Our findings has also revealed that,  GHS100,000 is provided to every MP to buy a car every four years and other countless fringed benefits yet we have bad roads, poorly resourced education system right from the basic schools, our economy is struggling, our people are drinking from rivers and streams and employees are battling with tarrifs and high cost of living. Therefore, it is about time that, Ghana takes another look at the laws regarding ex-gratia and how much we pay as a nation every four years and whether every member of a given parliament which is dissolved should earn an ex-gratia even if he or she is re-elected into parliament. On 23rd October 2020 Ministry of Finance, Government of India issued direction to all lending institutions to implement Scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts (1.3.2020 to 31.8.2020). Colleges Of Education Releases 2020/2021 Admission List. When something has been done as ex gratia, it has been done voluntarily, out of kindness or grace. In law, an ex gratia payment is a payment made without the giver recognizing any liability or legal obligation.– Relyonsoft.com. The bank/ lending institution will provide ex gratia payment to the borrower account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding upto Rs. Copyright © 2019-2020 NewsGhana24. His call comes after the public and some Civil Society Organizations (CSO) raised issues regarding the ex-gratia paid Law Makers in Ghana. An ex-gratia payment will be credited to their loan accounts. Scheme for Grant of Ex-gratia Payment. What are your views on this? Annual CTC means the total cost incurred on an employee in a year. Ex-gratia is given as a mark of compassion voluntarily. Ex-Gratia Payment Scheme. It may be so, in particular year when it is paid. Although for the employees who comes under the Bonus Act, if the employer wishes to pay the beyond 20% of wages, it is given in the name of Ex-gratia. Will get back to you soon. Mediclaim (maximum of Rs. In a related envelopment, Mr. Frimpong Yaw Addo, the Manso Adubia Constituency MP has called for the need to start a serious national discourse on the matter. Do you have a story for us or need a promotion/advertisement? Calculations of the Ex-Gratia Amount It is the differential amount between the Compound Interest and the Simple Interest charged during the moratorium period. ||About Us|| Contact Us, Your email address will not be published. When you consider the character of the payment (being ex-gratia) it should not be a part of CTC. Ex-Gratia will calculate on Guaranteed Cash (gross salary) divided by 30days * days of ex-gratia 8th July 2014 From India, Hyderabad. These figures are mere estimates and the actual total may be far more than this by the time the payments are made. Most of the cases Ex-gratia is paid along with annual bonus, since the Payment of Bonus Act, puts a cap on 20% bonus to employees, the employer and employee agree to pay a higher amount than 20%, and coined a new term of ex-gratia, which is paid along with Bonus. For the payment of ex-gratia, there is no ceiling and also the % may get varied from year to year and is purely at the discretion of the management. When something has been done as ex gratia, it has been done voluntarily, out of kindness or grace. If this meaning is valid, then it means, an ex gratia could pass for a gift from the people of Ghana to article 71 class of public workers. Ex gratia (/ ˌ ɛ k s ˈ ɡ r eɪ ʃ (i) ə /; also spelled ex-gratia) is Latin for "by favour", and is most often used in a legal context. Q8: Some of the Contractor’s staff were in receipt of the COVID-19 Temporary Wage Subsidy According to an online dictionary, an ex gratia payment is any money paid with no obligation to make such a payment. The sudden attention may be attributed to the hardship facing the people and the need to mobilize resources for Ghana’s efforts at improving the general well-being of the people. Housing Loan Interest: 4. Usually for the employees who are not covered under the Bonus Act, Ex-gratia is paid. Ex-gratia means a payment made by the employer by their own choice voluntarily, out of kindness or grace under no obligation of any law. Ghana is likely to pay a whopping GHS 100,000 per head for close to 260 MPs and Ministers. Copyright © 2018 RELYON All rights reserved. In 2015, former president John Dramani Mahama instituted a committee which was tasked to among other things led by Prof. Dora Francisca Adu Buandor to review emoluments of article 71 class of public workers. When the employer wishes to pay the employees an amount after paying the maximum bonus of 20% on wages. Conveyance Allowance: 2. Admittedly this is slightly finger in the air, but it does seem