7th Pay Commission: Salary cut of govt employees extended by 6 months more , leave without pay for 5 yrs
The Kerala Government issued an order to deduct the salary of government employees for six days every month for the next five months as part of raising funds for fighting the COVID-19 pandemic in the State. The order made it clear that there will be no salary cut for those staff who earn less than Rs 20,000 per month.
The Kerala government has extended to cut salary of government employees and teachers for 6 more months. The state government had decided to deduct the salary of 6 days every month in the salary of employees for a total of 5 months from April to August, which has now been extended for another 6 months. The pay cut for 6 more months was approved in the Kerala cabinet meeting last week.
However, giving relief to the employees, the state government had announced that the money of salary cut will be given to the employees in PF by next year.
This order is not applicable for those who had already contributed their one month salary to the Chief Minister’s Disaster Relief Fund (CMDRF). This would be applicable to employees of all State- owned Enterprises, Public Sector Undertakings, Quasi- Government organisations, Universities, etc in the State,” the order said.
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 The money that is deposited in the PF can be withdrawn after June 1, 2021 onwards.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 The money can be withdrawn only after June 1, 2021.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.