Central Trade Unions submits Joint Memorandum including DA Merger and 5 Lakh IT Exemption to Finance Minister
CENTRAL TRADE UNIONS SUBMITS JOINT MEMORANDUM TO FINANCE MINISTER
17th January 2015
The Hon’ble Minister of Finance, Govt. of India,
North Block, New Delhi
We thank you for inviting the central trade unions representing the working people in the country in both organized and unorganized sector for this pre-budget consultation.
In the previous pre-budget consultation meeting with you held on 6th June 2014, we urged upon you to please consider a directional change in the economic policy regime from that pursued during the previous government which, you have also admitted, had landed the country’s economy in a bad situation. In fact, we had articulated our views and proposals on that premise. But we like to submit candidly that our proposals did not receive a positive response and the economic policies followed the same trajectory and made situation worse for the mass of the people during the intervening period.
Sir, the Mid Term Economic Analysis (2014-15) by Govt of India itself admitted that for the period under review despite increase in GDP growth rate, and a much bigger increase in profit of the corporate sector and big business lobby, the wages for the working people who actually create the GDP in both rural and urban areas plunged on the average. Overall standard of living of people deteriorated and unemployment situation in the country has not improved in the least. Much more jobs were lost owing to closure/lockout, retrenchment than created during the intervening period. And in the midst of such situation, the Govt has already decided to cut already budgeted expenditure in the social sector such as MNREGA, Health, Education etc which we strongly deplore. Such a phenomenon warranted serious reconsideration on directional change in the economic policy regime and we again urge you for the same.
We express our serious concern and dismay over the manner the Govt have been pushing various major economic policy related decisions through promulgation of Ordinances. At least eight Ordinances were promulgated during last eight months of the new Govt. We record our determined opposition to such practice of Ordinance route of governance. In particular we also oppose the Ordinance on coal sector, insurance sector and on Land Acquisition Act and want you to please take note of the rousing opposition and struggles by the workers and the farmers against such disastrous exercises. We demand all such Ordinances should be withdrawn forthwith.
We wish that our candid observations, considered views and concrete proposals are taken in the justify spirit and responded with all seriousness and given appropriate reflections in the ensuing budget 2014-15.
Some of these specific proposals have time and again been placed by us in various policy making fora including the earlier pre-budget consultations. However, we would like to reiterate them, urging your positive response:
Take effective measures to arrest the spiraling price rise and to contain inflation; Ban speculative forward trading in commodities; Universalise and strengthen the Public Distribution System; Ensure proper check on hoarding; Rationalise, with a view to reduce the burden on people, the tax/duty/cess on petroleum products.
There must be massive investment in the infrastructure in order to stimulate the economy for job creation. The Mid Term Economic Analysis(2014-15) published by Govt of India has clearly mentioned about the failure of the PPP experiments in infrastructure development and opined for public investment. It is our considered view that the Public sector should take the leading role in this regard. The plan & non-plan expenditure should be increased in the budget to stimulate jobs creation and guarantee consistent income to people.
Minimum wage linked to Consumer Price Index must be guaranteed to all workers, taking into consideration the recommendations of the 15th Indian Labour Conference as enriched by Apex Court of the country as reiterated in 44th ILC in 2012. In any case, it should not be less than Rs.15,000/- p.m.
FDI should not be allowed in crucial sectors like defence production, telecommunications, Railways, financial sector, retail trade, education, health and media.
The public sector units played a crucial role during the year of severe contraction of private capital investment immediately following the outbreak of global financial crisis. PSUs should be strengthened and expanded. Disinvestment of shares of profit making public sector units should be stopped forthwith. Budgetary support should be given for revival of potentially viable Sick CPSUs
In view of huge joblosses and mounting unemployment problem, the ban on recruitment in Govt. deptts, PSUs and autonomous institutions (including recent Finance Ministry’s instruction to abolish those posts not filled for one year) should be lifted as recommended by 43rdSession of Indian Labour Conference. Condition of surrender of posts in govt. departments and PSUs should be scrapped and new posts be created keeping in view the new work and increased workload.
