The Kerala government has extended the pay cut of government employees and teachers for 6 more months. The decision has been taken in the cabinet meeting after the end of the 5-month reduction period from April to August. The pay cut for 6 more months has been approved in the Kerala cabinet meeting held on Wednesday.
According to the news released in the media, due to the adverse circumstances due to Covid-19, salary is being cut to deal with the financial crisis. After the cabinet meeting, Finance Minister Thomas Issac announced this during an online dialogue with various representatives.
The deferred salary of employees from April 1 to August 31, 2020 will be deposited in the respective PF in April 2021. The government will have to bear additional expenses of Rs 2500 crore for this. The money being deposited in the PF can be withdrawn after 1 June 2021.
The salary deduction will be included in the PF and return to the employees with 9 percent interest. This process will start in 2021. That is, the employees will have to wait till 1 June 2020 for this. At present, the government is dealing with the current financial situation by deducting money from his salary.
Before the Kerala government, the Gehlot government of Rajasthan also decided to cut the salary of employees in the first week of September. A salary of 7 days per month is being deducted from the gross salary of the Chief Minister, Ministers and State Ministers every month. Apart from this, one day salary is being deducted every month from the gross salary of all MLAs. Out of the gross salary of subordinate service and other state employees, one day’s salary is being deducted every month.