Although most employee benefits are provided at the employer’s discretion, others are required by law and mandatory. Statutory benefits include Social Security, unemployment compensation, and workers’ compensation.
Earned leave:
Earned leave is mandatory for employees working in government sector but this leave is not mandatory and it is a voluntary benefit given to employees working in private and corporate sector. Irrespective of casual leaves, medical leaves and optional holidays, earned leaves can be availed by the employees
Why is it earned leave?
Unlike
casual leaves, medical leaves and optional holidays, an employee can
encash the unused earned leaves how many he/she has not availed or
unutilized during the calendar year that is from 1st January to 31st
December. But encashment of earned leaves is allowed only at the time
of retirement of an employee or separation of employee other than suspension or dismissal
from organization. Besides, few organizations allow to encash maximum of 300 earned leaves from total earned leaves accumulated at the time
of retirement or separation of an employee, but
not all unused earned leaves are allowed to encash.
INDIA
Employee can exceed earned leave limit: High Court
Lays down law for calculating accumulated unutilised leave
Saurabh Malik
Tribune News Service
Chandigarh, October 15-2016
In a significant judgment, the Punjab and Haryana High Court has ruled that the accumulated unutilised leave of an employee cannot be reduced to 300 days even if he is entitled to leave encashment for a maximum of 300 days.
The ruling came in case of Haryana Government employees after the High Court was told that accumulated earned leave was reduced to 300 days time and again during the course of service on the assumption that they were entitled to a maximum of 300 days earned leave.
Eventually, when the time came for encashment of unutilised earned leave, they were granted the benefit for lesser number of days.
“If an employee is entitled to leave encashment for a maximum limit of 300 days, that does not mean that the accumulated unutilised leave is to be reduced to 300 days if it exceeds the limit. The earned leave will continue to accumulate till the retirement of the petitioners and the petitioners are to be granted the maximum benefit of 300 days, as stated in the rules,” Justice Kuldip Singh ruled.
The ruling came on a petition by Jaipal Phogat and another petitioner against the State of Haryana and other respondents. Justice Kuldip Singh asserted the “unfortunate controversy” was regarding the method used to calculate unutilised earned leave of petitioners Jaipal Phogat and Jaibhagwan.
Retired mechanics, the petitioners had claimed that they were entitled to leave encashment of 300 days unutilised earned leave. Petitioner number one was is entitled to 300 days leave encashment, but was granted the benefit of 257 days. Petitioner number two, on the other hand, was entitled to 268 days leave encashment, but was granted the benefit of 211 days.
During the course of the hearing, Justice Kuldip Singh asked both parties to file calculation sheets. He added that the examination of calculation sheet regarding Phogat showed mischief was done while calculating unutilised earned leave on April 27, 1999, May 22, 2003, and October 31, 2007.
The unutilised earned leave for 362 days, 375 days and 335 days, respectively, was reduced to 300 days on the assumption that the petitioner was entitled to a maximum of 300 days earned leave.
Similarly, in Jaibhagwan’s case, earned leave was reduced on August 11, 2002, May 22, 2003, and August 22, 2003, from 308 days, 307 days and 305 days, respectively.
“The calculation done by the respondents is not only mischievous, but wrong application of the principle of calculation of unutilised earned leave is also there. As such, the calculations made by the petitioners are accepted and that of the respondents are set aside,” the High Court ruled.
Lays down law for calculating accumulated unutilised leave
Saurabh Malik
Tribune News Service
Chandigarh, October 15-2016
In a significant judgment, the Punjab and Haryana High Court has ruled that the accumulated unutilised leave of an employee cannot be reduced to 300 days even if he is entitled to leave encashment for a maximum of 300 days.
The ruling came in case of Haryana Government employees after the High Court was told that accumulated earned leave was reduced to 300 days time and again during the course of service on the assumption that they were entitled to a maximum of 300 days earned leave.
Eventually, when the time came for encashment of unutilised earned leave, they were granted the benefit for lesser number of days.
“If an employee is entitled to leave encashment for a maximum limit of 300 days, that does not mean that the accumulated unutilised leave is to be reduced to 300 days if it exceeds the limit. The earned leave will continue to accumulate till the retirement of the petitioners and the petitioners are to be granted the maximum benefit of 300 days, as stated in the rules,” Justice Kuldip Singh ruled.
The ruling came on a petition by Jaipal Phogat and another petitioner against the State of Haryana and other respondents. Justice Kuldip Singh asserted the “unfortunate controversy” was regarding the method used to calculate unutilised earned leave of petitioners Jaipal Phogat and Jaibhagwan.
Retired mechanics, the petitioners had claimed that they were entitled to leave encashment of 300 days unutilised earned leave. Petitioner number one was is entitled to 300 days leave encashment, but was granted the benefit of 257 days. Petitioner number two, on the other hand, was entitled to 268 days leave encashment, but was granted the benefit of 211 days.
During the course of the hearing, Justice Kuldip Singh asked both parties to file calculation sheets. He added that the examination of calculation sheet regarding Phogat showed mischief was done while calculating unutilised earned leave on April 27, 1999, May 22, 2003, and October 31, 2007.
The unutilised earned leave for 362 days, 375 days and 335 days, respectively, was reduced to 300 days on the assumption that the petitioner was entitled to a maximum of 300 days earned leave.
Similarly, in Jaibhagwan’s case, earned leave was reduced on August 11, 2002, May 22, 2003, and August 22, 2003, from 308 days, 307 days and 305 days, respectively.
“The calculation done by the respondents is not only mischievous, but wrong application of the principle of calculation of unutilised earned leave is also there. As such, the calculations made by the petitioners are accepted and that of the respondents are set aside,” the High Court ruled.
