFICE : 5TH,6TH FLOOR,CRD SAMARTH,S.V ROAD,OLD KHAR WEST,MUMBAI,400452,INDIA, PHONE:+91 9223192904

E-MAIL : [email protected]

NAIP LONDON OFFICE: NAIP ,2ND FLOOR, 48 GRESHAM STREET,LONDON, EC2V 7AY, PHONE +44 7502 257777, E-MAIL : [email protected]

4

IMPORTANT POINTS

When a Voluntary Retirement Scheme is introduced and the Management reserves the right to retain the efficient

officer/employee, it cannot be questioned hence the High Court erred in quashing the decision of the Management in not

accepting the option by an officer which has been opposed to Article 14 of the Constitution of India, hence the Apex Court held

that the Management of the Bank has properly appraised the claim of the respondent for voluntary retirement and its decision

was legitimate of the discretion which did not warrant interference by the High Court.

Reference - (Chairman and M.D., Indian Overseas Bank & Ors. v/s. Tribhuwan Nath Srivastava - 2011 LLR 225)

Levy of damages for delayed payment of provident fund contributions by a government-run society is liable to be quashed when

justifiable reasons for delay are given and also there is no mens rea in delaying the deposit by the society not by a private

employer. The language of section 14B of the Employees' Provident Funds & Miscellaneous Provisions Act read with para 32 of

the Scheme, reveals that the levy of damages on Employees' Provident Fund contributions will not be legal if there remains no

default or arrears on the date when the damages are levied.

Reference –( Hi-Tech Vocational Training Centre v/s. Assistant Provident Fund Commissioner - 2011 LLR 231)

• Compensation, in lieu of reinstatement, has been rightly granted by the Labour Court and plea that the workman has

abandoned the job of his own accord would not be tenable by its own version hence the writ petition against Award of

the Labour Court is liable to be rejected and the workman will be entitled to 9% interest on the payment of Rs. 2,56,025

as granted compensation in lieu of reinstatement.

• Plea of the Management that the workman has abandoned the job of his own accord would not be tenable since no

evidence was led and also in response, the Management did not send offer to the workman to resume his duty. Even in

the case of abandonment of employment by a workman, holding of enquiry is imperative.

Reference –( M/s. Hindustan Associates Engineer Pvt. Ltd. v/s. Sh. K.K. Aggarwal & Ors. - 2011 LLR 312)

Applicability of Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 will not

be excluded upon a factory under construction.

Reference –(Sterlite Energy Ltd. v/s. State of Orissa & Ors. - 2011 LLR 322)

An establishment which is amenable to the provisions of Employees Provident Fund & Misc. Provisions Act and

for the purposes of determining its contribution was taking into consideration the basic wage as given to its employees.

Reference –( M/s G4S Security Services (India) Ltd. v/s. Asst. Provident Fund Commissioner, Gurgaon. - CWP No. 15443 of

2009(O&M)

Page 5: PRIME MINISTER’S SHRAM AWARDS’ SCHEME 2011.pdf · 2016. 3. 14. · India, Shram Shakti Bhawan, Rafi Marg, New Delhi –110001 latest by 31st July, 2011. The nominations should

________________________________________________________________________________________

©NATIONAL ACADEMY OF INDIAN PAYROLL NAIP MUMBAI OFFICE : 5TH,6TH FLOOR,CRD SAMARTH,S.V ROAD,OLD KHAR WEST,MUMBAI,400452,INDIA, PHONE:+91 9223192904

E-MAIL : [email protected]

NAIP LONDON OFFICE: NAIP ,2ND FLOOR, 48 GRESHAM STREET,LONDON, EC2V 7AY, PHONE +44 7502 257777, E-MAIL : [email protected]

5

Government increased dearness allowance (DA)

In a bid to provide relief from high inflation, the government increased dearness allowance (DA) by 6 per cent to 51

per cent, benefiting over 50 lakh central government employees and 38 lakh pensioners.

