Archives- News Updates On January

2011

Government may announce tax soaps in this budget

Finance Ministry may raise the personal income tax (I-T) exemption limit or readjust the income tax slabs for the coming fiscal year, in order to give some aid to households in dealing with inflation. The news is however, expected to come into effect in 2012 with a higher I-T exemption limit for tax payers - 1.6 lakh for men, 1.9 lakh for women and 2.4 lakh for senior citizens. Though, it actually proposed an exemption of 2 lakh. But some experts also feel that due to its fiscal responsibilities and financial constraints the government will not be very liberal. 

Source: www.economictimes.indiatimes.com, January 31, 2011. “Some DTC tax sops this budget itself”

BPO industry’s move to reduce training costs: No appointment of freshers

India’s $14.7-billion BPO industry, which employs one million, has turned wary of appointing fresh graduates for reducing the training costs. Training cost used to be 15-20% of their revenues in general and Rs 1-1.2 lakh per fresher every year. According to industry experts, most freshers see BPOs as a stop-gap option and with better career prospects in other industries. 

Source: www.financialexpress.com, January 29, 2011. “BPOs turn back on freshers to trim training costs”

Customized salary package offer to Army Personnel from SBI 

The State Bank of India (SBI) today signed a Memorandum of Understanding (MoU) with the Indian Army for offering customized salary packages to army personnel across the country. The package would offer a unique lifelong account number, which can be retained by the holder even if he is transferred to another location and even after retirement to draw pension, a press release issued stated. Other facilities offered under this scheme are free banking facility and additional ATM cards for a single account holder. 

Source: www.thehindu.com, January 28, 2011. “ SBI to offer customized salary packages to army personnel”

Workers to get 30% pay hike under NREGS

Based on the consumer price index (CPI), as suggested by Prime Minister Manmohan Singh, the Central government has revised wages of agricultural labourers under the Mahatma Gandhi National Rural Employment Guarantee Scheme. The new wages are retrospectively effective from 1st Jan, 2011 and will benefit over 50 million people across the nation. 

Rural development and panchayat raj minister of Karnataka, Mr. Jagadish Shettar said that the wages in the district are distributed through smart cards and an ombudsman has been appointed in 15 districts to supervise its implementation and cases have been registered against 302 people for corruption.

Source: www.timesofindia.com, January 28, 2011. “30% pay hike for workers under NREGS” 

Homemakers and Students to be trained in financial skills by SEBI

Market regulator Securities and Exchange Board of India (SEBI) will impart financial education and investments skills to executives, home-makers and even school children, to spread awareness about sound investment practices and promote financial inclusion. SEBI has trained and certified 40 Resource Persons (RPs) to act as faculty and speakers in the workshops to teach target groups including executives, home makers and young investors and students in Western India. Besides, imparting financial education for middle income group and school children is also on SEBI's plans. 

Source: www.financialexpress.com, January 27, 2011. “Sebi to impart financial skills to home makers, students”

Number of women in accounting profession increases

While addressing the members of the local chapter of the Institute of Chartered Accountants of India, President Amarjit Chopra said that the number of women taking up accounting profession has increased recently and that nearly 40 per cent of the 6 lakh students currently pursuing CA course were women. 

She said that the institute had launched a nationwide campaign to spread awareness on the convergence of Indian accounting standards with IFRS under which IFRS certificate and IFRS e-learning system had already been started and so far over 2000 students have cleared the course. She also added that in order to monitor fraudulent practices and forged attestations, unique code allocation to its members is also being planned. 

Source: www.financialexpress.com, January 27, 2011. “Women power comes to the fore: ICAI”

3.75 Crore jobs to be created in India by 2020

As per a report released at the World Economic Forum by Accenture, a global consulting firm, the Indian economy is likely to grow by 8.7% annually, compared to the current expected 8% growth. This growth is expected to generate 3.75 crore jobs by 2020. Additionally, four major economies - India, Germany, US and UK - together account for nearly two-fifths of the world economy. 

According to the Reserve Bank's projections, Indian economy could record a growth of over 8.5 per cent in the current fiscal, up from 7.4 per cent in the 2009-10. On the other hand, the International Monetary Fund (IMF) has projected India's economy to grow by 8.75 per cent in 2010-11 with moderation to about 8 per cent during the next fiscal. The report further said that the areas which would provide growth opportunities in emerging economies like India include low-cost goods and services, infrastructure, education, housing and transport.

Source: www.businessstandard.com, January 27, 2011. “India may grow by 8.7% pa; create 3.75 cr jobs by 2020: report”

India & UAE to sign MoU for labour protection

Soon India will be signing MoU with UAE in order to protect the rights of Indian workers, particularly housemaids in UAE. Vayalar Ravi, Union Minister for Overseas Indian affairs will be discussing with UAE Minister of Labour the amendments in existing agreement, like revision in wages and the structure of MoU. 

