Cabinet clears 3% hike in dearness allowance

Cabinet clears 3% hike in dearness allowance

Press Trust of India

New Delhi  29.10.2026

The Cabinet on Wednesday approved a 3% hike in dearness allowance and dearness relief, benefiting over 1.17 crore Central government employees and pensioners.

Announcing the decision, Information and Broadcasting Minister Ashwini Vaishnaw said the Union Cabinet headed by Prime Minister Narendra Modi has taken the decision ahead of Deepavali. The hike will be effective from July 1, 2026. It will benefit 48.54 lakh employees and 68.71 lakh pensioners.

The Cabinet also approved the Container Manufacturing Promotion Scheme with a budgetary outlay of ₹10,000 crore up to FY40 to promote a globally competitive container manufacturing ecosystem in India.

WhatsApp ‘OK’ does not prove leave sanction: CAT

WhatsApp ‘OK’ does not prove leave sanction: CAT 

Rajesh Kumar Pandeytnn  23.10.2026

Prayagraj: Dismissing a railway employee’s petition challenging his transfer from Prayagraj to Fatehpur, the Allahabad bench of Central Administrative Tribunal has held that an officer’s response of “OK” to a leave request on WhatsApp “cannot by itself be treated as conclusive proof of sanction of leave”. CAT judicial member Rajnish Kumar Rai dismissed the application filed by Priya Ranjan Kumar, an employee of North Central Railway, by an order dated Oct 7. 

Kumar had got leave from July 14 to July 16 last year to visit his native village. He subsequently sought an extension of two days via WhatsApp. He claimed senior divisional commercial manager Himanshu Shukla approved his request by replying “OK”. However, when Kumar returned on July 21, he was suspended. Four days later, he was transferred to Fatehpur. 

A disciplinary chargesheet was issued on July 31. Kumar’s counsel argued that his transfer was a punitive measure connected to the dispute over his leave. The railways submitted the transfer was necessitated by the development of a new entry and booking office at Fatehpur station. The tribunal accepted the railways’ explanation and concluded that Kumar had failed to establish mala fide or punitive intent behind the transfer.

Centre pleads for prospective effect of SC creamy layer ruling Seeks 2 Yrs’ Time To Implement New Policy

Centre pleads for prospective effect of SC creamy layer ruling Seeks 2 Yrs’ Time To Implement New Policy

Amitanand.Choudhary@timesofindia.com 25.09.2026

New Delhi: Facing the task of implementing Supreme Court’s ruling on calculating creamy layer criteria for OBC reservation from the retrospective date of 2012, Centre pleaded with the court to make the enforcement of the verdict prospective and grant it two years’ time to implement it. The court had in March held that the income of parents could not be the sole criterion to determine the creamy layer of a candidate for exclusion from OBC reservation, and status and category of a parent’s job had to be considered with an ‘income/wealth test’ as an additional criterion. 

It made the verdict implementable from 2012, when the case was first filed. In a written note filed by additional solicitor general Aishwarya Bhati, govt submitted that the retrospective application of a changed eligibility criterion may unsettle appointments and admissions made under the rules and certificates prevailing at the time and create uncertainty regarding OBC-NCL status, seniority, service conditions and career progression. “The retrospective implementation of the present judgement would create changes in candidates’service and cadre allocation... as it would affect the services of persons appointed on the basis of CSE-2012 onward and cause a cascading effect among civil servants... The aforementioned cascading effect will impact not only OBC candidates but also reverberate across all categories including (unreserved category) of the civil services,” the note said. 

Govt said a reasonable time of two years should be given to it to undertake the necessary exercise of establishing equivalence of posts, after consulting all the stakeholders and formulating a uniform policy/mechanism for determination of OBC creamy layer status. “Union of India is only praying for a limited deferral of the operationalisation of law laid down by this hon’ble court for a period of two years so that the competing rights can be adjusted consistent with administrative contingencies & an effective equivalence exercise is carried out,” it said.

Biometric authentication must for LPG refills with subsidy

Biometric authentication must for LPG refills with subsidy

Atul.Mathur@timesofindia.com  20.09.2026

New Delhi: Govt has made biometric Aadhaar authentication mandatory for subsidised domestic LPG refills from Oct 1. The petroleum ministry said nearly 90% of consumers have already completed the authentication process. The remaining consumers can complete it at the time of delivery of the refill, at the dealer’s office or through oil companies’ mobile apps. Govt said biometric Aadhaar authentication ensures that subsidised LPG reaches only genuine and deserving households. 

“Linking each connection to the Aadhaar-authenticated consumer helps prevent diversion of subsidised domestic cylinders for commercial and industrial use, removes duplicate and ineligible connections, and makes subsidy delivery transparent and targeted,” the petroleum ministry said. 