"The decision to hike DA was taken by the Union Cabinet at its meeting here," a Union minister said.

The combined impact of the hike will be Rs 5,715.90 crore per annum. However in the next financial year, the burden

on the exchequer would be Rs 6,668.52 crore after the additional 6 per cent DA payout is factored in from January 1

to March 31 this year.

The increased DA, which will be effective from January 1, is provided to government staff and pensioners to

compensate them for rising prices.

Presently, the DA is paid at 45 per cent of basic pay. The increase in DA by 6 per cent would be in accordance withthe

formula prescribed by the Sixth Pay Commission for central government employees.

(The 60th

years of Services of ESIC from 24th

February, 2011 to 24th

February, 2012)

The ESI Corporation will complete 60 years of its functioning and services on 24th Feb., 2012. It has been decided to celebrate ‘Diamond

Jubilee Year’ (the 60th year of services of ESIC) from 24th Feb., 2011 to 24th Feb., 2012. During this year-long celebration, special emphasis will

be laid upon bringing more and more workers under the integrated social security of ESI Scheme. ESIC has planned to strengthen primary

health services by putting up one Medical Kit in each Dispensary containing the basic equipments like B.P. instrument, Glucometer, Nebulizer.

Activities at ROs/SROs

One Facilitation Conclave (SUVIDHA SAMAGAM) for Employers/Employees to be organized

once in a month by Branch Offices

Holding of one Awareness Camp for Employees/ Employers by ROs/SROs/DOs in each month

Holding of awareness seminar with employers’ representatives.

Holding of meetings with employees’ representatives.

All the oldest surviving Corporation Members, Employers, Insured persons, Staff Member and Officers of

ESI Scheme/ ESIC will be felicitated in all the functions at different levels. There may be criteria of being associated with ESI Scheme like 50

years, 30 years etc.

Before the closing ceremony, an announcement will be made to install best drinking water

facilities, tea/coffee dispensing machine in all the Branch Offices and Dispensaries.

The General Branch, Hqrs. will get the decision (alongwith required budget) approved from competent authority and circulate it to all the

ROs/SROs/DOs giving a time frame of not more than three months for implementing these decisions and reporting back to the Hqrs., so that

these arrangements see the light of the day within first six months of the Diamond Jubilee year.

Budget – Budget will be allocated separately to ROs/SROs under the regular “heads of account”.

A special logo has been finalized for ‘60 years of your ESI’ and it should be used in all the advertisements, letter heads, visiting cards, envelopes

etc. of the Corporation throughout the year.

An illuminated board with the special logo of ‘Diamond Jubilee Year of ESIC’ will be put up in all the buildings of ESIC along with services

available in that particular office/institution.

Page 6: PRIME MINISTER’S SHRAM AWARDS’ SCHEME 2011.pdf · 2016. 3. 14. · India, Shram Shakti Bhawan, Rafi Marg, New Delhi –110001 latest by 31st July, 2011. The nominations should

________________________________________________________________________________________

©NATIONAL ACADEMY OF INDIAN PAYROLL NAIP MUMBAI OFFICE : 5TH,6TH FLOOR,CRD SAMARTH,S.V ROAD,OLD KHAR WEST,MUMBAI,400452,INDIA, PHONE:+91 9223192904

E-MAIL : [email protected]

NAIP LONDON OFFICE: NAIP ,2ND FLOOR, 48 GRESHAM STREET,LONDON, EC2V 7AY, PHONE +44 7502 257777, E-MAIL : [email protected]

6

WELFARE OF DOMESTIC WORKERS The Government set-up a Task Force to evolve a policy frame work for

domestic workers in the context of regulatory mechanism and

providing social security. The Task Force has submitted its first report

which makes the following recommendations:

i) Extension of the welfare schemes to the domestic workers including

Health and Maternity benefit, Death and Disability benefit and old age

benefits.

