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Tuesday, September 27, 2016

New postal circle for Telangana State launched

Exclusive circle:Minister of Labour and Employment Bandaru Dattatreya, Union Minister of Urban Development M. Venkaiah Naidu and Union Minister of State for Communications and Railways Manoj Sinha inaugurating Telangana Postal circle in Hyderabad.— Photo: K.V.S. Giri 

A postal circle co-terminus with Telangana State was inaugurated by Union Minister of Urban Development M. Venkaiah Naidu here on Monday.

It is the 23rd circle in the country. It will on an average disburse social security pensions to 17.7 lakh persons. The postal service will also offer services, including bill collections and sale of non judicial stamp papers. The Telangana circle will have 423 urban and 433 rural post offices. It will also have 159 urban and 5,758 rural branch offices. The number of departmental staff in Telangana cirlce will be 6,532 and 8,754 grameen dak sevaks.

The department aims at establishing core banking solutions across the network of all post offices in the country, Minister of State with Independent Charge for Communications and Minister of State for Railway Manoj Sinha said speaking at the inaugural. India Post has been doing well in terms of saving accounts and also communication dissemination, he said. Especially in rural areas postal service means empowerment, education and information, he added.

Indian postal service has been given the license for setting up payment bank and 650 bank branches will be operational in the country by the end of this month. Department of Posts is actively pursuing Union schemes including Atal Pension Yojana and Jan Jeevan Beema Yojana, the Minister explained.

In his inaugural address, Mr. Naidu said from now Telangana postal circle and Andhra Pradesh postal circle will cater to the respective States and ensure efficiency in both. “Establishment of postal service in India was a game changer. It made letter writing an important part of the country’s literature,” he said citing the examples of letters of Mahatma Gandhi, Sardar Patel and Subhash Chandra Bose. He suggested there should be a day dedicated for handwritten letters. “Let’s say everybody will write a letter to his or her friend. There is something fresh and beautiful in letter writing,” he said. The Minister pointed out that India has the largest postal service in the world. There are 1.5 lakh post offices in India, out which 90 per cent are in rural areas.

Adding on to the country’s economy, Postal department has rolled out Banking solutions in 9,583 Post Offices and ATMs have been installed at 125 locations, Mr. Naidu added.
Source :

Post Office always be on forefront of financial inclusion in India: Venkaiah

Union Minister for Information and Broadcasting M Venkaiah Naidu has said that the Post Office has always been on the forefront of financial inclusion in India.

He said based on the Andhra Pradesh Reorganisation Act 2014, Andhra Pradesh Postal Circle and Telangana State Postal Circle were created.

Speaking after formally inaugurating the Telangana Postal Circle here today in the presence of Union Minister of State for Communication (I/c) Manoj Sinha, Union Minister of State for Labour and Employment Bandaru Dattatreya and Telangana Chief Postmaster General Brig B Chadrasekhar, Mr Naidu said that Indian Postal Banks would promote financial inclusion in every corner of the country through combined network of bank and Post Offices that will act as access points. They would provide simple financial products like current and saving accounts, credit, insurance, mutual fund, pensions. They would also bring large number of individuals and small business into formal banking channel. Its effect would be transformational, he said.

Mr Naidu said India has the largest postal network in the world. There was 1,54,939 post offices in India of which 1,39,222 (almost 90 percent) were in rural areas. At the time of independence there were 23,344 post offices, mostly in urban areas.

He said Post Office Saving Bank (POSB) had a customer base of 33.03 crore as on March 31, 2015. The number of saving accounts in post offices went up by 3 crore within one year of NDA government coming to office. The total number of accounts including Recurring Deposit, MIS, MNREGA, Sukanya Samriddhi Yojana went up by 5 crores in the corresponding period, he said.

The Minister said in the recent times the Post Offices have reinvented their role in rural narrative. The MNREGA payments were being disbursed through them. There were 1,94,46,820 MNREGA accounts in Andhra Pradesh Post Offices as on March 31, 2014. The number has dramatically risen to 2,25,31,756 as on March 31, 2015. The amount disbursed rose from Rs 1296.79 crore to 2187.53 crore.