To help consumers, video tutorials on completing self e-KYC are available on the Pradhan Mantri Ujjwala Yojana portal. Of the over 30.5 crore active LPG consumers, 27.4 crore have completed biometric Aadhaar authentication. Under PMUY, eligible low-income households get subsidy on up to four cylinders every year

8th Pay Commission: What actually happened in 2025 and what 2026 holds for employees, pensioners

8th Pay Commission: What actually happened in 2025 and what 2026 holds for employees, pensioners

By Upstox News Desk| Updated on December 29, 2025, 13:25 IST

SUMMARY

8th Pay Commission report may not come in 2026. But employees and pensioners can expect arrears with effect from January 1, 2026, whenever the pay commission's recommendations are implemented. This is because of two reasons:

The Government has not yet confirmed whether the 8th Pay Commission will be implemented from January 1, 2026.

As the year 2025 comes to an end, there are a lot of speculations on the 8th Central Pay Commission (CPC) circulating on social media. Some claims are being made that the new pay panel will be implemented from January 1, 2026. However, this is not completely true.

In this article, we explain what actually happened in 2025 with respect to the 8th Pay Commission and what 2026 holds for central government employees and pensioners.

What happened in 2025?

In 2025, the Government took three key steps with respect to the 8th Pay Commission:

Announced the decision to appoint the 8th Pay Commission to review the salary, pension, and other perks provided to eligible central government employees and pensioners.

Constituted the 8th CPC and also nominated its chairperson and members.

Notified the Terms of Reference of the 8th Pay Commission. In the lead-up to the notification of the Terms of Reference, the government also held consultations with various departments and staff bodies, including the NC-JCM Staff Side. The latter submitted several suggestions for the TOR, both before and after the notification.

What 2026 holds for employees and pensioners?

The tenure of the 7th Pay Commission is going to end after 10 years on December 31, 2025. However, the Government has not yet confirmed whether the 8th Pay Commission will be implemented from January 1, 2026.

Recently, in the Parliament, the government hinted that the decision on the date of implementation of the 8th CPC will be taken once the pay panel submits its recommendations. The above means that employees and pensioners will not get a revised salary and pension, respectively, immediately after the start of the New Year on January 1, 2026.

However, employees and pensioners can expect arrears with effect from January 1, 2026, whenever the pay commission's recommendations are implemented. This is because of two reasons:

First, the 8th CPC should ideally be implemented with effect from January 1, 2026, as the tenure of the 7th CPC ends on December 31, 2025

Second, the government generally provides arrears whenever any pay-related announcements are made after their effective dates.

However, any final decision with regard to the implementation of the 8th CPC and payment of arrears is in the hands of the government.

Will the 8th Pay Commission submit its report or recommendations in 2026?

There is a very small chance of the 8th CPC submitting its recommendations in 2026. This is because the 8th CPC was constituted recently, and the government has given it up to 18 months to submit recommendations. If the commission finishes its work within this timeframe, then the employees and pensioners may see the recommendations in 2027.

Those recommendations will be implemented only after they are approved by the government.

However, in the lead-up to the 8th CPC implementation, employees and pensioners may expect dearness allowance (DA) and dearness relief (DR) hikes as per the 7th CPC norms.

Stiff penalties mark big policy shift in regulating higher education

Stiff penalties mark big policy shift in regulating higher education

Manash.Gohain@timesofindia.com 16.12.2025

New Delhi : For the first time, the govt has proposed a graded penalty regime for higher education institutions, with fines ranging from ₹10 lakh to ₹75 lakh for repeated violations, suspension of degree-awarding powers and closure, while illegal institutions could face a ₹2 crore penalty and immediate shutdown, with safeguards to protect enrolled students.

 The proposed Viksit Bharat Shiksha Adhishthan Bill, 2025, placed in Lok Sabha marks a decisive shift in how higher education institutions will be regulated, moving away from advisory nudges to a system driven by statutory penalties, mandatory transparency and accreditationlinked autonomy. Under the graded penalty framework — proposed with hard financial consequences for regulatory violations — institutions found violating provisions of the law or its regulations could face fines starting at ₹10 lakh, escalating to ₹30 lakh for repeat offences, and going up to ₹75 lakh for persistent violations. 

In extreme cases, regulators can recommend suspension of degree-awarding powers, withdrawal of affiliation or even closure. Every year the UGC, which will cease to exist, used to notify a list of fake universities, but beyond that no action could be initiated and they continued to function at the cost of unsuspecting students, many of whom were left with invalid degrees and financial losses. The bill introduced a ₹2 crore penalty for unauthorised institutions operating without govt approval, along with immediate closure

Central employees hit the jackpot, the government made new rule

 Central employees hit the jackpot, the government made new rule

vipin kumar October 18, 2025 - 09:05 AM

New Delhi: If you have a government employee or pensioner in your family, this news will prove to be a great relief. The Modi government at the central government has taken a major decision for employees. Employees and pensioners will no longer face delays in receiving their post-retirement benefits. To this end, the government has issued comprehensive new guidelines.

The government aims to ensure that no employee has to wait months for their pension or pension payment order. This means that there will be no long wait for a pension payment order after retirement, which is sure to be good news.