Proper allocation of funds be made for interim relief of 20% and 100% DA merge with basic pay and allowances including neutralization percentage be paid on merged DA in view of 7th CPC to all Govt. employees. Similarly, 100% DA of PSU employees be also merged with basic pay.
The scope of MGNREGA be extended to agriculture operations and urban areas as well and employment for minimum period of 200 days with guaranteed statutory wage be provided, as unanimously recommended by 43rd Session of Indian Labour Conference. The drastic cut already inflicted on the MNREGA allocation should be restored.
The massive workforce engaged in ICDS, Mid-day meal scheme, Vidya volunteers, Guest Teachers, Siksha Mitra, the workers engaged in the Accredited Social Health Activities (ASHA) and other schemes be regularized. No to privatization of centrally funded schemes. Universalisation of ICDS be done as per Supreme Court directions by making adequate budgetary allocations.
Steps be taken for removal of all restrictive provisions based on poverty line in respect of eligibility coverage of the schemes under the Unorganised Workers Social Security Act 2008 and allocation of adequate resources for the National Fund for Unorganised Workers to provide for Social Security to all unorganized workers including the contract/casual and migrant workers in line with the recommendations of Parliamentary Standing Committee on Labour and also the 43rd Session of Indian Labour Conference.
Remunerative Prices should be ensured for the agricultural produce and Govt. investment public investment in agriculture sector must be substantially augmented as a proportion of GDP and total budgetary expenditure. It should also be ensured that benefits of the increase reach the small, marginal and medium cultivators only;
Budgetary provision should be made for providing essential services including housing, public transport, sanitation, water, schools, crèche health care etc. to workers in the new emerging industrial areas. Working women’s hostels should be set up where there is a concentration of women workers.
Requisite budgetary support for addressing crisis in traditional sectors like Jute, Textiles, Plantation, Handloom, Carpet and Coir etc.
Budgetary provision for elementary education should be increased, particularly in the context of the implementation of the ‘justify to Education’ as this is the most effective tool to combat child labour.
The system of computation of Consumer Price Index should be reviewed as the present index is causing heavy financial loss to the workers.
Income Tax exemption ceiling for the salaried persons should be raised to Rs.5 lakh per annum and fringe benefits like housing, medical and educational facilities and running allowances, Railways Running Staff and a staff in other deptts should be exempted from the income tax net in totality.
Threshold limit of 20 employees in EPF Scheme be brought down to 10 as recommended by CBT-EPF. Pension benefits under EPS unilaterally withdrawn by the Govt. should be restored. Govt. and Employers contribution be increased to allow sustainability of Employees Pension Scheme and for provision of minimum pension of Rs.3000/- p.m.
New Pension Scheme be withdrawn and newly recruited employees of central and state govts on or after 1.1.2004 be covered under Old Pension Scheme;
Demand for Dearness Allowance merger by Central Govt. and PSUs employees be accepted and adequate allocation of fund for this be made in the budget;
All interests and social security of the domestic workers to be statutorily protected on the lines of the ILO Convention on domestic workers.
The Cess Management of the construction workers is the responsibility of the Finance Ministry under the Act and the several irregularities found in collection of cess be rectified as well as their proper utilization must be ensured.
In regard to resource mobilization, we would like to emphasize the following:
A progressive taxation system should be put in place to ensure taxing the rich and the affluent sections who have the capacity to pay at a higher degree. The corporate service sector, traders, wholesale business, private hospitals and institutions etc. should be brought under broader and higher tax net. Increase taxes on luxury goods and reduce indirect taxes on essential commodities as at present the overwhelming majority of the populations are subjected to Indirect taxes that constitute 86% of the revenue.
Concrete steps must be taken to recover huge accumulated unpaid tax arrears which has already crossed more than Rs.5 lakh crore on direct and corporate tax account alone, and has been increasing at a geometric proportion. Such huge tax-evasion over and above the liberal tax concessions already given in the last two budgets should not be allowed to continue.
