Pay revision backfires? KSFE employees face Rs 2,000-Rs 6,000 salary cut

Kollam, Kerala: Kerala State Financial Enterprises Limited (KSFE) employees are set to face salary cuts ranging from Rs 2,000 to Rs 6,000 following the implementation of revised pay-fixation rules.

The salary revision at KSFE was due to take effect from Aug. 1, 2022. For government employees, the percentage increase is calculated based on basic pay. However, under a bilateral agreement between KSFE employee unions and the management, the revision is calculated based on the combined amount of basic pay and dearness allowance (DA). The government had initially issued the order without taking this difference into account.

An earlier order restricting benefits was revised following protests. The decision to amend it was taken at the last Cabinet meeting before the model code of conduct for the Assembly elections came into effect. Employees had been receiving revised salaries since March.

However, in April, the KSFE managing director sought clarification from the government regarding the salary revision. In its response, the government directed KSFE to restore the earlier pay-fixation provisions.

Under the latest order, employees will receive lower salaries from August. The additional amounts paid to them in previous months as part of the salary revision will also be recovered.

Left-affiliated organisations within KSFE have launched protests against the move. An employees' organisation also wrote to the chief minister seeking correction of the discrepancies in the order.

KSFE authorities, however, said the salary revision was implemented only from March and that further steps were still at the preliminary stage.