Know the details The central government has also released some good news by issuing new guidelines. The Department of Pension and Pensioners’ Welfare has issued the new guidelines. All ministries and government departments have been instructed to ensure that PPOs are issued before retirement.

The government has also directed all departments to digitise employee service books. In addition, every employee’s record will now be online through the e-HRMS system. This will make the pension process much easier and more transparent.

Pension Mitra will be created in all departments. According to the new guidelines of the Central Government, a Pension Mitra will be created in every department. A Welfare Officer will also be appointed. The deployed officer will be able to assist retiring employees in filling out forms, preparing documents, and applying for pensions.

In the event of an employee’s death, these officers will also be able to assist the family in receiving a family pension. Lack of vigilance clearance will no longer be a hindrance to disbursing pensions. Even if an employee is under investigation for some reason, interim bail will be granted. Gratuity can only be withheld until the final order.

How long before a PPO is required? The government has established some important rules to know. Under the CCS Rules 2021, it has now been decided to issue employees their PPO or e-PPO at least two months before retirement.

According to the government, the purpose of these new provisions is not only to expedite the process but also to provide a respectable and stress-free retirement experience for all employees. It is now expected that no government employee will have to wait for their rights. This government order is being widely appreciated.

Centre hikes Dearness Allowance/Dearness Relief by 3%; to benefit 1.18 crore employees, pensioners

Centre hikes Dearness Allowance/Dearness Relief by 3%; to benefit 1.18 crore employees, pensioners 

The DA/DR increase of 3% over the existing rate of 55% of the basic pay/pension to compensate against the price rise is effective July 1, 2025 

Updated - October 01, 2025 03:52 pm IST - New Delhi

PTI

The combined impact on the exchequer on account of an increase in DA and DR will be ₹10,083.96 crore per annum, I&B Minister Ashwini Vaishnaw said while briefing on decisions taken in the Cabinet meeting. 

The Union Cabinet on Wednesday (October 1, 2025) increased Dearness Allowance (DA) and Dearness Relief (DR) by 3% for about 49.19 lakh central government employees and 68.72 lakh pensioners.

The DA/DR increase of 3% over the existing rate of 55% of the basic pay/pension to compensate against the price rise is effective July 1, 2025.

The combined impact on the exchequer on account of an increase in DA and DR will be ₹10,083.96 crore per annum, I&B Minister Ashwini Vaishnaw said while briefing on decisions taken in the Cabinet meeting.

The increase is in accordance with the accepted formula based on the recommendations of the 7th Central Pay Commission.

Govt puts time riders to receipt, utilisation of funds under FCRA

Govt puts time riders to receipt, utilisation of funds under FCRA

Bharti.Jain@timesofindia.com 08.04.2025

New Delhi : Centre has put a three-year limit on NGOs and associations working on specific projects to receive foreign funds after being granted ‘prior permission’ under the Foreign Contribution Regulation Act, 2010, besides setting a four-year timeframe for their utilisation. “Any receipt or utilisation of the foreign contribution beyond the above said time limits shall be a violation of FCRA, 2010, and in case of any violation, necessary punitive action shall be taken,” home ministry said in a public notice issued on Monday. 

At the same time, the ministry left a window open for NGOs unable to receive or utilise foreign contributions in the specified three and four year validity period, respectively, for genuine reasons. It said an extension may be allowed in the validity period for an association/organisation “on a case-to-case basis, based on the merits of the case”. Until now, the validity of ‘prior permission’ granted under FCRA was co-terminus with the duration of the specific projects or activities for which the foreign contribution was obtained and that too from the specified source. 

A fresh ‘prior permission’ would need to be sought to receive foreign contributions for another project/purpose or if the funding was to be accepted from a new source. The ministry said the central govt, in exercise of powers conferred under Section 46 of FCRA, 2010, has directed that the validity period for receiving foreign contribution shall be three years from the date of approval of the application for prior permission. For utilising the foreign contribution, the validity period would be four years from the date of approval of the application for prior permission, it specified. 

The ministry further clarified that for ‘prior permission’ applications which have already been approved and where the remaining period of the approved project in the prior permission is more than three years, the above time limit shall be reckoned from date of issue of this order — April 7, 2025 — instead of the date of approval of the application for prior nod.

8th Pay Commission: Central employees’ commuted pension to be restored after 12 years?

8th Pay Commission: Central employees’ commuted pension to be restored after 12 years?  

Big employee unions like Confederation of Central Government Employees and Workers say that the government is constantly ignoring their demands. 

This is increasing resentment among employees and pensioners.

Written by PF Desk March 16, 2025 13:57 IST

8th Pay Commission News: The long-standing demand for the restoration of commuted pensions is again in discussion. Currently, this pension is restored after 15 years, but employee organisations want the government to cut this commutation period to 12 years.