He said the Postal Department has rolled out Banking Solution (CBS) in 9,583 Post Offices and ATMs have been installed at 125 locations, Debit cards have been issued to Post Office Savings Bank customers. Money remittance service to customers in India from around 195 countries on a real time basis was being operated in association with Western Union and Money Gram from 9,943 and 6,070 locations respectively. The Minister said " Department of Posts is in the process of setting up India Post Payment Banks (IPPB) with 100 percent Government Equity. The task is likely to be completed by September, 2017 when all IPPB branches and their linkages with all Post Offices across the country will be completed".

Mr Naidu suggested to celebrate "'Hand written letter writing day" across the country because handwritten letters have an emotional value for us. This is at risk of being lost completely in this age of electronic keyboards. This generation or future generations may not know this at all. "There is no wrong with celebrating "hand written Letter writing day" like mother day, father day and among others Days", he said.
Source :

Posting of Medical Officers to the Postal Dispensaries - order date 23.09.2016

Revision of Inspection Questionnaire for MGNREGS at Branch Post office and Sub Post Office

Com.Des Raj Sharma Amar Rahe

Com.Des Raj Sharma. Ex.Dy.S.G.NFPE and G.S. P-4 union expired on 24th September 2016 at his Delhi Residence. He was a very good organizer and fighter. His contribution towards trade union movement will ever be remembered. 

AIPEU, Group-C, Bhubaneswar Division conveys heartfelt condolences to the bereaved family and pray eternal peace to departed soul.

Consumer demand unlikely to rise on 7th pay commission payout: report

Mon, 26 Sep 2016 , Mumbai , dna webdesk

The implementation of the 7th pay commission's recommendations was expected to boost consumer demand, according to predictions made by several analysts. However, a latest report by UBS Evidence Lab refutes the claims, stating that government employees are more savings oriented. 

In August 2016, Prime Minister Narendra Modi approved the implementation of the 7th Pay Commission which recommended a 23.5% hike in salaries for more than one crore government staff and pensioners. 

This recommendation meant that the government would spend an additional Rs 1.02 lakh crore annually for the increased salary and pension payout, which was approximately Rs 40,000 crore more than the annual spending recommended by the 6th Pay Commission. 

The implementation of the salary hike for more than one crore government employees was expected to have a multiplier effect.

Experts suggested that the hike would provide a fillip to the economy by increasing disposable income which would boost overall consumption, according to a report in The Indian Express. It was also expected to benefit the consumption oriented sectors in a big way.

Pankaj Pandey, head of research at ICICI securities had stated, “For the mid-income category, the basic expenses account for roughly 40% of the salary and hence a rise in income will lead to an incremental discretionary spend. The biggest beneficiaries will be sectors such as housing, private transport, consumer durables and jewellery.”

GCPL Managing Director Vivek Gambhir had told PTI, “Overall we should see a boost in consumption in India, following the implementation of the 7th Pay Commission and the passing of GST.” 

All in all, high hopes were reflected for H2 FY17's high GDP growth estimates, revenue earnings and expected growth for consumer facing sectors.

A recent UBS Evidence Lab report gave an anti-consensus view saying that the urban demand recovery would be slower than expected. It backed this up by stating that the 7th Central Pay Commission would drive more savings than consumption, challenging the expected boost in overall consumption. 

The report said that the expected increase in consumption would be unlikely because of government households. The report said that "while the intention to spend during the festive season is higher for government households, only about 35% credited it to an increase to the Central Pay Commissions wage or pension hike. Furthermore, the spending intentions for the next six to twelve months are lower or remain similar between the government and non-government households, the report said.

The report said that most government households had plans of saving the extra money from the CPC hikes thereby having limited contribution to consumer demand. 

Thanks to inflated expectations, the report said that the valuation of certain consumer stocks is also very high and "we expect cuts".

Going ahead, however, the report said that the CPC is likely to boost demand for cars in FY18-19.