Source: www.economictimes.indiatimes.com, January 27, 201. “Govt-UAE pact soon to protect Indian workers”

India maintaining wage arbitrage advantage

According to Mr. Kraats, CEO and Vice Chairman of the Executive Borad of Randstad, India is still enjoying its wage arbitrage advantage, while after recession wages in Europe has increased due to shortage of skills.  It’s clients are moving to East as the wage cost per hour in Europe is around euro 20, in Poland about euro 4 and in India as well as China even less than euro 2. Labour cost in Germany, however is stable owing to increase in work hours and flexible workers. 

Source: www.thehindu.com, January 26, 2011. “Shortage of skills in Europe makes HR clients to look East”

Government cannot force teachers to work for census

Unaided Schools Forum and St Mary’s ICSE School, Vashi filed petition challenging Government Resolution (GR) dated 26 Nov, 2010 asking that teachers should be kept away from local examinations from January 1- March 15, 2011 as they will be required for Census 2011. The school said teachers are busy with different duties. Moreover, this can also affect the career of students. Bombay High Court on Monday announced its judgment on the case by saying that teachers are not slaves, and the state government cannot compel them for census work.

Source: www.dnaindia.com, January 25, 2011. “Teachers are not slaves, don’t force them to do Census work: Bombay high court”

India leads in recovering employment: ILO

As per ILO’s Global Employment Trend report, India is leading all South Asian countries in terms of growth and decline in unemployment rates in 2010 compared to previous years of economic downturn. The employment survey have shown tremendous differentiated recovery in the labour markets with high unemployment rates in developed countries and high employment growth in developing. The report has also cited India’s flagship program, National Rural Employment Guarantee Scheme as a role model for reducing large work deficits and reorientation of growth towards domestic consumption. ILO has also warned developed economies for weak recovery of jobs which also may continue in the next year.

Source: www.businessstandard.com, January 25, 2011. “Unemployment level dips marginally in South Asia: ILO”

Indian IT firms & Global MNCs battling for Freshers

Indian IT firms are competing with big MNC rivals in their run to attract fresh graduates in order to reduce the average hiring cost. According to research estimates, industry will be hiring over 2 lakh fresh graduates this year. Companies are hiring 70-80% of the new staff of fresh engineering graduates directly from the campus and the rest 20% of experienced staff is being poached from the rival firms. Top IT firms are competing for the Day 1 slot of the placement week in reputed campuses/universities in order to hire of the creamy layer of the batch.

Source: www.economictimes.indiatimes.com, January 25, 2011. “Indian IT cos lock horns with global rivals to lure fresh graduates”

Job seekers using fake employment data to grab jobs

According to a report by First Advantage, a global risk mitigation and business solutions provider, many job applicants are providing fake data regarding their previous employment as proved after their background checks. The discrepancy rate i.e. the difference in the data provided by applicant and the actual background data, was as high as 10.6%. The rate has been rising in Engineering, FMCG, and Real Estate Services industries, and most of the discrepancies, 70%, were observed among associate level employees.

Source: www.financialexpress.com, January 25, 2011. “India Inc hit by lying job seekers”

HR heads strategizing to retain qualified employees

HR experts focusing on retention of high potential employees using incentives as a tool to keep them motivated, as told by Ramana Murthy, VP of Hindustan Coco Cola Beverages at the National Summit, 2011 on Emerging trends in Compensation and Rewards. He highlighted the need to discover the link between strategic management and talent management. Nishchae Suri, MD of Mercer Consultancy added that there is a shortage of qualified people, particularly in leadership role.

Source: www.economictimes.indiatimes.com, January 21, 2011. “HR will focus on retaining valued employees in 2011: experts”

Manufacturing sector should produce 100 million jobs in 15 years

Planning Commission has set a target of “100 million jobs by 2025” for the manufacturing sector that had a jobless growth in the last decade, as told by Arun Maira, member of Planning Commission, at the inauguration of Bangalore International Exhibition Centre. This will help in ensuring that the economy grows at 9-10% for this decade. Deficit of infrastructure, overseas funds and better governance are hindering the growth of the sector and creation of jobs, which needs to be overcome. It requires million of skilled people for innovation and capacity expansion. According to a study by Automotive Components Manufactures’ Association (ACMA) of India, automobile industry is projected to grow at 25-30% over the next 5-10 years.

Source: www.economictimes.indiatimes.com, January 20, 2011. “Indian industry should create 100 million jobs: Plan panel”

TCS hiring target for 2011-12 - 37,000 Engineers

TCS, largest IT service provider, who has already crossed its hiring target of 50,000 employees in 2010-11, decided to hire 37,000 engineers for the next financial year, 2011-12. Ajoy Mukherjee, Vice President, Head, Global Human Resources, TCS has said that the company is also working on salary rises and will be announcing it in April. Last year, they had given a hike of 10%, on an average. Last year, the company has also changed the hiring mix giving more preference to trainees than experienced but for this year is planning a 50:50 mix.