The SIT constituted for unearthing black money must deliver visible result which is yet to be seen. Effective measures should be taken to unearth huge accumulation of black money in the economy including the huge unaccounted money in tax heavens abroad and within the country. Finance Minister should make provisions to bring back the illicit flows from India which are at present more than twice the current external debt of US $ 230 billion. This money should be directed towards providing social security.
Concrete measures be expedited for recovering the NPAs of the banking system which is on the increasing trend again from the willfully defaulting corporate and business houses. By making provision in Banking Regulations Act, CMDs and Executives to be made accountable for creation of NPAs.
Tax on Long term capital gains to be introduced; so also higher taxes on the security transactions to be levied.
The rate of wealth tax, corporate tax, gift tax etc. to be expanded and enhanced.
ITES, outsourcing sector, Educational Institutions and Health Services etc. run on commercial basis should be brought under Service Tax net. Govt.
Small saving instruments under postal and other agencies be encouraged by incentivizing commission agents of these scheme
OUR SERIOUS CONCERN:
We would like to express our strong resentment that the previous Govt. failed to positively respond to the collective voice of the Central Trade Unions on the very important issues concerning the working people of India, both organized and unorganized, consistently repeated in the form of a ‘10 point charter’ backed by several collective nationwide programmes. We expect that this Govt. will take initiative to discuss these issues with the Central Trade Unions in order to find a solution.
We also express our opposition to the so called Banking Reforms encouraging private sector/capitalists banking at the cost of public sector banks which saved the economy to an extent during the last global financial meltdown. We also oppose increase in limit of FDI and disinvestment of equity in insurance sector and FDI in pension. We strongly oppose the FDI in Defence and Retail Sector. Several such measures against the working men and women in this country including anti workers proposals contained in the New Manufacturing Policy have our strong opposition, as in our experience these kinds of measures have helped the growth of only a small section of the capitalists while the larger sections of the working population continue to be marginalized and impoverished.
We also oppose the hectic measures of changing labour laws in the name of labour reform both by the central and the state governments which are basically aimed at legitimizing ongoing widespread violations by the employers’ class and also throw out overwhelming majority of the workforce of the purview of the labour laws themselves at the total mercy of the employers.
POST BUDGET MEETING WITH TRADE UNIONS
Successive Finance Ministers have agreed to hold post budget meetings / consultations with the central trade unions. However, it has not been materialized except for one occasion. We understand such meetings did take place with the Corporate Associations/Employers Federations. We would like to importunate upon you to arrange such post budget meeting with trade unions also.
Brijesh Upadhyay-BMS, S Q Jama– INTUC, Harbhajan Singh Sidhu-HMS, D L Sachdeva-AITUC
Tapan Sen-CITU, R K Sharma-AIUTUC, S P Tewari-TUCC, Monali-SEWA, Santosh Roy-AICCTU
Ashok Ghosh-UCTU, Shanmugan-LPF
Latest News on DA Merger for CG Employees:
- Merger of DA with the Basic Pay from April 2004 to Running Staff – NFIR Letter Dated 30.3.2021 April 2, 2021
- Merger of Dearness Allowance equal to 50% of basic pay from April 2004 for Running Staff – Railway Board March 10, 2017
- Merger of Dearness Allowance with the Basic Pay – Computation of emoluments of Running Staff for granting retirement benefits October 20, 2016