Now, after the announcement of the 8th Pay Commission, employees are hopeful that the government may take up the issue this time. The government is currently in the process of deciding the terms and conditions of the Pay Commission, and with this, the employee organisations have raised their voice.

Big employee unions like the Confederation of Central Government Employees and Workers say that the government is constantly ignoring their demands. This is increasing resentment among employees and pensioners. The union recently announced demonstrations across the country. Under this, gate meetings and general body meetings were organised.

8th Pay Commission: 6 major demands of employees:

Immediate establishment of 8th Pay Commission and inclusion of demands of employees.

Abolish New Pension Scheme (NPS) and implement Old Pension Scheme (OPS).

Immediate release of Dearness Allowance (DA) stopped during COVID-19.

Reducing the restoration period of adjusted (commuted) pension from 15 years to 12 years.

Removing the limit on compassionate appointments and filling the vacant posts soon.

Ensuring democratic functioning of organisation.

The government deducts the pension of retired employees for 15 years. That is, the lump sum amount received is compensated monthly for 15 years. Employees’ demand:

Employees want this period to be made 12 years, so that retired personnel can get full pension soon

Employees’ arguments: Why is this change necessary?

Given the rising inflation and expenses, the reduction of 15 years is unfair.

Employees already bear taxes and deductions during their service. If this change happens, millions of retired employees will get relief.

What is the government thinking?

So far, no formal announcement has been made by the government with regard to a decision on pension commutation and restoration period. Employee organisations are constantly putting pressure, and if their demands are not met, they are preparing to protest on a large scale.

Now The process of the 8th Pay Commission is still in its initial stages. It may become clear in the coming days whether the government will be ready to accept this important demand of the employees.

DA Hike Update: The lowest DA in 7 years? Union Cabinet To Decide toda

DA Hike Update: The lowest DA in 7 years? Union Cabinet To Decide today

Sweta Mitra March 12, 2025 - 05:33 PM

The wait is over. The announcement about the increase in Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners is coming up soon. The new DA will kick in starting January 2025, meaning employees will receive two months’ worth of DA arrears along with their boosted salary in March.

The Union Cabinet, led by Prime Minister Narendra Modi, is set to talk about the DA increase in their meeting on Wednesday. Reports suggest that the government might approve a 2 percent DA hike during this session.

Typically, the DA hike is revealed around Holi each year

In recent years, the central government has been announcing DA increases around the Holi festival. However, this time, employees might feel let down by the percentage of the increase. Based on the All India Consumer Price Index (AICPI) data, it looks like there will only be a 2% increase in DA, which would be the smallest rise in the last seven years. Since July 2018, the government has usually raised the DA by at least 3% or 4%.

During the COVID-19 pandemic, the government paused DA hikes for 18 months, from January 2020 to June 2021, with no increases during that time. Traditionally, the government raises DA twice a year: once for the January-June period, announced in March, and again for the July-December period, announced in October or November.

The dearness allowance is set to rise to 55 percent

Currently, under the 7th Pay Commission, the dearness allowance stands at 53%. Back in October 2024, it was bumped up by 3%, moving from 50% to 53%. Now, there’s talk of a 2% increase for the January-June 2025 period, which could push the DA up to 55%.

So, how is the dearness allowance determined?

The Dearness Allowance (DA) is figured out using the All India Consumer Price Index (AICPI-IW), published by the Labour Bureau. The government looks at the AICPI-IW data from the last six months to decide on the DA increase for the upcoming six months.

Everyone’s waiting on the government’s decision

Right now, over a crore of central employees and pensioners are anxiously anticipating what the government will decide. All eyes are on the cabinet meeting, where the final call will be made.

பாஸ்போர்ட் பெறுவதற்கு பிறப்பு சான்றிதழ் கட்டாயம்

பாஸ்போர்ட் பெறுவதற்கு பிறப்பு சான்றிதழ் கட்டாயம்

நமது நிருபர்

ADDED : மார் 02, 2025 05:32 AM

புதுடில்லி: கடந்த, 2023 அக்., 1ம் தேதிக்கு பின் பிறந்தவர்கள், புதிதாக பாஸ்போர்ட் பெறுவதற்கு பிறப்பு சான்றிதழ் கட்டாயம் என வெளியுறவு அமைச்சகம் அறிவித்துள்ளது.

'பாஸ்போர்ட் சட்டம் 1980' விதிகளில் மத்திய வெளியுறவு அமைச்சகம் திருத்தம் செய்துள்ளது.

இது தொடர்பாக, வெளியிட்ட அறிக்கையில், 'கடந்த, 2023ம் ஆண்டு அக்டோபர் 1ம் தேதிக்கு பிறகு பிறந்தவர்கள், புதிதாக பாஸ்போர்ட் பெறுவதற்கு பிறப்பு சான்றிதழ் கட்டாயம்.

மாநகராட்சி, நகராட்சி போன்றவை அல்லது அதற்கு நிகரான அமைப்புகள் வழங்கும் பிறப்பு, இறப்பு சான்றிதழ்கள் மட்டுமே பிறப்பு சான்றிதழ் ஆவணமாக ஏற்கப்படும்.