ii) Rashtriya Swasthya Bima Yojana (RSBY) should be the first welfare

scheme to be extended to the domestic workers. The smart cards used

under RSBY can later be used to load other welfare schemes rolled out

for domestic workers.

iii) Domestic workers should be identified and registered by the State

Labour Department.

iv) The domestic work should be included in the Central List of

scheduled employment vide a notification under the Minimum Wages

Act, 1948 for fixation and enforcement of minimum wages in respect of

domestic workers. The State Governments which have not fixed

minimum wages for domestic work should fix minimum rates of wages

for domestic workers.

v) Mandatory registration of all placement agencies and individuals

providing placement, sourcing and recruitment service relating to

domestic work under Shops and Establishment Act.

vi) Formulation of National Policy for the Domestic Workers.

vii) Scaling up of the skill and re-skill training programme initiated by

International Labour Organisation.

The proposal to extend health insurance scheme viz. Rashtriya

Swasthya Bima Yojana (RSBY) to domestic workers is under

consideration of the Government.

DEADLINE BREATHER FOR PVT PF TRUSTS FOR EPFO NOD Ending the tax uncertainty for over 300 privately managed

retirement funds some of which are run by top multinational

companies, the Union Budget 2011-12 has given them

another year to get an exemption certificate from the labour

ministry and extended their tax sops till 31st March 2012.

“In order to provide further time to the EPFO to process

the applications made by establishments seeking exemption

under Section 17 of the EPF & MP Act, it is proposed t amend

the aforesaid proviso so as to extend the time limit from 31st

December 2010 to 31st March 2012,” as per the Budget

documents. The amendment will take effect retrospectively

from 1st January, 2011. The move will benefit nearly 300

companies including American Express Bank, SBI Life

Insurance, Daimler Chrysler and MMTC who prefer to

manage their retirement funds independently of the

vagaries of the EPFO by setting up provident fund (PF) trusts

under the Income Tax Act of 1961. They, however, operate

according to guidelines of the EPFO guidelines. Ending the

tax uncertainty for over 300 privately managed retirement

funds some of which are run by top multinational

companies, the Union Budget 2011-12 has given them

another year to get an exemption certificate from the labour

ministry and extended their tax sops till 31st March 2012. “In

order to provide further time to the EPFO to process the

applications made by establishments seeking exemption

under Section 17 of the EPF & MP Act, it is proposed t amend

the aforesaid proviso so as to extend the time limit from 31st

December 2010 to 31st March 2012,” as per the Budget

documents. The amendment will take effect retrospectively

from 1st January, 2011. The move will benefit nearly 300

companies including American Express Bank, SBI Life

Insurance, Daimler Chrysler and MMTC who prefer to

manage their retirement funds independently of the

vagaries of the EPFO by setting up provident fund (PF) trusts

under the Income Tax Act of 1961. They, however, operate

according to guidelines of the EPFO guidelines.

Page 7: PRIME MINISTER’S SHRAM AWARDS’ SCHEME 2011.pdf · 2016. 3. 14. · India, Shram Shakti Bhawan, Rafi Marg, New Delhi –110001 latest by 31st July, 2011. The nominations should

________________________________________________________________________________________

©NATIONAL ACADEMY OF INDIAN PAYROLL NAIP MUMBAI OFFICE : 5TH,6TH FLOOR,CRD SAMARTH,S.V ROAD,OLD KHAR WEST,MUMBAI,400452,INDIA, PHONE:+91 9223192904

E-MAIL : [email protected]

NAIP LONDON OFFICE: NAIP ,2ND FLOOR, 48 GRESHAM STREET,LONDON, EC2V 7AY, PHONE +44 7502 257777, E-MAIL : [email protected]

7

RISING SALARIES OF CEOS

NOT CONDUCIVE FOR INDUSTRIAL RELATIONS

LOWER CADRE WILL BE FRUSTRATED

Here is a hard fact that is with regard to fat salaries in United States of America. President Barack Obama was outraged that Wall Street firms

paid out US $18.4 billion in bonuses to executives, despite receiving multi-billion dollar bailouts from the government to save the companies

from collapse in the face of the worst financial crisis in decades. But it is not confined to the U.S. Many other countries like India and China are

also facing the similar problem.