Social Security for employees is a concept which over time has gained importance in the industrialized countries. Broadly, it can be defined as measures providing protection to working class against contingencies like retirement, resignation, retrenchment, maternity benefits, paternity leave, old age, unemployment, death, disablement and other similar conditions..
Social Security for employees in India
With reference to India, the Constitution levies responsibility on the State to provide social security to citizens of the country. The State, here, discharges duty as an agent of the society in order to help those who are in adverse situations or otherwise needs protection owing to above mentioned contingencies. Article 41, 42 and 43 of the Constitution do talk about the same. Also, the Concurrent List of the Constitution of India mentions issues like-
With reference to India, the Constitution levies responsibility on the State to provide social security to citizens of the country. The State, here, discharges duty as an agent of the society in order to help those who are in adverse situations or otherwise needs protection owing to above mentioned contingencies. Article 41, 42 and 43 of the Constitution do talk about the same. Also, the Concurrent List of the Constitution of India mentions issues like-
- Social Security and insurance, employment and unemployment.
- Welfare of Labour including conditions of work, provident funds, employers' liability, workmen's compensation,invalidity and old age pension and maternity benefits.
Below mentioned are the important employment laws on the Social Security benefits within India meant for the employees working in various industries and it is compulsory for employer to provide Social Security benefits to his employees according to this acts. If any contrivance with laws mentioned below by the employer shall be made liable for punishment by the Legislature.
a)Employee benefits through State Insurance Act, 1948
- provides for health care and cash benefits in cases of sickness, maternity and employment injury
- health and medical care facilities are provided to the workers through a network of 140 hospitals, 43 annexes and 1443 dispensaries located throughout the country
- Jointly administered by the Central Government and the State Governments
- while the Central Govt formulates the Scheme, recovers the contribution from employers of covered establishments with the help of its Recovery Officers, builds the infrastructure (hospitals, dispensaries etc.), provides 7/8th of the total expenses, the State Government contributes 1/8th, posts Medical Officers, specialists and paramedical staff, procures and instals equipments, dispenses medicines and has the overall responsibility for the management of the hospitals/dispensaries
- Director General (DG), ESIC is the Chief Executive Officer of the Corporation and functions under the overall Supervision and control of the Board and Committees/Councils formed thereunder More Detailed >>
b)Maternity Benefit
Under the Maternity Benefit Act, 1961, women employees are entitled to maternity benefit at the rate of average daily wage for the period of their actual absence up to 12 weeks due to the delivery. In cases of illness arising due to pregnancy, etc., they are entitled to additional leave with wages for a period of one month. They are also entitled to six weeks maternity benefit in case of miscarriage. The Maternity Benefit Act, 1961 also makes certain other provisions to safeguard the interest of pregnant women workers.
Section 8 of the Maternity Benefit Act, 1961 provides that every woman entitled to maternity benefit shall also be entitled to receive from her employer medical bonus of Rs. 1000/-, if no pre-natal confinement and post-natal care is provided for by the employer free of charge.
The Maternity Benefit Act, 1961 regulates the employment of women in factories, mines, the circus industry, plantations and shops or establishments employing 10 or more persons except the employees who are covered under the Employees' State Insurance (ESI) 1948 for certain periods before and after child-birth and provides for maternity and other benefits.
As the Act provides maternity leave up to 12 weeks for all women. The Maternity Benefit (Amendment) Bill, 2016 to be passed, extends this period to 26 weeks. However, a woman with two or more children will be entitled to 12 weeks of maternity leave.
March - 2013: The Madras High Court held that the government employees opting for children through surrogacy would be entitled to maternity leave in the form of child care leave. Honourable High Court said that if law can provide childcare leave in case of adoptive parents, then it should also apply to parents who obtained child through surrogate agreement. The object of such a leave is to take care of the child and develop a good bond between the child and the parents.
L’Oreal India enhances maternity leave to 26 weeks
L’Oreal India has enhanced maternity leave to 26 weeks from 14 weeks earlier in an effort to retain high-potential employees.
The new parental benefits include pre-commute assistance for expecting women employees starting from the sixth month of pregnancy and child care allowance for two years from the date of delivery. “The business case of an enhanced maternity leave policy and other parental benefits is to retain high potential talent, enhance productivity and make the company an attractive employer,” said Mohit James, director, human resources, L’Oréal India.
To help new mothers ease back into work, they can also avail of reduced work hours for two continuous weeks immediately after resuming work, said James. The policy also entitles fathers to paid leave of two weeks. Additionally, the adoption leave has been increased to 12 weeks for mothers and one week for fathers.
L’Oréal India will also offer flexible working options to each parent as well as pre- and post-natal support and employee well-being sessions and dedicated HR and management support.
Under the Maternity Benefit Act, 1961, women employees are entitled to maternity benefit at the rate of average daily wage for the period of their actual absence up to 12 weeks due to the delivery. In cases of illness arising due to pregnancy, etc., they are entitled to additional leave with wages for a period of one month. They are also entitled to six weeks maternity benefit in case of miscarriage. The Maternity Benefit Act, 1961 also makes certain other provisions to safeguard the interest of pregnant women workers.
Section 8 of the Maternity Benefit Act, 1961 provides that every woman entitled to maternity benefit shall also be entitled to receive from her employer medical bonus of Rs. 1000/-, if no pre-natal confinement and post-natal care is provided for by the employer free of charge.
The Maternity Benefit Act, 1961 regulates the employment of women in factories, mines, the circus industry, plantations and shops or establishments employing 10 or more persons except the employees who are covered under the Employees' State Insurance (ESI) 1948 for certain periods before and after child-birth and provides for maternity and other benefits.