அரசிதழில் அறிவிப்பு வெளியான நாளில் இருந்து இந்த உத்தரவு அமலுக்கு வருகிறது' என, தெரிவிக்கப்பட்டுள்ளது.

எனினும், 2023, அக்.1 -க்கு முன்பு பிறந்தவர்களுக்கு இத்தகைய பிறப்பு சான்றிதழ் தேவை இல்லை. பள்ளி சான்றிதழ், நிரந்தர கணக்கு அட்டை, ஓய்வூதிய உத்தரவு, ஓட்டுநர் உரிமம், வாக்காளர் அடையாள அட்டை உள்ளிட்டவற்றை பாஸ்போர்ட் விண்ணப்பத்துக்கு பிறந்த தேதிக்கான ஆவணங்களாக அவர்கள் பயன்படுத்தலாம்.

பாஸ்போர்ட் பெறுவதற்கான சட்ட விதிகளில் நீண்ட காலமாகவே எந்த திருத்தமும் மேற்கொள்ளப்படாமல் இருந்தது.

கிராமங்கள் மற்றும் ஊரக பகுதிகளில் வசிக்கும் பெரும்பாலானவர்களிடம் பிறப்பு சான்றிதழ் இருக்காது என்பதால், அது பற்றி முடிவு எடுக்கப்படவில்லை. தற்போது முதற்கட்டமாக இந்த முடிவு எடுக்கப்பட்டுள்ளது.

Budget gives broadband boost to edu spectrum

 Budget gives broadband boost to edu spectrum 

TEAM TOI 02.02.2025

Finance minister Nirmala Sitharaman announced a significant increase in allocation for the education sector, focusing on last-mile broadband connectivity in rural schools that were worst hit by insufficient internet coverage during Covid. Infrastructure expansion for IITs, medical education and AI in learning were also among the Budget highlights. 

The digital push is expected to boost broadband connectivity at all govt secondary schools and primary health centres in rural areas. Five of the newer IITs — in Jammu, Bhilai, Dharwad, Palakkad and Tirupati — would be expanded to accommodate 6,500 more students over the next five years. And, ahead of the Bihar assembly polls scheduled later this year, IIT-Patna is set to receive funds for enhanced infrastructure, including hostels.

 “The total number of students in 23 IITs has doubled in the past decade from 65,000 to 1.4 lakh,” said FM Sitharaman. The IIT budget has increased to Rs 11,349 crore from Rs 10,467 crore. To strengthen research, 10,000 fellowships for technology research in IITs and IISc will be provided over five years. Five national centres for excellence (CoEs) in skilling will also be set up, along with 50,000 Atal Tinkering Labs in govt schools to pro mote scientific curiosity. A CoE in AI for education will also be established with a Rs 500-crore outlay. Sitharaman said the edu cation ministry will get Rs 1.3 lakh crore, up from Rs 1.1 lakh crore in 2024-25. Of this, Rs 50,067 crore is for higher education and Rs 78,572 crore for school education. Education minister Dharmendra Pradhan called the Budget a “leapfrogging moment” for the sector.

“With poor, youth, farmers and women as the pillars, this Budget will accelerate spending, spur growth and nurture research, innovation, entrepreneurship,” he said. While allocations for UGC, NCERT and IIMs have increased, funding for IISERs and World Class Institutions has seen cuts.

FM charitable to trusts; registration tenure is doubled

FM charitable to trusts; registration tenure is doubled 

TEAM TOI 02.02.2025

For the first time in years, the Budget provisions have made life easier for charitable trusts and institutions. For instance, the period of validity of registration of a trust (registration is essential to claim tax exemption) has been extended from the current five years to 10 years. However, this applies only to smaller trusts with income below Rs 5 crore. Second, minor errors in the registration application will not result in deregistration of the trust. This is a significant development as deregistration meant that the fair market value of the assets of a trust becomes chargeable to tax. In Metro cities, trusts such as those engaged in education or medical have significant assets like land or buildings, and an ‘exit tax’ on deregistration was suicidal. 

But reading between the lines is crucial. Gautam Nayak, tax partner at CNK & Associates, states, “When trusts have income (before exemption) of less than Rs 5 crore in each of the two years preceding the year of making application for renewal, registration will be granted for 10 years. This will apply to cases where application is made after March 31, 2025, and will not apply to provisional registration of new trusts, where registration is granted for 3 years. Small trusts whose approval was valid till Mar 31, 2026, will still have to make an application for renewal by Sept 30, 2025, but the renewal granted to them will then be for 10 years.” He adds that trusts would have to reapply every five years for approval under 80G. Only if the trust is approved can donors get a tax benefit (albeit under the old regime). “The reason for cancellation of a registration by the commissioner would now only be in a case of false or incorrect information – the mere fact that the application was incomplete cannot be a ground for cancellation (which has significant adverse consequences of a heavy tax liability on the fair market value of assets of the trust),” adds Nayak.