President Obama put a cap of US $500,000 on Wall Street executives' pay. The Chinese government has also drawn up rules and regulations

regarding recompense for top executives. Once the regulations are approved, executive salaries will be restricted by the recipient's position in

the company, average salaries across the industry, and appraisal by the Ministry of Finance.

India stands on a different footing. There is no doubt that the fundamentals of Indian economy are strong and that was the reason that is

could withstand the tsunami like global downslide. In India the roof hitting salaries of top executives have caused many heart-burns. And there

are genuine reasons. Any mismatch in the work and imbalance vis-à-vis the payment to other employees is unjustifiable by every stretch of

imagination.

A few years ago the Prime Minister of India e la American President had asked the top executives to cut their salaries to set an imitable

example for mid-level executives. Some have heeded his advice but others did not. Some top executives and CEOs also felt the pangs and pricks

of conscience and followed suit but the majority remained insensitive to it.

This is the time when the culture has to be inculcated and the wanton profligacy must be stopped otherwise; it would set the bad example to

the general detriment of the human resources in particular and the society in general.

According to a survey, Chief executives of India's biggest companies continue to reel in much higher salary increases than their employees. Last

fiscal, the CEOs of top companies earned 68 times the average pay in their companies, up from 59 times average pay in 2008-09, reveals a

study.

Excessive management remuneration has been a sensitive topic of public debate in the US and the UK and even the Indian government has

expressed concerns about it. Although some Indian CEOs and managing directors did see a decline in their total compensation in 2008-09, as

the economic slowdown brought down one component of their remuneration directly linked with profits, the absolute level of compensation

remained high.

Jindal Steel & Power executive vice-chairman and MD Naveen Jindal took home more than 2,000 times the average pay at the country's most-

valued steel firm. The Member of Parliament, who represents Kurukshetra constituency for the ruling Congress Party, drew a pay packet of Rs

48.98 crore (excluding Rs 20.35 crore paid as arrears for the previous year and Rs 42 lakh as salary advance) for the year ended March '10. Sun

TV chairman and managing director Kalanithi Maran, who shared the spot of second-highest paid corporate executive in India along with his

wife last fiscal, each drawing Rs 37 crore, earned 1,760 times the average pay of a Sun TV employee. While some CEOs are drawing eye-

popping amounts, there are companies where the gap between the chief executive and the average employee salary is modest. For instance,

Infosys CEO S Kris Gopalakrishnan's last year's pay packet of Rs 1.01 crore was just about nine times the average remuneration of an Infoscion.

Page 8: PRIME MINISTER’S SHRAM AWARDS’ SCHEME 2011.pdf · 2016. 3. 14. · India, Shram Shakti Bhawan, Rafi Marg, New Delhi –110001 latest by 31st July, 2011. The nominations should

________________________________________________________________________________________

©NATIONAL ACADEMY OF INDIAN PAYROLL NAIP MUMBAI OFFICE : 5TH,6TH FLOOR,CRD SAMARTH,S.V ROAD,OLD KHAR WEST,MUMBAI,400452,INDIA, PHONE:+91 9223192904

E-MAIL : [email protected]

NAIP LONDON OFFICE: NAIP ,2ND FLOOR, 48 GRESHAM STREET,LONDON, EC2V 7AY, PHONE +44 7502 257777, E-MAIL : [email protected]

8

In contrast, rival IT services firm Wipro's chairman and MD Azim Premji earned 93 times the average compensation paid to a Wipro employee,

thanks to over five times jump in his total remuneration to Rs 7.8 crore for the year ended March '10. The least unequal compensation was for

infrastructure finance firm IDFC where CEO Rajiv Lall took home just over three times the average paid to the employees, most of whom are

senior bankers and consultants. However, including IDFC's subsidiaries where the average salaries are much more modest, the gap expands.

