Monday, February 3, 2025
Union Budget 2025: Except Tax Relief Major Concerns Remain Unaddressed for Employees
The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman on February 1, 2025, has introduced significant tax relief measures aimed at the salaried middle class. However, beyond these tax adjustments, the budget appears to have overlooked several critical areas concerning the welfare of employees and pensioners. While tax benefits provide some respite, various other pressing issues remain unresolved, raising concerns among government employees and retirees.
n an effort to increase disposable income and boost consumption, the government has revised the income tax slabs under the new tax regime. In the new tax regime, the revised tax rate structure will stand as follows:
 |
As announced, no personal income tax is payable up to income of Rs 12 lakh (i.e. average income of Rs 1 lakh per month other than special rate income such as capital gains) under the new regime. This limit will be Rs 12.75 lakh for salaried tax payers, due to standard deduction of Rs 75,000. The new structure will substantially reduce the taxes of the middle class and leave more money in their hands, boosting household consumption, savings and investment. But the new Income-Tax Bill scheduled to be placed in the next week to be clear and direct in text so as to make it simple to understand for taxpayers and tax administration, leading to tax certainty and reduced litigation which has created suspicion in the minds of the employees. It is said that revenue of about Rs. 1 lakh crore in direct taxes will be forgone. Instead, it is a fact that nearly 1 crore new Taxpayers are likely to enrolled which may increase the flow of collection of IT and make good the said shortfall. For senior citizens, the tax deduction limit on interest income has been doubled, and the Tax Deducted at Source (TDS) threshold on rental income has been raised, providing them with additional financial relief. While these changes will benefit many taxpayers, the budget has been criticized for failing to address other crucial concerns of employees and pensioners.
One of the major disappointments in the budget is the absence of any mention of the government’s declared intent to increase its contribution to the Unified Pension Scheme. As per the Gazette Notification dated January 25, 2025, the government had announced an increase in its contribution from 14% to 18.5%, to be implemented from May 1, 2025. However, this crucial measure was not reflected in the budget, leaving many pensioners in a state of uncertainty. The lack of financial allocation or even a mention in the budget raises questions about the government's commitment to the welfare of pensioners. Another significant omission in the budget is the non-mention of the 8th CPC. The government had previously indicated its intent to constitute the 8th CPC to revise pay scales and benefits for central government employees. However, the budget does not include any allocation or plan for its implementation, leading to speculation that the matter has been deferred indefinitely. Central government employees have been expecting a revision in their pay scales to keep up with the rising cost of living. The absence of any announcement regarding the CPC not only dampens their morale but also affects their financial stability, as salary hikes have remained stagnant for years.
Another major disappointment is the failure to address the pending Dearness Allowance (DA) arrears for the 18-month period from January 1, 2020, to June 30, 2021. Despite repeated demands from employees and pensioners, the government has not provided any assurance regarding the release of the withheld DA/DR payments. This prolonged delay has financially strained many government employees and pensioners, who were expecting a resolution in this year’s budget. The issue of vacant government positions is another pressing concern that remains unaddressed. As of January 2025, there are approximately 11 lakh vacant posts in various central government departments. Filling these positions would not only improve administrative efficiency but also provide much-needed employment opportunities, particularly at a time when India’s unemployment rate stood at 7.8% in December 2024, The lack of any concrete announcements regarding recruitment drives in the budget has left job seekers disappointed.
Healthcare and insurance are other key areas where the budget falls short in addressing employee welfare. While the government announced plans to establish Day Care Cancer Centres in district hospitals over the next three years, the budget did not provide a comprehensive strategy to enhance overall healthcare benefits for employees. Given that out-of-pocket healthcare expenditure in India remains alarmingly high at 62.4% of total health expenses, the absence of enhanced medical support for employees and pensioners is a significant drawback. A more robust healthcare policy with improved insurance coverage could have alleviated the financial burden on the workforce.
The budget also introduced certain provisions for gig workers, proposing the issuance of identity cards and the registration of one crore gig workers on the e-Shram portal. This move aims to provide them with access to healthcare under the Pradhan Mantri Jan Arogya Yojana (PM-JAY). While this initiative is a step in the right direction, the absence of a comprehensive social security framework for gig workers leaves them vulnerable to financial instability.