Currently, a benefit provided to ‘specified persons’ by charitable trusts can result in loss of exemption to the extent of the benefit provided. The list of specified persons included a substantial contributor (a person who had made aggregate donations of more than Rs 50,000 

since the inception of the trust), his relatives and concerns in which he held a substantial interest. “This ridiculously low limit of Rs 50,000 had remained unchanged for 40 years since 1985, and trusts found it impossible to identify or obtain details of such donors, their relatives and concerns. The limit is now being changed to Rs 1 lakh for donations during the year, or aggregate of Rs 10 lakh since inception. Further, relatives or concerns of such donors are excluded from the list of specified persons. While this will provide much-needed relief to trusts in maintaining records, the retention of period of aggregation of donations from inception of the trust will still be problematic for trusts which are several decades old,” concludes Nayak

In nil-tax bracket? Why a raise won’t help you much

In nil-tax bracket? Why a raise won’t help you much 

TEAM TOI 02.02.2025 

The Budget announcement that an annual income of Rs 12 lakh will not be taxed has been met with cheer. For salaried employees, this nil tax limit will be Rs 12.75 lakh per annum, after taking into account standard deduction of Rs 75,000. 

But what if there is an increment around the corner for your fine performance at work that pushes you into a higher tax slab? 

Suppose, your boss gives you a 10% hike on Rs 12.75 lakh, to, say, about Rs 14 lakh a year? 

The tax department could then take away Rs 82,000. This would leave you with Rs 13.18 lakh in hand — still a small hike, but nothing to jump about. If your bosses are even more impressed (you might want to pray they are not) and you get a 20% hike on Rs 12.75 lakh, to, say, about Rs 15.3 lakh, this could mean that you might be shelling out tax of about Rs 1.02 lakh, leaving you a less exciting Rs 14.27 lakh in hand. This could mean you could end up with less in the pocket than you first thought.

Nirmala Bats For Middle Order To Revive India’s Spend Force

Nirmala Bats For Middle Order To Revive India’s Spend Force 

Zero-Tax Party For Those In ₹12-Lakh Slab, Gain-Changing Relief Cheers Others Too

TEAM TOI On Budget-eve, PM Modi invoked Goddess Lakshmi, and a day later, Indian taxpayers got a Diwali bonus in Feb. With Finance Minister Nirmala Sitharaman announcing revised tax slabs and rates under the new regime, the biggest bonanza is for those whose income is up to Rs 12 lakh (Rs 12.75 lakh for salaried taxpayers as they get a standard deduction of Rs 75,000) as their liability will become nil under the new proposed income tax regime.

However, income such as capital gains are excluded and will be taxed at separate short and long-term rates. So how did the FM reach this magic zero-tax figure? 

This was thanks to an increase in tax rebate to Rs 60,000 from the present level of Rs 25,000. Under the new regime, the tax liability on income of Rs 12 lakh and Rs 12.75 lakh for salaried persons is Rs 60,000 which is waived off due to rebate of up to Rs 60,000. Ergo, nil tax. But what if you earn more than Rs 12 lakh? If your taxable income is even a rupee more, you will not get the benefit of rebate but will have to pay taxes as per slab rates un der the new tax regime. But because of a rejig of tax slabs and standard deduction of Rs 75,000 under the new regime, everyone stands to gain. As per the rejig, for people earning over Rs 12 lakh per annum, there will be nil tax for income up to Rs 4 lakh, 5 per cent for income between Rs 4 and 8 lakh, 10 per cent for Rs 8-12 lakh, and 15 per cent for Rs 12-16 lakh. A 20% income-tax will be levied on income between 16 and 20 lakh, 25 per cent on 20-24 lakh and 30 per cent above 24 lakh per annum. How much you save will depend on your income level (see chart). The maximum benefit of Rs 1.1 lakh will accrue at an income level of Rs 24 lakh, where the tax liability under the proposed scheme would be Rs 3 lakh as against Rs 4.1 under the existing new scheme. Beyond the income level of Rs 24 lakh, the tax rates remained unchanged at 30%, so the benefit will remain at Rs 1.1 lakh. Earlier, the limit of income for nil tax payment was Rs 7 lakh.

By increasing this limit to Rs 12 lakh, around 1 crore as-sessees who were earlier required to pay tax varying from Rs 20,000 to Rs 80,000 will be now paying nil tax. The provision will cost the exchequer revenue loss of Rs 1 lakh crore. 

For those under the old regime — used usually by those who have home loans or HRA deductions — there is no change in either rates or slabs. To come back to a point that often causes confusion, what happens to those with taxable incomes of just over Rs 12 lakh? In such cases, the taxpayer will get marginal relief to ensure that those earning just over Rs 12 lakh don't end up with post-tax incomes lower than those earning Rs 12 lakh. For instance, an individual has a taxable income of Rs 12.10 lakh. Without marginal relief, their tax liability would be 61,500 calculated as per tax slabs. However, with marginal relief in place, this taxpayer owes just 10,000. But there’s a cap — marginal relief is only admissible for incomes up to approximately 12.75 lakh. Beyond this, regular tax slabs apply.