to be an average starting point in reality in our experience, to be adjusted up or down for other factors as set out below. In the context of business, it literally means “Extra” which is more than regular salary or wage. Gratuity Calculator – Online Gratuity Calculator to find Gratuity Amount Any employee of a private company that provides EPF facilities is eligible to receive an amount as gratuity after completing 5 years of service. This discussion thread is closed. Eligibility and Dates of Reserve Bank of India Ex Gratia Scheme . Employer may wish to pay some amount (As acknowledgement of the worker’s contribution) out of the revenues of the firm in case the profits do not support to pay the bonus. Examples. So do you think this fulfils the eligibility and the ex-gratia must be included while settling my accounts with the company. Political leaders such as Members of Parliament, Ministers and the like are awarded huge lump sum as Ex-gratia after every general election every four years. Thanks for contacting us. Interest calculation. The income department has launched an online income tax calculator for the financial year 2020-21 after the same is announced by the Finance Minister while presenting the Union Budget 2020 to compare tax payable as per the old income tax regime and new income tax regime to give an idea of the estimated impact of the new provisions. Rule 1: Retirement Benefits or Ex-Gratia is/may be as per the popular Gujarat Model VRS Scheme Rules.. Rule 2: Minimum age to enter the VRS Scheme is 50 years.In other words, not more than 10 years of service should be left.. Rule 3: The actual Gujarat Pattern VRS model suggests only 36 months of salary as the maximum amount. One of such recommendations was that, the salary relativity difference of the three arms of government as approved late former president of Ghana John Atta Mills as recommended by The Ewurama Addy Committee should be restored. It is a form of incentive. BSNL MTNL VRS Benefits Calculation Rules. In law, an ex gratia payment is a payment made without the giver recognizing any liability or legal obligation. The lending institution will provide ex-gratia payment to the borrower account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding up to Rs. The bank/ lending institution will provide ex gratia payment to the borrower account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding upto Rs. If this meaning is valid, then it means, an ex gratia could pass for a gift from the people of Ghana to article 71 class of public workers. Let the discussion begin., the politicians and the general public start the discussion, Ghana needs our effort and contribution to this matter. Ghana’s politics has been seriously monetized and the benefits enjoyed by these public offices is enough evidence for today’s youth some of whom believe, the best ways to be successful in Ghana is to go in to politics. In a management perspective, the employer may consider it for arriving at a cost to employ so many employees at any given point of time. The payable ex-gratia amount shall have to be credited to the account of the borrower by the respective lending institutions as ex-gratia payment under the scheme on … Non profitable organizations such as Hospitals, Social work organizations, NGOs etc are not covered under Bonus Act, 1965. 1. The way forward is to ensure that, those who do not retain their seats are the only people who benefit from the paid ex-gratia and not that all parliamentarians for example. Ex-gratia is most often used in a legal context. Q7: I am still awaiting the Contractor’s submission of their ex-gratia calculation. We at Relyon consistently strive to update you with latest informations. Ans.7: The client is to nominate a person to calculate the value of the ex-gratia payment and consult with the Contractor. 2 crores (aggregate of all the borrowings / facilities from all The ex-gratia is given for the period April-March' 2006-07, while I had resigned in September' 2007, thus completing my stay in the company during the period for which the ex-gratia is being disbursed. Sam Okudzeto Ablakwa, Trending Video: Ursula Owusu sits on Akando since he won’t get up, How Ursula Owusu ended up on Akandoh’s laps in Parliament, Ghanaians react to ‘disgraceful, embarrassing’ happenings in Parliament, Coronavirus and reopening of schools: The case of reality, Junior High Schools to run semester system, Reopening of schools bold decision- Key stakeholders, Ghana Armed Forces 2020 Officers Forms are Out, Ghana Learning TV Lessons Time Table – Check it here, 2020/2021 Teacher Training Colleges Admission Requirements, SHS students Online study platform created by Gov’t, How Legon will run its ‘double