While the Union Budget 2025 offers notable tax relief to salaried employees and senior citizens, it has failed to address several crucial issues that directly impact government employees and pensioners. The lack of provisions for pension reforms, salary revisions, DA arrears, job creation, and healthcare improvements reflects a missed opportunity to enhance the welfare of the workforce. A more comprehensive and employee-centric approach in future budgets is essential to ensure holistic economic growth and social security for all stakeholders.
PIB -PRESS INFORMATION BUREAU
MINISTRY OF FINANCE
NO INCOME TAX ON ANNUAL INCOME UPTO Rs. 12 LAKH UNDER NEW TAX REGIME
LIMIT TO BE Rs. 12.75 LAKH FOR SALARIED TAX PAYERS, WITH STANDARD DEDUCTION OF RS. 75,000
UNION BUDGET 2025-26 BRINGS ACROSS-THE-BOARD CHANGE IN INCOME TAX SLABS AND RATES TO BENEFIT ALL TAX-PAYERS
TAX SLAB RATE REDUCTION AND REBATES TO RESULT IN SUBSTANTIAL TAX RELIEF TO MIDDLE CLASS, THEREBY BOOSTING HOUSEHOLD CONSUMPTION EXPENDITURE AND INVESTMENT
Posted On: 01 FEB 2025 1:28PM by PIB Delhi
Reaffirming Government’s commitment to the philosophy of “trust first, scrutinize later”, the Union Budget 2025-26 has reposed faith in the Middle class and continued the trend of giving relief in tax burden to the common tax–payer. Presenting the Budget in the Parliament today, Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman proposed an across-the-board change in tax slabs and rates to benefit all tax-payers.
Giving the good news to tax payers, the Finance Minister stated, “There will be no income tax payable upto income of Rs. 12 lakh (i.e. average income of Rs.1 lakh per month other than special rate income such as capital gains) under the new regime. This limit will be Rs.12.75 lakh for salaried tax payers, due to standard deduction of Rs. 75,000.” Tax rebate is being provided in addition to the benefit due to slab rate reduction in such a manner that there is no tax payable by them, she added.
Smt. Sitharaman stated, “The new structure will substantially reduce the taxes of the middle class and leave more money in their hands, boosting household consumption, savings and investment”. In the new tax regime, the finance minister proposed to revise tax rate structure as follows:
The total tax benefit of slab rate changes and rebate at different income levels can be illustrated in the table below:
|
0-4 lakh rupees |
Nil |
|
4-8 lakh rupees |
5 per cent |
|
8-12 lakh rupees |
10 per cent |
|
12-16 lakh rupees |
15 per cent |
|
16-20 lakh rupees |
20 per cent |
|
20- 24 lakh rupees |
25 per cent |
|
Above 24 lakh rupees |
30 per cent |
The total tax benefit of slab rate changes and rebate at different income levels can be illustrated in the table below:
While underlining Taxation Reforms as one of key reforms to realize the vision of Viksit Bharat, Smt. Sitharaman stated that the new income-tax bill will carry forward the spirit of ‘Nyaya’. The new regime will be simple to understand for taxpayers and tax administration, leading to tax certainty and reduced litigation, she informed.
Quoting Verse 542 from The Thirukkural, the finance minister stated, “Just as living beings live expecting rains, Citizens live expecting good governance.” Reforms are a means to achieve good governance for the people and economy. Providing good governance primarily involves being responsive. The tax proposals detail just how the Government under the guidance of Prime Minister Shri Narendra Modi has taken steps to understand and address the needs voiced by our citizens, Smt. Sitharaman added/NB/VM (Release ID: 2098406)
Friday, January 31, 2025
List of CGHS Empanelled Hospitals and Labs in CGHS Chennai (including Puducherry, Tiruchirappalli, Tirunelveli and Coimbatore) as on 30-01-2025
Termination of practice of Fund transfer/Loans from Welfare Funds to Sports Fund accounts at Circle Level
Establishment Review Head Offices and Sub Offices (Data Entry User, Approving and Verifying Authority) - IT 2
Click the below link to view PDF
Operational Guide for Establishment Review- Data entry user
Operational Guide for Establishment Review Approving Authority
Operational Guide for Establishment Review Verifying Authority
Promotion and posting of Higher Administrative Grade (HAG) officer of Indian Postal Service, Group ‘A’ to the Higher Administrative Grade+ (HAG+) [Member, Postal Services Board] of the Service
REVIEW UNDER FR 56(j), 56(l) AND RULE 48(1)(b) OF CCS PENSION RULES, 1972 [NOW REVISED AS RULE 42 OF CCS PENSION RULES, 2021]
Human rights due diligence: a new tool for trade unions takes shape
A new initiative to strengthen trade unions’ capacity to protect workers’ rights is taking shape, with UNI Global Union partnering with IndustriALL, German trade union confederation DGB, and the Friedrich Ebert Foundation (FES) to establish a Human Rights Due Diligence Competence Centre in 2025. The Centre’s goal is to empower unions to use new human rights due diligence laws to effectively protect workers’ rights.