Central govt may soon ask private companies to notify vacancies

Central govt may soon ask private companies to notify vacancies

Hemali.Chhapia@timesofindia.com 21.01.2025

Mumbai : Vacancies in all departments and verticals of private companies may soon have to be mandatorily notified to govt, signalling a shift in employment regulation. The Centre plans to replace the Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959, with the new Social Securities Act, in order to formalise a mechanism for disseminating information on job vacancies and introduce steep penalties for non-compliance – govt wants to hike fines, which were once a negligible Rs 100, to as high as Rs 50,000. 

“We have employment exchanges, but they have become defunct. With the changes in the Act, we will revive and strengthen them to ensure companies inform the state about vacancies,” said Mangal Prabhat Lodha, state minister for skill education, employment, and entrepreneurship. Speaking at a press conference on Monday, Lodha said nominal penalties of Rs 100-500 have discouraged companies from reporting vacancies, a practice that will change under the revamped law. Currently, most companies post their vacancies on employment-oriented social media platforms like LinkedIn. It is not clear why the govt wants to duplicate this effort. To ease compliance, Maharashtra govt plans to develop a state-specific job portal for companies to list their openings. This initiative, according to the minister, forms part of a broader 100-day action plan. Sougato Roychoudhary, executive director, CII, said while there is already a provision to notify vacancies, “It (the new proposal) will help to understand (number of) jobs in every state. On the one hand, industry is looking for talent and one speaks of unemployment.

 This is a good initiative.” The Centre is also drafting a Private Placements Act to regulate placement agencies. States like Mizoram, Chhattisgarh, and Assam have already submitted inputs for this bill. Maharashtra too plans to make submissions for it. Under this act, all placement agencies will have to register in their respective state, which will empanel and monitor them. “These agencies often charge fees and promise jobs but sometimes end up duping candidates. By registering them, we can hold them accountable and track data on jobs secured through their platforms,” said an official. These agencies will also be required to participate in state-organized job fairs. Meanwhile, as part of a 100-day action plan in Maharashtra, job fairs will be organized in industrial belts, and memorandums of understanding will be signed with 1,000 industrial establishments.

Will central govt employees get 18-month DA arrears of COVID period? Hopes rise after 8th Pay Commission nod

Will central govt employees get 18-month DA arrears of COVID period? Hopes rise after 8th Pay Commission nod

Central government employees hope for the release of 18-month DA arrears frozen during COVID-19, following the approval of the 8th Pay Commission and ahead of Budget 2025.

Written by Mithilesh Jha

January 18, 2025 18:34 IST

Will central govt employees get 18-month DA arrears of COVID period? Hopes rise after 8th Pay Commission nod

With the Centre recently agreeing to the central government employees’ demand for the 8th Pay Commission, will it now address their call to release the dearness allowance (DA) arrears frozen during COVID-19?

The DA is typically revised twice a year, in January and July. However, after the COVID-19 pandemic broke out, the Centre withheld three DA hikes spanning 18 months, from January 2020 to June 2021. The stated reason for freezing these DA installments was the financial pressure on government resources.

Ahead of the Union Budget 2025, the Staff Side of the National Council Joint Consultative Machinery (NC JCM), representing the central government employees in the country, recently wrote to Finance Minister Nirmala Sitharaman seeking the release of the DA arrears of 18 months, among other demands.

The Centre introduced the JCM to promote harmonious relations and cooperation between the government in its capacity as employer and the general body of employees in matters of common concern.

18 months DA/DR arrears be paid back to employees and pensioners: NC JCM

In a letter dated January 10, Gopal Mishra, Secretary, NC JCM, said, “We have been demanding to the government that, in accordance with the judgements of the Hon’ble Supreme Court and also considering the fact that the economic conditions of the country are at a satisfactory level, the 18-month DA/DR arrears due to the central government employees and pensioners, which were frozen during the COVID-19 pandemic period, may please be paid back to the employees and pensioners.”

In his letter, Mishra also urged the Modi government to set up the 8th Pay Commission, which finally received the Union Cabinet’s approval on January 16. The formation of the pay panel was one of the key demands of the NC JCM. With its approval, employees now hope their other demands will also be addressed.

What are other demands of government employees from FM Sitharaman in Budget 2025?

Other than DA arrears demand and the 8th pay panel, the NC JCM also urged the government to restore festival advance for the central government employees, implement the recommendations of the Parliamentary Standing Committee on Petitions concerning CGHS facilities to the central staff, and restore commuted pension after 12 years instead of 15 years. There were several other demands the body requested the government look into.

What’s government’s stand on releasing the DA arrears of 18 months?