Recruitment of Casual Workers and persons on Daily Wages

Commemorative postage stamp on "Lady Hardinge Medical College"

Shri Manoj Sinha, Hon'ble Minister of State (I/C) for Communications released a commemorative postage stamp on "Lady Hardinge Medical College" on 23.09.2016.

Invitation for meeting to provide inputs on requirement of Systems Integration Services for India Post Payments Bank

Congratulatory messages pour in through e-post for Mariyappan

One for the album:B. Arumugam, Senior Superintendent of Post Offices, Salem East Postal Division, handing over the album to T. Mariyappan on Saturday.— Photo: Special Arrangement 

The Postal Department is flooded with congratulatory messages received through e-post (electronic post) from all sections of society to Paralympics high jump gold medalist T. Mariyappan.

On receiving the news of Mariyappan winning the coveted gold medal at Rio on September 10, the Postal Department announced creation of new e-post address to enable the public to send congratulatory messages.

Sports lovers took full advantage of the opportunity and started sending the congratulatory messages from the first day. The Department received 20,182 congratulatory messages from different parts of the country till Saturday, when he arrived at his hometown — Periavadagampatti village. A majority of the messages hailing his achievement were from Maharashtra, West Bengal, Bihar, Andhra Pradesh, Odisha and New Delhi. The officials of the Suramangalam head post office took printouts of all the messages and a team from the department visited Periavadagampatti village and handed them over to Mariyappan.

The department will continue to receive the e-post messages for a few more days, Postal Department sources told The Hindu .

The Department also honoured the Rio Paralympics hero by bringing out stamps prominently displaying his portrait under the “My stamp’ scheme.
Source :

Saturday, September 24, 2016

Understanding Minimum Wages and Bonus

Press Information Bureau
Government of India
Ministry of Labour & Employment

24-September-2016 10:35 IST 

Understanding Minimum Wages and Bonus

*Bandaru Dattatreya

The concept of minimum wages first evolved with reference to remuneration of workers in those industries where the level of wages was substantially low as compared to the wages for similar types of labour in other industries. As far back as 1928, the International Labour Conference of International Labour Organization, at Geneva, adopted a draft convention on minimum wages requiring the member countries to create and maintain a machinery whereby minimum rates of wages can be fixed for workers employed in industries in which no arrangements exist for the effective regulation of wages and where wages are exceptionally low. Also, at the Preparatory Asian Regional Labour Conference of International Labour Organisation held at New Delhi in 1947 and then at the 3rd session of the Asian Regional Labour Conference, it was approved that every effort should be made to improve wage standards in industries and occupations in Asian Countries, where they are still low. Thus, the need of a legislation for fixation of minimum wages in India received an impetus after World War II, on account of the necessity of protecting the interest of demobilized personnel seeking employment in industries. 

The justification for statutory fixation of minimum wage is obvious. Such provisions which exist in more advanced countries are even necessary in India, where workers’ organizations are yet poorly developed and the workers’ bargaining power is consequently poor. 

To provide for machinery for fixing and revision of minimum wages a draft Bill was prepared and discussed at the 7th session of the Indian Labour Conference in November, 1945. Thereupon the Minimum Wages Bill was introduced in the Central Legislative Assembly. The Minimum Wages Bill having been passed by the Legislature received the assent on 15th March, 1948. It came on the Statute Book as the Minimum Wages Act, 1948. 

The Act provides for fixation by the appropriate Governments of minimum wages for employments covered by Schedule to the Act.  The Central Government is the appropriate Government in respect of 45 scheduled employments in the Central Sphere. The minimum wages fixed for Central sphere are applicable to the scheduled employments in the establishments under the authority of Central Government, railway administrations, mines, oil-fields, major ports or any corporation established by a Central Act. Employments other than the scheduled employment for Central Sphere come under the purview of the State Government and accordingly State Government wages are applicable in such employments.  The minimum wages for Central Sphere are revised from time to time based on the increase in Consumer Price Index effective from April and October. 

According to Section 3(1)(b) of the Minimum Wages Act, 1948, “the appropriate government shall review at such intervals, as it may think fit, such intervals not exceeding five years, the minimum rates of wages so fixed and revise the minimum rates if necessary. 

