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Saturday, 16 December 2017

Gramin Dak Sevak (GDS) Committee Report

The Old system of payment of time related continuity Allowance (TRCA) is dispensed with and replaced with a new wage payment system. Under the new wage payment system, 11 TRCA slabs are subsumed into 3 wage scales with two levels each for BPMs and for other than BPMs. One wage scale would be common for both the categories of GDSs.

New Wage Scales

1. 10,000 – 24,470 (Other than BPM Level 1)
2. 12,000 – 29,380 (Other than BPM Level 2 & BPM Level 1)
3. 14,500 – 35,480 (BPM Level 2)

  • The minimum working hours of GDS Post Offices and GDS is increased to 4 hours from 3 hours.
  • The new working hours for GDS Post Offices will be 4 hours and 5 hours only.
  • The Level 1 GDS Post Offices/GDSs will have 4 hours as working hours and Level – 2 will have 5 hours as working hours.
  • The Point System for assessment of workload of BPMs has been abolished.
  • The new wage payment system is linked to revenue generation of GDS Post Offices. Under the new system, there will be no increase in wagess of BPMs from Level-1 to Level-2 on the basis of workload but the same will be increased based on achievement of prescribed revenue norms which is fixed at 100% for normal areas and 50% for special areas which presently have 15% anticipated income norms.
  • The GDS Post Offices not achieving the prescribed revenue norm within the given working hours will have to open GDS post offices for minimum of additional 30 minutes beyond the prescribed working hours.
  • The GDSs BPMs will be paid Revenue Linked Allowance @10% beyond Level 2 wage scale if they will be successful in achieving revenue beyond prescribed norms
  • The GDS Post Offices has been categorized into A,B,C and D categories based on the revenue generation norms. The GDS Post Office in A category will achieve 100% revenue. The Committee has recommended a set of actions for each category of GDS Post Offices.
  • The six approved categories of GDS are subsumed into two categories only. One category will be Branch Post Master and all other 5 categories of GDSs are subsumed into one multi tasking category.
  • The job profile of Multi Tasking GDS is expanded to include work such as Business Development and Marketing etc. Their jobs will no more be confined to their old designations. The Assistant BPM will assist BPMs for increasing revenue generation.
  • The GDSs working in the GDS Post Offices will be known as Assistant Branch Post Master (ABPMs) and those working in the Department Post Offices will be known as Dak Sevak (DS).
  • The minimum wage has been increased to Rs.10000/- per month and maximum to Rs.35,480/- per month.
  • The rate of annual increase is recommended as 3%.
  • A composite Allowance comprising of support for hiring accommodation for GDS Post Offices as well as mandatory residence, office maintenance, mobile and electricity usage charges etc. has been introduced for the first time.
  • Children Education Allowance @ Rs.6,000/- per Child per annum has been introducted for GDS.
  • Risk & Hardship Allowance @ Rs.500/- per month for GDSs working in the special areas has also been introduced.
  • A Financial upgradation has been introduced at 12 Years, 24 years and 36 Years of services in form of two advance additional annual increases.
  • The ceiling of ex-gratia gratuity has been increased from Rs.60,000 to Rs.5,00,000/-
  • The GDS contribution for service Discharge Benefit Scheme (SDBS) should be enhanced maximum up to 10% and minimum up to 3% of the basic wage per month, whereas the Department should contribute a fixed contribution of 3% of the basic wage of the GDSs.
  • The coverage of GDS Group Insurance Scheme has been enhanced from Rs.50,000/0 to Rs.5,00,000/-.
  • The contribution of Department in Circle Welfare Fund (CWF) has been increased from Rs.100/- per annum to Rs.300/- per annum.
  • The Scope of CWF is extended to cover immediate family members such as spouse; daughters, sons and dependent daughters in law in the scheme.
  • The Committee also recommended 10% hike in the prescribed limits of financial grants and assistance in the Circle Welfare Fund.
  • The Committee has recommended addition of Rs.10,000/- for purchase of Tablet/Mobile from the Circle Welfare Fund in the head ” Financial Assistance from Fund by way of loans with lower rate of interest (5%)”.
  • Provision of 26 weeks of Maternity Leave for women GDSs has been recommended.
  • The wages for the entire period of Maternity Leave is recommended to be paid from salary head from where wages of GDSs are paid.
  • The Committee has also recommended one week of Paternity Leave.
  • The Committee has recommended 5 days of emergency leave per annum
  • Leave accumulation and encashment facility up to 180 days has been introduced.
  • Online system of engagement has been recommended.
  • The maximum age limit of 50 years for Direct Recruitment of GDSs has been abolished.
  • Minimum one year of GDS service will now be required for GDSs for Direct Recruitment into Departmental cadres such as MTS/Postman/Mail Guard.
  • Alternate livelihood condition for engagement of GDSs has been relaxed.
  • Voluntary Discharge Scheme has been recommended.
  • The Discharge age has been retained at 65 years.
  • The Limited Transfer Facility has been relaxed from 1 time to 3 Time for male GDSs. There will be no restriction on number of chances for transfer of women GDSs. The power for transfer has been delegated to the concerned Divisional head.
  • The ex-gratia payment during put off period should be revised to 35% from 25% of the wage and DA drawn immediately before put off.
  • The committee has recommended preferring transfer before put off duty.
  • The compassionate Engagement of GDSs has been relaxed to give benefits to eligible dependents in all cases of death of GDS while in service.
     _____________________________________________________________________________
     