Despite multiple representations, letters, and meetings where employee bodies pressed for the release of DA arrears from the pandemic period, the government has consistently maintained that the payment was withheld to alleviate the financial strain on the central exchequer caused by the pandemic.

The issue of non-payment of 18-month DA arrears has been raised time and again in Parliament by several parliamentarians.

Responding to a query in this regard in the Rajya Sabha, Pankaj Chaudhary, Union Minister of State for Finance, said, “The decision to freeze three instalments of Dearness Allowance(DA)/Dearness Relief (DR) to Central Government employees/pensioners due from 01.01.2020, 01.07.2020 and 01.01.2021 was taken in the context of COVID-19, which caused economic disruption, so as to ease pressure on government finances.”

On account of freezing of three instalments of DA, the Centre saved an amount of Rs 34,402.32 crore. The Centre utilized the fund to tide over the economic impact of the COVID-19 pandemic, Parliament was informed.

8th Pay Commission: Will Central Govt Employees See 186% Jump In Salary? Know What's Expected

8th Pay Commission: Will Central Govt Employees See 186% Jump In Salary? Know What's Expected

Curated By :Namit Singh Sengar

News18.com

January 16, 2025, 15:52 IST

8th Pay Commission: If the government approves the fitment factor of 2.86, the minimum salary of government employees will shoot up by 186 per cent to Rs 51,480, compared with the current payout of Rs 18,000.

The central government on Thursday approved the constitution of the 8th Central Pay Commission

8th Pay Commission: The central government announced on Thursday the formation of the 8th Central Pay Commission, tasked with reviewing and recommending salary revisions for central government employees. The commission is to submit its report by 2026.

During a Cabinet briefing, Union Minister Ashwini Vaishnaw on Thursday said, “Prime Minister has approved the 8th Central Pay Commission for all employees of Central Government."

Vaishnaw further said the chairman and two members of the Commission will be appointed soon.

8th Pay Commission Minimum Salary Increase

According to some earlier reports, central government employees are expected to see a 186 per cent jump in their minimum salaries.

The employees currently get a minimum basic salary of Rs 18,000 per month under the 7th Pay Commission, which was increased from the 6th Pay Commission’s Rs 7,000.

Minimum Salary, Pension Under 8th Pay Commission

Shiv Gopal Mishra, Secretary (staff side) of the National Council of Joint Consultative Machinery (JCM), has said he expects a fitment factor of at least 2.86. It is 29 basis points (bps) higher as compared with 2.57 fitment factor under the 7th Pay Commission.

If the government approves the fitment factor of 2.86, the minimum salary of government employees will shoot up by 186 per cent to Rs 51,480, compared with the current payout of Rs 18,000, according to a Financial Express report.

Any further hike in fitment factor will lead to commensurate rise in the salaries.

A hike in the fitment factor raises both the pension and salaries of the employees.

Under the 8th Pay Commission, pensions are also expected to increase by 186 per cent to Rs Rs 25,740, compared with the current pension of Rs 9,000. This calculation holds true if the currently expected fitment factor of 2.86 gets through.

7th Pay Commission: When Was It Formed?

The 7th Pay Commission, which led to a substantial jump in government employees’ salaries, was formed in February 2014. Its recommendations were implemented from January 1, 2016. The key recommendations included raising the minimum basic pay from Rs 7,000 to Rs 18,000; revising the pay structure, allowances, and pensions; introducing a health insurance scheme for employees and pensioners; and revising the pension formulation for those retired before January 1, 2016.

Generally, a pay commission is formed every 10 years, though there is no legal provision for that. It is a practice.

Currently, there are over 1 crore central government employees and pensioners.

8th Pay Commission For Govt Employees, Pensioners Gets Cabinet Approval | Check Details

8th Pay Commission For Govt Employees, Pensioners Gets Cabinet Approval | Check Details

Reported By :Mohammad Haris

News18.com

Last Updated:January 16, 2025, 16:47 IST

8th Pay Commission: The central government on Thursday approved the constitution of the 8th Central Pay Commission for government employees, which will submit its report by 2026.

8th Pay Commission.

8th Pay Commission: The Union Cabinet on Thursday approved the constitution of the 8th Central Pay Commission to review and recommend salary adjustments for over one crore central government employees and pensioners. According to the reports, the 8th Pay Commission will come into force on January 1, 2026.

During a Cabinet briefing, Union Minister Ashwini Vaishnaw on Thursday said, “Prime Minister has approved the 8th Central Pay Commission for all employees of Central Government."

Vaishnaw said that the chairman and two members of the 8th Pay Commission will be appointed soon.

According to government sources, “Around 50 lakh central government employees, including defence personnel will benefit. About 65 lakh pensioners, including defence persons, will also see an uptick in their pensions."

About 4 lakh employees in Delhi will benefit, including defence and Delhi government employees, they said.

“This will provide a significant boost to the Consumption and economic growth, along with improved quality of life for govt employees," the sources said.