As the Act provides maternity leave up to 12 weeks for all women. The Maternity Benefit (Amendment) Bill, 2016 to be passed, extends this period to 26 weeks. However, a woman with two or more children will be entitled to 12 weeks of maternity leave.
March - 2013: The Madras High Court held that the government employees opting for children through surrogacy would be entitled to maternity leave in the form of child care leave. Honourable High Court said that if law can provide childcare leave in case of adoptive parents, then it should also apply to parents who obtained child through surrogate agreement. The object of such a leave is to take care of the child and develop a good bond between the child and the parents.
L’Oreal India enhances maternity leave to 26 weeks
L’Oreal India has enhanced maternity leave to 26 weeks from 14 weeks earlier in an effort to retain high-potential employees.
The new parental benefits include pre-commute assistance for expecting women employees starting from the sixth month of pregnancy and child care allowance for two years from the date of delivery. “The business case of an enhanced maternity leave policy and other parental benefits is to retain high potential talent, enhance productivity and make the company an attractive employer,” said Mohit James, director, human resources, L’Oréal India.
To help new mothers ease back into work, they can also avail of reduced work hours for two continuous weeks immediately after resuming work, said James. The policy also entitles fathers to paid leave of two weeks. Additionally, the adoption leave has been increased to 12 weeks for mothers and one week for fathers.
L’Oréal India will also offer flexible working options to each parent as well as pre- and post-natal support and employee well-being sessions and dedicated HR and management support.
Deloitte declares 26 weeks of maternity leave for women employees; PWC, EY, KPMG to follow suit
The labour ministry is busy putting the amended Maternity Benefit Act together that would entitle working women in private sectors to 26 weeks of maternity leave from the existing 12, the big four consulting firms have already taken a leap. While Deloitte has declared 26 weeks of maternity leave for its woman employees, PricewaterhouseCoopers, EY and KPMG are in the process of finalising such policies.A severe crunch of woman employees at the top has pushed these companies to not only extend the maternity leave benefit, but also in introducing a slew of other initiatives to retain the valuable resource.
To be piloted for the first time in India, EY is also working out a programme called 'Maternal Coaching', where all the women at the leadership and senior positions will be trained to coach other women in their teams before and after maternity leave on not quitting the job.PwC is planning to retain women who leave for maternity with an 'umbilical cord' of up to seven years or so. This would allow women on maternity leave to be on the rolls of the company without actively working and without pay. "Though this is in the pipeline, they intend to offer all the training and updates to the women who go on maternity leave so that they are connected with the firm.
The labour ministry is busy putting the amended Maternity Benefit Act together that would entitle working women in private sectors to 26 weeks of maternity leave from the existing 12, the big four consulting firms have already taken a leap. While Deloitte has declared 26 weeks of maternity leave for its woman employees, PricewaterhouseCoopers, EY and KPMG are in the process of finalising such policies.A severe crunch of woman employees at the top has pushed these companies to not only extend the maternity leave benefit, but also in introducing a slew of other initiatives to retain the valuable resource.
To be piloted for the first time in India, EY is also working out a programme called 'Maternal Coaching', where all the women at the leadership and senior positions will be trained to coach other women in their teams before and after maternity leave on not quitting the job.PwC is planning to retain women who leave for maternity with an 'umbilical cord' of up to seven years or so. This would allow women on maternity leave to be on the rolls of the company without actively working and without pay. "Though this is in the pipeline, they intend to offer all the training and updates to the women who go on maternity leave so that they are connected with the firm.
ET Bureau | Feb 19, 2016, 06.07 AM IST
International Comparison of Maternity Leave
|
Country |
Maternity Leave |
Paternity Leave |
Percentage of wages |
Source of Funding |
|
India |
Act: 12 weeks Bill: 26 weeks |
No provision Despite there being no legislation 15 days is allowed for male Govt Employee |
100% |
Employer |
|
UK |
52 weeks |
14 consecutive days |
|
Mixed (employers reimbursed up to 92% by public funds) |
|
South Africa |
17 weeks |
3 days |
|
|
|
Singapore |
16 weeks |
7 days |
100% for first and second child |
Mixed (8 weeks employer and 8 weeks public funds) |
|
Brazil |
17 weeks |
5 days |
100% |
|
|
China |
14 weeks |
No provision |
100% |
Employer contribution via insurance scheme |
|
France |
16 weeks |
11 days |
100% up to a ceiling |
Social insurance scheme |
|
Australia |
52 weeks |
14 days |
|
Public funds |
|
Canada |
17 weeks (federal) |
No provision |
55% for 15 weeks up to a ceiling |
Public Funds |
|
USA |
12 weeks (federal) |
No provision |
Unpaid |
No provision |
Ref:http://www.prsindia.org/uploads/media/Maternity%20Benefit/
LB%20Maternity%20Benefit%20Bill%202016.pdf
Various countries have implemented different funding models in relation to maternity benefits. A 2014 ILO study on maternity leave provisions in 185 countries observed:
- In 25% of the countries, maternity benefits are paid solely by the employer (e.g. Kenya, Puerto Rico, Nigeria, Pakistan).
- In 16 % of the countries, maternity benefits are financed by a combinations of funds from the employer and the government (e.g. United Kingdom, Germany).
- In 58% of the countries, cash benefits are provided to pregnant women through national social security benefits (e.g. Norway, Australia).
- In the remaining 1% of the countries, there was no provision for maternity benefits (namely, US and Papua New Guinea).
c) Leave for miscarriage or medical termination of pregnancy.
