To, Dr. Manmohan Singh Prime Minister of India, PMO House Sectt., New Delhi 110001 Sub : Meal benefit needs to be revised immediately Hon’ble Prime Minister, I would like your intervention Meal benefit needs to be revised immediately to match the increase in food prices. Salaries earned have also increased, but meal benefits for Indian employees have not changed in the last 10 years. These benefits should include all sector employees with the cooperation of Employers. I firmly believe that the Government should treat meal benefit limits as a priority reform. If there is a impact of slowdown on profit of a company it is important to Me and the Indian Public has a right to know how the company is going to overcome, and one of the way to motivate is by ensuring employees benefits are taken care which will ensure higher productivity and increase in output. There are a number of studies which have been done by ILO, which clearly establish a relationship between good working conditions and welfare support for the worker and worker productivity. Meals for employees and workers figure high among welfare measures and in making a contribution towards enhanced productivity in any organisation. But somewhere in the interim years the Government has lost sight of the need to suitably revise the limit set looking at the price levels in the market in the year in question. Key Representations 1. The income tax exemption limit for meals to employees was fixed at Rs 50/ per meal in 2001 and has not been revised since then despite over 100% increase in food prices; 2. During the period when Fringe Benefits Tax (FBT) was applicable, the limits were removed in case of meals provided by the employer directly or through meal vouchers. A limit of Rs.100 per meal was prescribed in case of electronic meal cards. After abolition of FBT, the old provisions was reinstated but with the old limits of Rs 50 per day; 3. To ensure that the quality of nutrition is preserved and to encourage employers to spend more on employee meals, the limits should be enhanced by at least 100% Due to the limits being stagnant, employers have not increased their spending on the meals as a result of which the overall quality of meals to employees The current meal provisions for Employees in India state that value of free food and non-alcoholic beverages or meal vouchers provided by the employer is exempt from income tax to the extent of Rs 50 per meal. Exemption is calculated on a per-meal basis. This Limit of Rs 50/- per meal per day was decided in 2001 when the limit was increased from Rs 35/- per day to Rs 50/ per meal. Thus, the meal benefit needs to be revised immediately to match the increase in food prices. Market prices of a basic meal have increased by over 100%, but meal benefits for Indian employees have not changed in the last 10 years. Government should treat meal benefit limits as a priority reform. The meal limit prescribed should also be linked to the Dearness Allowance or another suitable inflation indicator so that automatic adjustment to the limit happens without the need for any yearly intervention unless the gap widens widely. Considering that the original limit was set over 10 years ago and there has been an increase of 109.50% in food prices in the past 10 years; the limit should be revised to a minimum of Rs.125 per meal from April 2012. The aversion and hostility to labour movement and ignoring of International Labour Standards whether in India or abroad is unlikely to be helpful in the long run. With economic downturn, it is time companies reviewed their labour policies and take employees into confidence and allow them to adopt progressive pro labour policies including the meal benefit needs to be revised immediately to match the increase in food prices. Regards