Thursday 18 October 2012

PRODUCTIVITY LINKED BONUS FOR THE ACCOUNTING YEAR 2011-2012

File No. 26-05/2012-PAP
Government of India
Ministry of Communications & IT
Department of Posts
(Establishment Division)

Dak Bhawan,Sansad Marg,
New Delhi-110 001
Dated :18.10. 2012
To
All Chief Postmasters General,
Postmasters General
General Managers (Finance)
/Deputy Directors of Accounts (Postal)

Subject: - Productivity Linked Bonus for the Accounting year 2011-2012

Sir/Madam,

I am directed to convey the approval of the President of India for payment of Productivity Linked Bonus for the accounting year 2011-2012 equivalent of emoluments of 60 (Sixty) days to the employees of Department of Posts in Group `D`,Group `C` and non Gazetted Group `B`. Ex-gratia payment of Bonus to Gramin Dak Sevaks who are regularly appointed after observing all appointment formalities and Ad-hoc payment of Bonus to Casual labourers who have been conferred Temporary Status are also to be paid equivalent to allowance/wages respectively for 60 (sixty) Days for the same period/year.
< !--[if !supportLists]-->1.1 <!--[endif]--> The calculation for the purpose of payment of Bonus under each category will be done as indicated below.
< !--[if !supportLists]-->2. <!--[endif]--> REGULAR EMPLOYEES:
2.1 Bonus will be calculated on the basis of the following formula:-
Average emoluments X Number of days of Bonus    =6908
30.4 (Average no. of days in a month)
2.2. The term“Emoluments” for regular Departmental Employees includes basic Pay in the pay Band plus Grade Pay, Dearness Pay, Personal Pay, Special Pay (Allowance), S.B.Allowance, Deputation (Duty ) Allowance, Dearness Allowance and Training Allowance given to Faculty Members in Training Institutes. In case of drawl of salary exceeding Rs.3500/- (Rs. Three Thousand Five hundred only) in any month during the accounting year 2011-12 the Emoluments shall be restricted to Rs.3500/- (Rs. Three Thousand Five hundred only) per month only.
< !--[if !supportLists]--> <!--[endif]-->
2.3. “ Average Emoluments” for regular Employees is arrived at by dividing by twelve ,the total salary drawn during the year 2011-12 for the period from 1.4.2011 to 31.3.2012, by restricting each month’s salary to Rs.3500/- (Rs. Three Thousand Five hundred only) per month. However, for the periods of EOL and Dies-Non in a given month, proportionate deduction is required to be made from the ceiling limit of Rs.3500/- (Rs. Three Thousand Five hundred only)
< !--[if !supportLists]--> <!--[endif]-->
2.4. In case of those regular employees who were under suspension, or on whom dies- non was imposed ,or both, during the accounting year, the clarificatory orders issued vide Paras 1 & 3 respectively of this office order No. 26-8/80-PAP (Pt-I) dated 11.6.81 and No. 26-4/87-PAP (Pt.II) dated 8.2.88 will apply.

2.5. Those employees who resigned, retired, left service or proceeded on deputation within the Department of Posts or those who have proceeded on deputation outside the Department of Posts on or after 1.4.2011 will also be entitled to Bonus. In case of all such employees, the Bonus admissible will be as per provisions of Para 2.1 to 2.3 above.

< !--[if !supportLists]-->3. <!--[endif]--> GRAMIN DAK SEVAKS (GDS)
3.1 In respect of Gramin Dak Sevaks who were on duty throughout the year during 2011-2012, Average monthly Time Related Continuity Allowance will be calculated taking into account the Time Related Continuity Allowance (TRCA) plus corresponding Dearness Allowance drawn by them for the period from 1.4.2011 to 31.3.2012 divided by 12 (Twelve). However, where the Time Related Continuity Allowance exceeds Rs 2500/- (Rs.Two Thousand Five hundred only) in any month during this period., the allowances will be restricted to Rs 2500/- (Rs.Two Thousand Five hundred only) per month. Ex-gratia payment of Bonus may be calculated by applying the Bonus formula as mentioned below:-
Average TRCA X Number of days of Bonus  =4934
30.4 (Average no. of days in a month)
3.2 The allowances drawn by a substitute will not be counted towards Bonus calculation for either the substitute or the incumbent Gramin Dak Sevaks. In respect of those Gramin Dak Sevaks who were appointed in short term vacancies in Postman/Group `D` Cadre, the clarificatory orders issued vide Directorate letter No. 26-6/89-PAP dated 6.2.1990 and No. 26-7/90-PAP dated 4.7.91 will apply.

