New Delhi: In an effort to keep the liquidity in state treasuries intact, governments have asked their employees to bite the bullet and either announced pay cuts or deferred their salaries.
Maharashtra Chief Minister Uddhav Thackeray has announced that he, along with other MLAs, will take 60 per cent pay cut. Grade A and B officers will get a 50 per cent salary cut. However, there will be no salary deductions for Grade D employees.
The salary deduction is applicable for the month of March only, Maharashtra Finance Minister Ajit Pawar said.
Telangana Chief Minister K Chandrashekar Rao and other state ministers along with members of Legislative Assembly (MLAs) will take 75 per cent salary cut. The state corporation chairpersons and local bodies representatives will also take a three-fourth salary cut.
"There will be a 75 per cent cut on the salaries of the chief minister, state cabinet, MLCs, MLAs, state corporation chairpersons, and local bodies representatives in view of the financial state of Telangana, due to COVID-19 pandemic," Telangana chief minister said on Monday.
Civil servants in the administrative, police and foreign services along with other central service officers will have to take 60 per cent salary deduction. All other categories of employees, including retirees, in the state will see a 50 per cent cut in their pay.
Meanwhile, Rajasthan Chief Minister Ashok Gehlot has led his cabinet to pass a resolution to defer 75 per cent of his gross salary and of all ministers and MLAs in view of the economic burden on the state due to the coronavirus pandemic.
The cabinet decided that 60 per cent of the salaries of IAS officers and 50 per cent of state services will be deferred. Thirty per cent salaries of the pensioners will also be deferred.
However, Gehlot said the cops, class four employees, health workers, doctors and contract workers are exempted from such part deferment of salaries.
The Odisha government on Tuesday decided to defer salary of elected representatives and officers of All-India Services to tackle the economic situation arising out of nationwide lockdown and expenditure incurred to control Covid-19.
According to a government notification, there will be a deferment of 70 per cent in the gross salary of the Chief Minister, all ministers, MLAs, chairpersons of all corporations and elected representatives of local bodies.
Besides, there will also be deferment of 50 per cent in the gross salary of All India Service Officers such as IAS, IPS and IFS (Indian Forest Service). The notification said, the order will come into force with immediate effect.
The Andhra Pradesh government announced deferment of payment of full salaries to the chief minister, other elected representative, officers and other state government employees, saying its revenue streams have "totally dried up" due to the ongoing lockdown to combat novel coronavirus.
As per the order, the deferments will range from 10 to 100 per cent for different categories of employees.
All India Services officers (IAS, IPS and IFS) will see a 60 per cent deferment in their salaries, while all other employees will get only 50 per cent of their pay, it said.
Class-IV employees, outsourced and contractual staff and the newly employed village and ward secretariat staff will be paid 90 per cent of their salaries, with only a 10 per cent deferment, it added.
Besides, serving and retired employees of all PSUs, government-aided institutions, universities and autonomous bodies would get only proportionate deferred payments, it stated.
It is important to note that these measures are being taken at a time when the states are already fund-starved. GST compensations, for example, which are supposed to be paid at the end of every two months have been pending for many states.
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