Online Learning Portal
Monthly DNA
06 Aug, 2020
14 Min Read
Paper | Topics | Subject |
---|---|---|
GS-II | Gratuity amendment bill | Governance |
New Code on Wages | Governance | |
PT Pointer | What Is Severance Pay? | Economic Issues |
Gs-Paper-2 Labour and Laws (PT-MAINS)
The Union Cabinet has given approval to the introduction of the Payment of Gratuity (Amendment) Bill, 2017 in Parliament.
Gratuity is a sum of money paid to an employee at the end of a period of employment. The Payment of Gratuity Act, 1972 applies to establishments employing 10 or more persons.
It considers the inflation and wage increase even in the case of employees engaged in the private sector. With the implementation of 7th Central Pay Commission, in the case of Government servants, the ceiling now is Rs. 20 Lakh, where the present upper ceiling on gratuity amount under the Act is Rs. 10 Lakh.
There will also be an additional 1 per cent dearness allowance that is from, 4 per cent to 5 per cent applicable from July 1, 2017, to all central government employees and pensioners. And it also seeks to double tax-free gratuity for private sector. The gratuity will be completely tax-free if the bill approved by the cabinet gets passed in the parliament.
How this bill benefits workers?
Gratuity is not just paid to the employee on his retirement as commonly perceived. The gratuity rules are lenient, it can be paid at any of these cases if claimed
The main purpose of enacting this act is to provide social security to workmen after retirement. The amendment will increase the maximum limit of gratuity of employees, in the private sector and in Public Sector Undertakings/ Autonomous Organizations under Government who are not covered under CCS (Pension) Rules, at par with Central Government employees.
What will be the financial impacts?
In News:
Parliamentary Committee on Labour has, in its latest report, recommended that the eligibility period for gratuity payable to an employee on termination of his employment should be reduced to one year from the present provision of five years.
** The committee, which is headed by Biju Janta Dal MP Bharatruhari Mahtab, submitted the report to Speaker Om Birla.
“Keeping in view the nature of India’s Labour Market where most employees are employed for a short duration period only, making them ineligible for gratuity as per extant norms, the Committee desires that the time limit of five years as provided for in the Code for payment of gratuity be reduced to continuous service of one year,” the report says.
“There should not be any leniency, as strong deterrent provisions would reduce wilful default and delinquent negligence on the part of employers in timely payment of gratuity to the needy and deserving employees,” the report stated.
On similar lines, the Committee also flagged the concern that the threshold limit of 20 or more employees for EPFO registration can be used by the employers to exclude themselves from EPFO coverage. “The Committee desires that possibilities be explored to make the EPF Act applicable to all the workers, including self-employed,” the report has said.
The panel has recommended that the social security code should empower the Central government to reduce the employee’s contribution to EPF in exceptional circumstances like disasters in terms of the Disaster Management Act, including pandemics, because this would enable the Government to provide relief to the affected persons in COVID-19 like pandemics.
Source: PIB
The Centre will soon notify the rules that will create the mechanisms to fix a floor wage that would then undergird the minimum wages for different categories of workers — unskilled, semi-skilled, skilled and highly skilled — that the States and Central government would have to set and enforce.
This is in accordance with the Code on Wages, 2019.
Constitutional Provisions
|
Overview of the new code:
The new code will amalgamate the Payment of Wages Act, 1936, the Minimum Wages Act, 1948, the Payment of Bonus Act, 1965, and the Equal Remuneration Act, 1976.
Wages
|
Significance:
Need for a national minimum wage:
One argument for a national minimum wage is to ensure a uniform standard of living across the country. At present, there are differences in minimum wages across states and regions. Such differences are attributed to the fact that both the central and state governments set, revise and enforce minimum wages for the employments covered by them. The introduction of a national minimum wage may help reduce these differences and provide a basic standard of living for all employees across the country.