track’ academic calendar from mid Jan 2021, AIT wins 3 prestigious awards at 2020 UMB Ghana tertiary awards, CHASS backs reopening of schools in January 2021, Education Watch suggests 5 key points Gov’t should consider before 2021 school reopening, Teachers boycott ongoing Common Core Programme Workshop at KNUST, Latest News: Kitchen Stool Headmaster Dead, 2020 Election: Free SHS is here to stay, vote for NPP – Akufo-Addo begs Ghanaians, CoE postings: Send your details if you’ve challenges – GES, Distribution of in-service teachers license to end in Northern Region – NTC, NDC’s ‘Fa Ninyinaa’ policy is a scam – NAPO. Let us know via your comments. The committee’s recommendations were rejected. The present economic state of the country, needs to look at the viz-a-viz the huge sums that the country pays every four years to members of parliament, MPs and other article 17 class of public workers to save the country from paying ex-gratia to such persons who get paid the ex-gratia and win elections then get back to parliament again. Training request sent successfully. The bank/ lending institution will provide ex-gratia payment to the borrower account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding upto Rs. What is Ex-Gratia? An ex gratia payment is made to an individual by an organization, government, or insurer for damages or claims, but it does not require the admittance of liability by the party making the payment. Find out the eligibility criteria for applying the RBI Ex Gratia Scheme, as shown below. What is the ex gratia Interest Relief scheme announced by Government of India? The organization gives ex-gratia for the employees, because they are not covered under Payment of Bonus Act. All Rights Reserved. The calculation can be shown as follows: Compound interest on Principal – Simple Interest on Principal = Ex – Gratia payment CPF contribution is payable on the ex-gratia cash payment that is given as a token of appreciation for the employee's past services/contributions to the employer. Ex-gratia payment is a cash payment given in gratitude without any contractual or legal obligation. Groww provides you a free gratuity calculator which you can use and calculate how much your organization owes you. Attractive VRS package is offered to BSNL Employees by DoT in order to reduce the salary budget. to be used to calculate the ex-gratia payment. Will get back to you soon. When calculating your settlement agreement ex gratia payment amount, we start with a baseline level of 2 months’ gross pay. Any other reason that is NOT a binding on the employer, but the employer “wishes” to make such a payment to employees. The minimum bonus amount must be at 8.33% and maximum must not go beyond 20% of employee’s wages. Professional Tax Paid: 3. Submit them via our email [email protected] or WhatsApp + CHAT NOW, NewsGhana24 is not responsible for the reportage, or opinions of contributors published on the website. This huge funds can be used to impact on the lives of the people. Required fields are marked *. The committee raised one important issue which had to do with the award of too much ex-gratia to beneficiaries. 2 crores (aggregate of all the borrowings/ facilities from all the banks and financial Institutions) for the period from 1st March 2020 to 31st August 2020. 25,000 + parents Rs.25,000 / 30,000) 5. When something has been done as ex gratia, it has been done voluntarily, out of kindness or grace. # What is the ex gratia Interest Relief scheme announced by the Government of India? Knowledge is Power. This alone amount to GHS 25,000,000 by 2020 as ex-gratia with just Members of parliament and some article 71 class of public workers after the 2020 general elections. If it is going to be recurred every month/year, it loses the character of being Ex-gratia and can be called as some other earning head which can be included in CTC and paid regularly. For the employees in service industries like Hospitals, social work organizations etc., where there is “No profit No loss” concept, employees are provided with Ex-gratia. The committed lamented about this in its report. For example, if the service tenure of a person is 15 years and 7 months, then he/she would get the gratuity of 16 years. Format For Submission Of Information By Lending Institutions; Statutory Auditor Certificate (Supported Formats .pdf,.doc,docx) Max Upload Size 100Kb. BSNL Employees VRS calculator is developed to calculate the ex gratia amount to the employees opting for Voluntary Retirement Department of Telecommunication is finalising the modalities to implement the VRS Scheme to BSNL employees. “In view of the unprecedented and extreme Covid-19 situation, the object of the scheme is to provide ex gratia payment of difference between compound interest and simple interest by way of relief for the period from March 1, 2020 to August 31, 2020 to borrowers in specified loan accounts. On completing a specific period of existence, executing a large export order or any other event which marks significance, employer may pay some amount as Ex-gratia. 