7th Pay Commission: 6-Month Salary Cut For Govt Employees, Leave Without Pay For 5 Years

In its fight against the COVID-19 pandemic, the Kerala government is taking up a slew of measures. As part of the fight the State this week decided to go for six months of salary cut for the government employees.

The decision was cleared by the Cabinet to mobilise revenue in view of the financial crisis grappling the State due to the COVID-19 pandemic.

Meanwhile, the Cabinet chaired by Chief Minister Pinarayi Vijayan decided to merge the six-day salaries of the government employees and teachers deducted for five months from April in the Provident Fund on April 1, 2021.

“The amount merged in the PF can be withdrawn by the employees from June 1, 2021 and will be given 9% annual interest till it is deposited in the PF on April 1, 2021. This is to avoid the Rs 2,500 crore additional burden to the exchequer if the deducted amount is returned now,” a communication from the CMO said.

The initiative will be known as COVID-19 Income Support Scheme and it will reportedly attract 9% annual interest till it is merged in PF on April 1, 2021, reported The Hindu.

The pensioners without PF will, however, get the deducted money returned after June 2021 in equal monthly instalments.

Surrendered leave will also be merged with the PF of the employees and they can withdraw the money only from June 1, 2021 onwards.

Importantly, the 'leave without pay' that was available for 20 years has now been reduced to five years.

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