In case of miscarriage or medical termination of pregnancy, a woman shall, on production of such proof, be entitled to leave with salary for a period of 6 weeks immediately following the day of her miscarriage or her medical termination of pregnancy. [Section 9 of the Maternity Benefit Act, 1961,]
d) Leave with wages for tubectomy operation
In case of tubectomy operation, a woman shall, on production of such proof as may be prescribed, be entitled to leave with wage or salary for a period of 2 weeks immediately following the day of her tubectomy operation.[Section 9A of the Maternity Benefit Act, 1961,]
e)Paid leave to adoptive mothers.
According to the 2016 Working Mother and AVTAR 100 Best Companies for Women in India, 70% of the companies offer paid leave to adoptive mothers. Only a few companies in India are treating adoption on a par with maternity leave.Among the jet-setting few is Accenture, which on Monday announced that it will provide 22 weeks leave irrespective of whether the child is biological, adopted or birthed through surrogacy.And among these, the ones that are most adoption friendly are IT majors, banks, insurers, FMCG players and automotive, chemical companies.
Accenture joins a club of corporates such as Standard Chartered, Citibank, Barclays, Murugappa group and HCL who choose to give 22-28 weeks leave for adoption surrogacy.Accenture increased its adoption leave from the current eight weeks to 22 weeks and included a clause that puts surrogacy leave at 22 weeks. The move gains particular significance as the current statutory requirement is at three months or 12 weeks. While some companies choose to give parents as much as 28 weeks leave, others give their workforce one week leave, said the study.
On average, Indian companies choose to give their workers nine weeks leave to celebrate the latest entrant to their family. IT majors like HCL Tech lead the pack with 26 weeks surrogacy leave -on a par with maternity.Not far behind is Infosys with 16 weeks for the primary caregiver.International banks such as Standard Chartered, Citibank and Barclays, who choose to give between 22 and 28 weeks leave, have a liberal adoption policy globally. In India, they retain the same guidelines -proving highly beneficial to heterosexual couples who want to adopt, couples in a live-in relationship, same-sex couples and the rising population of single dads. Barclays, which has revised its maternity policy from 84 days to 154 days, introduced adoption leave in 2014.
At Mondelez India, mothers, who choose to adopt, get three months leave versus six-month maternity leave.But the company is offering a 15-month-flexi work option for all new parents, irrespective of whether they chose to adopt. Family-run business Murugappa Group also offer 24 weeks for adoption.
According to the 2016 Working Mother and AVTAR 100 Best Companies for Women in India, 70% of the companies offer paid leave to adoptive mothers. Only a few companies in India are treating adoption on a par with maternity leave.Among the jet-setting few is Accenture, which on Monday announced that it will provide 22 weeks leave irrespective of whether the child is biological, adopted or birthed through surrogacy.And among these, the ones that are most adoption friendly are IT majors, banks, insurers, FMCG players and automotive, chemical companies.
Accenture joins a club of corporates such as Standard Chartered, Citibank, Barclays, Murugappa group and HCL who choose to give 22-28 weeks leave for adoption surrogacy.Accenture increased its adoption leave from the current eight weeks to 22 weeks and included a clause that puts surrogacy leave at 22 weeks. The move gains particular significance as the current statutory requirement is at three months or 12 weeks. While some companies choose to give parents as much as 28 weeks leave, others give their workforce one week leave, said the study.
On average, Indian companies choose to give their workers nine weeks leave to celebrate the latest entrant to their family. IT majors like HCL Tech lead the pack with 26 weeks surrogacy leave -on a par with maternity.Not far behind is Infosys with 16 weeks for the primary caregiver.International banks such as Standard Chartered, Citibank and Barclays, who choose to give between 22 and 28 weeks leave, have a liberal adoption policy globally. In India, they retain the same guidelines -proving highly beneficial to heterosexual couples who want to adopt, couples in a live-in relationship, same-sex couples and the rising population of single dads. Barclays, which has revised its maternity policy from 84 days to 154 days, introduced adoption leave in 2014.
At Mondelez India, mothers, who choose to adopt, get three months leave versus six-month maternity leave.But the company is offering a 15-month-flexi work option for all new parents, irrespective of whether they chose to adopt. Family-run business Murugappa Group also offer 24 weeks for adoption.
Read more at:
http://economictimes.indiatimes.com/articleshow/56214740.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
http://economictimes.indiatimes.com/articleshow/56214740.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
f)Paternity Leave (INDIA)
Though it is the mother who actually delivers the child, father plays an equally important role. A father is expected to be emotionally and physically available for both, mother and child, before and after the delivery. Infact, legally accepting and providing two months of paternal leave has resulted in a reduced divorce rate in Sweden.
In India, the Central Government in 1999 by notification under Central Civil Services (Leave) Rule 551 (A) made provisions for paternity leave for a male Central Government employee (including an apprentice and probationer) with less than two surviving children for a period of 15 days to take care of his wife and new born child. He can avail this leave 15 days before or within 6 months from the date of delivery of child. If such leave is not availed within the period, it shall be treated as lapsed. For paternity leave he shall be paid leave salary equal to the pay last drawn immediately before proceeding on leave. Also, the same rule applies when a child is adopted.
While paternity leave is sanctioned for government employees, there isn't any such law that indoctrinates the private sector to make it obligatory. Hence, paternity leave is open to interpretation by individual companies.
We all know and understand that for a healthy work culture and to get the optimum efficiency out of an employee, an employer must ensure to provide certain basic amenities like a comfortable work place, healthy working hours, giving the employee enough physical and mental rest etc. Being India where family is of first and foremost importance, an employer needs to keep in mind that having a child is a start to the chapter of family for almost all, hence, it is an utter necessity to provide reasonable amount of maternity as well as paternity leaves. We must not forget that for a vulnerable new mother and her newly born child, father is the most important person to be around.