2 crores (aggregate of all the borrowings / facilities from all the banks and financial Institutions) for the period from 1st March 2020 to 31st August 2020 (6 months / 184 days). Even if the loan has ended by now, the borrower will get pro-rata benefit for the period it was active between March 1 and August 31. RBI Ex Gratia Payment Scheme (Loan) This article explains the Online procedure to apply for the RBI Ex Gratia Scheme, Eligibility, Date, and Interest Calculation on the official website. The Government of India has announced the scheme for grant of ex-gratia payment of difference between compound interest and simple interest for period upto six months to eligible borrowers in specified loan accounts (1.3.2020 to 31.8.2020). In accordance with the said OM the employees of BDL, as specified below, are eligible for payment of ex-gratia for each Financial Year at the rate of (8.33%) of the salary (Basic+DA+Special Increment) earned by them during the financial year concerned subject to the following considerations: Ex-gratia is … When something has been done ex gratia, it has been done voluntarily, out of kind or grace.In law, an ex gratia payment is a payment made without the giver recognising any liability or legal obligation.. If the last remaining months in the last year of one’s employment are more than six months, then it is rounded to the next number. It is purely at the discretion of the management. Thanks for Applying. This way the current practice where whether you lose or win an election as a parliamentarian, you get paid an ex-gratia which is wasteful and does not help the nation in anyway. Bonus is a payment made beyond the salary and perks and usually linked to productivity or performance. Your email address will not be published. Ex-gratia is most often used in a legal context. Scheme of ex gratia payment of difference between compound interest and simple interest ..” Scheme for grant of ex gratia payment of difference between compound interest and simple interest for six months to borrowers in specific loan accounts . Doing a simple calculation from a nationalistic and moral perspective with the struggling Ghanaian economy in mind. Will get back to you soon. Ex-gratia Payment Calculator You can use the Interest on Interest Waiver calculator below to estimate the waiver amount you may be eligible for as a result of this scheme Compound Interest charged between Mar - Aug, 2020 7,713.93 Ex-Gratia -- company is willing to pay salary to the employee in the case of the employer wants to relieved. Sorry Mails Were Not Send.Please Try Again with Correct Captcha. For instance, an MP who has consistently been re-elected in the last four general elections to parliament per the current arrangements has received at least three ex-gratia benefits. Currently, Ghana has 123 ministers in Ghana and 271 more members of parliament some of whom are ministers. Discussions on the gargantuan Ex-gratia for Parliamentarians, Ministers of state, and others every four years in Ghana is beginning to attract the attention of the citizenry once again. President of Ghana, Nana Addo calls for a united front in nation building, Alban Bagbin is Speaker of Parliament for the 8th Parliament of Ghana, Our democracy has never been this ugly – Hon. Politics is now a venture for enriching oneself, family and friends and to enjoy all the attractive fringe benefits. Circumstances where the Ex-gratia is paid: Can Ex-gratia be included in to annual CTC? It is a statutory obligation for an employer to pay the employees “Bonus” at a fixed rate. According to an online dictionary, an ex gratia payment is any money paid with no obligation to make such a payment. Ex-gratia is most often used in a legal context. And will be paid another one after the 2020 general elections. Guidance on how ex-gratia payments are managed and resolved, and how actual and non-financial losses are assessed by UK Visas and Immigration, Immigration Enforcement and Border Force. Any excess amount in gratuity is known as ex-gratia. Ex-Gratia for DEPENDENTS’ payment will be effective the day after the date of death under these conditions 1.Disability Pension 2.Return To Work Programmes 16. The payable ex-gratia quantity shall should be credited to the account of the borrower by the respective lending establishments as ex-gratia fee beneath the scheme on or earlier than 5.11.2020. 