3.3 If a Gramin Dak Sevak has been on duty for a part or the year by way of a fresh appointment, or for having been put off duty, or for having left service,he will be paid proportionate ex-gratia Bonus calculated by applying the procedure prescribed in Para 3.1 .

3.4. Those Gramin Dak Sevaks who have resigned, discharged or left service on or after 1.4.2010 will also be entitled to proportionate ex-gratia Bonus. In case of all such Gramin Dak Sevaks, the Ex-gratia Bonus admissible will be as per provisions of Para 3.1 above.

3.5. In case of those Gramin Dak Sevaks who were under put off duty or on whom dies non was imposed, or both during the accounting year ,the clarificatory orders issued vide Para 1 & 3 respectively of this office order No. 26-8/80-PAP (Pt I) dated 11.6.81 and No. 26-4/87-PAP (Pt II) will apply.

< !--[if !supportLists]-->4. <!--[endif]-->FULL TIME CASUAL LABOURERS INCLUDING TEMPORARY STATUS CASUAL LABOURERS)
4.1 Full Time Casual Labourers (including Temporary Status Casual Labourers ) who worked for 8 hours a day, for at least 240 days in a year for three consecutive years or more (206 days in each year for three years or more in case of offices observing 5 days a week) as on 31.3.2012 will be paid ad-hoc Bonus on notional monthly wages of Rs.1200/- (Rupees Twelve Hundred only)
The maximum ad-hoc Bonus will be calculated as below:-
(Notional monthly wages of Rs.1200) X (Number of days of Bonus)
  =2368
30.4 (average no. of days in a month)

Accordingly, the rate of Bonus per day will work out as indicated below:_

Maximum ad-hoc Bonus for the year
365
The above rate of Bonus per day may be applied to the number of days for which the services of such casual labourers had been utilized during the period from 1.4.2011 to 31.3.2012. In case where the actual wages in any month fall below Rs. 1200/-during the period 1.4.2011 to 31.3.2012 the actual monthly wages drawn should be taken into account to arrive at the actual ad-hoc Bonus due in such cases.
5. The amount of Bonus /Ex gratia payment /Adhoc Bonus payable under this order will be rounded to the nearest rupee. The payment of Productivity Linked Bonus as well as the ex-gratia payment and ad-hoc payment will be chargeable to the Head `Salaries` under the relevant Sub–Head of account to which the pay and allowances of the staff are debited. The payment will be met from the sanctioned grant for the year 2012-2013.
6. After payment, the total expenditure incurred and the number of employees paid may be ascertained from all units by Circle and consolidated figures be intimated to the Budget Section of the Department of Posts. The Budget Section will furnish consolidated information to PAP Section about the total amount of Bonus paid and the total number of employees (category-wise) to whom it was distributed for the Department as a whole.
< !--[if !supportLists]-->7. <!--[endif]-->These issues with the concurrence of Integrated Finance Wing vide their diary No. 262/FA/12/Cs dated 18.12.2012.

< !--[if !supportLists]-->8. <!--[endif]-->Receipt of this letter may be acknowledged
(L.K. GANGADHARAN)
Assistant Director General (Estt)













Saturday 13 October 2012

EXPECTED DA RATE INCREASE 10% WEF JANUARY 2013

We have calculated the expected DA(dearness allowance ) wef 01.01.2013 (January,2013) and this is not a pure guess work but based on facts and we have also explained these facts and circumstances that How we have estimated the DA Rate wef January ,2013(01.01.2013) ?.

We Know it is very early to calculated the DA rate for January 2013 as Government has not yet decided about the DA rate wef 01.07.2012. Earlier we have also informed you in May 2012 that Da Rate wef 01.07.2012 will be 72 % i.e 7 % Increase from old DA Rate of 65 % .

Today(24.09.2012) Cabinet will discuss DA rate wef 01.07.2012 and will announce DA 72 %.

DA for 01.01.2012 has already been declared at 65 %..

DA(dearness allowance) rates are fixed on the basic of All India Consumer Price Index for industrial workers.Base year has been taken as 2001. This new DA rate system is adopted by Central and State Governments and public sector Under takings from 01.01.2006 with new pay scale as declared by the Pay commission . DA rates are to be announced half yearly basis and applicable from first of January and First of July.

How to calculate Dearness Allowance from the year 2006:

It is very simple ,suppose if you want to calculate Dearness Allowance with effect from Jan-13, get the average of monthly All India Consumer Price Index for industrial workers with the base year 2001=100 for the preceding 12 months and apply the same in the following formula

Formula

Dearness Allowance = (Avg of AICPI for the past 12 months - 115.76^)*100/115.76^

(ignore fractions)

^ Here 115.76 means average of price index from Jan 2005 to Dec 2005.

