It is not just private companies that are going the route of pay cuts to partially deal with the economic impact of the coronavirus pandemic. Even state governments are taking on this aggressive step.
The Maharashtra government on Tuesday said it would take a 60 percent cut in the monthly salary of all public representatives in the state. The salary cut will also include the chief minister Uddhav Thackeray.
In an official statement, deputy chief minister and finance minister of the state, Ajit Pawar said the state will take a 60 percent cut in the March salaries of the chief minister, all other ministers, MLAs, MLCs and representatives of local governing bodies.
Salary cuts will be taken by all government officers as well. Up to 50 percent cut for salary for Grade A and B officers. Up to 25 percent salary cut for Grade C employees. However, employees in Grade D and lower will not see any salary cut.
Maharashtra became the second state to announce salary cuts. Telangana chief minister K Chandrashekhar Rao has announced that him along with the cabinet, will be taking a 75 percent cut in the salary as the coronavirus outbreak will have an impact on the state’s economy.
Rao-ruled state government’s 75 percent salary cut will include the assembly cabinet, MLCs, MLAs, state corporation chairpersons and local bodies representatives.
Telangana has also announced a 60 percent salary cut for IAS, IPS, IFS and other such central services officers. A 50 percent salary cut has been announced for all other categories of employees.
Even Class IV employees, outsourcing and contract employees, will see their pay cut by 10 percent. For all category of pensioners, a 50 percent cut and Class IV retired employees will have a 10 percent pay cut.
Maharashtra has seen the fastest additions in number of coronavirus positive cases. As of March 31st, 225 confirmed cases were reported, including 10 deaths. The state’s capital and India’s financial capital Mumbai has been the worst hit. Telangana has 71 confirmed cases so far.