Top executives of the large public listed companies earned an average compensation of Rs 3.73 crore, compared to Rs 5.49 lakh remuneration

of an average employee in the same firms, revealed the study. CEO remuneration did not factor in stock-based compensation, as most

managing directors in India are promoters who typically are not entitled to stock options. Stock-based remuneration forms a large chunk of

executive compensation in developed economies. The study also excluded government-controlled companies, where top executive

compensation is much low, at least on the books, compared to the private sector. Out of the 150 firms studied, CEOs in 40 firms earned more

than hundred times the average employee pay. These were companies in sectors such as textile, pharma, cement, metal, sugar and

construction where large number of blue-collared employees tends to keep average employee salaries low.

The captains and leaders of the industry must have to take cognisance of this unilateral and alarming rise in the salaries of top executives. This

soul searching must be done by them because any governmental interference as is being contemplated in China would be extraneous and may

largely not be liked.

LABOUR MINISTRY HAS DECLARED 9.5% AS EMPLOYEES PROVIDENT FUND INTEREST FOR THE YEAR

2010-11. THE RELEVANT CIRCULAR FROM LABOUR SECRETARY IS AS FOLLOWS:

Page 9: PRIME MINISTER’S SHRAM AWARDS’ SCHEME 2011.pdf · 2016. 3. 14. · India, Shram Shakti Bhawan, Rafi Marg, New Delhi –110001 latest by 31st July, 2011. The nominations should

________________________________________________________________________________________

©NATIONAL ACADEMY OF INDIAN PAYROLL NAIP MUMBAI OFFICE : 5TH,6TH FLOOR,CRD SAMARTH,S.V ROAD,OLD KHAR WEST,MUMBAI,400452,INDIA, PHONE:+91 9223192904

E-MAIL : [email protected]

NAIP LONDON OFFICE: NAIP ,2ND FLOOR, 48 GRESHAM STREET,LONDON, EC2V 7AY, PHONE +44 7502 257777, E-MAIL : [email protected]

9

Collection/Remittance of ESI contributions through System Generated Challans (w.e.f. 1/4/2011)

Tension is mounting between the Income Tax department and Employees Provident Fund Organisation

The feud between EPFO and I-T department has been running for two years now. It started with I-T department's 2009

query - why EPFO was not deducting tax at source on withdrawals from PF account by employees who had not completed 5

years in service. EPFO did not respond to this query and neither did I-T department follow its 2009 communication. However,

in January, the department sent an elaborate notice to EPFO demanding information relating to the manner in which it

handled PF money, which accounts for nearly Rs 40,000 crore annually all over India.

Under Section 10 (25) of the I-T Act, employees who have completed five years of service need not pay any tax on

withdrawals from their PF accounts. Those who have not are required to pay tax. I-T department sources said no one was

checking the loss of revenue due to such withdrawals.

Page 10: PRIME MINISTER’S SHRAM AWARDS’ SCHEME 2011.pdf · 2016. 3. 14. · India, Shram Shakti Bhawan, Rafi Marg, New Delhi –110001 latest by 31st July, 2011. The nominations should

________________________________________________________________________________________

©NATIONAL ACADEMY OF INDIAN PAYROLL NAIP MUMBAI OFFICE : 5TH,6TH FLOOR,CRD SAMARTH,S.V ROAD,OLD KHAR WEST,MUMBAI,400452,INDIA, PHONE:+91 9223192904

E-MAIL : [email protected]

NAIP LONDON OFFICE: NAIP ,2ND FLOOR, 48 GRESHAM STREET,LONDON, EC2V 7AY, PHONE +44 7502 257777, E-MAIL : [email protected]

10

The Govt. of Karnataka has revised minimum wages & VDA (w.e.f. 1-4-2011 to 31-3-2012) for the shops & establishments. As per

the details there are four sectors :

Sector – 1 : shall compromise of all City Corporation areas.