Though it is the mother who actually delivers the child, father plays an equally important role. A father is expected to be emotionally and physically available for both, mother and child, before and after the delivery. Infact, legally accepting and providing two months of paternal leave has resulted in a reduced divorce rate in Sweden.
In India, the Central Government in 1999 by notification under Central Civil Services (Leave) Rule 551 (A) made provisions for paternity leave for a male Central Government employee (including an apprentice and probationer) with less than two surviving children for a period of 15 days to take care of his wife and new born child. He can avail this leave 15 days before or within 6 months from the date of delivery of child. If such leave is not availed within the period, it shall be treated as lapsed. For paternity leave he shall be paid leave salary equal to the pay last drawn immediately before proceeding on leave. Also, the same rule applies when a child is adopted.
While paternity leave is sanctioned for government employees, there isn't any such law that indoctrinates the private sector to make it obligatory. Hence, paternity leave is open to interpretation by individual companies.
We all know and understand that for a healthy work culture and to get the optimum efficiency out of an employee, an employer must ensure to provide certain basic amenities like a comfortable work place, healthy working hours, giving the employee enough physical and mental rest etc. Being India where family is of first and foremost importance, an employer needs to keep in mind that having a child is a start to the chapter of family for almost all, hence, it is an utter necessity to provide reasonable amount of maternity as well as paternity leaves. We must not forget that for a vulnerable new mother and her newly born child, father is the most important person to be around.
- provides for payment of gratuity @ 15 days’ wages for every completed year of service or part thereof, in excess of seven months
- maximum amount of gratuity payable under the Act was raised from Rs. 1.00 lakh to Rs. 3.50 lakh with effect from 24.9.97
- no wage ceiling for coverage under the Act
h)Pension benefit after retirement/superannuation (A superannuation pension shall be granted to a Government servant who is retired on his attaining the age of 60 years. )
The minimum eligibility period for receipt of pension is 10 years. A Central Government servant retiring in accordance with the Pension Rules is entitled to receive superannuation pension on completion of at least 10 years of qualifying service.
In the case of Family Pension the widow is eligible to receive pension on death of her spouse after completion of one year of continuous service or before even completion of one year if the Government servant had been examined by the appropriate Medical Authority and declared fit for Government service.
W.e.f 1.1.2006, Pension is calculated with reference to average emoluments namely, the average of the basic pay drawn during the last 10 months of the service or last basic pay drawn whichever is beneficial. Full pension with 10/20 years of qualifying service is 50% of the average emoluments or last basic pay drawn whichever is beneficial. Before 1.1.2006, for qualifying service of less than 33 years, amount of pension was proportionate to the actual qualifying service broken into completed half-year periods. For example, if total qualifying service is 30 years and 4 months (i.e. 61 half-year periods), pension will be calculated as under:-
where R represents average reckonable emoluments for last 10 months of qualifying service or the last pay drawn as opted by the govt servant.
Minimum pension presently is Rs. 3500 per month. Maximum limit on pension is 50% of the highest pay in the Government of India (presently Rs. 45,000) per month. Pension is payable up to and including the date of death.
Commutation of Pension
A Central Government servant has an option to commute a portion of pension, not exceeding 40% of it, into a lump sum payment with effect from 1.1.1996. No medical examination is required if the option is exercised within one year of retirement. If the option is exercised after expiry of one year, he/she will have to under go medical examination by the specified competent authority.
Facts [+]
In India, states like Andhra Pradesh government had removed the pension scheme for government employees those who had joined after 2004, November with the motive to cut down the state expenditure and retain revenues. Eventually lead to initiation of pension schemes by the different bankers and insurance companies like MetLife India Insurance Co. Pvt. Ltd., an Indian affiliate of the U.S.-based Metropolitan Life Insurance Company. some of pension scheme by different companies are Met Pension –Par , LIC Pension Plus, ICICI Pru Life Link Pension SP, SBI Life – LifeLong Pension,Bajaj Allianz Pension Guaranteed, HDFC Personal Pension Plan,TATA AIG Life Nirvana, Birla Sun Life Immediate Income Plan, Reliance Life Traditional Golden Year Plan. etc.
In fact private and public own companies are providing better incentives and benefits to their talented employees especially in the IT and Automobile sector to protect the morale of employees and retain them in organization for long period. Retirement Pension plans in India detailed >>
Facts [+]
The minimum eligibility period for receipt of pension is 10 years. A Central Government servant retiring in accordance with the Pension Rules is entitled to receive superannuation pension on completion of at least 10 years of qualifying service.
In the case of Family Pension the widow is eligible to receive pension on death of her spouse after completion of one year of continuous service or before even completion of one year if the Government servant had been examined by the appropriate Medical Authority and declared fit for Government service.
W.e.f 1.1.2006, Pension is calculated with reference to average emoluments namely, the average of the basic pay drawn during the last 10 months of the service or last basic pay drawn whichever is beneficial. Full pension with 10/20 years of qualifying service is 50% of the average emoluments or last basic pay drawn whichever is beneficial. Before 1.1.2006, for qualifying service of less than 33 years, amount of pension was proportionate to the actual qualifying service broken into completed half-year periods. For example, if total qualifying service is 30 years and 4 months (i.e. 61 half-year periods), pension will be calculated as under:-
Pension amount = R/2(X)61/66
where R represents average reckonable emoluments for last 10 months of qualifying service or the last pay drawn as opted by the govt servant.
Minimum pension presently is Rs. 3500 per month. Maximum limit on pension is 50% of the highest pay in the Government of India (presently Rs. 45,000) per month. Pension is payable up to and including the date of death.
