Delayed salaries force Karnataka employees to pay extra loan interest; seek government intervention

BENGALURU: A section of employees from a few government departments are not getting salaries on time for various reasons. For no fault of theirs, those who have taken loans from the Karnataka Government Insurance Department (KGID), or have to pay their monthly contributions to KGID policy, have ended up paying ‘’penalty interest” for delays in their payments. Now they have approached senior authorities in the state government to rectify levying more interest for delayed payments.

Government employees of a few departments in some districts, including Zilla and Taluk Panchayat, Health, Education , Women and Child Welfare and Rural Development and Panchayat Raj, have not been receiving salaries on time. In many cases, it is delayed by days, in many others by months. This issue has been continuing over several years.

The government-sanctioned posts are 7.7 lakh, of which around 5.4 lakh posts are filled. The shortage has resulted in the government depending on a large number of contract employees, especially guest lecturers, pourakarmikas and others, who too are not getting salaries on time.

‘Employees pay additional loan interest due to delayed salary’

The state government spends more than Rs 1 lakh crore and with 7th Pay Commission recommendations, it increased by at least Rs 22,000 crore to Rs 25,000 crore, including for salaries and pensions. “The government is struggling to manage this and this is one of the reasons for delays in payment of salaries,’’ said a senior official requesting anonymity.

CS Shadakshari, President, Karnataka State Employee Association, said KGID, a government-owned body, gives loans for lesser interest. “The loan amount is deducted on a particular date every month. But when the salaries are delayed, many are unable to pay the interest on time. The salaries are delayed for various reasons. But for no fault of theirs, they are paying additional interests,’’ he said.

He has written to the Additional Chief Secretary (Finance), urging him to make changes in the software of KGID that deducts additional interest for delayed payments. “Employees who are facing inconvenience have approached me. It is not just loan interest payment, even KGID monthly contributions are also paid late,’’ he said.