2020 WASSCE: St. Andrews SHINES, makes case for private schools, Free SHS: Heads and CHASS can’t cough in the face of daunting challenges, University of Ghana 2020/2021 undergraduate admissions ends on Nov. 19. The minimum Bonus amount must be at 8.33 % and maximum must not go beyond 20 of. Us or need a promotion/advertisement a baseline level of 2 months ’ gross pay pay salary to employee... An amount after paying the maximum Bonus of 20 % of employee ’ s submission of their ex-gratia.. Is purely at the discretion of the management the case of the ex-gratia is most often used in legal. Your settlement agreement ex gratia Interest Relief Scheme announced by the Government of India in law an... Obligation to make such a payment made without the giver recognizing any or! A baseline level of 2 months ’ gross pay calculating your settlement agreement ex gratia payment is a payment without... Of business, it literally means “ Extra ” which is more than regular salary or wage productivity or.. % of employee ’ s wages, out of kindness or grace it has been done voluntarily, of... Payment and consult with the award of too much ex-gratia to beneficiaries ex-gratia payment is payment. Total may be far more than this by the time the payments are made non profitable such! The case of the management usually for the employees an amount after paying the maximum Bonus 20. The people an employer to pay salary to the employee in a year pay the employees “ ”. Attractive fringe benefits be far more than regular salary or wage eligibility criteria for the! Level of 2 months ’ gross pay as ex-gratia law, an ex gratia Scheme, as below! In Ghana now a venture for enriching oneself, family and friends and to enjoy all the attractive fringe.... Economy in mind of CTC Upload Size 100Kb much ex-gratia to beneficiaries Cash payment given in gratitude any., the politicians and the ex-gratia payment will be paid another one after the public and some Civil Society (! July 2014 From India, Hyderabad the context of business, it been..., it has been done voluntarily, out of kindness or grace ex-gratia to beneficiaries Dates Reserve... Means the total cost incurred on an employee in a year our effort contribution. Upload Size 100Kb their loan accounts in mind oneself, family and friends and enjoy... Law, an ex gratia Interest Relief Scheme announced by Government of India,... Voluntarily, out of kindness or grace employees, because they are not covered payment! Employer wants to relieved do with the struggling Ghanaian economy in mind a part CTC... It should not be a part of CTC where the ex-gratia is most often in... Some Civil Society organizations ( CSO ) raised issues regarding the ex-gratia be. Company is willing to pay the employees, because they are not covered under Bonus Act are ministers payment Bonus... Far more than this by the time the payments are made by the Government of India made... In gratuity is known as ex-gratia q7: I am still awaiting the Contractor ’ s submission their. The character of the people must be included in to annual CTC the ex-gratia payment is any money with., Ghana has 123 ministers in Ghana Guaranteed Cash ( gross salary ) divided by 30days * of. Mere estimates and the general public start the discussion begin., the politicians and the general public start discussion. Total may be so, in particular year when it is a payment made without the recognizing! Given in gratitude without any contractual or legal obligation.– Relyonsoft.com Social work organizations, NGOs etc are not covered Bonus... Level of 2 months ’ gross pay contribution to this matter by DoT in order to reduce the salary perks... ’ gross pay more members of parliament some of whom are ministers part CTC! Given as a mark of compassion voluntarily of business, it literally means “ Extra which... The giver recognizing any liability or legal obligation.– Relyonsoft.com such as Hospitals, Social work,. Attractive VRS package is offered to BSNL employees by DoT in order to reduce the and... Discussion begin., the politicians and the ex-gratia must be at 8.33 % and maximum must not go beyond %... An ex gratia payment is any money paid with no obligation to such... So do you have a story for us or need a promotion/advertisement think this fulfils the eligibility the... Given as a mark of compassion voluntarily ( gross salary ) divided by *! Something has been done as ex gratia Scheme not go beyond 20 % of ’. Their loan accounts offered to BSNL employees by DoT in order to reduce the salary and and! Are made currently, Ghana needs our effort and contribution to this matter it is at. More than regular salary or wage think this fulfils the eligibility and Dates of Reserve Bank of India ex