Commutation of Pension
A Central Government servant has an option to commute a portion of pension, not exceeding 40% of it, into a lump sum payment with effect from 1.1.1996. No medical examination is required if the option is exercised within one year of retirement. If the option is exercised after expiry of one year, he/she will have to under go medical examination by the specified competent authority.
Facts [+]
In India, states like Andhra Pradesh government had removed the pension scheme for government employees those who had joined after 2004, November with the motive to cut down the state expenditure and retain revenues. Eventually lead to initiation of pension schemes by the different bankers and insurance companies like MetLife India Insurance Co. Pvt. Ltd., an Indian affiliate of the U.S.-based Metropolitan Life Insurance Company. some of pension scheme by different companies are Met Pension –Par , LIC Pension Plus, ICICI Pru Life Link Pension SP, SBI Life – LifeLong Pension,Bajaj Allianz Pension Guaranteed, HDFC Personal Pension Plan,TATA AIG Life Nirvana, Birla Sun Life Immediate Income Plan, Reliance Life Traditional Golden Year Plan. etc.
In fact private and public own companies are providing better incentives and benefits to their talented employees especially in the IT and Automobile sector to protect the morale of employees and retain them in organization for long period. Retirement Pension plans in India detailed >>
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To go into the background of Provident Fund, it is basically a social security provision and provides some financial stability post retirement to employees. It isn't an idea specific to India, and may generally be found across the globe. The United States imposes Social Security and Medicare contributions towards old age, disability, pension and medical benefits. As early as the 1880s, Germany had built a social insurance programme (one requiring contributions from workers) that provided for sickness, maternity, and old-age benefits. Volatility of income especially hurt the older workers, as they often bore the brunt of economic downturns.
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India Present Prime Minister Manmohan Singh said at the 44th
Indian Labour Conference, Women employed in part-time jobs may soon have a legislation to guarantee them benefits of regular jobs and also to bring more women in the work force, the
government needs to make provision for part time work which would have
the same characteristics of full- time employment.
The Health Insurance Portability and Accountability Act was enacted by U.S. Congress in 1996. HIPAA specifies national standards to protect individuals' medical records and other personal health information. HIPAA also regulates the security of health information, national standards for electronic healthcare transactions, and national identifiers for providers, health plans and employers.
The Health Insurance Portability and Accountability Act was enacted by U.S. Congress in 1996. HIPAA specifies national standards to protect individuals' medical records and other personal health information. HIPAA also regulates the security of health information, national standards for electronic healthcare transactions, and national identifiers for providers, health plans and employers.
SABBATICAL BENEFIT
[Sabbatical :any extended period of leave from one's customary work, especially for rest, to acquire new skills or training, etc.]
Coming soon: Up to 2 years' sabbatical for women bank staff
New Delhi, March 2012 : Come April, and women employees of public sector banks (PSBs) may be able to get sabbatical of up to two years during their career.
The Finance Ministry has asked PSBs to place this proposal before their respective boards for decision and its introduction with effect from April 1,2012, official sources said.
This follows the Government agreeing to the Khandelwal Committee's recommendation to introduce sabbatical for women employees of PSBs. The sabbatical benefit will be available only to employees who have put in a minimum of five years of service. The leave will have to be taken for a period of at least three months at a time and it should not be taken more than once in a year.
But, the Government's decision has somewhat irked trade unions, as they contend that such a move would be unilateral and in violation of the service conditions provided in the bilateral settlement between the Indian Banks' Association (IBA) and the unions.
The Khandelwal Committee was set up in October 2009 to study human resource issues in public sector banks. The Committee had made 105 recommendations, of which the Centre has given its green signal for 56.
United States
401(k) plan (Retirement Benefit)
Employer-sponsored employee benefit scheme supported by the US tax code. Under this plan, a limited amount of an employee's before-tax salary is deposited into tax-deferred retirement plan where it accumulate free of tax. Withdrawals by the employee before he or she reaches the age of 59½ years attract penalties except in certain cases of hardship. More Detailed >>
The long-term viability of the social security system is facing serious issues. People are living longer, baby boomers are nearing retirement, and the birth rate is low. The result is the worker-to-beneficiary ratio has fallen from 17 to 1 in 1950 to 3 to 1, and within 40 years 2-to-1. At this rate there will not be enough workers to pay scheduled social security benefits at current tax rates.
A survey of recent retirees conducted by Putnam Investments found over 78 percent regretted not saving more during their work years. Fifty-nine percent felt they should have started saving for retirement earlier in their careers. More than a third wished their employer or plan manager had encouraged them to save more aggressively.
401(k) plan (Retirement Benefit)
Employer-sponsored employee benefit scheme supported by the US tax code. Under this plan, a limited amount of an employee's before-tax salary is deposited into tax-deferred retirement plan where it accumulate free of tax. Withdrawals by the employee before he or she reaches the age of 59½ years attract penalties except in certain cases of hardship. More Detailed >>
The long-term viability of the social security system is facing serious issues. People are living longer, baby boomers are nearing retirement, and the birth rate is low. The result is the worker-to-beneficiary ratio has fallen from 17 to 1 in 1950 to 3 to 1, and within 40 years 2-to-1. At this rate there will not be enough workers to pay scheduled social security benefits at current tax rates.
A survey of recent retirees conducted by Putnam Investments found over 78 percent regretted not saving more during their work years. Fifty-nine percent felt they should have started saving for retirement earlier in their careers. More than a third wished their employer or plan manager had encouraged them to save more aggressively.
Leave Travel Concession
Leave Travel Allowance which means is an benefit/allowance paid to the employee by the employer when He/She is travelling with their family or alone. In many organisations, the year-end holidays are a norm. In others, the employees apply for long leave in advance, well ahead of their travel schedule. And if the travel costs are reimbursed by the employer,The LTC allows the grant of leave and ticket reimbursement to employees who are entitled under the rules to travel to their home towns and other places.