- Merger of 50% DA/ DR with Basic Pay/ pension, effectively amounting to 78.2% DA/ DR for the purpose of fitment – BSNL Orders issued July 21, 2016
- Dorai focus on two crucial issues of 50% DA Merger and 3% Increment April 25, 2016
- 6th Pay Commission Dearness Allowance ends with 6% hike at 125% March 25, 2016
- Merge DA with Basic this year and Defer Increments: Pay Panel Member February 15, 2016
- 50% DA Merger and Retirement age 58 : Rumor Spreading in Social Networks September 23, 2015
- Seeking Merger of DA and Oppose reduce the Retirement age – DPCC August 25, 2015
- Denial of interim relief and the benefit of merger of DA with Pay must be viewed very seriously – NC JCM June 22, 2015
- DA to CPSE Employees from Jan 15 – 262% to 273% for without 50% DA Merger – 212% to 223% with 50% DA Merger May 14, 2015
- Order for Merger of 50% DA, Retirement age news goes viral in Social Media May 5, 2015
- NC JCM writes to PM regarding the pending demands of Central Govt Employees – DA Merger, NPS, Interim Relief, Promotion and Bonus issues May 1, 2015
- Pensioners seek 50% da merger and Bus travel concession April 16, 2015
- Meeting with 7th Pay Commission and DoPT on 25.2.2015 – Confederation publishes brief resume of the discussions February 27, 2015
- JCM Staff Side Meeting with 7th Pay Commission – Discussion about DA Merger and Interim Relief February 25, 2015
- NFIR – 55 Point Charter of Demands Including DA Merger, Interim Relief and Scrap NPS February 24, 2015
- Meeting between JCM Staff Side & 7th Pay Commission – Discussion on DA Merger & Interim Relief – NFIR February 19, 2015
- Decisions taken National Joint Council of Action meeting held on 16.02.2015 on 7th CPC, DA Merger issues February 17, 2015
- NMC urges FM to raise IT exemption limit to Rs 5 lakh, exclude DA from IT calculation, Merge DA in Basic Pay & Pension etc. February 16, 2015
- Central Govt refused Interim Relief and DA Merger – Assured for 7th CPC Report on time January 29, 2015
- Central Trade Unions submits Joint Memorandum including DA Merger and 5 Lakh IT Exemption to Finance Minister January 21, 2015
- Staff Side NC JCM writes to Cabinet Secretary for Interim Relief, Merger of DA January 13, 2015
- Will the 7th Pay Commission present an Interim Report to the Centre? December 18, 2014
- National Council Staff Side JCM meets today (11.12.2014) – Eyes of all look expectantly on the demand of DA Merger and Interim Relief December 11, 2014
- NDA AND UP TWO SIDES OF SAME COIN – EDITORIAL POSTAL CRUSADER DECEMBER-2014 December 1, 2014
- Whether 7th Pay Commission proposes to submit Interim Report? November 24, 2014
- DA Merger & Interim Relief – National Convention of NC JCM Meeting on 11.12.2014 – INDWF Circular November 23, 2014
- Government of India is reluctant to consider Merger of DA, Interim relief, scrapping of New Pension Scheme November 19, 2014
- CONFEDERATION MASS SQUATTING ON 18TH NOVEMBER 2014 – PRESS MEET BY TAMILNADU CONFEDERATION November 19, 2014
- DA MERGER – INTERIM RELIEF – DATE OF EFFECT OF 7TH CPC RECOMMENDATIONS FROM 01.01.2014 November 18, 2014
- JCM NATIONAL COUNCIL STAFF SIDE – ALL INDIA CONVENTION ON 11.12.2014 November 1, 2014
- JCM STAFF SIDE UNITY SHOULD BE FOR STRUGGLE October 31, 2014
- National Convention of the NC (JCM Staff Side) for DA Merger and Interim Relief October 28, 2014
- Central Government Employees Federations to observe Protest Day on 5th December October 27, 2014
- National Convention will adopt a joint resolution on DA Merger, Interim Relief October 22, 2014
- National Council JCM Staff Side Meeting Will Be Held Tomorrow October 11, 2014
- Is Interim Relief Likely for Central Government Employees? October 10, 2014
- Demands for DA Merger & Interim Relief strengthen Once again…NC JCM Staff Side emergency meeting on October 12 October 6, 2014
- Urgent meeting of the Staff Side of JCM (National Council) on 12.10.2014 October 5, 2014
