Kerala Govt Extends Salary Deferment for 6 More Months

Kerala Govt Extends Salary Deferment for 6 More Months

In the wake of the ongoing COVID-19 pandemic, the Kerala government has extended the deferment of salaries of its employees by six more months.


The five-month deferred salary of the employees would be merged with Provident Fund (PF) on April 1, 2021, as an immediate liability of Rs. 2,500 Cr would be incurred if repaid in cash. The merged amount can be withdrawn after June 1, 2021.


Furthermore as a cost-cutting measure, the state has also decided to not embellish government buildings, purchase furniture and vehicles in government institutions and offices for  one year.


The government has come up with these decisions on the recommendations of two expert committees set up to review the economic situation of state.


An official release said: Deferment of salary will continue for another six months starting from September 1. However, the salary thus deferred will carry an interest rate of nine per cent per annum until it is merged into PF on April 1, 2021.


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