Covid-19: Telangana Govt announces pay cut for government employees
It’s not only private companies that are forced to lay off employees due to the impact of COVID 19 in their businesses, but the Telangana government has also started to tighten its purse strings. With the economic activity taking a hit due to the pandemic, the Telangana government has decided to opt for a salary cut for all government servants of the state.
As the government has to initiate several humanitarian steps due to the 21-day lockdown, revenue flow has come badly hit in the state. In a meeting after the state’s financial condition was reviewed, the government led by chief minister K. Chandrasekhar Rao opted for a salary cut for all government servants of the state.
A note has been issued by the chief minister’s office, which mentioned that the salary cut will vary according to the grade and service cadres.
The highest cut of 75 percent will be imposed on salaries of the Chief Minister, State cabinet, MLCs, MLAs, State Corporation Chairpersons, and Representatives of Local Bodies representatives.
All India Services cadre employees such as IAS, IPS, IFS and other such Central services Officers stand to face the second-highest cut of 60 percent, while all other categories of employees will see their salaries cut by 50 percent.
Salaries of Class IV, outsourced and contract employees will be cut by 10 percent as per the government.
The salary cuts will also pinch retired employees who stand to lose almost 50 percent of their pensions due to the measures. For Class IV retired employees, however, there will only be a 10 percent cut. For all the Public Sector Undertakings, Institutions that are receiving the government grants employees, like the government employees and retirees, there will be cut in their salaries.
However, it is not yet clear as to how long the salary cuts will continue and also whether employees will be repaid the deducted amount in the future.