Amidst opposition from many quarters, the government has commenced the groundwork to deduct the salary of employees for six months to raise funds to overcome the financial crisis in the wake of COVID-19.
The majority of employees unions, teachers, and the United Democratic Front have opposed the move.
To give relief to employees, the government is considering deducting salary for five days instead of six days every month till February 2021. Relief from the salary cut for those who have availed themselves of the refundable loan from the provident fund and those who have taken the Onam advance and to exempt those having salary up to ₹30,000 is also under consideration.
Finance Minister T.M. Thomas Isaac has already held talks with the recognised unions. Most of the union representatives have opposed the move. Dr. Isaac has asked the union leaders to give their views in writing.
Prof-Left unions such as the Joint Council, Federation of State Employees and Teachers Organisation, NGO Union, and the Secretariat Employees Association came out with statements on Saturday opposing the salary cut. The unions affiliated to the United Democratic Front had announced that they would go on strike if the government went ahead with the salary cut.
As per rule, the government has to issue a Government Order for all Cabinet decisions within 24 hours. The delay in issuing the salary cut order was reportedly due to the consultations with the recognised unions as announced by the Chief Minister. Following opposition from the Left unions, Dr. Isaac has convened a meeting of employees unions on Tuesday. With three consecutive holidays from Saturday, the department is trying to issue the Government Order on Tuesday itself. The proposed salary cut from September, to be known as COVID-19 Income Support Scheme, will also attract 9% annual interest till it is deposited in the PF on April 1, 2021. Official sources said the exchequer was in a crisis as tax revenue had plummeted from ₹12,000 crore monthly to ₹4,000 crore and the salary cut was the only option to tide over the situation.
