Debt beyond repayment: Restrictions on issuing of salary certificate to govt employees

Thiruvananthapuram: To curtail the suspected spending spree and mounting debt crisis among its employees, Kerala Government has decided to restrict issuing salary certificates. The finance department has instructed the salary disbursing officers not to issue certificates if the employees take up loans beyond their repayment capacity.

If an employee's monthly loan or chit-fund instalment exceeds the person's gross salary, the department won't issue salary certificates to avail of new loans. No salary slip will be issued to those who have payment recovery from their salary nor to those who have received a stop memo for temporary suspension of loan recovery. Also, in cases where the repayment amount is more than the net salary as recorded in previous salary certificates, the individual will not be eligible for the issuance of new slips.

Certificates will not be issued if the loan or chit repayment term exceeds the service period of the employee. Additionally, contractual employees will not receive salary certificates. However, if the loan is not determined by net salary, the certificates will be granted to them.