Source: TH
Source: TH/WEB
Electronic Vaccine Intelligence Network (eVIN) The Health Ministry has announced the use of the Electronic Vaccine Intelligence Network (eVIN). eVIN is an innovative technological solution aimed at strengthening immunisation supply chain systems across the country. This is being implemente
Defence Production & Export Promotion Policy (DPEPP) 2020 Context: Ministry of Defence (MoD) has put out a draft ‘Defence Production & Export Promotion Policy (DPEPP) 2020’ for public feedback. DPEPP has been drafted with the vision to make India amongst the leading co
Violating human rights in the Valley GS Mains Paper 2: J&K issue post abrogation of A.370 By, Justice (retd.) Madan B. Lokur is a former Supreme Court judge Context A few human rights concerns have emerged in the Kashmir Valley over the last one year since the abrogation of Articl
J&K and Ladakh, a year on By, G. Kishan Reddy is the Minister of State for Home Affairs and Member of Parliament from Secunderabad Context Though Syama Prasad Mukherjee highlighted the implications of Article 370 with the slogan “Ek desh mein do vidhan, do pradhan, do nishan na
Rekindle Kashmir’s lost and real connect By, Amitabh Mattoo is Professor, School of International Studies, Jawaharlal Nehru University Context This article talks about the contributions of various Kashmiris who aspired for a united nation with J&K as an integral part of India d
COVAX program COVAX is the vaccines pillar of the Access to COVID-19 Tools (ACT) Accelerator The ACT Accelerator is a ground-breaking global collaboration to accelerate the development, production, and equitable access to COVID-19 tests, treatments, and vaccines. COVAX is co-led by Gavi,
Contempt of Court GS-PAPER-2 Governance (Mains-I.V) Recently, the Supreme Court of India initiated the proceedings for criminal contempt of court against lawyer-activist Prashant Bhushan. The contempt charges were lodged in the context of the comment made on social media, targeting the&nb
Militarising Andaman and Nicobar Islands GS-PAPER-2 IR (Mains) The Galwan valley face-off with China has rendered many Indian security experts mooted the idea of balancing China in the maritime domain. In this context, strengthening military presence at the Andaman and Nicobar Island
National Education Policy (NEP) 2020 GS-PAPER-3 Education reforms (Mains) Recently, the National Education Policy (NEP) 2020 was announced by the Ministry of Human Resource Development (soon to be called the Ministry of Education). The policy is aimed at transforming the Indian educ
Time Capsule-Kaal Patra The Ram Janmabhoomi Teerth Kshetra Trust has denied reports about placing a time capsule under the ground at the Ram Temple construction site in Ayodhya. The Time Capsule, also known as Kaal Patra, was supposed to contain the history of Ayodhya and Rama Janma Bho
Sea Level Rise: Its Impact GS-PAPER-1 Geography: Oceanography (PT-MAINS) Recently, a study in journal Scientific reports made predictions that a large population and assets will be globally affected as a consequence of Sea Level Rise (SLR). SLR is a consequence of climate change, w
China’s Presence in South America GS-PAPER-2 CHINA-OBOR (Mains) Recently, Ecuador has expressed an official discomfort over the sighting of a flotilla of 260 mostly Chinese fishing vessels near the Galapagos archipelago (a part of Ecuador). The flotilla also
Aspirin to Prevent Cataract Recently, scientists from the Institute of Nano Science & Technology (INST) have developed nanorods from the Non-Steroidal Anti-Inflammatory Drug (NSAID) Aspirin to prevent cataracts in an economical and less complicated way. Aspirin
UK to Issue Coin in Honour of Mahatma Gandhi Britain is considering minting a coin to commemorate Mahatma Gandhi. The consideration is seen as part of efforts to celebrate the achievements of people from the Black, Asian and other Minority Ethnic (BAME) communities. The British Finan
Lakshadweep and environment Recently, the southern bench of the National Green Tribunal (NGT) has granted an interim stay on the felling of coconut trees on Agatti Island in Lakshadweep. Background: Recently, a petition was moved in the NGT over the 
Bharat Air Fibre GS-Paper-2 Governance (PT-MAINS) Recently, Bharat Air Fibre Services have been inaugurated at Akola in Maharashtra providing the residents with wireless internet connections on demand. The Bharat Air Fibre services are being introduced by Bha
Medicinal and Aromatic Plants Genetic Resources (MAPGRs) National Medicinal Plants Board (NMPB) and ICAR-National Bureau of Plant Genetic Resources (NBPGR) have entered into an MoU to conserve the Medicinal and Aromatic Plants Genetic Resources (MAPGRs). The conservation will be done in the long-
Yellow Fever Yellow fever is caused by a virus that is spread by the Aedes aegypti mosquito. These mosquitoes thrive in and near human habitations where they breed in even the cleanest water. It is endemic in 34 countries in the sub-Saharan African region, despite the existence of a vaccine fo
Dhole Dhole is also known as Asian wild dog, Asiatic wild dog, Indian wild dog, whistling dog, red dog, and mountain wolf. Besides the tiger, the dhole is the only large carnivore in India that is under the IUCN’s ‘endangered’ category. They play an important role as apex pr
BeiDou China’s administration has officially commissioned the BeiDou Navigation Satellite System constellation. It was initiated in 1994. It aims to integrate its application in different sectors, including fishery, agriculture, special care, mass-market applications, forestry and public se
Our Popular Courses
Module wise Prelims Batches
Mains Batches
Test Series