The recently announced Leave Travel Concession (LTC) package according to me is a very beautifully decorated Trojan Horse or a sugar coated bitter pill for the government employees. But definitely it is Manna from the heaven for the top billionaire business men at the cost of the employees. The main aim according to the Office Memorandum (OM) dated 12-10-2020 is to compensate the Central Government Employees who are not in a position to avail LTC in the current Block of 2018-21 and side by side boost the consumption expenditure. But actually what is going to happen is little alarming.
This
is how it works the sample as illustrated in the OM mentioned above: -
First
of all employee has to encash 10 days leave (Pay Rs.1,38,500/-) =
Rs. 54,015/-
Fare
Value for 4 member family 20000
x 4 = Rs.
80,000/-
Total
value = Rs.1,34,015/-
To
get this amount, how much the employee has to spend from his pocket in advance?
Full
leave encashment Rs.54,015/- + 3 times fare value
= Rs.54,015/- + Rs. 2,40,000/- = Total Rs. 2,94,015/-.
In
short you have to spend in advance, Rs. 2,94,015/- to get Rs. 2,94,015/- (the
amount will vary according to the individual pay and entitlement of LTC).
Now
let us go to the real issues:-
- For financing this amount of
Rs.2,94,015,, definitely employee has to take a loan, break fixed deposit
or use credit card. What is the financial implication of this? For credit
card, on monthly basis, interest component comes to 3.2% including the
GST. On an annual basis, interest comes to 38.4%.i.e., That is, every
month you have to pay Rs.9408/- to the bank for financing this MEGA LTC
MELA. That is the employee has to bear the annual effect of Rs.1,12,896/- forgetting
Rs.80,000/- as LTC.( Leave can be encashed or availed later also. Hence it
is not a grant or concession from Government).
- Another hitch is that, the
employee has to purchase the items having GST rate @12% or above. That is,
items such as processed items including pan masala etc and heavy consumer
items and high fly items of which profit directly goes to these high fly
billionaires and and pushing their share prices. That is why I say that
this new scheme is really a trap to catch the employee and not a benefit either
to the employee or to the common man who are actually affected by the
COVID issue.
- Therefore, it is better to
think 10 times before venture into this LTC HANGAMA.
N.B.:-
To read free part of my books:-
1.
‘A FRAUD IN THE INDIAN CONSTITUTION’ in India,
go to the below link and click “LOOK INSIDE” button:
http://www.amazon.in/FRAUD-INDIAN-CONSTITUTION-M-P-JOSEPH-ebook/dp/B00SQKTADY/
2.
“LTC
RULES MADE EASY”, go to below link and enter “LOOK INSIDE”:
https://www.amazon.in/LTC-RULES-MADE-EASY--date-ebook/dp/B01JO66SLK