    Categories of GDS:

    Present Nomenclature
    Category
    BRANCH POST MASTER
    All Branch Post Masters
    ASSISTANT BRANCH POST MASTER  
    GDS  MD, GDS MC
    DAK SEVAK
    GDSSV,GDS PKR
    , GDSMM
    ..
      Viability of GDS Post Offices:

    New norms for calculation of GDS Pos are recommended.
    Further Categorization of GDS POs based on proportion of Revenue / Expenditure
    Category of GDS PO
    Revenue Norm
    Urban & Rural (Normal)
    100% of its expenditure
    Rural (special)
    50% of its expenditure
    ..
    Category
    Colour
    Proportion of Revenue to expenditure
    A
    Green
    100% or more of prescribed form
    B
    Orange
    75% to 99% of prescribed form
    C
    Pink
    50% to 74.99% of prescribed form
    D
    Red
    Less than 50% of prescribed form

    Workload assessment:

    In place of point system, the Committee recommends the new wage payment system. The new system linked to revenue generation and not to work load.

    Rural Business Development and Marketing:

    The Committee Recommended many items for successful realization of rural business potentials.

    Committee recommends to improve the accessibility, visibility and infrastructure of GDS POs.

    PO are with 10’ X 10’ dimensions in ground floor.
    Building owned by Gram Panchayat
    Building owned by Central Govt or State Govt. ie.,schools or offices BPM’s own house
    Proper rented accommodation in a busy place of the village
    Building owned by NGOs.

    With all furniture and power supply.

    Legal status of GDS:

    The Committee observed that the matter is sub judice.

    The Department should take suitable steps to increase security of job, prevent exploitation and increase income of GDSs so that they feel secure and live happily with in the GDS system and with the existing legal status.

    Terms and conditions of engagement.

    The Committee recommends changes in Rule-3A.
    Introduce voluntary discharge scheme on willing to leave the post before 65 years
    Discharge from the service on the last day of the month.
    Relaxation on limited transfer facility.

    Recommendations on wage structure and fixation of wages.

    Committee recommends raising of minimum duty from 3 hours to 4 hours of all GDSs
    Comparison : BPM = Postman
                            Asst. BPM & Dak Sevak = MTS
    Minimum wage fixed at :
    Rs.10,000- for 4 hours & Rs.12,000- for five hours. (Level-I)
    Rs.12,000- for 5 hours & Rs.14,500- for five hours (Level-2)
    Annual increase @ 3% on 1st January or 1st July
    Wage matrix & Wage Level Table & Arrears calculation Table are given in detail.

    Allowances:

    Dearness Allowance – no change
    % of DA with regular employees – no change
    Increased rate of DA – no change

    Recommended allowances :

    Composite Allowance
    Cash Conveyance Allowance
    Combined Duty Allowance
    Children Education Allowance
    Revenue linked Allowance for eligible BPMs
    Risk & hardship allowance

    Allowances to be withdrawn:

    Office Maintenance Allowance
    Fixed Stationery Allowance
    Boat Allowance
    Cycle Maintenance Allowance
    Uttarakhand Allowance
    Split Duty Allowance.

