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No proposal to cut salaries of central government employees: FinMin

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SRINAGAR: Ending speculations, Union Finance Ministry on Monday ruled out salary cuts for the central government employees.

“There is no proposal under consideration of government for any cut whatsoever in the existing salary of any category of central government employees. The reports in some sections of media are false and have no basis whatsoever,” the ministry said on Twitter.


The clarification came after reports that the central government was planning to cut salaries by up to 30 percent.

Earlier in April, the Ministry of Finance had frozen the additional installment of Dearness Allowance (DA) payable to the central government employees and Dearness Relief (DR) to pensioners till June 30, 2021, given the COVID-19 pandemic. The decision is likely to affect around 50 lakh central government employees and 61 lakh pensioners.

“It has been decided that the additional installment of DA payable to central government employees and DR to the central government pensioners due from 1st January 2020 shall not be paid. The additional installments of DA and DR due from 1st July 2020 and 1st January 2021 shall also not be paid,” said the Ministry of Finance.

The ministry, however, said that the DA and DR at current rates will continue to be paid. The DA hike was made by the government as per the recommendations of the 7th Pay Commission.

Meanwhile, the government has announced that the President, Vice President, Prime Minister, and all Members of Parliament will take a salary cut of 30 percent amid coronavirus crisis. All these funds will be transferred to the Consolidated Fund of India and the salary cut will be applicable for one year. However, pensions and allowances of MPs will remain unaffected. (With agency inputs )