Employees' dreams in vain; no hike in welfare pension

THIRUVANANTHAPURAM: Due to upcoming local body and assembly elections in Kerala, government employees may have expected that there will be more benefits in the present budget. After the huge income tax relief announced in the Union Budget, they were expecting a double whammy. However, no such thing happened.

Despite significant demand for an increase in social security pensions, the Kerala government will maintain the monthly pension at Rs 1,600. Although welfare pension beneficiaries anticipated a rise to Rs 2,000 in the annual budget, Finance Minister KN Balagopal announced in his budget speech that the pension amount would remain unchanged, but that arrears would be settled soon. Balagopal stated that the remaining three installments of Social Security Pension arrears would be disbursed in 2025-26.

The lock-in period for withdrawing two installments of DA granted earlier will be waived this financial year. One of the six installments of DA will be given in April. A two percent discount will be given on the interest on housing loans.

The budget includes a proposal to disburse Rs 600 crore in service pension arrears in February. Furthermore, Dearness Allowance (DA) arrears will be paid in two installments by March 2025 and then consolidated into the Provident Fund.

The demand to bring back statutory pension was not considered at all. There was only an announcement that assured pension would be considered instead of contributory pension. Unified pension was promised in the last budget. The employees expected more benefits with regards to Medisep, statutory pension, leave surrender, salary revision arrears in cash, DA arrears, etc.

The Finance Minister explained that the reason for this crisis and buildup of arrears were due to the Center's cuts in tax share and the right to borrow. The minister said that the employees cooperated with the government through this phase, and assured that the rights of employees and pensioners would be protected.

Dwindling allowance arrears; still six installments

The Chief Minister had announced in the Assembly that two of the six installments of the employees' dearth allowance would be paid this year. The budget announcement says that one installment will be given. With the new DA announcement this year, even if one installment is given in April, six installments will remain due.

The salary revision arrears are 4000 crores. Even if two installments are given, it will not be received anytime soon as it is transferred to PF. There has been no talk on appointing a salary revision commission. The salary revision was implemented in 2021 with retrospective effect from 2019. According to the guidelines of salary revision once in five years, the new salary scale should have come in 2024.

The budget only says that there will be a discussion on the continuation of Medisep. There is no mention of resuming leave surrender. The earned leave has not been allowed to be surrendered for four years.