Monday, 2 November 2015

20% Diwali bonus for Tamil Nadu PSU employees

CHENNAI: The state government on Sunday announced a 20% Diwali bonus for employees of state public sector units, but unions say the bonus is calculated on a low base amount. 

In an official release, chief minister J Jayalalithaa announced bonus and exgratia for employees of Tamil Nadu Generation and Distribution Corporation Ltd, state transport undertakings, Tamil Nadu Civil Supplies Corporation, cooperative unions, Poompuhar Shipping Corporation and other organisations. 
This year, the government has allocated a total of `242.41 crore for bonus and ex-gratia for more than 3.76 lakh employees. The bonus percentage is along the lines of last year's although the total amount allocated is slightly higher. 

Employees of public sector undertakings, however, are not happy with the bonus announced. Union leaders speaking to TOI said the rate of bonus has not changed in the last decade and an employee will get a maximum of only ` `8,400 as bonus. 

"The 20% rate of bonus was fixed in 2000 by the DMK government and after this in 2001 the rate was reduced to 8.33% by the AIADMK government. But after protests the previous rate was restored. Since then the same rate has been continued despite all round inflation," said TNEB union leader S Rathinasabapathi. 

The amount which each employee will get is meagre, he said. "The calculation has been made with `3,500 as ceiling. Even if a person draws `30,000 or more as salary , he or she will get only around `8,000 as bonus," said R Balasubramanian, veteran trade union leader. 

Salaries and pensions constitute around 30% of the state's budget outlay but this is expected to increase with the implementation of 7th Pay Commission recommendations. 

Economists feel salaries may not be a burden provided tax revenue increases but if there is shortfall in revenue, then a problem is on hand. 

PMK founder S Ramadoss, in a statement, quoted a central legislation stating that `7,000 should be taken as the ceiling for calculating bonus. 

Transport workers and employees of loss-making units should have received higher bonus, he added.
Source - times of india