COVID: BHEL announces austerity measures for employees of all categories

• Half of the perks and allowances under the Cafeteria scheme have been deferred and increase in Dearness allowance (which was effective from April 1) has been kept on hold

• BHEL has also said that the measures will be reviewed after six months, depending on the financial position of the company

New Delhi: Reeling under the financial hardships unleashed by the COVID situation in the country, state-run BHEL (Bharat Heavy Electricals Ltd) has put in place austerity measures for all categories of employees, an internal memo accessed by PSU Watch has shown. Moreover, the PSU has also said that the measures will be reviewed after six months or earlier, depending on the financial position of the company.

"Owing to the difficult and extreme prevailing business conditions and further aggravation of the situation due to outbreak of pandemic COVID-19, the following economy and austerity measures will come into force with immediate effect," the memo, addressed to all unit and division heads, HR heads and finance heads at BHEL, said.

BHEL defers allowances as part of austerity measures

The memo, dated April 28, said that half of the perks and allowances under the Cafeteria scheme have been deferred and the increase in Dearness allowance (which was effective from April 1) has been kept on hold. "50 percent of Perks and Allowances under Cafeteria Scheme is deferred for all categories of employees i.e. Executives, Supervisors and Workmen. Increase in Dearness Allowance (DA) effective from 01.04.2020 notified vide Corporate HR Circular No 025/IRX/2020 dated 13.04.2020 will be kept on hold," the document said.

Salaries credited into account for April will bear these changes

The memo said, "The deferment of 50 percent perks and allowances under Cafeteria Scheme as well as withholding of DA increase shall be implemented with effect from the pay for the month of April 2020 onwards." It added, "Matter for restoration of the above items will be reviewed after six months or earlier, considering the financial position of the Company and government directions in this regard."

The news comes just week after the government said that it has put on hold the revision of dearness allowance and dearness relief and the payment of arrears to all Central government employees and pensioners till June 30, 2021.