Source: www.businssstandard.com, January 19, 2011. “TCS to hire 37,000 engineers in 2011-12”

Salary pending for Ahmedabad college employees

The salary of about 20000 employees of grant-in-aid colleges of Ahmedabad city is still pending from last month. These employees consist of teaching, non-teaching and administrative staff of the colleges. It was earlier expected that salary would be released before Uttarayan, but it now seems that it may not be credited before 20th January. Employees said that the salary is released between the first and fifth day of the month but as most of the staff members of the education department are busy in the Vibrant Gujarat event, hence the delay.

Source: timesofindia.indiatimes.com, January 12, 2011. “No pay yet for 20,000 college employees”

PMPML employees threaten to go on indefinite strike

Pune Mahanagar Parivahan Mahamandal Limited (PMPML) employees union has threatened to go on an indefinite strike from January 14 if their demand for implementation of sixth pay commission recommendations is not fulfilled. The management is demanding for more time from the worker’s union for considering this implementation while the union has asked them to decide on the matter within two days.

Source: timesofindia.indiatimes.com, January 12, 2011. “PMPML seeks more time to decide on workers' demands”

Goa government employees meet panel for payscale rise

The Goa government employees association (GGEA) and the coordination committee of Goa government employees for pay scale upgradation met the newly appointed committee set up by the government. This committee was formed to decide on the upgradation of payscales of the left out categories of government employees, corporations and autonomous bodies. The committee has assured of immediate action to be taken on this long pending issue by the state government.

Source: timesofindia.indiatimes.com, January 11, 2011. “Govt employees meet panel on pay scales upgradation”

Maharashtra govt’s skill mission to generate employment for rural youth

The state directorate of vocational education and training (DVET) in Maharashtra has initiated a mission to generate employment for 4.5 lakh unemployed rural youth of age around 24 years. As per the mission, DVET will provide skill development training and will set up 11 sector committees at the district and taluka level. This will help in training the people and help them reach the job market where there is shortage of manpower.

Source: timesofindia.indiatimes.com, January 10, 2011. “State's skills mission' to offer jobs to unemployed rural youth”

Voluntary groups not satisfied with MNREGS wages

A recent decision taken by the government to link wages under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS) with inflation has been criticized by many voluntary groups. The wages paid to the workers under MNREGS as per the consumer price index still comes less than the statutory minimum wages. Activists have now mentioned a letter sent to the Prime Minister by the NAC Chairman that wages provided under the scheme is less than the prevailing wages.

Source: www.business-standard.com, January 9, 2011. “Labour groups clamour for statutory minimum wages”

MGNREGA wages hiked by 17-30 percent

Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) wages have been raised with effect from January 1, 2011 by the Ministry of Rural Development. This hike in wages will be about 17-30 percent of the present wages. This step comes after a recommendation given by Sonia Gandhi headed National Advisory Council for a hike in wages. The wages are enhanced in relevance to the Consumer Price Index and will benefit more than 5 crore workers.

Source: www.thehindubusinessline.com, January 7, 2011. “17-30% hike in rural job scheme wages”

NAC recommendation on NREGS sidelined by PMO

The National Advisory Council’s recommendation on payment of wages as set by the state’s minimum wages for National Rural Employment Guarantee Scheme (NREGS) workers was rejected by Prime Minister Manmohan Singh. He has clarified in a letter to the UPA chairperson Sonia Gandhi who heads NAC that the wage rate fixed by the central government would be indexed to inflation but cannot be linked to the Minimum Wages Act.

Source: timesofindia.indiatimes.com, January 6, 2011. “PM rejects NAC's recommendation on minimum pay”

Sixth pay commission wages provided to NMC employees

Nagpur Municipal Corporation employees have finally received a New Year gift as after a long wait they will be paid salaries as per the sixth pay commission. Around 9400 employees, including 1500 teachers of all scales will be paid salary with new structure with effect from December 1, 2010 which they were demanding since October last year. The employees were already paid Rs. 3000 as an advance before Diwali.

Source: timesofindia.indiatimes.com, January 5, 2011. “NMC staff start getting sixth pay panel wages”

Amendments in Contract Labour Act required: Labour Ministry

Union Labour Minister Mallikarjun Kharge said that with the increasing practice of outsourcing the work and employment it is essential to have proper amendments in the Contract Labour Act. These amendments will be made to ensure job security and to keep a watch on exploitation of labour. The government has appointed a Task Force to suggest amendments in the Contract Labour Act.

Source: www.financialexpress.com, January 4, 2011. “Contract Labour Act to be amended to ensure job security: Min”

MNC banks are highest paymasters, PSBs lag

According to a study by the Boston Consulting Group (BCG) comprising 21 large banks in India, foreign banks pay the highest salary to their employees led by Citi India. Public sector banks are at the middle level as per the employee cost to the organization. However the average revenue per employee is Rs. 127 lakh for Citi India in comparison to Rs. 20 lakh per employee of State Bank of India. The average expenditure of private sector banks is Rs. 5.5 lakh per employee.

Source: www.business-standard.com, January 3, 2011. “Staff cost: MNC banks pay highest, HDFC lowest; IOB tops PSBs”

 

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