Sector – 2 : All districts headquarters, KGF, Bhadravathi, Gadag & Hospet

Sector – 3 : All Taluk headquarters(excluding the areas defined in sector – 2)

Sector – 4 : All other places other than defined in sector – 1,2 & 3.

Other details are given below :-

60. SHOPS AND COMMERCIAL ESTABLISHMENTS

���� Notification No. KAE 43 LMW 2001 dated 05-02-03

Published in Gazette dated 21-02-03

Cost of Living Allowance to be paid over and above 2397 points

Cost of Living Index: 4284–2397= 1887 points

Minimum wages and VDA from 01-04-2011 to 31-03-2012

VDA: All categories of employees: 3 paise per point per day over and above 2397 points.

S C H E D U L E

Sl.

No

Class of Employment Minimum rates of wages per month

Sector-1

Sector-2 Sector-3 Sector-4

1 2 3 4 5 6

1

2

Group-I

Manager

Pharmacist & Chemist

Basic

VDA

Total

2367.00

1698.30

4065.30

2332.00

1698.30

4030.30

2315.00

1698.30

4013.30

2297.00

1698.30

3995.30

1

2

3

Group-II:

Accountant

Supervisor

Stenographer

Basic

VDA

Total

2270.00

1698.30

3968.30

2249.00

1698.30

3947.30

2228.00

1698.30

3926.30

2206.00

1698.30

3904.30

1

2

3

4

5

6

7

8

9

10

11

12

Group-III

Clerk

Cashier

Typist

Salesmen/Sales Girl

Compounder

Photographer

Photo-artist

Watch Mechanic / Repairer

Radio Mechanic / Repairer

T V Mechanic/Repairer

Optical Mechanic

Skilled labour in lift fixing

Basic

VDA

Total

2192.00

1698.30

3890.30

2181.00

1698.30

3879.30

2166.00

1698.30

3864.30

2153.00

1698.30

3851.30

Page 11: PRIME MINISTER’S SHRAM AWARDS’ SCHEME 2011.pdf · 2016. 3. 14. · India, Shram Shakti Bhawan, Rafi Marg, New Delhi –110001 latest by 31st July, 2011. The nominations should

________________________________________________________________________________________

©NATIONAL ACADEMY OF INDIAN PAYROLL NAIP MUMBAI OFFICE : 5TH,6TH FLOOR,CRD SAMARTH,S.V ROAD,OLD KHAR WEST,MUMBAI,400452,INDIA, PHONE:+91 9223192904

E-MAIL : [email protected]

NAIP LONDON OFFICE: NAIP ,2ND FLOOR, 48 GRESHAM STREET,LONDON, EC2V 7AY, PHONE +44 7502 257777, E-MAIL : [email protected]

11

13

14

15

16

17

18

19

20

installing establishment

Technician (in Musical Instrument

shop)

Carpenter (Furniture shop)

Polishing (Furniture shop)

Refractionary man (Optical shop)

Hair Dresser (in hair dressing

saloon)

