Government to cut salaries of staff as well as pensioners

Bureaucrats to face 60% cut in salaries to offset impact of COVID-19

March 30, 2020 10:13 pm | Updated 10:13 pm IST - Hyderabad

Faced with the deteriorating economic situation owing to the impact of the spread of coronavirus (COVID-19), the State government has opted for an extraordinary decision of cutting the salaries of staff at different levels, including those of the elected representatives.

The decision comes in the light of Chief Minister K. Chandrasekhar Rao announcing at a press conference on Sunday that the government is not averse to impose cuts in the salaries of the employees from the top level to offset the burden on the financial front posed by the virus which adversely impacted the economy as well as the accrual of finances to the State exchequer. A high level meeting chaired by the Chief Minister on Monday has resolved to rationalize the pay packages for the staff in the aftermath of the COVID-19 impact on the State.

Accordingly, there will be 75% cut in the salaries of the State Cabinet, MLAs, MLCs, chairmen of corporations and elected representatives of different organisations. Bureaucrats, including IAS, IPS and IFS officers, would have to bear with 60% cut in their salaries while the reduction for staff in all other categories would be to the tune of 50%.

The fourth class, contracting and outsourcing staff would face 10% cut in their salaries while the pensioners in all categories would have to bear with a cut of 50% in their emoluments. Burden on pensioners comprising fourth class employees would, however, be less in that only 10% of their assured pension would be cut. The reduction would be applicable for all employees and pensioners employed in the State owned companies and corporations.

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