Salary cut for 6 more months; deferred salary to be linked to PF
Thiruvananthapuram: The government has extended the salary cut of government employees and teachers for 6 more months. The period of salary cut for 5 months from April till August has ended and the government has now extended it further. The Kerala cabinet has given approval for salary cut for 6 more months.
The salary cut has been enforced for state government employees to help it tide over the Covid-19-induced financial crisis. After the Cabinet meet, Finance minister Thomas Isaac announced the decision online to the different representatives.
Deferred salary to be linked to PF
The deferred salary of the employees from April 1 to August 31, 2020 will be deposited to the respective PFs in April 2021. The government will have to incur an additional expenditure of Rs 2500 cr if it had to disburse the money to employees as cash. The money that is deposited in the PF can be withdrawn after June 1, 2021 onwards. The deferred salary amount will attract an interest of 9 percent till it is deposited in the PF next 2021 April.
The salary cut from September 1 onwards will also be given an interest of 9 percent till it is deposited in the PF on April 1, 2021. After it is deposited in the PF, it will be given an interest as per PF rules. The deferred salary will be put under `Covid – 19 Income Support Scheme’. Pensioners who do not come under the PF ambit, will be given the deferred amount after June 1, 2021 every month in phases.
Leave surrender amount to PF
The leave surrender amount will also be deposited in the Provident Fund. The money can be withdrawn only after June 1, 2021. The leave surrender of all government employees for the next financial year will be allowed only after June 1, 2021.
Leave without pay made for 5 years
The cabinet decided to reduce the period of leave without pay to five years. Currently, the leave without pay can be availed for upto 20 years. This has been reduced to five years. The employees who do not cancel their leave and rejoin the service will be considered as resigned. Those who are currently on long leave will be granted time to return.