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No proposal to cut salary of central govt employees, clarifies Finance Ministry

"There is no proposal under consideration of government for any cut whatsoever in the existing salary of any category of central government employees," Finance Ministry said

twitter-logoBusinessToday.In | May 11, 2020 | Updated 19:45 IST
No proposal to cut salary of central govt employees, clarifies Finance Ministry
There is no proposal under consideration to cut salary of any category of central government employees, says Finance Ministry

The Finance Ministry on Monday refuted reports that claimed the Centre plans to slash salaries of its employees as the coronavirus crisis batters the country's already fragile economy.

"There is no proposal under consideration of government for any cut whatsoever in the existing salary of any category of central government employees," said the ministry on Twitter.

"The reports in some section of media are false and have no basis whatsoever," it added.

The clarification came after reports that the central government was planning to cut salaries by up to 30 per cent.

Earlier in April, the Ministry of Finance had frozen the additional installment of Dearness Allowance (DA) payable to central government employees and Dearness Relief (DR) to pensioners till June 30, 2021 in view of the COVID-19 pandemic. The decision is likely to affect around 50 lakh central government employees and 61 lakh pensioners.

Also Read: Coronavirus Live Updates: Tamil Nadu, Telangana ask PM Modi to hold train services; India cases - 67,152

"It has been decided that the additional installment of DA payable to central government employees and DR to central government pensioners due from 1st January 2020 shall not be paid. The additional installments of DA and DR due from 1st July 2020 and 1st January 2021 shall also not be paid," said the Ministry of Finance.

The ministry, however, said that the DA and DR at current rates will continue to be paid. The DA hike was made by the government as per the recommendations of the 7th Pay Commission.

Also Read: PM Modi interacts with CMs: Meeting focusses on COVID-19 containment strategy, boosting economy

Meanwhile, the government has announced that the President, Vice President, Prime Minister and all Members of Parliament will take a salary cut of 30 per cent amid coronavirus crisis. All these funds will be transferred to the Consolidated Fund of India and the salary cut will be applicable for one year. However, pensions and allowances of MPs will remain unaffected.

By Chitranjan Kumar

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