State employees won’t get arrears of 7th pay commission this year

Employees of Maharashtra government will not get this year’s instalment to clear arrears of seventh pay commission. Struggling with the financial crisis, the state

Employees of Maharashtra government will not get this year’s instalment to clear arrears of seventh pay commission. Struggling with the financial crisis, the state government has decided to defer the payment for a year.

HT Image

“We have decided to defer the second instalment as arrears of seventh pay commission for a year considering the adverse impact on the economy,” states the government resolution issued by the finance department on Wednesday.

The state has decided to implement recommendations of the seventh pay commission from January 1, 2019. The arrears amount was divided into five annual instalments. This year’s instalment of ₹5,000 crore for its 18 lakh employees including 7 lakh pensioners was due on July 1, said a senior official from the finance department.

Earlier, the state has deferred March month’s salary of its officers from Class A, B and C.

The ongoing financial crisis has led the state government to declare a 67% cut in its spending for developmental works this fiscal year, in view of the estimated revenue losses of more than Rs 40,000 crore in March and April 2020 owing to the Covid-19 outbreak.

The state, expecting the cumulative losses to be more than ₹50,000 crore in the current fiscal, has also decided to not take up new development schemes and scrap or defer the schemes that can be put on hold. Among other measures, the government has also decided to stop recruitment for government jobs, meaning that recruitment underway for 35,000 posts is unlikely now.