The norms recommended by the Indian Labour Conference, in 1957, fox fixing the minimum wages are: (a) consumption units for one wage earner; (b) minimum food requirements of 2700 calories per average Indian adult; (c) clothing requirements of 72 yards per annum per family; (d) rent corresponding to the minimum area provided for under Government’s Industrial Housing Scheme; and (e) fuel, lighting and other miscellaneous items of expenditure to constitute 20% of the total minimum wage. 

In 1991, the Hon’ble Supreme Court delivered a historic judgement and directed that children’s education, medical requirement, minimum recreation including festivals/ceremonies, provision for old age, marriage etc. should further constitute 25% of the minimum wage and be used as a guide in fixation of minimum wage. 

The Act envisages appointment of an Advisory Board, by the appropriate Government, for the purpose of advising the appropriate Government in the matter of fixing and revising minimum rates of wages. 

The Central Government revises the wages in the scheduled employments from time to time in accordance with the provisions of the Minimum Wages Act, 1948. Draft Notifications for all the Scheduled Employments in the Central Sphere were issued on 1st September, 2016 simultaneously, in fact for the first time. The basic rate of minimum wages for an unskilled worker in the scheduled employment other than agriculture has been proposed at Rs.350 in Area ‘C’ from the current minimum wage (basic wage + variable dearness allowance) of Rs.246 resulting in an increase of about 42%. The basic rate of minimum wages for an unskilled worker in the scheduled employment “agriculture” has been proposed at Rs.300 in Area ‘C’ from the current minimum wage (basic wage + variable dearness allowance) of Rs.211 resulting in an increase of about 42%.

The proposed revision in the rates of basic minimum wages would indeed provide much needed solace to the labour fraternity.


Bonus payment is an extra payment   given for doing one's job well also known as  performance-related pay or pay for performance.

The practice of paying bonus in India appears to have originated during First World War when certain textile mills granted 10% of wages as war bonus to their workers in 1917.  In certain cases of industrial disputes demand for payment of bonus was also included.  In 1950, the Full Bench of the Labour Appellate Tribunal evolved a formula for determination of bonus.  A plea was made to raise that formula in 1959.  At the second and third meetings of the eighteenth Session of Standing Labour Committee (G.O.I) held in New Delhi in March/ April 1960, it was agreed that a Commission be appointed to go into the question of bonus and evolve suitable norms.  A Tripartite Commission was set up by the Government of India to consider in a comprehensive manner, the question of payment of bonus based on profits to employees employed in establishments and to make recommendations to the Government.  The Government of India accepted the recommendations of the Commission subject to certain modifications.  To implement these recommendations the Payment of Bonus Act, 1965 was enacted, which came into force on 25-9-1965.

The objective of the Payment of Bonus Act, 1965 is to provide for the payment of bonus to the persons employed in certain establishments on the basis of profits or on the basis of production or productivity and for matter connected therewith.

It applies to (i) Every Factory; and (ii) Every other establishment in which 20 or more persons are employed on any day during an accounting year subject to the exemptions under section 32. Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year. While the minimum bonus is 8.33% of the salary or wage earned by the employee during the accounting year, the maximum bonus is 20% of such salary or wage.

Two ceilings are available under the said Act generally known as eligibility limit and calculation ceiling respectively. Clause 13 of Section 2 of Payment of Bonus Act, 1965 defines an employee based on salary or wage per mensem. This is usually taken as the “eligibility limit” for computation of bonus. Similarly, Section 12 of the Payment of Bonus Act, 1965 provides for calculation of bonus of an employee based on salary or wage per mensem. This is known as “calculation ceiling”. 

The two ceilings are revised from time to time to keep pace with the price rise and increase in the salary structure. At present, the calculation ceiling has been enhanced to Rs.7000 or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher and the eligibility limit has been enhanced to Rs.21,000/-.

Due to this revision, additional 55 lakh workers would be benefited.  This would indeed, be a good gesture on the part of the Government towards the labour fraternity.
*Author is Minister of State (Independent Charge) Labour and Employment, Government of India