Telangana govt to cut salaries of its staff amid COVID-19 crisis

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In a clear indication of the tough times that COVID-19 has wrought upon the state, the Telangana government, on Monday, resorted to tightening its purse strings. With economic activity coming to a standstill and the government having to initiate a bevy of humanitarian measures due to the 21-day lockdown, revenue flow has come to a standstill in the state.

Following a review meeting, where the state's financial situation was discussed, the state government led by chief minister K. Chandrasekhar Rao opted for a salary cut for all government servants of the state.

As per the note issued by the chief minister's office, the salary cut will vary according to the grade and service cadres.

The highest cut of 75 percent will be imposed on salaries of the Chief Minister, State cabinet, MLCs, MLAs, State Corporation Chairpersons, and Representatives of Local Bodies representatives.

All India Services cadre employees such as IAS, IPS, IFS and other such Central services Officers stand to face the second highest cut of 60 percent, while all other category of employees will see their salaries cut by 50 per cent.

Salaries of Class IV, outsourced and contract employees will be cut by 10 per cent as per the government.

The salary cuts will also pinch retired employees who stand to lose almost 50 per cent of their pensions due to the measures. For Class IV retired employees, however, there will only be a 10 per cent cut. For all the Public Sector Undertakings, Institutions that are receiving the government grants employees, like the government employees and retirees, there will be cut in their salaries.

However, it is not yet clear as to how long the salary cuts will continue and also whether employees will be repaid the deducted amount in future.