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There’s no plan to impose pay cuts on Central government employees: Govt

After reports claimed that the govt might impose salary cuts on Central government employees, the Ministry of Finance has said that there is no such plan

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

  • The government had earlier put on hold the revision of DA and DR and the payment of arrears to all Central government employees and pensioners

New Delhi: After reports in certain sections of the media claimed that the government might impose salary cuts on some categories of Central government employees to help cushion the expenditure entailed in the wake of the Coronavirus pandemic, the Ministry of Finance has issued a clarification saying that there is no such plan. In a tweet, the ministry said on Monday, “There is no proposal under consideration of Govt for any cut whatsoever in the existing salary of any category of central government employees. The reports in some section of media are false and have no basis whatsoever.”

No pay cuts so far, but govt has frozen DA and DR

In an official order released on April 26, the government had said that it has put on hold the revision of DA (Dearness Allowance) and DR (Dearness Relief) and the payment of arrears to all Central government employees and pensioners till June 30, 2021. However, Central government employees and pensioners would continue to receive DA and DR, respectively, at the current rate of 17 percent till June 30, 2021.

The backdrop

Apart from bearing the cost of providing healthcare relief in the wake of the Coronavirus pandemic, the government also needs to provide stimulus packages to various sectors and industries that have been hit because of disruption in operations due to the nationwide lockdown. The lockdown was imposed on March 25 and is set to continue at least till May 17, as of now.

The Centre has already announced a Rs 1.7 lakh crore economic package, comprising of free foodgrains and LPG gas to the poor and cash transfers to poor women and the elderly. A second package, aimed at offering some relief to MSMEs, is said to be in the works and is expected to be announced soon.