- CONFEDERATION DECLARES NEXT PROGRAMME OF ACTION October 2, 2014
- CG Employees Launch Countrywide Stir Demanding 7th Pay Commission Interim Relief September 22, 2014
- DA from July 2014 – Cabinet may declare 7% in this month for CG Staff September 1, 2014
- Negation of the promises – Granting Interim Relief-Merger of DA, LTC by Air and Exemption of Income Tax August 28, 2014
- BRMS demands to merge 50% DA and Grant Rs.7000 as Interim Relief August 16, 2014
- Memorandum of Interim Relief and merger of Dearness allowance–Confederation News July 27, 2014
- NO MERGER OF DA – FINANCE MINISTRY REPLY TO NATIONAL COUNCIL SECRETARY July 3, 2014
- PENDING DEMANDS OF CG EMPLOYEES AND NEW GOVERNMENT – CONFEDERATION NEWS June 18, 2014
- Demand for 50% DA Merger presented to the new government June 16, 2014
- Feedback of meeting with Cabinet Secretary–Regarding of DA Merger & Interim Relief June 14, 2014
- 50% DA MERGER : Merger of DA with Pay and sanction of Interim Relief for the Central Government Employees June 14, 2014
- 50% Merger of Dearness Allowance with Pay–NFIR Writes to New FM on 28.5.2014 May 30, 2014
- AIRF demanded to the 7th Pay Commission including Merger of DA and Interim Relief May 29, 2014
- Central employees awaiting next govt nod on DA merger March 19, 2014
- NMC pleads with seventh CPC for merger of 50% DA March 12, 2014
- Expectations for 50% DA Merger and Retirement age turn into disappointments March 7, 2014
- Can the govt servants get 30% Salary hike on account of 50% DA Merger? – An analysis March 7, 2014
- 50% DA Merger and Retirement Age 62 – High hopes fading due to announcement of election dates… March 5, 2014
- CONFEDERATION CALLS FOR PROTEST AGAINST THE ARBITRARY AND UNILATERAL DECISION OF THE GOVERNMENT March 2, 2014
- 7th Pay Commission can suggest the Merger of DA in its interim report… March 1, 2014
- Whether 50% DA Merger will be approved or not..? March 1, 2014
- 50% Merger of DA and Retirement Age 62 – No discussion in the Cabinet Meeting March 1, 2014
- Cabinet Approves Merger of DA with Basic Pay February 28, 2014
- CABINET APPROVED 10% DA HIKE FOR CENTRAL GOVERNMENT EMPLOYEES AND PENSIONERS February 28, 2014
- Merger of D.A., 7th CPC ToR and Raising Retirement age 62–Cabinet will decide today..! February 28, 2014
- Impact of Merger of 50% DA in Basic Pay February 27, 2014
- Retirement Age 62 and 10% DA from Jan 2014 – Cabinet expected to clear on Friday (28.202014) February 26, 2014
- 50% DA Merger, Retirement Age 62 and Interim Relief – Cabinet is likely to clear some of these demands..! February 24, 2014
- 50% DA MERGER – Impact of merger of 50% DA with basic pay February 24, 2014
- Central Government employees may get 50% DA merger – BSNL Employees Union February 24, 2014
- Central Government employees may get 50% DA merger February 23, 2014
- Central Govt to pay the Dearness allowance for state government employees February 23, 2014
- Merger of 100% DA w.e.f. 1.1.2014 and Merger of 50% DA w.e.f. 1.1.2011 February 21, 2014
- AIRF Demanding Merger of 100% Dearness Allowance with Basic Pay February 21, 2014
- Merger of 50% DA with Pay and grant of Interim Relief – NFIR February 21, 2014
- Inclusion of DA Merger and Interim Relief in 7th CPC ToR – Cabinet likely to approve 7th CPC ToR February 20, 2014
- 50% DA MERGE OR INTERIM RELIEF FOR CENTRAL GOVERNMENT EMPLOYEES February 17, 2014
- Latest 50% DA Merger News February 4, 2014
- Merger of Dearness Allowance with Pay January 30, 2014
- Merger of 50% DA will soon be considered by Central Government Before the Budget Session… January 17, 2014
- Retirement Age 62, Merger of DA, Scrapping of NPS, inclusion of federation leaders in 7th CPC etc. – Memorandum submitted to PM January 8, 2014
- Merger of Dearness Allowance with the Pay of the Central Government Employees – reg. November 13, 2013
Also Check: Central Government Pay Matrix Table 2022 PDF