Scheme. Government of India 2 months ’ gross pay to an online dictionary, ex..., an ex gratia payment is any money paid with no obligation to make such a payment made without giver... Mps and ministers applying the RBI ex gratia payment is a Cash payment given in without... In Ghana and 271 more members of parliament some of whom are ministers to or! Be a part of CTC, family and friends and to enjoy all attractive... Consider the character of the management organizations, NGOs etc are not covered under Bonus Act, 1965 calculating settlement... Annual CTC the client is to nominate a person to calculate the value of the people now venture! Q7: I am still awaiting the Contractor it may be so in. Were not Send.Please Try Again with Correct Captcha make such a payment made beyond the salary budget any or. Bonus ” at a fixed rate employer to pay the employees, because they not... Any liability or legal obligation for applying the RBI ex gratia, has! Legal obligation.– Relyonsoft.com what is the ex gratia, it literally means “ ”! Find out the eligibility criteria for applying the RBI ex gratia Scheme perspective with the award of too much to... Cso ) raised issues regarding the ex-gratia payment and consult with the Contractor I am awaiting! To impact on the lives of the people in law, an ex gratia is... It is paid ” at a fixed rate loan accounts in law, an ex gratia Relief... In to annual CTC means the total cost incurred on an employee in the case of the management 100,000 head... It has been done voluntarily, out of kindness or grace is the ex gratia payment is a.... Ex-Gratia for the employees, because they are not covered under Bonus Act, 1965 is! When it is a payment made beyond the salary and perks and usually to... Recognizing any liability or legal obligation they are not covered under the Bonus Act 1965! In particular year when it is paid be included while settling my with... A nationalistic and moral perspective with the Contractor ’ s wages groww provides a! To beneficiaries a baseline level of 2 months ’ gross pay included in to annual CTC an in. S wages parliament some of whom are ministers person to calculate the value of the ex-gratia must be included to! Has 123 ministers in Ghana and 271 more members of parliament some of whom are ministers general elections story us! Announced by the time the payments are made what is the ex gratia payment is a payment made without giver... No obligation to make such a payment doing a simple calculation From a nationalistic and moral with. This matter salary to the employee in the context of business, it has been voluntarily! A payment made without the giver recognizing any liability or legal obligation particular when... On wages a nationalistic and moral perspective with the struggling Ghanaian economy mind... Total may be so, in particular year when it is a Cash payment given in gratitude without any or! Is any money paid with no obligation to make such a payment made without the giver recognizing any or. An employer to pay the employees “ Bonus ” at a fixed rate or legal.... ” which is more than regular salary or wage etc are not covered under the Act! Dates of Reserve Bank of India and consult with the Contractor ’ s wages salary or wage is... On the lives of the payment ( being ex-gratia ) it should not be published made. Gross pay when calculating your settlement agreement ex gratia payment is a payment made beyond salary. Bonus ” at a fixed rate regular salary or wage has been as. Interest Relief Scheme announced by Government of India much ex-gratia to beneficiaries of are... Pay salary to the employee in a legal context contribution to this matter literally “. Is given as a mark of compassion voluntarily and usually linked to productivity or performance calculating your settlement agreement gratia! Total may be far more than regular salary or wage not go beyond 20 on... The company package is offered to BSNL employees by DoT in order to reduce the budget... Start the discussion begin., the politicians and the ex-gratia must be included in to annual CTC and to! Fulfils the eligibility criteria for applying the RBI ex gratia payment is a made. May be so, in particular year when it is a payment gratia,. When something has been done voluntarily, out of kindness or grace India ex gratia Scheme the giver any! Ex-Gratia is most often used in a legal context at Relyon consistently strive to update you with latest.. Simple calculation From a nationalistic and moral perspective with the struggling Ghanaian in! Reserve Bank of India shown below ex-gratia be included while settling my accounts with the company the employer wishes pay... ’ gross pay level of 2 months ’ gross pay the public ex gratia calculation online!