From voluntary to mandatory corporate responsibility
Building on previously voluntary norms, such as the OECD Guidelines for Multinationals and UN Guiding Principles on Business & Human Rights, human rights due diligence laws in Germany, France and the EU introduce legally binding obligations for large companies to ensure respect for human rights, including workers fundamental rights, throughout their global operations and supply chains. For unions in Asia Pacific, where many global supply chains are based, this represents a significant opportunity to strengthen social dialogue with multinational companies. The laws require companies to engage with stakeholders such as trade unions at both global and local levels, potentially fostering more systematic and meaningful social dialogue on workers’ rights issues.
The forthcoming Competence Centre will bridge the gap between European legislation and global implementation through three focus areas:
Building union capacity to use due diligence laws effectively Supporting specific cases of workers’ rights impacts Advocating for effective implementation of human rights due diligence laws with companies and policy makers.
Consultation workshop
An online consultation workshop was held on 15 January, attracting over 60 participants from UNI affiliates, sister global union federations, and FES country officers across Asia Pacific and Africa. This workshop marked the first significant event for 2025 and is part of a series of consultations that began in September 2024. The workshop, co-facilitated by Britta Utz (FES Trade Union Coordinator for Sub-Saharan Africa), Monica Tepfer (ITUC Legal Officer), and Miriam Neale (UNI Global Union), emphasized the crucial role of trade unions in HRDD implementation, including:
Participating in dialogue on company due diligence policies and management systems Notifying companies of issues affecting workers’ fundamental rights Consulting workers on appropriate remedies Scrutinizing company reports for due diligence gaps Enforcing accountability when companies fail to conduct proper due diligence The participants explored several case studies demonstrating the potential impact of HRDD laws, including strengthening global framework agreements, establishing credible worker complaints mechanisms, and using enforcement mechanisms.
Thursday, January 30, 2025
Retirement Notification Ms Manju Pandey, DGPS Ms Kalpana Singh Member (O), Shri Anil Kumar, CPMG, Bihar Circle, Maj Gen MK Khan Addl DG APS
Wednesday, January 29, 2025
INCREASING AWARENESS ABOUT ISSUANCE OF DIGITAL COPY OF POSTAL LIFE INSURANCE (PLI)RURAL POSTAL LIFE INSURANCE (RPLIPOLICY BOUND THROUGH) DIGILOCKER,
RURAL%20POSTAL%20LIFE%20INSURANCE%20(RPLIPOLICY%20BOUND%20THROUGH)%20DIGILOCKER,.jpg)
PRELIMINARY DRAFT OF PROPOSED REGULATIONS FOR UNIFIED PENSION SCHEME (UPS)
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY (UNIFIED PENSION SCHEME) REGULATIONS, 2025 - PRELIMINARY DRAFT OF PROPOSED REGULATIONS
Comments/feedbacks from the stakeholders and public are invited on the draft regulations for laying down the framework to operationalise Unified Pension Scheme introduced by the Central Government vide notification number F. No. FX-1/3/2024-PR, dated the 24th January, 2025, as an option under the National Pension System for the employees of the Central Government who are covered under National Pension System and to define the obligations, roles and responsibilities of intermediaries and such Central Government offices involved with implementation of this scheme, and for matters connected therewith or incidental thereto.
Also read :PFRDA permitted now Overseas Citizen of India to enroll in NPS at par with Non-Resident Indians
The Proposal placed at Annexure A is open for stakeholder consultation and public comments till Feb/17/2025 and can be accessed at PFRDA website in the Exposure Draft section under Regulatory Framework menu.
Comments/feedbacks (in the format - Annexure B), if any, shall be provided via email at review- reg@pfrda.org.in with subject line as 'Feedback on PFRDA (Unified Pension Scheme) Regulations, 2025.