Any incidental expenses and the expenditure incurred on local journeys shall not be admissible under LTC. In case of a journey between places not connected by any public means of transport, the government employee will be allowed reimbursement for journey on transfer for a maximum limit of 100km covered by the private/personal transport based on self-certification.
Any incidental expenses and the expenditure incurred on local journeys shall not be admissible under LTC. In case of a journey between places not connected by any public means of transport, the government employee will be allowed reimbursement for journey on transfer for a maximum limit of 100km covered by the private/personal transport based on self-certification.
UNEMPLOYMENT COMPENSATION
In USA an individual laid off by an organization covered by the Social Security Act may receive unemployment compensation for up to 26 weeks. Although the federal government provides certain guidelines, unemployment compensation programs are administered by the states, and the benefits vary state by state.
WORKER'S COMPENSATION
Until the early part of the 20th century, workers had little recourse in the event that they were to become the victim of a workplace accident. But the new processes and machines that were incorporated into many jobs with the spread of industrialization created a sufficient increase in the level of occupational danger to warrant the attention of legislators. In response to the growing problem, laws were enacted to grant workers access to financial benefits that their employers would be obligated to provide, free of any considerations about liability. In some ways, it was a tremendous victory, and in others it was less so.Workers’ compensation benefits provide a degree of financial protection for employees who incur expenses resulting from job-related accidents or illnesses. More Detailed >>
Many U.S. employers recognize 10 federal holidays, if not more.
Organizations commonly provide nine or ten days per year as public holidays, although there is no standard. Federal holidays, or legal public holidays, are recognized by Congress but are not observed by all employers.
Legal public holidays:
India
In USA an individual laid off by an organization covered by the Social Security Act may receive unemployment compensation for up to 26 weeks. Although the federal government provides certain guidelines, unemployment compensation programs are administered by the states, and the benefits vary state by state.
Facts [+]
Feb 2012, WASHINGTON: The US House of Representatives passed a compromise bill on Friday extending a payroll tax cut and jobless benefits through 2012, measures aimed at boosting the US economy.
The bill passed by a vote of 293 to 132 and nine abstentions, with broad support from Democrats and Republicans, after a bipartisan deal was reached to end a long and bitter fight over a key proposal by President Barack Obama. The cost of the package has been estimated at $150 billion.
The plan is expected to extend a cut in the Social Security tax rate -- from 6.2 to 4.2 per cent -- for another 10 months, and extend unemployment benefits through the end of the year. It will mean a salaried worker making $50,000 a year will be getting about $1,000 more in take-home pay over the course of the year.
Britain is facing a youth unemployment crisis with more than one in five 16 to 24 year olds currently without a job. The hospitality industry is a key employer of young people and around a quarter of InterContinental's 15,000 British employees are aged between 18 to 24.
Feb 2012, WASHINGTON: The US House of Representatives passed a compromise bill on Friday extending a payroll tax cut and jobless benefits through 2012, measures aimed at boosting the US economy.
The bill passed by a vote of 293 to 132 and nine abstentions, with broad support from Democrats and Republicans, after a bipartisan deal was reached to end a long and bitter fight over a key proposal by President Barack Obama. The cost of the package has been estimated at $150 billion.
The plan is expected to extend a cut in the Social Security tax rate -- from 6.2 to 4.2 per cent -- for another 10 months, and extend unemployment benefits through the end of the year. It will mean a salaried worker making $50,000 a year will be getting about $1,000 more in take-home pay over the course of the year.
Britain is facing a youth unemployment crisis with more than one in five 16 to 24 year olds currently without a job. The hospitality industry is a key employer of young people and around a quarter of InterContinental's 15,000 British employees are aged between 18 to 24.
WORKER'S COMPENSATION
Until the early part of the 20th century, workers had little recourse in the event that they were to become the victim of a workplace accident. But the new processes and machines that were incorporated into many jobs with the spread of industrialization created a sufficient increase in the level of occupational danger to warrant the attention of legislators. In response to the growing problem, laws were enacted to grant workers access to financial benefits that their employers would be obligated to provide, free of any considerations about liability. In some ways, it was a tremendous victory, and in others it was less so.Workers’ compensation benefits provide a degree of financial protection for employees who incur expenses resulting from job-related accidents or illnesses. More Detailed >>
PAID VACATION
Employees who work all day, every day, without a break in sight, will generally be less productive on the job. Offering paid vacation as part of your benefits package will create a more positive work environment and will help your employees avoid burnout. According to Salary.com, there are several ways in which paid vacation can be structured.
For example, some employers offering basic employee benefits allow employees to "earn" paid vacation through years of service. It is also important to determine whether or not your employees will be allowed to carry over unused paid vacation days when a new year begins.
Facts [+]
Italy, France, and Germany top the list of average number of vacation days per year, according to the World Tourism Organization. Italians receive an average of forty-two vacation days per year. Korea, Japan, and the U.S. are at the bottom of the list. Americans receive an average of thirteen vacation days per year.
There is no federal law that requires employers to provide vacation time, paid or unpaid, to its employers. Most employees consider it to be one of their most important benefits. Workplace experts agree that it is important to productivity and morale for employees to take time off in order to rest and rejuvenate. The typical U.S. worker receives ten vacation days per year.
It takes twenty-five years of service in the United States to achieve the mandated minimum vacation allotments in other comparable countries, according to an Economic Policy Institute study. France, Austria, and Denmark mandate at least 25 vacation days per year to employees. There is no mandated vacation time in the United States.
American workers receive on average about twelve vacation days a year. The typical American worker gives back an average of three vacation days, according to a recent survey by Expedia.com, leaving nearly 421 million vacation days unused. The survey estimates that 31 percent of employees do not take all their vacation days.
