Maharashtra announces 30% pay cut to consultants

The government resolution (GR) issued on Monday has directed all the departments to reduce 30% of the remuneration paid to the consultants.

After initiating 67% cut to the outlay of its development schemes and banning new recruitments, the state government has now announced a 30% cut in the remuneration paid to outside consultants. The government has 400 such consultants working through six leading companies. The move is expected to save the exchequer to the tune of Rs36 crore in this financial year.

Various departments of the government have appointed six companies including Ernst & Young, PricewaterhouseCoopers and Wipro for technical and other consultancies on various programmes and schemes. (Reuters)

The government resolution (GR) issued on Monday has directed all the departments to reduce 30% of the remuneration paid to the consultants. Various departments of the government have appointed six companies including Ernst & Young, PricewaterhouseCoopers and Wipro for technical and other consultancies on various programmes and schemes. The consultants are paid a remuneration ranging between Rs198,000 and Rs356,400 per person per month depending on their experience, as per the last rate revision on March 20, 2019.

The government, in the GR, asked its departments and sub-establishments to restrict the appointment of such consultants to two per department. “Most of our consultants are from the information and technology sector, which itself has given pay cuts to their employees. On the similar line and in light of the economic crisis, we have decided to reduce their payments,” said an official from the finance department, requesting anonymity.