    Composite Allowance Includes:

    Rent for housing GDS PO, Rent for Accommodation, washing-repairs-maintenance of premises, furniture, stationery charges, electricity usage charges for office, Mobile / Telephone usage charges, Boat Allowance/ CMA/ TA, Hospitality charges for drinking water, other incidental charges.

    Performance Related Incentive

    Revenue linked allowance along with the present system of incentives with automatic payment at the end of each month.

      Ex-gratia Bonus:

    Dept should re-examine the formula for payment of bonus and ex gratia bonus with reference to the share of revenue generated by the departmental as well as GDS POs.

    Methods of engagement

    Method of selection : on line method engagement should be introduced.
    Recruiting Authority : appended to the GDS (Conduct & Engagement) Rules, 2011
    Qualification :SSC/SSLC from State Board/CBSE/ICSE with certificate course or diploma course in IT
    Knowledge of local language.
    Maintenance of Reservation roster at divisional level.
    Stop the security in the form of FG bonds, introduce 5 year TD or NSC as security.

    Career Progression

    There is need to increase the Direct Recuitment quota of GDS in Postman & Mail Guard because of large working strength of GDS and to provide them with better opportunities for getting into departmental posts.

     Introduce a guaranteed special increase in wages after 12, 24 & 36 years of service with two annual increases.

    Designation of GDSs should be changed after each financial upgradation.

    Leave & substitute arrangement:

    Paid leave should be renamed as ordinary leave and enhanced from 20 to 30 days in a year.

    Introduce Encashment of Ordinary leave.
    Introduce ‘emergency leave’ for 5 days in a calendar year, but no carry forward.

    No full time substitute will be engaged.

    Women GDS – 26 weeks of maternity leave and paid from salary head.
    Paternity leave for 7 days.

    Disciplinary Rules:

    Department  should add a new punishment of ‘compulsory discharge from the service’ in the list  “major penalties’ and the content of Rule-9 of GDS (Conduct & Engagement)Rules 2011.

    Social Security Schemes:

    Severance Amount : @ Rs.4,000 from 01-01-2016 for every completed year of service subject to maximum of Rs.1,50,000-.

    Service Discharge Benefit Scheme (SDBS):

    GDS contribution should be revised as minimum of 3% and maximum of 10%  of the basic wage per month.

    Department contribution should be fixed as 3% of the basic wage.

    Bring the GDS under the purview of Gratuity Act with an upper limit of Rs.5,00,000-

    Group Insurance Scheme : 
    Enhance the rate of monthly subscription by Rs.500 per month with insurance coverage of Rs.5,00,000-.

      Welfare Schemes:

    GDS CWF subscription should be enhanced from Rs.20- to Rs.100- pm.
    Department grant should be enhanced from Rs.100- to Rs.300- PA.

    Point system should not be applied to the compassionate appointment of dependents of GDS.

    Photo identity cards to all GDS with free of cost.

Friday, 15 December 2017


FLASH NEWS

GDS COMMITTEE PAY SCALES AND ALLOWANCES CLEARED BY FINANCE MINISTRY. NOW CABINET APPROVAL REQUIRED. DETAILS WILL FOLLOW:

    R.N. Parashar                      P Panduranga Rao
Secretary General                  General Secretary

       NFPE                                       AIPEU-GDS

Wednesday, 13 December 2017

Five Savings Schemes You Should Consider For Investments


Dear readers, you may be earning a lot but if you are not able to save enough, neither will you get money in times of need nor can you save on the taxes that you have to pay to the government. Thus, investing in the right savings schemes is of prime importance. The investment decision, however, is not that easy. One has to take care of several aspects like the returns it will generate, the lock-in period of investment, tax benefits and many more things.
Here are five key savings schemes and the benefits that they offer:

1. Employee Provident Fund

Employee Provident fund (EPF) is meant for salaried employees. EPF is a compulsory retirement savings scheme for public as well as private sector employees. The Employees' Provident Fund Organisation (EPFO) under the Ministry of Labour and Employment supervises this fund.
Interest rate:
The interest rate on EPF is decided by the EPFO board every year based on the weighted average return generated by the fund. For fiscal 2016-17, it paid an interest of 8.65 per cent.
Tax benefits:
The amount that you contribute towards your EPF will qualify for tax deduction under Section 80C of the Income Tax Act, subject to a maximum of Rs. 1.50 lakh. The interest you earn on your EPF savings every year and the final maturity amount is exempt from tax.