Air condition plant operator

Umbrella / Suitcase repairer

Receptionist

1

2

3

4

5

6

7

8

9

10

Group-IV

Bill collector

Bill clerk

Godown Keeper

Booking clerk

Assistant Photo-artists

Assistant Sales man / Sales Girl

Shop Assistant

Packer

Gas Supplier

Stove Repairer

Basic

VDA

Total

2161.00

1698.30

3859.30

2146.00

1698.30

3844.30

2033.00

1698.30

3731.30

2022.00

1698.30

3720.30

1

2

3

4

5

6

7

8

9

10

11

Group-V

Peon/Helper

Watchman

Messenger

Weighing man

Bicycle Fitter

Workers engaged in drying,

storing, washing, Ironing (in

Laundry), measuring, loading and

unloading in warehousing

godowns, storerooms,

Operator in Petrol Bunk

Painter

Fruit Juice or Lassi maker in the

shops

Workers engaged in grinding

establishments

General workers (in all shops &

commercial establishments other

Basic

VDA

Total

2146.00

1698.30

3844.30

2026.00

1698.30

3724.30

2010.00

1698.30

3708.30

2000.00

1698.3036

98.30

Page 12: PRIME MINISTER’S SHRAM AWARDS’ SCHEME 2011.pdf · 2016. 3. 14. · India, Shram Shakti Bhawan, Rafi Marg, New Delhi –110001 latest by 31st July, 2011. The nominations should

________________________________________________________________________________________

©NATIONAL ACADEMY OF INDIAN PAYROLL NAIP MUMBAI OFFICE : 5TH,6TH FLOOR,CRD SAMARTH,S.V ROAD,OLD KHAR WEST,MUMBAI,400452,INDIA, PHONE:+91 9223192904

E-MAIL : [email protected]

NAIP LONDON OFFICE: NAIP ,2ND FLOOR, 48 GRESHAM STREET,LONDON, EC2V 7AY, PHONE +44 7502 257777, E-MAIL : [email protected]

12

than in administration) and

clerical cadre and who are not

covered in any of the above

categories)

1

Group-VI:

Gunny Stitcher

3.10 paise per bag (to stitch one bag) (ordinary gunny bag) 3.35

paise per bag (to stitch one bag) (cement, fertilizer, gunny bag)

1 Group-VII:

Driver

Basic

VDA

Total

2207.00

1698.30

3905.30

2195.00

1698.30

3893.30

2161.00

1698.3038

59.30

2125.00

1698.3038

23.30

2

3

4

5

Attender

Vehicle Washer/cleaner

Mazdoors

Head-cum-hamali

Basic

VDA

Total

2031.00

1698.30

3729.30

2021.00

1698.3037

19.30

2010.00

1698.3037

08.30

2000.00

1698.3036

98.30

Page 13: PRIME MINISTER’S SHRAM AWARDS’ SCHEME 2011.pdf · 2016. 3. 14. · India, Shram Shakti Bhawan, Rafi Marg, New Delhi –110001 latest by 31st July, 2011. The nominations should

________________________________________________________________________________________

©NATIONAL ACADEMY OF INDIAN PAYROLL NAIP MUMBAI OFFICE : 5TH,6TH FLOOR,CRD SAMARTH,S.V ROAD,OLD KHAR WEST,MUMBAI,400452,INDIA, PHONE:+91 9223192904

E-MAIL : [email protected]

NAIP LONDON OFFICE: NAIP ,2ND FLOOR, 48 GRESHAM STREET,LONDON, EC2V 7AY, PHONE +44 7502 257777, E-MAIL : [email protected]

13

Disclaimer : Although every possible care and caution has been taken to avoid any mistakes or omissions while mailing the news letter containing Judgments, Head-notes, Articles, forms & precedents, our clients should verify the correctness of the same. Neither the NATIONAL ACADEMY OF INDIAN PAYROLL (NAIP) or its any executives be held responsible or liable in any manner for any loss or damage caused to clients or any other persons concerned in any way due to mistake, omissions which may have inadvertently crept in despite & caution.

Statutory Compliance April 2011

√ Pay PF before 15.04.2011

√ Pay ESIC before 21.04.2011

√ Pay Profession Tax before 30.04.2011

√ Submit Form No. 5 & 10 under PF Act before 15.04.2011

√ Submit Form No. 12 A under PF act before 25.04.2011

√ Submit Annual & Individual Return under the Emp.PF & MISC Provisions Act, 1952 before 30.04.2011(3A & 6A)

√ Submit quarterly return under the employment exchange CNV Act, 1959 before 30-4-2011(ER-I)

√ Submit half yearly return under the Apprenticeship Act, 1961 before 30-4-2011(APP-2)

* [Employers employing International Labour to submit the information to the EPFO]