So to calculate Estimated DA rate wef January,2013 (01.01.2013), we need Price index average from January, 2012 to December,2012.

As per Labour Bureau, Department Statistics, Government of India website index for January 2012 to July,August ,2012 has already been declared .

However Price Index from September ,2012 to December,2012 is yet to be declared,In fact will be declared in future .

So to estimate the DA rates wef January ,2013 we have estimated the Price Index from September,2012 to December ,2012 . We will revise the Calculation as and when these months actual figures will be available.

We have calculated 4 possible equation/ Estimates ,which is shown in the picture below.


Case-1
In First case we have added one each month in price index starting from September ,2012 to December 2012. Though we think price index will be higher .

On the Basis of The assumption the total of price index from January 2012 to December 2012 will be 2509 and Avg for Last 12 months will be 209.08 .The calculation for dearness allowance (DA) wef January ,2013 is given as under.

Dearness allowance (01.01.2013)=(209.08-115.76)*100/115.76= 80.62%(ignore fraction)=80 %

The above calculation assures us us that at least DA will be declared at 80% wef 01.01.2013 that is a Increase of 8 % from 72 % (wef 01.07.2012).

Further If Sum of price index of Last twelve months remains with 2500-2514 then DA rate will remain 80% wef 01.01.2013
Case-2

In Second case we have added two each month in price index starting from September 2012 to December 2012. Though we think price index will be on higher side .

On the Basis of The assumption the total of price index from January 2012 to December 2012 will be 2519 and Avg for Last 12 months will be 209.92 .The calculation for dearness allowance (DA) wef January ,2013 is given as under.

Dearness allowance (01.01.2013)=(209.92-115.76)*100/115.76= 81.34%(ignore fraction)=81 %

The above calculation assures us that DA will be declared at 81% wef 01.01.2013 that is a Increase of 9 % from 72 % wef (01.07.2012)

Further If Sum of price index of Last twelve months remains with 2515-2528 then DA rate will remain 81% wef 01.01.2013


Case-3

In third case we have added three each month in price index in September, 2012 and December,2012 .
Though we expect higher price index in October 2012 due to price increase effect of Diesel and their cascading effects but as the answer of DA remains same for a range of figures,so to ease in understanding we have not done so.

On the Basis of The assumption the total of price index from January 2012 to December 2012 will be 2529 and Avg for Last 12 months will be 210.75 .The calculation for dearness allowance (DA) wef January ,2013 is given as under.

Dearness allowance (01.01.2013)=(210.75-115.76)*100/115.76= 82.06%(ignore fraction)=82 %

The above calculation assures us us that DA will be declared at 82% wef 01.01.2013 that is a Increase of 10 % from 72 % (wef 01.07.2012)

Further If Sum of price index of Last twelve months remains with 2529-2542 then DA rate will remain 82% wef 01.01.2013


Case-4

In Forth case we have added four each month in price index starting from September,2012 to December 2012. Though we think price index will be lesser that this.
On the Basis of The assumption the total of price index from January 2012 to December 2012 will be 2539 and Avg for Last 12 months will be 211.58 .The calculation for dearness allowance (DA) wef January ,2013 is given as under.

Dearness allowance (01.01.2013)=(211.58-115.76)*100/115.76=82.78%(ignore fraction)=82 %

The above calculation assures us that DA will be declared at 82% wef 01.01.2013 that is a Increase of 10 % from 72 % (wef 01.07.2012)

Further If Sum of price index of Last twelve months remains with 2543-2555 then DA rate will remain 83 % wef 01.01.2013

Conclusion :Expected DA with effect from January ,2013 to be 82 % (01.01.2013)

From the above calculation most likely case will be case-2 and Case-3 .Case -1 can be ruled out due to low estimated and case-4 can be rejected due to higher projection.So balance left is 81 % and 82 %.

Keeping in View all circumstances and economic situation we expect sum total of price index of 1/2012 to 12/2012 in between range of 2529-2542 (Case-3) and Expected DA wef 01.01.2013 to 82 %(10% Increase)

Please Comment about our above calculation and Record your estimated Price Index from 8/2012 to 12/2012 or sum total of price index 1/2012 to 12/2012 and DA rate wef 1/2013.

Tags: expected da from January,2013, Dearness allowance wef 01.01.2013, January 2013 da rate , tentative da rate from january,2013 , new da installment , new rate of da , 10% increase in da from January 2012, da 0/2013, da 1/2012, Dearness allowance for Central govt employees ,January 2013(01.01.13)
Updated :02.10.2012
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