Every legal worker in the U.S. is entitled by federal law to three basic benefits. Workers' compensation provides insurance for work-related injuries or death. Social security provides retirement income and disability coverage for workers and their dependents. Unemployment insurance provides payments for a period of time presumably long enough to allow workers to find new jobs.
Italy, France, and Germany top the list of average number of vacation days per year, according to the World Tourism Organization. Italians receive an average of forty-two vacation days per year. Korea, Japan, and the U.S. are at the bottom of the list. Americans receive an average of thirteen vacation days per year.
statutory holiday entitlements:
- U.K. (28 days)
- Poland (26 days)
- Greece, Austria, France, Sweden, Luxemburg, Finland and Denmark (25 days)
- Venezuela (24 days)
- Brazil, Peru, Spain, Portugal, United Arab Emirates (22 days)
- Norway (21 days)
- Argentina, Italy, Belgium, Germany, Cyprus, Ireland, Switzerland, the Netherlands, Latvia, Russia, Slovenia, Serbia, Slovakia, Lithuania, Croatia, the Czech Republic, Romania, Japan, Australia and New Zealand (20 days)
- South Korea (19 days)
There is no federal law that requires employers to provide vacation time, paid or unpaid, to its employers. Most employees consider it to be one of their most important benefits. Workplace experts agree that it is important to productivity and morale for employees to take time off in order to rest and rejuvenate. The typical U.S. worker receives ten vacation days per year.
It takes twenty-five years of service in the United States to achieve the mandated minimum vacation allotments in other comparable countries, according to an Economic Policy Institute study. France, Austria, and Denmark mandate at least 25 vacation days per year to employees. There is no mandated vacation time in the United States.
American workers receive on average about twelve vacation days a year. The typical American worker gives back an average of three vacation days, according to a recent survey by Expedia.com, leaving nearly 421 million vacation days unused. The survey estimates that 31 percent of employees do not take all their vacation days.
Every legal worker in the U.S. is entitled by federal law to three basic benefits. Workers' compensation provides insurance for work-related injuries or death. Social security provides retirement income and disability coverage for workers and their dependents. Unemployment insurance provides payments for a period of time presumably long enough to allow workers to find new jobs.
Many U.S. employers recognize 10 federal holidays, if not more.
Organizations commonly provide nine or ten days per year as public holidays, although there is no standard. Federal holidays, or legal public holidays, are recognized by Congress but are not observed by all employers.
Legal public holidays:
- New Year's Day, January 1
- Martin Luther King, Jr. Day, the third Monday in January
- Washington's Birthday, the third Monday in February
- Memorial Day, the last Monday in May
- Independence Day, July 4
- Labor Day, the first Monday in September
- Columbus Day, the second Monday in October
- Veterans Day, November 11
- Thanksgiving Day, the fourth Thursday in November
- Christmas Day, December 25
India
It consists of holidays which have to be observed compulsorily across India.These holidays are:
- Republic Day,
- Independence Day,
- Mahatma Gandhi's Birthday,
- Budha Purnima
- Christmas Day
- Dussehra (Vijay Dashmi) An additional day for Dussehra
- Holi
- Janamashtami (Vaishanvi)
- Ram Navami
- Maha Shivratri
- Ganesh Chaturthi / Vinayak Chaturthi
- Makar Sankrantili
- Rath Yatra
- Onam
- Sri Panchami / Basanta Panchami
- Vishu / Vaisakhi / Vaisakhadi / Bhag Bihu / Mashadi Ugadi / Chaitra Sakladi / Cheti Chand / Gudi Pada 1st Navratra / Nauraj
- Diwali (Deepavali)
- Good Friday
- Guru Nanak's Birthday
- Eid ul-Fitr
- Eid al-Adha (Bakrid)
- Muharram
- Prophet Mohammad's Birthday (Id-e-Milad)
- Dussehra (Maha Navami)
- Dussehra (Vijay Dashami)
- Deepawali
- Eid al-Adha (Bakrid)
- Guru Nanak's birthday/Kartik Poornima
- Dr. B R. Ambedkar's Nirwan Diwas
- Moharram
- Christmas
MEDICAL BONUS
Is this medical bonus paid in addition to maternity leave?
Yest it is given to take care of the above pre-natal and post natal expenses.
NIGHT-SHIFT ALLOWANCE
Every woman entitled to
maternity benefit under this Act shall also be entitled to receive from
her employer a medical bonus of one thousand rupees, if no pre-natal
confinement and post-natal care is provided for by the employer free of
charge. Pre-natal Confinement Care means all the care before expected delivery and post natal care means care after delivery of child.
Yest it is given to take care of the above pre-natal and post natal expenses.
NIGHT-SHIFT ALLOWANCE
According to the labour law, mandates the employer to pay double wage to the worker who works beyond the prescribed working hours or for extra working hours. In addition to the payment of double wage for extra working hours, Night-shift allowance is paid to the workers who does job at night-shift or who does job beyond the prescribed day working hours. Under this allowance, employee will pay some amount for the purpose of transportation/commuting from his residence to workplace.
In fact, especially in the software companies, many employees who are working at night-shifts are complaining about non-payment of night-shift allowance, but it has mentioned as paid in their salary payslip.
Expenditure towards funeral in case of death of an employee.
It is mandatory for an organisation to pay expenditure towards funeral in case of death of an employee while in the course of employment. According to the Section 4(4) of Employee's compensation act 1923, employer is liable to pay funeral expenditure to the dependents of an employee who was killed or if dependents do not exist in such case, funeral expenditure should be paid to the person who actually incurred such expenditure.