Kerala govt. asks PSUs, corporations not to announce pay revision without approval

The State government has warned public sector units, boards, and corporations not to implement pay revision without the express approval of the Finance department and the Cabinet.

The Finance department has issued an order in this regard after the government noticed that the tendency to first implement the pay revision and then seek ratification from the government persisted among these institutions. In some instances, pay revision was also being implemented without seeking the approval of the Finance department, according to the government.

The August 30 order is applicable to public sector enterprises, grant-in-aid institutions, development authorities, boards, corporations, and autonomous institutions. Heads of departments have been asked to ensure that the directive is stringently followed. Moreover, the responsibility of the decisions on pay revision taken by the governing boards of such institutions will fully lie with the Chief Executive Officers of those institutions, the Finance department said.

If and when such proposals are brought before the board of an institution, it will be the responsibility of the government representatives on that board to bring the August 30 order to the notice of the board chairman and also register their dissent, the department said.

Directive ignored

Through a January 18, 2021, circular, the State government had warned public sector enterprises, grant-in-aid institutions, development authorities, boards, corporations, and autonomous institutions not to revise the pay without its approval. It was also pointed out that since pay revision was a financial matter, the approval of the Finance department too was essential in such cases. The government has had to repeat the warning as the initial directive was being ignored.