‘Pending salaries in MCD mounting post-merger’

Civic body needs ₹1,126 crore to clear the backlog, say officials

September 30, 2022 01:15 am | Updated 01:16 am IST - New Delhi 

The MCD headquarters at Minto Road.

The MCD headquarters at Minto Road. | Photo Credit: File photo

Four months after the Municipal Corporation of Delhi (MCD) was reunified, the civic body’s struggle to clear the backlog in payment of salaries to its employees has worsened. 

According to the MCD, a total of ₹1126.43 crore is required to pay the salaries and pensions of its employees up to September. This is a massive rise in the salary gap which stood at ₹752.53 crore in July.

Post the merger of the three erstwhile municipal corporations, salaries of employees (various categories) under the erstwhile East corporation are pending for three to four months; employees under the erstwhile North body have not got their salary for one month, while those under the erstwhile South corporation have their salaries up to date. 

Although the MCD’s official response is that it is “making all efforts” to close the salary gap and bring parity, officials told The Hindu that the civic body’s financial situation has “worsened” after the merger and the salary gap has continued to fluctuate. 

Minimal funds

“We are running on minimal funds and the internal revenue is not going to help. We have received one portion of the funds from the Delhi government to pay salaries, but we cannot exhaust it. Most of our revenue goes into paying salaries in order to avoid the gap from increasing but if this continues for another month, there will be stiff resistance from the employees,” said a civic official. 

The official added that the financial strain and the “complete focus” on paying pending salaries and pensions have left the civic body with very little room to work on development projects. 

Currently, the MCD requires ₹774.83 crore per month to pay the salaries of all employees.  “We have recently received some of the pending amount in transfer duty charges and one-time parking charges from the Delhi government, which is a momentary relief. Until we get the final installment of funds from the government, which is due after December, we will have to be careful with the salary distribution. This is also to ensure that the regular salary distribution, apart from the backlog, is not disturbed,” said the civic official.

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