2. Public Provident Fund

Public Provident Fund (PPF) offers safety with attractive interest rates and returns that are fully exempted from tax. The minimum deposit in a PPF account in a financial year is Rs. 500 and the maximum is Rs. 1.5 lakh.
Interest Rate:
Since April last year, interest rate on PPF and other small savings scheme are being recalibrated every quarter. Investors in PPF currently get an interest rate of 7.8 per cent.
Tax benefits:
PPF enjoys EEE or exempt, exempt, exempt status - contribution, interest and maturity proceeds all are tax free.

3. Fixed Deposits

Fixed deposits (FD) are one of the most popular savings instrument available in the country. People still prefer to lock their investments in FDs due to their flexibility and liquidity. Fixed deposits, also known as term deposits, offer a fixed rate of interest for the entire tenure of their deposit.
Interest rate:
Rates of interest vary from bank to bank. For example, on a 1-year tenure of fixed deposit for less than Rs. 1 crore, State Bank of India (SBI), India's biggest lender, offers an interest rate of 6.25 per cent. But this is for usual FDs which do not give tax-saving benefits.
Tax benefits:
Interest income earned from bank fixed deposits is fully taxable, unlike savings bank account where one gets income tax exemption on interest earned up to Rs. 10,000 a year. In case of bank FDs, banks deduct tax at source (TDS) at the rate of 10 per cent if the interest income for the year is more than Rs. 10,000. TDS is calculated by checking the combined interest income of all branches of a particular bank.

Some banks also offer tax saving fixed deposits. The amount that you invest in these FDs qualifies for income tax exemption under section 80C. However, the interest that you earn from a tax-saving FD will be taxable.

4. National Pension Scheme

The National Pension System (NPS) was launched on 1st January, 2004 with the objective of providing retirement income to all the citizens. NPS aims to institute pension reforms and to inculcate a habit of saving for retirement amongst the citizens, states the NPS website.

"Considering that it provides greater choice over asset allocation, potential for return enhancement and the additional tax deduction of Rs. 50,000 over and above the Rs. 1.5 lakh that it offers, individual taxpayers, specifically the younger generation, should consider allocating more funds towards it," said Tarun Birani, Founder and CEO of TBNG Capital Advisors.
Interest rate:
In case of NPS, returns are market-linked. "In our view, the potential of returns in a market-related investment like NPS is higher than of a guaranteed return instrument like PPF/PF. This is due to two reasons, one is the choice of equity exposure in NPS and secondly the component of professional fund management," Manoj Nagpal, CEO of Outlook Asia Capital, told NDTV Profit.
Tax benefits:
An investment of up to Rs. 2 lakh (Rs. 1.5 lakh under section 80C and an additional Rs. 50,000 under section 80CCD) is eligible for tax deduction under NPS.

5. National Savings Certificates

This savings scheme is offered by the government of India, and is sold in all post offices. The amount invested in this scheme qualifies for tax deduction under section 80C.
Interest rate:
The rate of interest currently being offered on NSC is 7.8 per cent, according to India Post website. For example, the maturity value of a certificate of Rs. 100 purchased on or after 1.10.2016 shall be Rs. 146.93 after five years.
Tax benefits:
Deposits up to Rs. 1.50 lakh in NSC qualify for deduction under Section 80C of the Income Tax Act. There is no maximum investment limit in NSC and also TDS is not deducted on the interest amount. However, interests earned on NSC are taxable.

PLI - Highlights, Monthly Premium and Maturity value at the age of 50, 55 and 58

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Monday, 4 December 2017

IT Calculator 2017-2018 - Revised & Final

WModifications as mentioned 

Changes made

1.HRA exemption made optional
2.Corrected TPA exemption amount
3.Double rates of tpa for handicapped included
4. LTC leave encashment added
5. Savings interest upto 10000 added
6. Health insurance scheme exemption added
7. Cea exeption non hostel(100pm), hostel (300pm) upto 2children added
8. Corrections in advance tax deduction columns
9.to enter any unlisted receipts and exeptions others field is added in data entry and it sheet.
10. HRA and TPA upto june 2017 were changed to old 6cpc rates as 7 cpc allowances effective from 1.7.17
Thanks to C SIVA KABEER Off. SPM, Gooty 515401 9515122799
cvakabr86@gmail.com