Kerala moots new proposals for salary cut, repayment
Aim is to raise funds in the wake of COVID-induced crisis
23/09/2020
T.M. Thomas Isaac
Special Correspondent THIRUVANANTHAPURAM
The Kerala government has come up with new proposals on salary deduction and repayment of deducted salary of government employees and teachers to raise funds in the wake of COVID-19-induced financial crisis.
Three proposals were put forward by Finance Minister T.M. Thomas Isaac at a meeting of office-bearers of employees and teachers unions through videoconferencing on Tuesday.
Instead of depositing the deducted salary from April to August this year in the Provident Fund account on April 1, 2021, the employees will be allowed to take loan for the deducted amount from banks and financial institutions in October. The government will repay the loan amount with interest and offer guarantee to the loan, provided they agreed to the new deduction proposal.
The other proposal was to deduct five days’ salary every month for six months from September. Those availing themselves of the offer will get more time for repayment of Provident Fund loan taken by them and Onam festival advance of ₹15,000.
Deducting one month’s salary through three days every month from September to March 2021 was the third proposal.
In the salary cut initiative from September, to be known as COVID-19 Income Support Scheme, the employees and teachers will get 9% annual interest till it is deposited in the PF on April 1, 2021.
Pro-UDF unions said they would go on strike if the government moved ahead with the salary cut.
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