Government cracks down on KSEB salary revisions to curb financial crisis

THIRUVANANTHAPURAM: The Kerala state cabinet has mandated that KSEB employees shall no longer receive compensation exceeding that of government employees. This directive was issued alongside the formal approval of the salary revision implemented by KSEB in 2016.

The government has ordered the immediate termination of the "cadre pay" system within KSEB and has banned the provision of "service weightage." Neither of these benefits is available to employees in other state public sector institutions or standard government service. Furthermore, the State Electricity Regulatory Commission has been instructed to ensure that the financial liabilities arising from these salary revisions do not result in increased electricity tariffs for the public; future salary revisions will only be permitted once this financial stability is guaranteed.

Historically, salary revisions for government employees and those in public sector institutions have been based on the recommendations of the state's Salary Revision Commission. However, KSEB previously bypassed these standards due to pressure from various organisations, choosing to implement independent salary revisions that contributed to the board's financial crisis. Although a 2013 provision required government approval for such changes, KSEB frequently circumvented this by seeking retrospective approval only after the revisions had already been implemented. This practice drew the attention of the government only after a critical report was issued by the Comptroller and Auditor General (CAG).

While the cabinet has now granted approval for the 2016 revision, it has done so with the imposition of these strict new constraints. Moving forward, salary revisions for KSEB staff must be synchronised with those of government employees. As the 2016 and 2021 revisions were both implemented without prior government approval, KSEB employees remain concerned about the ultimate status and implications of the 2021 adjustment.